UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-QSB

[X]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
     ACT OF 1934

                      For the Quarter Ended March 31, 2007

                                       OR

[ ]  TRANSITION  REPORT  PURSUANT  TO  SECTION  13 OR  15(d)  OF THE  SECURITIES
     EXCHANGE ACT OF 1934

                        For the transition period from to

                         Commission File Number 0-23530

                               TRANS ENERGY, INC.
        -----------------------------------------------------------------
        (Exact name of small business issuer as specified in its charter)

              Nevada                                          93-0997412
---------------------------------                         -------------------
  (State or other jurisdiction                             (I.R.S. Employer
of incorporation or organization)                         Identification No.)


         210 Second Street, P.O. Box 393, St. Marys, West Virginia 26170
                    (Address of principal executive offices)

         Registrant's telephone no., including area code: (304) 684-7053

     Check  whether  the issuer (1) filed all  reports  required  to be filed by
Section 13 or 15(d) of the  Securities  Exchange  Act of 1934 during the past 12
months (or for such shorter period that the registrant was required to file such
reports),  and (2) has been subject to such filing  requirements for the past 90
days. Yes [X] No [ ]

     Indicate  by check mark  whether  the  registrant  is a shell  company  (as
defined by Rule 12b-2) of the Exchange Act. Yes [ ] No [X]

     State the number of shares  outstanding of each of the issuer's  classes of
common equity, as of the latest practicable date.

           Class                                Outstanding as of March 31, 2007
------------------------------------            --------------------------------
Common Stock, $.001 par value                             9,450,565


Transitional Small Business Disclosure Format (Check one):  Yes [ ]  No [X]



<PAGE>

<TABLE>
<CAPTION>

                                               Table of Contents

Heading                                                                                                 Page
-------                                                                                                 ----

PART I.  FINANCIAL INFORMATION

<S>              <C>                                                                                    <C>
Item 1.           Financial Statements...................................................................3

                  Consolidated Balance Sheets - March 31, 2007 and
                      December 31, 2006 (Unaudited)......................................................4

                  Consolidated Statements of Operations - three months ended
                      March 31, 2007 and 2006 (Unaudited)................................................6

                  Consolidated Statements of Stockholders' Equity - three months ended
                      March 31, 2007 (Unaudited).........................................................7

                  Consolidated Statements of Cash Flows - three months ended
                      March 31, 2007 and 2006 (Unaudited)................................................8

                  Notes to Consolidated Financial Statements (Unaudited).................................9


Item 2.           Management's Discussion and Analysis or Plan of Operation.............................12

Item 3.           Controls and Procedures...............................................................15

PART II  OTHER INFORMATION

Item 1.           Legal Proceedings.....................................................................16

Item 2.           Unregistered Sales of Equity Securities and Use of Proceeds...........................16

Item 3.           Defaults Upon Senior Securities.......................................................16

Item 4.           Submission of Matters to a Vote of Securities Holders.................................16

Item 5.           Other Information.....................................................................17

Item 6.           Exhibits..............................................................................17

                  Signatures............................................................................18
</TABLE>
                                                    -2-
<PAGE>



                                     PART I

Item 1.       Financial Statements

     The accompanying consolidated balance sheets of Trans Energy, Inc. at March
31, 2007 and December 31, 2006,  related  unaudited  consolidated  statements of
operations, stockholders' equity and cash flows for the three months ended March
31, 2007 and 2006,  have been  prepared by our  management  in  conformity  with
accounting principles generally accepted in the United States of America. In the
opinion  of  management,   all  adjustments  considered  necessary  for  a  fair
presentation  of  the  consolidated   results  of  operations  and  consolidated
financial  position have been included and all such  adjustments are of a normal
recurring nature. Operating results for the quarter ended March 31, 2007 are not
necessarily  indicative  of the results that can be expected for the fiscal year
ending December 31, 2007.


                                      -3-

<PAGE>
<TABLE>
<CAPTION>

                                                   TRANS ENERGY, INC.
                                               Consolidated Balance Sheets
                                                       (Unaudited)


                                                                                        March 31,           December 31,
                                                                                          2007                 2006
                                                                                       -----------          -----------
                                                         ASSETS
CURRENT ASSETS
<S>                                                                                    <C>                  <C>
      Cash                                                                             $   251,905          $   208,815
      Accounts Receivable, net of allowance for doubtful
           accounts of $25,076 and $25,076, respectively                                   215,995              275,272
      Accounts Receivable, related parties                                                 588,000              569,600
      Prepaid Expenses                                                                       1,875               22,500
                                                                                       -----------          -----------

      Total Current Assets                                                               1,057,775            1,076,187
                                                                                       -----------          -----------

PROPERTY AND EQUIPMENT, net of accumulated depreciation
           of $99,934 and $84,510, respectively                                            489,611              490,753
                                                                                       -----------          -----------

OIL AND GAS PROPERTIES, USING SUCCESSFUL EFFORTS ACCOUNTING

      Proved Properties                                                                  4,156,821            4,816,138
      Unproved Properties                                                                  162,955               10,156
      Pipelines                                                                          1,392,648            1,392,648
      Accumulated depreciation, depletion
        and amortization                                                                (1,614,717)          (1,569,997)
                                                                                       -----------          -----------

      Net oil and gas properties                                                         4,097,707            4,648,945
                                                                                       -----------          -----------

OTHER ASSETS                                                                                99,193               35,524
                                                                                       -----------          -----------

      TOTAL ASSETS                                                                     $ 5,744,286          $ 6,251,409
                                                                                       ===========          ===========

</TABLE>
See notes to consolidated financial statements.

                                                          -4-
<PAGE>

<TABLE>
<CAPTION>

                                                   TRANS ENERGY, INC.
                                               Consolidated Balance Sheets
                                                       (Unaudited)


                                                                                      March 31,            December 31,
                                                                                        2007                   2006
                                                                                    ------------           ------------
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
<S>                                                                                 <C>                    <C>
      Accounts Payable, trade                                                       $  1,152,715           $  1,165,846
      Related Party Payables                                                             229,303                237,347
      Accrued Expenses                                                                   363,368                357,781
      Judgments Payable                                                                     --                  118,046
      Notes Payable - Related Parties                                                    276,984                549,739
      Notes Payable - Current Portion                                                  1,008,375              1,258,381
                                                                                    ------------           ------------

      Total Current Liabilities                                                        3,030,745              3,687,140
                                                                                    ------------           ------------

LONG-TERM LIABILITIES

      Notes Payable, net                                                               2,259,999              1,663,509
      Asset Retirement Obligation                                                        189,973                190,364
                                                                                    ------------           ------------

      Total Long - Term Liabilities                                                    2,449,972              1,853,873
                                                                                    ------------           ------------

           Total Liabilities                                                           5,480,717              5,541,013
                                                                                    ------------           ------------

STOCKHOLDERS' EQUITY

      Preferred stock; 10,000,000 shares authorized
           at $0.001 par value; -0- shares issued
           and outstanding                                                                  --                     --
      Common stock; 500,000,000 shares authorized
           at $0.001 par value; 9,450,565 shares
           issued and outstanding                                                          9,451                  9,451
      Additional paid-in capital                                                      33,858,448             33,727,680
      Accumulated deficit                                                            (33,604,330)           (33,026,735)
                                                                                    ------------           ------------

      Total Stockholders' Equity                                                         263,569                710,396
                                                                                    ------------           ------------

      TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                                    $  5,744,286           $  6,251,409
                                                                                    ============           ============
</TABLE>

See notes to consolidated financial statements.

                                                          -5-
<PAGE>

<TABLE>
<CAPTION>

                               TRANS ENERGY, INC. AND SUBSIDIARIES
                              Consolidated Statements of Operations
                                           (Unaudited)

                                                              For the Three Months Ended
                                                                      March 31,
                                                             2007                    2006
                                                         -----------             -----------
<S>                                                      <C>                     <C>
REVENUES                                                 $   285,520             $   329,721
                                                         -----------             -----------

COSTS AND EXPENSES

      Production Costs                                       108,934                 137,806
      Depreciation, Depletion, and Amortization               68,495                 139,750
      Exploration Costs                                      138,750                    --
      Selling, General and Administrative                    494,306                 193,598
                                                         -----------             -----------

      Total Opeerating Expenses                              810,485                 471,154
                                                         -----------             -----------

LOSS FROM OPERATIONS                                        (524,965)               (141,433)
                                                         -----------             -----------

OTHER INCOME (EXPENSE)

      Gain on Extinguishment of Debt                          45,783                    --
      Interest Expense                                       (98,412)                (31,370)
                                                         -----------             -----------

      Total Other Income (Expense)                          (52,629)                (31,370)
                                                         -----------             -----------

LOSS FROM CONTINUING OPERATIONS
      BEFORE INCOME TAXES                                   (577,594)               (172,803)

INCOME TAXES                                                    --                      --
                                                         -----------             -----------

LOSS FROM CONTINUING OPERATIONS                             (577,594)               (172,803)
INCOME FROM DISCONTINUED OPERATIONS                             --                   183,776
LOSS FROM DISPOSAL OF DISCONTINUED OPERATIONS                   --                (1,866,082)
                                                         -----------             -----------

NET (LOSS)                                               $  (577,594)            $(1,855,109)
                                                         ===========             ===========

LOSS PER SHARE - BASIC AND DILUTED

      Continuing Operations                              $     (0.06)            $     (0.04)
      Discontinued Operations                                   --                     (0.36)
                                                         -----------             -----------

      Total                                              $     (0.06)            $     (0.40)
                                                         ===========             ===========
BASIC AND DILUTED WEIGHTED AVERAGE NUMBER
OF COMMON SHARES OUTSTANDING                               9,450,565               4,707,515
                                                         ===========             ===========
</TABLE>

See notes to consolidated financial statements.

                                                          -6-
<PAGE>

<TABLE>
<CAPTION>

                                           TRANS ENERGY, INC. AND SUBSIDIARIES
                                     Consolidated Statement of Stockholders' Equity
                                            Three months ended March 31, 2007
                                                       (Unaudited)



                                                  Common Stock
                                          ----------------------------    Additional
                                                                            Paid in       Accumulated
                                             Shares          Amount         Capital          Deficit          Total
                                          ------------    ------------    ------------    ------------     ------------

<S>                                          <C>          <C>             <C>             <C>              <C>
Balance, December 31,2006                    9,450,565    $      9,451    $ 33,727,680    $(33,026,736)    $    710,395

Value of options granted                          --              --           130,768            --            130,768

Net loss for the three months
     ended March 31, 2007                         --              --              --          (577,594)        (577,594)
                                          ------------    ------------    ------------    ------------     ------------

Balance, March 31, 2007                      9,450,565    $      9,451    $ 33,858,448    (33,604,330)    $     263,569
                                          ============    ============    ============    ============     ============
</TABLE>

See notes to consolidated financial statements.

                                                          -7-
<PAGE>

<TABLE>
<CAPTION>

                                           TRANS ENERGY, INC. AND SUBSIDIARIES
                                          Consolidated Statements of Cash Flows
                                                       (Unaudited)

                                                                                           For the Three Months Ended
                                                                                                   March 31,
                                                                                           2007                 2006
                                                                                       -----------          -----------
CASH FLOWS FROM OPERATING ACTIVITIES:
<S>                                                                                    <C>                  <C>
      Net Loss                                                                         $  (577,594)         $(1,855,109)
      Adjustments to reconcile net loss
         to net cash from operating activities:
           Depreciation, depletion and amortization                                         68,495              139,750
           Share-based compensation                                                        130,768                 --
           Gain on debt extinguishment                                                     (45,783)                --
           Accretion expense                                                                 3,353                 --
      Changes in operating assets and liabilities:
           Accounts receivable                                                              40,877              169,545
           Prepaid and other assets                                                        (44,375)               1,563
           Accounts payable                                                                 32,652              127,535
           Related party payables                                                           (8,045)                --
           Accrued expenses                                                               (112,458)              23,212
                                                                                       -----------          -----------

              Net cash provided (used) in operating activities
              Continuing operations                                                       (512,110)          (1,393,504)
              Discontinued operations                                                         --              1,430,606
                                                                                       -----------          -----------
              Net cash provided (used) in operating activities                            (512,110)              37,102
                                                                                       -----------          -----------

CASH FLOWS FROM INVESTING ACTIVITIES:

      Proceeds from sale of oil and gas properties                                         667,001                 --
      Expenditures for oil and gas properties                                             (164,226)                --
      Expenditures for property and equipment                                              (21,204)             (18,705)
                                                                                       -----------          -----------

           Net cash provided (used) in investing activities                                481,571              (18,705)
                                                                                       -----------          -----------

CASH FLOWS FROM FINANCING ACTIVITIES:

      Proceeds from notes payable                                                          374,380               14,540
      Payments on notes payable                                                            (27,896)             (22,092)
      Loan fees paid                                                                          (100)                --
      Payments on related party debt                                                      (272,755)              (5,431)
                                                                                       -----------          -----------


           Net cash provided (used) by financing activities                                 73,629              (12,983)
                                                                                       -----------          -----------

NET INCREASE (DECREASE) IN CASH                                                             43,090                5,414

CASH, BEGINNING OF PERIOD                                                                  208,815              439,258
                                                                                       -----------          -----------

CASH, END OF PERIOD                                                                    $   251,905          $   444,672
                                                                                       ===========          ===========

CASH PAID FOR:
      Interest                                                                         $    95,060          $    18,915
                                                                                       ===========          ===========
      Income taxes                                                                     $      --            $      --
                                                                                       ===========          ===========
</TABLE>


See notes to consolidated financial statements.

                                                          -8-
<PAGE>



                       TRANS ENERGY, INC. AND SUBSIDIARIES
                   Notes to Consolidated Financial Statements
                                   (Unaudited)

NOTE 1 - BASIS OF FINANCIAL STATEMENT PRESENTATION

         The accompanying  unaudited  interim condensed  consolidated  financial
         statements  have been  prepared by Trans Energy,  Inc.  pursuant to the
         rules  and  regulations  of the  Securities  and  Exchange  Commission.
         Certain  information  and  footnote  disclosures  normally  included in
         financial statements prepared in accordance with accounting  principles
         generally  accepted in the United States of America have been condensed
         or  omitted  in  accordance  with  such  rules  and  regulations.   The
         information furnished in the interim condensed  consolidated  financial
         statements  includes  normal  recurring  adjustments  and  reflects all
         adjustments,  which, in the opinion of management,  are necessary for a
         fair  presentation of such financial  statements.  Although  management
         believes the disclosures and information presented are adequate to make
         the  information  not  misleading,  it is suggested  that these interim
         condensed consolidated financial statements be read in conjunction with
         Trans  Energy's  most recent  audited  financial  statements  and notes
         thereto included in its December 31, 2006 Annual Report on Form 10-KSB.
         Operating  results  for the three  months  ended March 31, 2007 are not
         necessarily indicative of the results that may be expected for the year
         ending December 31, 2007.

NOTE 2 - GOING CONCERN

         Trans  Energy's  unaudited  interim  condensed  consolidated  financial
         statements are prepared using accounting  principles generally accepted
         in the United  States of America  applicable  to a going  concern which
         contemplates  the  realization of assets and liquidation of liabilities
         in the normal course of business.  Trans Energy has incurred cumulative
         operating  losses  through  March  31,  2007 of  $33,604,330  and has a
         working capital deficit at March 31, 2007 of $1,927,970.  Revenues have
         not been  sufficient  to cover its  operating  costs and to allow it to
         continue as a going  concern.  The potential  proceeds from the sale of
         common stock, sale of drilling  programs,  and other  contemplated debt
         and equity  financing,  and  increases in operating  revenues  from new
         development  and  business  acquisitions  would  enable Trans Energy to
         continue  as a going  concern.  There can be no  assurance  that  Trans
         Energy can or will be able to  complete  any debt or equity  financing.
         Trans  Energy's  consolidated  financial  statements do not include any
         adjustments that might result from the outcome of this uncertainty.

NOTE 3 - CONTINGENCIES AND COMMITMENTS

         On July 28, 1999, Core  Laboratories,  Inc. obtained a judgment against
         Trans Energy for  non-payment  of an account  payable.  As of March 31,
         2007, Trans Energy has satisfied this obligation in full.

         On July 1, 1998, RR Donnelly  obtained a judgment  against Trans Energy
         for non-payment of accounts payable. As of March 31, 2007, Trans Energy
         has satisfied this obligation in full.

         We may be engaged in  various  other  lawsuits  and  claims,  either as
         plaintiff  or  defendant,  in the  normal  course of  business.  In the
         opinion of  management,  based upon  advice of  counsel,  the  ultimate
         outcome  of  these  lawsuits  will not have a  material  impact  on our
         financial position or results of operations.

                                      -9-
<PAGE>

                       TRANS ENERGY, INC. AND SUBSIDIARIES
                   Notes to Consolidated Financial Statements
                                   (Unaudited)

NOTE 4 - SIGNIFICANT EVENTS

         Effective   January  9,  2007,  Trans  Energy  completed  the  sale  to
         Leatherwood  Inc.  for net cash  proceeds of $667,001 of six oil and/or
         gas wells located in West  Virginia.  Trans Energy  assigned all of its
         right,  title,  operating  rights and interest  including  the absolute
         right to produce, operate and maintain the wells.

         Effective  January 10, 2007,  Trans Energy  acquired from National Gulf
         Production,  Inc. 75% of National  Gulf's rights and interest in and to
         certain  oil  and gas  leases  covering  the  oil and gas in and  under
         certain tracts of land containing  approximately 3,120 acres located in
         Trego  County,  Kansas  for  cash of  $146,250.  In  addition,  cash of
         $138,750  was paid in advance  for our  proportionate  75% share of the
         seismic  acquisition,  processing and  interpretation  cost,  which was
         subsequently  expensed.  Total cash paid  during the  quarter  for this
         transaction was $285,000.

         Effective February 7, 2007, Trans Energy entered into an agreement with
         P.D.  Farr to purchase all rights,  title and interests in the 384 acre
         Ezra  Hays  Lease  in  West  Virginia  including  oil  and  gas  wells,
         associated well equipment,  interest in the natural gas sales pipeline,
         all rights to Dominion Gas sales meter and all pertinent  rights-of-way
         for  $138,000.  On  December  16,  2006,  Trans  Energy paid the sum of
         $10,000 as a down  payment to be applied  against the  purchase  price,
         with the unpaid balance of $128,000 due in installments,  to be paid in
         full by July 10, 2007. During the quarter ended March 31, 2007, $15,000
         in cash payments had been made and the unpaid balance at March 31, 2007
         was $113,000.

NOTE 5 - RELATED PARTIES

         Marketing Agreement - Sancho

         Natural gas delivered  through Trans Energy's  pipeline network is sold
         either  to  Sancho  Oil  and  Gas  Corporation  ("Sancho");  a  company
         controlled by the Vice  President of Trans  Energy,  to Dominion Gas, a
         local  utility,  on an on-going basis at a variable price per month per
         Mcf.

         Under its  contract  with  Sancho,  Trans  Energy has the right to sell
         natural gas subject to the terms and conditions of a 20-year  contract,
         as amended,  that Sancho  entered into with Dominion Gas in 1988.  This
         agreement is a flexible  volume supply  agreement  whereby Trans Energy
         receives the full price which Sancho  charges the end user less a $0.05
         per Mcf marketing fee paid to Sancho.

NOTE 6 -NOTES PAYABLE

         On January 10,  2007,  Trans Energy  repaid a short term related  party
         note, dated September 11, 2006, bearing interest at the rate of 10% per
         annum, with cash in the amount of $270,000 plus accrued interest, for a
         total paid of $278,951.

         Trans Energy  maintains a credit  facility  that provides for aggregate
         borrowings of $3,000,000 of which funds are designated for our workover
         program in Wetzel County, West Virginia, and is secured by those wells.
         Any borrowings  under this facility will bear interest at 7.5%.  During
         the quarter  ended March 31,  2007,  Trans Energy  received  additional
         borrowings in the amount of $360,000, leaving an unused credit facility
         of $2,187,745.

                                      -10-
<PAGE>

                       TRANS ENERGY, INC. AND SUBSIDIARIES
                   Notes to Consolidated Financial Statements
                                   (Unaudited)

NOTE 7 - BUSINESS SEGMENTS

         The Company  conducts its  operations  principally as oil and gas sales
         with Trans Energy and Prima Oil Company, and pipeline transmission with
         Ritchie County Gathering Systems and Tyler Construction Company.

         Certain  financial  information  concerning our operations in different
         industries is as follows:

                                         For the
                                      Quarter Ended   Oil and Gas    Pipeline
                                        March 31,        Sales     Transmission
                                      -------------   -----------  -------------
Oil and gas revenue                       2007        $  215,366    $   70,154
                                          2006           245,747        83,974

Loss from operations applicable           2007           325,329       199,636
to industry segment                       2006           117,160        24,273

Interest Expense                          2007            91,825         6,587
                                          2006            31,003           367

Gain on extinguishment of debt            2007            45,783          --
                                          2006              --            --

Assets (net of intercompany accounts)     2007         5,030,925       713,361
                                          2006         2,516,498     1,458,499

Depreciation, depletion and               2007            61,735         6,760
  amortization                            2006           136,490         3,260


Property and equipment                    2007           181,930         3,500
acquisitions                              2006            18,705          --




                                      -11-
<PAGE>


Item 2.           Management's Discussion and Analysis or Plan of Operation

Recent Developments

         Sale of Leatherwood Assets
         --------------------------

         On January 9, 2007 Trans Energy, Inc. completed the assignment for cash
of $667,001 to Leatherwood,  Inc., a Pennsylvania corporation, of six oil and/or
gas wells located in Mannington  District,  Marion County,  West  Virginia.  The
assigned wells are designated as follows:  O.N. Koen No. 1, Moffett No. 2, Simon
Moore No. 3, Simon Moore No. 1, Simon Moore No. 2 and W.T. Morris No. 2.

         Trans Energy  assigned all of its right,  title,  operating  rights and
interest in and to the  aforementioned  wells,  including the absolute  right to
produce,  operate  and  maintain  the  wells.  The  assignment  is by  good  and
sufficient  general  warranty  assignment,  free  and  clear  of all  liens  and
encumbrances  and includes the entire working  interest,  all wells,  equipment,
personal property,  gathering and distribution  pipelines and other fixtures and
improvements located on the property.

         Leatherwood  becomes responsible for the plugging and abandoning of the
acquired  wells,  as  necessary,  and for any  reclamation  of the  lands  after
plugging and abandoning  operations  are completed.  All plugging and abandoning
operations will be done in accordance with the applicable  rules and regulations
of the State of West Virginia or other jurisdictional authorities.

         Upon  effectiveness  of the  assignment of the lease,  all  production,
revenue,  costs,  expenses and other  liabilities  attributable  to the assigned
wells  will  belong  to  Leatherwood.  For a period  of one year  following  the
effective date,  Trans Energy will have the right, at its sole cost and expense,
to permit and drill one or more oil and gas wells located on tow of the assigned
properties.

         Purchase of Acreage in Kansas
         -----------------------------

         On  January  10,  2007,   Trans  Energy  acquired  from  National  Gulf
Production,  Inc. of Giddings, Texas, 75% of National Gulf's rights and interest
in and to  certain  oil and gas  leases  covering  the oil and gas in and  under
certain  tracts of land  containing  approximately  3,120 acres located in Trego
county,  Kansas.  National  Gulf  originally  acquired the leases  pursuant to a
farmout agreement with Wevco Production,  Inc. In connection with the agreement,
Trans  Energy and  National  Gulf will  acquire  certain 3-D seismic data on the
subject leases.

         In consideration for the leases Trans Energy paid its proportionate 75%
of the farmout fee for cash of $146,250. In addition,  cash of $138,750 was paid
in  advance  for  our  proportionate  75%  share  of  the  seismic  acquisition,
processing and interpretation cost, which was subsequently expensed.  Total cash
paid during the quarter for this transaction was $285,000.

         The lease has a reservation by Wevco of an overriding  royalty interest
of 3.5% and the right, but not the obligation, to participate up to 25% at cost,
in the wells drilled by National  Gulf and Trans  Energy.  There will also be an
overriding royalty interest of 1% to the Project  Geophysicist and National Gulf
will retain an overriding  royalty  interest of 2%,  resulting in an 81% working
interest. National Gulf will also earn a 6.15% carried working interest.

         Upon  completion of each well capable of commercial  production,  Trans
Energy will be entitled to receive an assignment of its  proportionate  share of
the 20 acre producing  unit, or other unit size as may be directed or allowed by
the State.  This assignment will be made without  warranty of title,  express or
implied.

         From the date of the agreement Trans Energy and National Gulf will have
one year to drill the first  well and will  also have an option  for six  months


                                      -12-
<PAGE>

after  completion of any well to drill another well, until all drillable 20 acre
units in the leases are drilled.  In the event Trans Energy and National Gulf do
not drill the first  well  within  one year,  or do not drill  subsequent  wells
within the  prescribed six month periods,  then this agreement  terminates  with
respect to all undrilled areas,  unless such failure to perform is due to an act
of God,  labor  disputes,  riots,  or any other cause  beyond the control of the
parties.  In such an event,  the required  time to perform would be extended for
the period of the interruption.

         Trans  Energy and National  Gulf will enter into a mutually  acceptable
participation  and  operating  agreement,  whereby  National  Gulf  will  be the
Operator and will drill and operate the wells that are drilled on the leases.

Results of Operations

         The following  table sets forth the  percentage  relationship  to total
revenues  of  principal  items  contained  in  our  consolidated  statements  of
operations  for the three month period ended March 31, 2007 and 2006.  It should
be noted that  percentages  discussed  throughout this analysis are stated on an
approximate basis.

                                                      Three Months Ended
                                                            March 31,
                                                      2007           2006
                                                           (Unaudited)
                                                           -----------

Total revenues...................................     100%           100%
Total costs and expenses.........................     286            146
Loss from operations ............................    (186)           (46)
Other income (expense)...........................     (18)            (8)
Discontinued operations..........................     -0-           (520)
Net loss.........................................    (204)          (574)


         Total revenues from continuing  operations for the three months ("first
quarter")  ended March 31, 2007  decreased  15% compared to the first quarter of
2006,  primarily due to decreased  production  and lower oil and gas prices,  as
well as the sale of the Wyoming  wells.  We have focused our efforts  during the
first  quarter  of 2007 on a  workover  program  on our wells  located in Wetzel
County,  West  Virginia.  We expect  production  to increase  from this workover
program during the second quarter of 2007.

         Similarly,  depreciation,  depletion  and  amortization  and  accretion
expense  decreased  30% due to the lower  production  levels  from our  existing
wells, as well as the increase in proved reserves at December 31, 2006.

         Our loss from  operations  for the first  quarter of 2007 was  $577,594
compared to a loss of $172,803  for the first  quarter of 2006.  The increase is
related  to higher  general  and  administrative  expenses  due to the hiring of
additional  employees  and the  seismic  acquisition  in  Kansas,  as well as an
increase in expenses related to the workover program.

         Our net loss for the first  quarter of 2007 was $577,594  compared to a
loss of  $1,855,109  for the first  quarter  of 2006.  We  recorded  a loss from
discontinued operations in 2006 of $1,682,306 due to the disposal of Arvilla.

         For the  remainder  of fiscal year 2007,  management  expects  selling,
general and administrative  expenses to remain at approximately the same rate as
the first  quarter of 2007.  The cost of oil and gas  produced  is  expected  to
fluctuate  with  the  amount  produced  and  with  prices  of oil and  gas,  and
management anticipates that revenues are likely to increase during the remainder
of 2007. We do not expect to recognize a gain from the sale of properties during
the remainder of 2007.

                                      -13-
<PAGE>

Liquidity and Capital Resources

         Historically,   we  have  satisfied  our  working  capital  needs  with
operating  revenues and from borrowed funds. At March 31, 2007, we had a working
capital  deficit of  $1,972,970  compared to a deficit of $2,610,953 at December
31, 2006. This 24% decrease in working  capital deficit is primarily  attributed
to the sale of wells in Marion County from which we realized cash of $667,001.

         During the first three months of 2007,  operating  activities  used net
cash of $512,110 compared to net cash provided of $37,102 for the same period of
2006. This increased  negative cash flow is primarily  attributable to decreased
revenues  and our  decision  to pay off the  outstanding  judgments,  as well as
increased  expenses related to the workover program and the seismic  acquisition
in Kansas.

         Net cash provided by investing activities for the first three months of
2007 was  $481,571.  $185,430  of cash was used for the  purchase of oil and gas
properties  and  equipment  and cash of $667,001 was  received  from the sale of
wells compared to net cash used of $18,705 to purchase equipment in 2006.

         During the first three  months of 2007,  we were  provided  net cash in
financing activities of $73,629 compared to net cash used of $12,983 in the same
period of 2006.  In 2007,  we  borrowed  $374,380  and repaid  $300,651 in notes
payable.

We  anticipate  meeting our working  capital  needs during the  remainder of the
current fiscal year with revenues from our ongoing operations, particularly from
our wells in Wetzel, Marion and Doddridge Counties,  West Virginia and new third
party natural gas wells drilled in West Virginia, which gas goes into our 6-inch
pipeline.  In the event revenues are not sufficient to meet our working  capital
needs,  we will explore the  possibility  of additional  funding from either the
sale of debt or equity  securities.  There can be no assurance such funding will
be  available  to us or, if  available,  it will be on  acceptable  or favorable
terms. In addition,  we have an available credit facility of $2,187,745 which we
plan to use to complete our workover program on our wells in Wetzel County, West
Virginia.

         As of March 31,  2007,  we had total  assets  of  $5,744,286  and total
stockholders'  equity of $263,569  compared to total  assets of  $6,251,409  and
total  stockholders'  equity of $710,396 at December 31,  2006.  The decrease in
total  assets  was  primarily  due to the sale of wells in  Marion  County.  The
decrease in  stockholders'  equity was due to the  operating  losses  during the
quarter.

         Because  we  have  incurred  significant  cumulative  operating  losses
through March 31, 2007 and have a working  capital  deficit at March 31, 2007 of
$1,972,970,  there exists  substantial  doubt about our ability to continue as a
going  concern.  Historically,  our revenues  have not been  sufficient to cover
operating costs.  However,  we may potentially need to rely on proceeds from the
sale of common stock, debt or equity financing, and increased operating revenues
from new  developments to allow us to continue as a going concern.  There can be
no  assurance  that  we can or  will be able  to  complete  any  debt or  equity
financing.

         We included a footnote to our financial statements for the period ended
December 31, 2006 stating that because of our continued losses,  working capital
deficit,  and need for  additional  funding,  there is  substantial  doubt as to
whether we can continue as a going concern.

Inflation

         In the  opinion  of our  management,  inflation  has not had a material
effect on our operations.

                                      -14-
<PAGE>

Forward-looking and Cautionary Statements

         This report includes "forward-looking statements" within the meaning of
Section 27A of the  Securities  Act of 1933,  and Section 21E of the  Securities
Exchange  Act of 1934.  These  forward-looking  statements  may  relate  to such
matters as  anticipated  financial  performance,  future  revenues or  earnings,
business prospects,  projected ventures, new products and services,  anticipated
market  performance  and similar  matters.  When used in this report,  the words
"may,"  "will,"  "expect,"  "anticipate,"   "continue,"  "estimate,"  "project,"
"intend,"  and similar  expressions  are  intended  to identify  forward-looking
statements  regarding events,  conditions,  and financial trends that may affect
our future plans of operations,  business strategy,  operating results,  and our
future plans of operations,  business strategy, operating results, and financial
position.  We caution  readers that a variety of factors  could cause our actual
results to differ  materially  from the  anticipated  results  or other  matters
expressed in forward-looking statements. These risks and uncertainties,  many of
which are beyond our control, include:

     o   the sufficiency of existing capital  resources and our ability to raise
         additional capital to fund cash requirements for future operations;

     o   uncertainties  involved  in the  rate of  growth  of our  business  and
         acceptance of any products or services;

     o   volatility of the stock market,  particularly within the energy sector;
         and

     o   general economic conditions.

         Although we believe the expectations reflected in these forward-looking
statements are reasonable,  such  expectations  cannot guarantee future results,
levels of activity, performance or achievements.

Item 3.           Controls and Procedures

         We maintain  disclosure controls and procedures that are designed to be
effective in providing  reasonable  assurance  that  information  required to be
disclosed in our reports under the Securities  Exchange Act of 1934 is recorded,
processed,  summarized  and reported  within the time  periods  specified in the
rules  and  forms of the SEC,  and that  such  information  is  accumulated  and
communicated  to our  management to allow timely  decisions  regarding  required
disclosure.

         In  designing  and  evaluating   disclosure  controls  and  procedures,
management  recognizes  that any  controls  and  procedures,  no matter how well
designed and operated,  can provide only reasonable,  not absolute  assurance of
achieving  the desired  objectives.  Also,  the design of a control  system must
reflect  the fact that  there  are  resource  constraints  and the  benefits  of
controls  must be  considered  relative to their costs.  Because of the inherent
limitations  in all control  systems,  no  evaluation  of  controls  can provide
absolute  assurance that all control issues and instances of fraud, if any, have
been detected.  These inherent  limitations include the realities that judgments
in decision-making can be faulty and that breakdowns can occur because of simple
error or mistake.  The design of any system of controls is based,  in part, upon
certain  assumptions  about the  likelihood of future events and there can be no
assurance  that any design will succeed in achieving  its stated goals under all
potential future conditions.

         As of the end of the period  covered by this report,  we carried out an
evaluation,  under the  supervision  and with the  participation  of management,
including our chief executive officer and principal  financial  officer,  of the
effectiveness  of the  design  and  operation  of our  disclosure  controls  and
procedures  as defined in Rules  13a-15(e)  and  15d-15(e) of the Exchange  Act.
Based upon that evaluation,  management  concluded that our disclosure  controls
and procedures are effective to cause the  information  required to be disclosed
by us in reports  that we file or submit  under the  Exchange  Act is  recorded,
processed, summarized and reported within the time periods prescribed by SEC,


                                      -15-
<PAGE>

and that  such  information  is  accumulated  and  communicated  to  management,
including  our chief  executive  officer and  principal  financial  officer,  as
appropriate, to allow timely decisions regarding required disclosure.

         There was no change in our internal  controls over financial  reporting
identified in connection with the requisite  evaluation that occurred during our
last fiscal quarter that has  materially  affected,  or is reasonably  likely to
materially affect, our internal control over financial reporting.


                                     PART II

Item 1.           Legal Proceedings

         Information  concerning  certain material pending legal  proceedings to
which we are a party,  or to which any of our property is subject,  is set forth
below:

         On September  22, 2000,  Tioga  Lumber  Company  obtained a judgment of
$43,300 plus interest in the Circuit Court of Pleasants  County,  West Virginia,
against Tyler construction Company for breach of contract. On February 28, 2002,
we  reached a  negotiated  payment  schedule  with  Tioga  and made the  initial
payment.  We  believe  that we have  satisfied  the  balance  owed to  Tioga  of
$26,233.58,  although the judgment has not yet been released.  We are proceeding
to secure the release of the judgment.

         On July 28, 1999, Core  Laboratories,  Inc. obtained a judgment against
the  company for  non-payment  of an account  payable.  At March 31,  2007,  the
Company has satisfied this obligation in full.

         On July 1, 1998,  RR Donnelly  obtained a judgment  against the Company
for  non-payment  of  accounts  payable.  At March 31,  2007,  the  Company  has
satisfied this obligation in full.

         We may be engaged in  various  other  lawsuits  and  claims,  either as
plaintiff or  defendant,  in the normal  course of  business.  In the opinion of
management, based upon advice of counsel, the ultimate outcome of these lawsuits
will  not have a  material  impact  on our  financial  position  or  results  of
operations.


Item 2.           Unregistered Sales of Equity Securities and Use of Proceeds

None.


Item 3.           Defaults Upon Senior Securities

None.


Item 4.           Submission of Matters to a Vote of Security Holders

No matters were submitted to a vote of our  securities  holders during the first
quarter ended March 31, 2007.

                                      -16-
<PAGE>


Item 5.           Other Information

         The  following  reports  were filed with the SEC on Form 8-K during the
tree month period ended March 31, 2007.

         January 9, 2007 - reporting   under   Item  2.01  the   completion   of
                           disposition of certain wells in Marion  County,  West
                           Virginia.


Item 6.           Exhibits

         Exhibit 31.1      Certification  of C.E.O.  Pursuant  to Section 302 of
                           the Sarbanes-Oxley Act of 2002.

         Exhibit 31.2      Certification   of   Principal   Accounting   Officer
                           Pursuant to Section 302 of the  Sarbanes-Oxley Act of
                           2002.

         Exhibit  32.1     Certification of C.E.O. Pursuant to 18 U.S.C. Section
                           1350,  as  Adopted  Pursuant  to  Section  906 of the
                           Sarbanes-Oxley Act of 2002.

         Exhibit 32.2      Certification   of   Principal   Accounting   Officer
                           Pursuant  to  18  U.S.C.  Section  1350,  as  Adopted
                           Pursuant to Section 906 of the  Sarbanes-Oxley Act of
                           2002.




                                      -17-
<PAGE>

                                   SIGNATURES

         In accordance with the  requirements of the Securities  Exchange Act of
1934,  the  Registrant  caused  this  report to be  signed on its  behalf by the
undersigned, thereunto duly authorized.

                                    TRANS ENERGY, INC.

Date:  May 15, 2007                 By  /S/  JAMES K. ABCOUWER
                                        ----------------------------------------
                                    JAMES K. ABCOUWER
                                    Chief Executive Officer and Director


Date:  May 15, 2007                 By  /S/  LISA A. CORBITT
                                        ----------------------------------------
                                    LISA A. CORBITT
                                    Controller, Principal Financial Officer
                                    (Principal Accounting Officer)


                                      -18-