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, 1997

                                    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 of         (I.R.S. Employer
      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       

                   APPLICABLE ONLY TO CORPORATE ISSUERS

     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 April 30, 1997
Common Stock, $.001 par value                        3,849,043


                             TABLE OF CONTENTS

Heading                                                   Page
                      PART I.  FINANCIAL INFORMATION

Item 1.   Financial Statements . . . . . . . . . . . . .    1

          Consolidated Balance Sheets -- March 31,
          1997 and December 31, 1996 . . . . . . . . . .    2

          Consolidated Statements of Operations -- three
          months ended March 31, 1997 and 1996 . . . . .    4

          Consolidated Statements of Stockholders'
          Equity . . . . . . . . . . . . . . . . . . . .    6

          Consolidated Statements of Cash Flows -- 
          three months ended March 31, 1997 and 1996 . .    7

          Notes to Consolidated Financial Statements . .    9

Item 2.   Management's Discussion and Analysis and 
          Results of Operations. . . . . . . . . . . . .   10

                        PART II. OTHER INFORMATION

Item 1.   Legal Proceedings. . . . . . . . . . . . . . .   12

Item 2.   Changes In Securities. . . . . . . . . . . . .   12

Item 3.   Defaults Upon Senior Securities. . . . . . . .   13

Item 4.   Submission of Matters to a Vote of
          Securities Holders . . . . . . . . . . . . . .   13

Item 5.   Other Information. . . . . . . . . . . . . . .   13

Item 6.   Exhibits and Reports on Form 8-K . . . . . . .   13

          SIGNATURES . . . . . . . . . . . . . . . . . .   14
       





                                    -i-
<PAGE>

                                  PART I

Item 1.   Financial Statements

     The following unaudited Consolidated Financial Statements for
the period ended March 31, 1997 and December 31, 1996, have been
prepared by the Company.











                            TRANS ENERGY, INC.

                     CONSOLIDATED FINANCIAL STATEMENTS

                   March 31, 1997 and December 31, 1996
<PAGE>

                            TRANS ENERGY, INC.
                        Consolidated Balance Sheets


                                  ASSETS

                                        March 31,    December 31,  
                                           1997          1996          
                                       (Unaudited)   
CURRENT ASSETS

  Cash                                  $1,187,038  $  481,846    
  Accounts receivable                      157,844     235,757 
  Prepaid                                   59,601      59,601 

     Total Current Assets                1,404,483     777,204 

PROPERTY AND EQUIPMENT

  Office equipment                             318        -      
  Vehicles                                  48,382      44,552 
  Machinery and equipment                   62,206      62,206 
  Pipeline                               2,192,001   2,192,001 
  Well equipment                           374,972     358,471 
  Wells                                  3,214,527   3,177,416 
  Leasehold acreage                        263,500     263,500 
  Accumulated depreciation              (1,401,470) (1,381,129)

     Total Fixed Assets                  4,754,436   4,717,017 

OTHER ASSETS

  Loan acquisition costs                   222,959       6,122 

     Total Other Assets                    222,959       6,122 

     TOTAL ASSETS                       $6,381,878  $5,500,343 
<PAGE>

                            TRANS ENERGY, INC.
                  Consolidated Balance Sheets (Continued)


                   LIABILITIES AND STOCKHOLDERS' EQUITY


                                        March 31,   December 31,     
                                           1997        1996                 
                                        (Unaudited)  
CURRENT LIABILITIES

  Accounts payable - trade              $  582,710  $  685,711 
  Accrued expenses                          20,231      29,385 
  Notes payable - current portion          605,250     645,348     

     Total Current Liabilities           1,208,191   1,360,444 

NET LIABILITIES IN EXCESS OF ASSETS OF
 DISCONTINUED OPERATIONS                   602,074     668,717 

LONG-TERM LIABILITIES

  Convertible debt (Note 2)              1,430,000        -      
  Advances from related parties            296,611     605,190 
  Notes payable                            646,246     646,246 

     Total Long-Term Liabilities         2,372,857   1,251,436 

     Total Liabilities                   4,183,122   3,280,597 

COMMITMENTS AND CONTINGENCIES                 -           -      

MINORITY INTERESTS                            -           -      

STOCKHOLDERS' EQUITY 

  Common Stock:  30,000,000 shares 
   authorized at $0.001 par value; 
   3,824,043 shares issued and 
   outstanding                               3,824       3,824 
  Capital in excess of par value         8,926,633   8,926,633 
  Accumulated deficit                   (6,731,701) (6,710,711)

     Total Stockholders' Equity          2,198,756   2,219,746 

     TOTAL LIABILITIES AND STOCKHOLDERS' 
      EQUITY                            $6,381,878  $5,500,343     
<PAGE>

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

                                           For the Three Months    
                                              Ended March 31,         
                                              1997      1996         
REVENUES

  Oil and gas sales                         $270,716  $279,020 

    Total Revenues                           270,716   279,020 

COSTS AND EXPENSES

  Cost of oil and gas                         91,170   174,629 
  Salaries and wages                          30,751    28,376 
  Depreciation and amortization               33,564    34,668 
  Selling, general and administrative        101,551    78,989 

    Total Costs and Expenses                 257,036   316,662 

     Net Income (Loss) from Operations        13,680   (37,642)

OTHER INCOME (EXPENSE)

  Interest income                              1,645      -      
  Interest expense                           (36,315) (155,224)

    Total Other Income (Expense)             (34,670) (155,224)

NET INCOME (LOSS) BEFORE INCOME
 TAXES AND MINORITY INTERESTS AND
 EXTRAORDINARY INCOME (LOSS)                 (20,990) (192,866)

INCOME TAXES                                    -         -      

NET INCOME (LOSS) BEFORE MINORITY
 INTERESTS AND EXTRAORDINARY INCOME (LOSS)   (20,990) (192,866)

MINORITY INTERESTS                              -       15,960 

NET INCOME (LOSS) BEFORE
 EXTRAORDINARY INCOME (LOSS) AND
 DISCONTINUED OPERATIONS                     (20,990) (176,906)

LOSS FROM DISCONTINUED OPERATIONS               -     (195,611)

NET INCOME (LOSS) BEFORE EXTRAORDINARY
 INCOME (LOSS)                               (20,990) (372,517)
<PAGE>

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

                                           For the Three Months  
                                              Ended March 31,    
                                            1997          1996         

EXTRAORDINARY INCOME (LOSS)

  Forgiveness of debt                     $    -       $  20,000 
  Early payoff of debt                         -         (10,444)

     TOTAL EXTRAORDINARY INCOME (LOSS)         -           9,556 

NET INCOME (LOSS)                         $ (20,990)   $(362,961)

PRIMARY EARNINGS (LOSS) PER SHARE

NET INCOME (LOSS) BEFORE
 EXTRAORDINARY INCOME                     $   (0.01)   $   (0.11)

EXTRAORDINARY INCOME                           -             NIL

NET INCOME (LOSS)                         $   (0.01)   $   (0.11)

FULLY DILUTED EARNINGS
 (LOSS) PER SHARE

NET INCOME (LOSS) BEFORE
 EXTRAORDINARY INCOME                     $   (0.00)   $   (0.11)

EXTRAORDINARY INCOME                           -             NIL

NET INCOME (LOSS)                         $   (0.00)   $   (0.11)
<PAGE>

                             TRANS ENERGY, INC.
              Consolidated Statements of Stockholders' Equity

                                                        Capital in
                                      Common Shares      Excess of  Accumulated
                                   Shares      Amount    Par Value    Deficit

Balance, December 31, 1995       3,174,122   $   3,174  $5,629,734  $(3,071,721)

Common stock issued for
 debenture at $0.90 per share       55,555          56      49,944         - 

Common stock issued for
 services at $2.67 per share         9,000           9      23,991         - 

Common stock warrants issued          -           -        774,000         -  

Cancellation of common stock
 options issued services              -           -       (275,000)        -  

Shareholder loans contributed
 to capital                           -           -        250,000         - 

Issuance of common stock for
 cash at $5.36 per share           585,366         585   3,137,415         -  

Common stock offering costs           -           -       (663,451)        - 

Net loss for the year ended
 December 31, 1996                    -           -           -      (3,638,990)

Balance, December 31, 1996       3,824,043       3,824   8,926,633   (6,710,711)

Net loss for the three months
 ended March 31, 1997 (Unaudited)     -           -           -         (20,990)

Balance, March 31, 1997
 (Unaudited)                     3,824,043    $  3,824  $8,926,633  $(6,731,701)
<PAGE>

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

                                                 For the Three Months   
                                                    Ended March 31,      
                                                     1997      1996       

CASH FLOWS FROM OPERATING ACTIVITIES:

  Net income (loss)                               $(20,990) $(362,961)
  Adjustments to Reconcile Net Income to Cash
   Provided by Operating Activities:
    Depreciation, depletion and amortization        33,564   163,948 
    Minority interest                                 -      (15,960)
    Common stock issued for services                  -       24,000 
  Changes in Operating Assets and Liabilities:
    Decrease (increase) in accounts receivable      77,913   (91,047)
    Decrease (increase) in inventory                  -      (24,805)
    Decrease (increase) in deposits                   -         (136)
    Decrease (increase) in loan acquisition costs     -      (19,413)
    Increase (decrease) in accounts payable
      and accrued expenses                        (103,001)  179,453 
    Increase (decrease) in interest payable         (9,154)  (13,357)

      Cash Provided (Used) by Operating Activities (21,668) (160,278)

CASH FLOWS FROM INVESTING ACTIVITIES:

  Expenditures for property and equipment          (70,520)  (22,732)

     Cash Provided (Used) by Investing Activities $(70,520) $(22,732)
<PAGE>

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

                                                   For the Three Months  
                                                      Ended March 31,     
                                                    1997          1996         

CASH FLOWS FROM FINANCING ACTIVITIES:

  Borrowings of long-term debt                  $ 1,212,700  $  337,379  
  Repayment to related parties                     (308,579)       (438)
  Borrowings from related parties                      -         38,415 
  Principal payments on long-term debt             (106,741)   (154,325)

      Cash Provided (Used) by Financing Activities  797,380     221,031 

NET INCREASE (DECREASE) IN CASH                     705,192      38,021 

CASH AND CASH EQUIVALENTS,
  BEGINNING OF PERIOD                               481,846        -      

CASH AND CASH EQUIVALENTS,
  END OF PERIOD                                 $ 1,187,038  $   38,021     

CASH PAID FOR:

  Interest                                      $    36,315  $   75,717 
  Income taxes                                  $      -     $     -      

NON-CASH FINANCING ACTIVITIES:

  Common stock issued for services              $      -     $   24,000 
  Conversion of debentures to equity            $      -     $   50,000 
  Warrants issued for loan acquisition costs    $      -     $  774,000 
<PAGE>

                              TRANS ENERGY, INC.
               Notes to the Consolidated Financial Statements 
                     March 31, 1997 and December 31, 1996


NOTE 1 - CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

       The accompanying consolidated financial statements have been
       prepared by the Company without audit.  In the opinion of
       management, all adjustments (which include only normal recurring
       adjustments) necessary to present fairly the financial position,
       results of operations and cash flows at March 31, 1997 and for
       all periods presented have been made.

       Certain information and footnote disclosures normally included
       in consolidated financial statements prepared in accordance with
       general accepted accounting principles have been condensed or
       omitted.  It is suggested that these condensed consolidated
       financial statements be read in conjunction with the financial
       statements and notes thereto included in the Company's December
       31, 1996 audited consolidated financial statements.  The results
       of operations for the periods ended March 31, 1997 and 1996 are
       not necessarily indicative of the operating results for the full
       year.

NOTE 2 - CONVERTIBLE DEBENTURES

       In March 1997, the Company completed an offering of $1,430,000
       of convertible debentures.  The Company received net proceeds of
       $1,212,700 after the costs of the offering.  The costs of the
       offering will be amortized over the life of the loan.  The
       convertible debentures bear interest at 8% per annum, payable on
       a prorata basis at the earlier of the conversion date or the
       maturity date (March 25, 2000).  The convertible debentures are
       convertible to common stock at the lesser of 80% of the 5 day
       average daily closing bid price for the 5 trading days
       immediately preceding the closing date or 75% of the 5 day
       average daily closing bid price for the 5 trading days
       immediately preceding the applicable conversion date.  The
       debentures are subject to a mandatory 36 months conversion
       feature at the end of which all debentures outstanding will be
       automatically converted upon the terms above.
<PAGE>

Item 2.  Management's Discussion and Analysis of Financial
         Condition and Results of Operations

    The following table sets forth the percentage relationship to
total revenues of principal items contained in the Company's
Consolidated Statements of Operations for the three month periods
ended March 31, 1997 and 1996.  It should be noted that percentages
discussed throughout this analysis are stated on an approximate
basis.
                                                Three Months Ended
                                                    March 31,     
                                               1997          1996 
                                                   (Unaudited)
     Total revenues. . . . . . . . . . . .      100%         100%
     Total costs and expenses. . . . . .         95          113 
     Other income (expense). . . . . . . .      (13)         (56)
     Net (loss) before income taxes, 
      minority interest and extraordinary
      income (loss). . . . . . . . . . . .       (8)         (69)
     Income taxes. . . . . . . . . . . . .        -            - 
     Minority interest . . . . . . . . . .        -            6 
     Net (loss) before extraordinary 
      income and discontinued operations .       (8)         (63)
     Loss from discontinued Operations . .        -          (70)
     Extraordinary income. . . . . . . . .        -            3 
     Net income (loss) . . . . . . . . . .       (8)        (130)
                              
Results of Operations

    Total revenues for the three months ended March 31, 1997
("first quarter of 1997") decreased 3% when compared with the three
months ended March 31, 1996 ("first quarter of 1996").  This
decrease is attributed to the Company's decision not to purchase
gas from its suppliers at a price higher than management believed
it could profitably resell the gas, and was partially offset by
higher volumes of oil and gas produced from Company-owned  wells. 
Total costs and expenses as a percentage of total revenues
decreased from 113% in the first quarter of 1996 to 95% for the
first quarter of 1997, and actual costs and expenses for the first
quarter of 1997 decreased 19% compared to the 1996 period.  This
decrease is primarily attributed to the 48% decrease in cost of oil
and gas produced due to the Company's decision not to purchase
higher-priced gas from its suppliers.  Salaries and wages increased
$2,375 (8%) to $30,7551 in the first quarter of 1997 compared to
the first quarter of 1996.  Depreciation and depletion decreased
$1,104 (3%) to $33,564 in the first quarter of 1997 compared to the
first quarter of 1996.  Selling, general and administrative
expenses increased $22,562 (29%) to $101,551 in the first quarter
of 1997 compared to the first quarter of 1996.  Interest expense
decreased $118,909 (77%) to $36,315 for the first quarter of 1997
due to decreased borrowings and the 1996 issuance of additional
shares of common stock to Debenture holders for consideration for
extending the due date of the debentures. 

    The Company's minority interests changed from $15,960 for the
first quarter of 1996 to $0 for the first quarter of 1997.  The
Company's net loss for the first quarter of 1997 was $20,990
compared to $372,517 for the first quarter of 1996.  This decrease
in the Company's net loss is attributed primarily to the 77%
decrease in interest expense and the discontinued operations of
Vulcan Energy Corporation as of December 31, 1996

    For the remainder of fiscal year 1997, management expects
salaries and wages to increase and other general and administrative
expenses to remain at approximately the same rate as for the first
quarter of 1997.  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 1997.

Net Operating Losses

    The Company has accumulated approximately $6,731,701 of net
operating loss carryforwards as of March 31, 1997, which may be
offset against future taxable income through the year 2011 when the
carryforwards expire.  The use of these losses to reduce future
income taxes will depend on the generation of sufficient taxable
income prior to the expiration of the net operating loss
carryforwards.  In the event of certain changes in control of the
Company, there will be an annual limitation on the amount of net
operating loss carryforwards which can be used.  No tax benefit has
been reported in the financial statements for the period ended
March 31, 1997 because the potential tax benefits of the loss
carryforward is offset by valuation allowance of the same amount.

Liquidity and Capital Resources

    Historically, the Company's working capital needs have been
satisfied through its operating revenues and from borrowed funds. 
Working capital at March 31, 1997 of $196,292 increased from a
negative $583,240 at December 31, 1996.  This change is primarily
attributed to the increase in cash from $481,846 at December 31,
1996 to $1,187,038 at March 31, 1997.  The increase in cash is due
to the Company realizing $1,430,000 from the issuance of
convertible debentures and was partially offset by a reduction in
accounts receivable from $235,757 to $157,844.  The Company
anticipates meeting its working capital needs during the remainder
of the current fiscal year with revenues from operations.

    As of March 31, 1997, the Company had total assets of
$6,381,878 and total stockholders' equity of $2,198,756, compared
to total assets of $5,500,343 and total stockholders' equity of
$2,219,746 at December 31, 1996.  This represents a $881,535
(16%)increase in total assets and a $20,990 (1%) increase in total
stockholders equity for the period.  For this same period, cash
increased from $481,846 to $1,187,038 and total current assets
increased 81% due to increased cash.  Total current liabilities
decreased 11%  primarily attributed to a decrease in the Company's
accounts payable.

    At March 31, 1997, the Company's current portion of its long
term debt was $605,250.  In 1996, certain outstanding convertible
debentures having a face value of $50,000 plus accrued interest
were converted into common stock.  The Company currently
anticipates that it will be able to provide for its debt
obligations and repayments coming due during the remainder of 1997
from operating revenues generated by the Company.

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

Risk Factors and Cautionary Statements

    Forward-looking statements in this report are made pursuant to
the "safe harbor" provisions of the Private Securities Litigation
Reform Act of 1995.  The Company wishes to advise readers that
actual results may differ substantially from such forward-looking
statements.  Forward-looking statements involve risks and
uncertainties that could cause actual results to differ materially
from those expressed in or implied by the statements, including,
but not limited to, the following: the ability of the Company to
provide for its debt obligations and to provide for working capital
needs from operating revenues, and other risks detailed in the
Company's periodic report filings with the Securities and Exchange
Commission. 

                                  PART II

Item 1.  Legal Proceedings

    There are no material pending legal proceedings to which the
Company is a party or to which any of its property is subject
except as set forth below.

    On December 30, 1996, a complaint entitled R&K Oil Company,
Inc. vs. Trans Energy, Inc. was filed in the United States District
Court, Western District of Texas, Midland/Odessa Division
(# MO96CA197).  The complaint alleges that the Company owes R&K Oil
Company, Inc. $131, 978 as a result of business transacted by the
Company's subsidiary, Vulcan Energy Corporation.  Management
believes that the results of the proceedings will not have a
material adverse effect on the Company.

    On March 12, 1997, a complaint entitled F. Worthy Walker vs.
Loren Bagley, William Woodburn, Mark Woodburn, Trans Energy, Inc.
and Vulcan Energy Corporation, was filed in the District Court of
Dallas, Texas (# 9702304C).  The complaint alleges that the Company
breached certain contracts related to Mr. Walkers employment with
Vulcan Energy Corporation, and seeks punitive and exemplary
damages.  The Company denies all allegations.  Management believes
that the results of the proceedings will not have a material
adverse effect on the Company.

Item 2.  Changes In Securities

    This Item is not applicable to the Company.

Item 3.  Defaults Upon Senior Securities

    This Item is not applicable to the Company.

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

    This Item is not applicable to the Company.

Item 5.  Other Information

    This Item is not applicable to the Company.

Item 6.  Exhibits and Reports on Form 8-K

    (b)  Reports on Form 8-K

    On April 16, 1997, the Company filed a report on Form 8-K
disclosing the sale of 8% Cumulative Convertible Debentures due
March 25, 2000 in reliance upon the exemption from registration
provided by Rules 901 through 904, inclusive ("Regulation S"),
under the Securities Act of 1933, as amended.
<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 23, 1997                    By   Loren E. Bagley             
                                             (Signature)   
                                       LOREN E. BAGLEY, President
                                       and Chief Executive Officer
                                       (Chief Financial Officer)




Date:  May 23, 1997                    By   William F. Woodburn          
                                               (Signature)
                                       William F. Woodburn, Vice
                                       President and Director
                                       (Principal Accounting Officer)