----

----

| x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---|-----------------------------------------------------------------------------------------|

| o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---|------------------------------------------------------------------------------------------|

|   | Commission File Number 0-23530 |
|--------|--------------------------------|

|   | TRANS ENERGY, INC. |
|--------|--------------------|

|   | (Exact name of registrant 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 |
|--------|----------------------------------------------------------------------------------|

| Large accelerated filer                       | o      | Accelerated filer         | o      |
|-----------------------------------------------|--------|---------------------------|--------|
| Non-accelerated filer                         | o      | Smaller reporting company | x      |
| (Do not check if a smaller reporting company) |   |                      |   |

| Class                          | Outstanding as of November 12, 2010 |
|--------------------------------|-------------------------------------|
| Common Stock, $0.001 par value | 12,531,078                          |

|                                        |                                                                          |
|---------------------------------------------|-------------------------------------------------------------------------------|
| Heading                                     |  Page                                                                    |
|                                        |                                                                          |
|  PART I. FINANCIAL INFORMATION         |                                                                          |
|                                        |                                                                          |  3 |
|  Item 1.                               |  Financial Statements                                                    |   |
|                                        |                                                                          |   |
|                                        |  Consolidated Balance Sheets -- September 30,2010 (Unaudited) and        |  3 |
|                                        |      December 31, 2009 (Audited)                          |   |
|                                        |                                                                          |   |
|                                        |  Constolidated Statements of Operations -- Three and Nine Months Ended   |  5 |
|                                        |      September 30,2010 and 2009 (Unaudited)               |   |
|                                        |                                                                          |   |
|                                        |  Consolidated Statement of Stockholders' Equity (Deficit) -- Nine Months | 6 |
|                                        |      Ended September 30, 2010 (Unaudited)                 |   |
|                                        |                                                                          |   |
|                                        |  Consolidated Statements of Cash Flows -- Nine Months Ended              | 7 |
|                                        |    September 30, 2010 and 2009 (Unaudited)                          |   |
|                                        |                                                                          |   |
|                                        |  Notes to Consllidated Financial Statements (Unaudited)                  |  8 |
|                                        |                                                                          |   |
|  Item 2.                               |  Management’s Discussion and Analysis of Financial Condition       |   |
|                                        | And Results of Operations                                                     | 20 |
|                                        |                                                                          |
|  Item 4.                          | Controls and Procedures                                                       | 24 |
|                                        |                                                                          |
| PART II OTHER INFORMATION                   |                                                                          |
|                                        |                                                                          |
|  Item 1.                     | Legal Proceedings                                                             | 25 |
|                                        |                                                                          |
|  Item 2.      | Unregistered Sales of Equity Securities and Use of Proceeds                   | 25 |
|                                        |                                                                          |
|  Item 3.           |  Defaults Upon Senior Securities                                         | 25 |
|                                        |                                                                          |
|  Item 4                                | .(Removed and Reserved)                                                       | 25 |
|                                        |                                                                          |
|  Item 5.                          |  Other Information                                                       | 25 |
|                                        |                                                                          |
|  Item 6                                | .Exhibits                                                                     | 25 |
|                                        |                                                                          |   |
|                                        | Signatures                                                                    |  26 |

----

|  TRANS ENERGY, INC. AND SUBSIDIARIES                         |   |
|-------------------------------------------------------------------|--------|
| Consolidated Balance Sheets                                       |   |
|                                                              |   |   |   |   |   |   |
|                                                              |   | September 30, |   |   | December 31, |   |
|                                                              |   | 2010 |   |   | 2009 |   |
|                                                              |   | Unaudited |   |   | Audited |   |
| ASSETS                                                            |   |
|                                                              |   |
| CURRENT ASSETS                                                    |   |   |   |   |   |   |
|                                                              |   |   |   |   |   |   |
| Cash                                                              |   | $ | 1,296,415 |   |   | $ | 4,602,170 |   |
|    Accounts receivable,  trade                |   |   | 1,347,126 |   |   |   | 1,370,029 |   |
| Accounts receivable,  related parties                   |   |   | 18,500 |   |   |   | 18,500 |   |
| Advance Royalties                                                 |   |   | 109,381 |   |   |   | 94,381 |   |
| Accounts receivable due from non-operator, net                    |   |   | 4,063,910 |   |   |   | 687,515 |   |
| Note receivable                                                   |   |   | 135,014 |   |   |   | 289,149 |   |
| Deferred financing costs, net                                     |   |   | - |   |   |   | 105,413 |   |
| Derivative assets                                                 |   |   | 281,515 |   |   |   | 227,961 |   |
|                                                              |   |   |   |   |   |   |   |   |
| Total Current Assets                                              |   |   | 7,251,861 |   |   |   | 7,395,118 |   |
|                                                              |   |   |   |   |   |   |   |   |
| PROPERTY AND EQUIPMENT, net of accumulated depreciation           |   |   |   |   |   |   |   |   |
| of $609,931 and $469,957, respectively                            |   |   | 1,147,608 |   |   |   | 1,140,406 |   |
|                                                              |   |   |   |   |   |   |   |   |
| OIL AND GAS PROPERTIES, USING SUCCESSFUL EFFORTS ACCOUNTING       |   |   |   |   |   |   |   |   |
| Proved properties                                                 |   |   | 32,498,479 |   |   |   | 24,662,761 |   |
| Unproved properties                                               |   |   | 4,397,583 |   |   |   | 1,242,144 |   |
| Pipelines                                                         |   |   | 1,387,440 |   |   |   | 1,387,440 |   |
|    Accumulated depreciation, depletion and amortization |   |   | (6,743,280 | ) |   |   | (4,983,747 | ) |
|                                                              |   |   |   |   |   |   |   |   |
| Oil and gas properties, net                                       |   |   | 31,540,222 |   |   |   | 22,308,598 |   |
|                                                              |   |   |   |   |   |   |   |   |
| OTHER ASSETS                                                      |   |   |   |   |   |   |   |   |
|                                                              |   |   |   |   |   |   |   |   |
|    Note receivable                                      |   |   | - |   |   |   | 54,444 |   |
| Derivative assets                                                 |   |   | 42,913 |   |   |   | 166,705 |   |
| Advances to operator                                              |   |   | 9,000 |   |   |   | 9,000 |   |
| Other assets                                                      |   |   | 50,952 |   |   |   | 52,098 |   |
|                                                              |   |   |   |   |   |   |   |   |
| Total Other Assets                                                |   |   | 102,865 |   |   |   | 282,247 |   |
|                                                              |   |   |   |   |   |   |   |   |
|     TOTAL ASSETS                                   |   | $ | 40,042,556 |   |   | $ | 31,126,369 |   |
|                                                              |   |   |   |   |   |   |   |   |
|                                                              |   |

----

|    TRANS ENERGY, INC. AND SUBSIDIARIES                                                                                                                                                                                               |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| Consolidated Balance Sheets (continued)                                                                                                                                                                                                             |   |
|                                                                                                                                                                                                                                                |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                |   | September 30, |   |   | December 31, |   |
|                                                                                                                                                                                                                                                |   | 2010 |   |   | 2009 |   |
|                                                                                                                                                                                                                                                |   |  Unaudited |   |   |  Audited |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)                                                                                                                                                                                                      |   |
|                                                                                                                                                                                                                                                |   |
| CURRENT LIABILITIES                                                                                                                                                                                                                                 |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                |   |   |   |   |   |   |
| Accounts payable, trade                                                                                                                                                                                                                             |   | $ | 3,379,519 |   |   | $ | 1,483,743 |   |
| Accounts and notes payable,  related party                                                                                                                                                                                                |   |   | 2,150 |   |   |   | 581,008 |   |
| Accrued expenses                                                                                                                                                                                                                                    |   |   | 509,372 |   |   |   | 891,641 |   |
| Income tax payable                                                                                                                                                                                                                                  |   |   | 450,000 |   |   |   | - |   |
| Notes payable – current, net of unamortized discount of  $0 and $145,677, respectively                                                                                                                                              |   |   | 15,064,347 |   |   |   | 29,876,521 |   |
|                                                                                                                                                                                                                                                |   |   |   |   |   |   |   |   |
| Total Current Liabilities                                                                                                                                                                                                                           |   |   | 19,405,388 |   |   |   | 32,832,913 |   |
|                                                                                                                                                                                                                                                |   |   |   |   |   |   |   |   |
| LONG-TERM LIABILITIES                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                |   |   |   |   |   |   |   |   |
|    Notes payable                                                                                                                                                                                                                          |   |   | 31,546 |   |   |   | 66,832 |   |
| Asset retirement obligations                                                                                                                                                                                                                        |   |   | 215,200 |   |   |   | 202,366 |   |
|                                                                                                                                                                                                                                                |   |   |   |   |   |   |   |   |
| Total Long-Term Liabilities                                                                                                                                                                                                                         |   |   | 246,746 |   |   |   | 269,198 |   |
|                                                                                                                                                                                                                                                |   |   |   |   |   |   |   |   |
|  Total Liabilities                                                                                                                                                                                                                             |   |   | 19,652,134 |   |   |   | 33,102,111 |   |
|                                                                                                                                                                                                                                                |   |   |   |   |   |   |   |   |
| COMMITMENTS AND CONTINGENCIES                                                                                                                                                                                                                       |   |   | - |   |   |   | - |   |
|                                                                                                                                                                                                                                                |   |   |   |   |   |   |   |   |
| STOCKHOLDERS' EQUITY (DEFICIT)                                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                |   |   |   |   |   |   |   |   |
| 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; 12,531,078 and 11,628,027 shares issued, respectively,            and 12,529,078 and 11,626,027 shares outstanding, respectively |   |   | 12,531 |   |   |   | 11,628 |   |
| Additional paid-in capital                                                                                                                                                                                                                          |   |   | 37,717,388 |   |   |   | 36,734,675 |   |
| Treasury stock, at cost, 2,000 shares                                                                                                                                                                                                               |   |   | (1,950 | ) |   |   | (1,950 | ) |
| Accumulated deficit                                                                                                                                                                                                                                 |   |   | (17,337,547 | ) |   |   | (38,720,095 | ) |
|                                                                                                                                                                                                                                                |   |   |   |   |   |   |   |   |
| Total Stockholders' Equity (Deficit)                                                                                                                                                                                                                |   |   | 20,390,422 |   |   |   | (1,975,742 | ) |
|                                                                                                                                                                                                                                                |   |   |   |   |   |   |   |   |
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)                                                                                                                                                                                                |   | $ | 40,042,556 |   |   | $ | 31,126,369 |   |
|                                                                                                                                                                                                                                                |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                |   |

----

| TRANS ENERGY, INC. AND SUBSIDIARIES                          |
|--------------------------------------------------------------|
| Consolidated Statements of Operations                        |
| (Unaudited)                                                  |
|                                                         |   |   |   |   |   |   |   |   |
|                                                         |   |  For the Three Months Ended |   |  For the Nine Months Ended |
|                                                         |   | September 30, |   |  September 30, |
|                                                         |   | 2010 |   | 2009 |   | 2010 |   | 2009 |
|                                                         |   |   |   |   |   |   |   |   |
|  REVENUES                                               | $     2,033,236 |   | $     1,111,891 |   | $  4,643,306 |   |  $  4,148,925 |
|                                                         |   |   |   |   |   |   |   |   |
|  COSTS AND EXPENSES                                     |   |   |   |   |   |   |   |
|                                                         |   |   |   |   |   |   |   |   |
|                                                         |  Production costs | 601,853 |   | 454,479 |   | 1,799,567 |   | 1,471,862 |
|                                                         |  Depreciation, depletion, amortization and accretion | 783,143 |   | 286,363 |   | 1,926,863 |   | 1,220,908 |
|                                                         |  Selling, general and administrative | 1,258,749 |   | 722,753 |   | 2,517,724 |   | 2,129,790 |
|                                                         |   |   |   |   |   |   |   |   |
|                                                         |  Total Costs and Expenses | 2,643,745 |   | 1,463,595 |   | 6,244,154 |   | 4,822,560 |
|                                                         |   |   |   |   |   |   |   |   |
| LOSS FROM OPERATIONS                                         | (610,509) |   | (351,704) |   | (1,600,848) |   | (673,635) |
|                                                         |   |   |   |   |   |   |   |   |
|  OTHER INCOME (EXPENSES)                                |   |   |   |   |   |   |   |
|                                                         |   |   |   |   |   |   |   |   |
|                                                         |  Interest income | 2,252 |   | 13,132 |   | 12,051 |   | 27,092 |
|                                                         |  Interest expense | (182,259) |   | (614,122) |   | (1,551,237) |   |  (1,969,105) |
|                                                         |  Gain (loss) on derivative contracts | 22,000 |   | (318,971) |   | 175,796 |   | (127,504) |
|                                                         |  Gain (loss) on sale of assets | 24,796,970 |   | 522 |   | 24,796,786 |   | (1,290) |
|                                                         |   |   |   |   |   |   |   |   |
|                                                         |  Total Other Income (Expenses) | 24,638,963 |   | (919,439) |   | 23,433,396 |   | (2,070,807) |
|                                                         |   |   |   |   |   |   |   |   |
|  NET INCOME (LOSS) BEFORE INCOME TAXES                  | 24,028,454 |   | (1,271,143) |   | 21,832,548 |   | (2,744,442) |
|                                                         |   |   |   |   |   |   |   |   |
|  INCOME TAXES                                           | 450,000 |   | - |   | 450,000 |   | - |
|                                                         |   |   |   |   |   |   |   |   |
|  NET INCOME (LOSS)                                      |           $     23,578,454 |   |  $     (1,271,143) |   | $      21,382,548 |   |       $(2,744,442) |
|                                                         |   |   |   |   |   |   |   |   |
| EARNINGS (LOSS) PER SHARE – BASIC                      |  $                1.88 |   | $              (0.12) |   | $                 1.73 |   | $         (0.26) |
|                                                         |   |   |   |   |   |   |   |
| EARNINGS (LOSS) PER SHARE - DILUTED                          |  $                1.66 |   | $              (0.12) |   | $                  1.65 |   | $         (0.26) |
|                                                         |   |   |   |   |   |   |   |
| WEIGHTED AVERAGE SHARES OUTSTANDING  – BASIC | 12,531,078 |   | 10,809,065 |   | 12,383,783 |   | 10,682,897 |
|                                                         |   |   |   |   |   |   |   |
| WEIGHTED AVERAGE SHARES OUTSTANDING  –DILUTED     | 14,186,089  |   | 10,809,065 |   | 12,935,453 |   | 10,682,897  |

----

| TRANS ENERGY, INC. AND SUBSIDIAR                         |   |
|----------------------------------------------------------|--------|
| Consolidated Statement of Stockholders' Equity (Deficit) |   |
| For the Nine Months Ended September 30, 2010             |   |
| (Unaudited)                                              |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                     |   | Common Stock |   |   | Additional |   |   |   |   |   |   |   |   |   |   |
|                                                     |   |   |   |   |   |   |   | Paid in |   |   | Treasury |   |   | Accumulated |   |   |   |   |
|                                                     |   | Shares |   |   | Amount |   |   | Capital |   |   | Stock |   |   | Deficit |   |   | Total |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance, December 31, 2009                          |   |   | 11,628,027 |   |   | $ | 11,628 |   |   | $ | 36,734,675 |   |   | $ | (1,950 | )  |   | $ | (38,720,095 | ) |   | $ | (1,975,742 | )  |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Stock issued for services                           |   |   | 12,500 |   |   |   | 12 |   |   |   | 14,363 |   |   |   | - |   |   |   | - |   |   |   | 14,375 |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Stock Option Compensation Expense                   |   |   | - |   |   |   | - |   |   |   | 79,939 |   |   |   | - |   |   |   | - |   |   |   | 79,939 |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Warrants issued for outside services                |   |   | - |   |   |   | - |   |   |   | 310,444 |   |   |   | - |   |   |   | - |   |   |   | 310,444 |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Stock issued for note conversion                    |   |   | 890,551 |   |   |   | 891 |   |   |   | 577,967 |   |   |   | - |   |   |   | - |   |   |   | 578,858 |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                          |   |   | -  |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 21,382,548 |   |   |   | 21,382,548 |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance, September 30,2010                          |   |   | 12,531,078 |   |   |  $ | 12,531 |   |   | $ |  37,717,388 |   |   | $ | (1,950 | ) |   | $ | (17,337,547 | )  |   | $ | 20,390,422 |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

| TRANS ENERGY, INC. AND SUBSIDIARIES                              |   |
|------------------------------------------------------------------|--------|
| Consolidated Statements of Cash Flows                            |   |
| (Unaudited)                                                      |   |
|                                                             |   | For the Nine Months Ended |   |
|                                                             |   | September 30, |   |
|                                                             |   | 2010 |   |   | 2009 |   |
| CASH FLOWS FROM OPERATING ACTIVITIES:                            |   |   |   |   |   |   |
| Net income (loss)                                                |   | $ | 21,382,548 |   |   | $ | (2,744,442 | ) |
| Adjustments to reconcile net income (loss)                       |   |   |   |   |   |   |   |   |
| to net cash used by operating activities:                        |   |   |   |   |   |   |   |   |
| Depreciation, depletion, amortization and accretion              |   |   | 1,926,863 |   |   |   | 1,220,908 |   |
| Amortization of financing cost and debt discount                 |   |   | 251,092 |   |   |   | 405,161 |   |
| Warrants issued for outside services                             |   |   | 310,444 |   |   |   | - |   |
| Share-based compensation                                         |   |   | 94,314 |   |   |   | 902,585 |   |
| (Gain) loss on sale of assets                                    |   |   | (24,796,786 | ) |   |   | 1,290 |   |
| (Gain) loss on derivative contracts                              |   |   | (175,796 | ) |   |   | 127,504 |   |
| Changes in operating assets and liabilities:                     |   |   |   |   |   |   |   |   |
| Accounts receivable,  trade                            |   |   | 22,903 |   |   |   | (496,065 | ) |
| Accounts receivable,  related parties                  |   |   | - |   |   |   | 1,215,036 |   |
| Accounts receivable due from non-operator, net                   |   |   | (3,376,395 | ) |   |   | 557,032 |   |
| Advance royalties  and other assets                    |   |   | (13,854 | ) |   |   | (84,381 | ) |
| Accounts payable and accrued expenses                            |   |   | (1,039,954 | ) |   |   | (1,363,508 | ) |
| Income tax payable                                               |   |   | 450,000 |   |   |   | - |   |
| Net cash used by operating activities                            |   |   | (4,964,621 | ) |   |   | (258,880 | ) |
|                                                             |   |   |   |   |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES:                            |   |   |   |   |   |   |   |   |
|        Increase in note receivable |   |   | - |   |   |   | (311,440 | ) |
| Collections on note receivable                                   |   |   | 208,579 |   |   |   | 194,205 |   |
| Proceeds from sale of assets                                     |   |   | 23,501,500 |   |   |   | 13,700 |   |
| Expenditures for oil and gas properties                          |   |   | (7,153,890 | ) |   |   | (3,109,370 | ) |
| Expenditures for property and equipment                          |   |   | (150,218 | ) |   |   | (232,018 | ) |
| Net cash provided (used) by investing activities                 |   |   | 16,405,971 |   |   |   | (3,444,923 | ) |
|                                                             |   |   |   |   |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES:                            |   |   |   |   |   |   |   |   |
|    Proceeds from derivative contracts                  |   |   | 246,034 |   |   |   | 483,600 |   |
|    Proceeds from notes payable                         |   |   | 76,215 |   |   |   | 2,047,274 |   |
|    Payments on notes payable                           |   |   | (15,069,350 | ) |   |   | (77,945 | ) |
| Net cash (used) provided by financing activities                 |   |   | (14,747,105 | ) |   |   | 2,452,929 |   |
|                                                             |   |   |   |   |   |   |   |   |
| NET CHANGE IN CASH                                               |   |   | (3,305,755 | ) |   |   | (1,250,874 | ) |
|                                                             |   |   |   |   |   |   |   |   |
| CASH, BEGINNING OF PERIOD                                        |   |   | 4,602,170 |   |   |   | 1,806,008 |   |
|                                                             |   |   |   |   |   |   |   |   |
| CASH, END OF PERIOD                                              |   | $ | 1,296,415 |   |   | $ | 555,134 |   |

| SUPPLEMENTAL DISCLOSURES FOR CASH FLOW INFORMATION: |   |   |      |   |   |   |
|-----------------------------------------------------|--------|--------|-----------|--------|--------|--------|
| Cash paid for interest                              |   | $      | 1,561,848 |   |   | $      | 1,613,831 |   |
| Cash paid for income taxes                          |   | $      | -         |   |   | $      | - |   |
|                                                |   |   |      |   |   |   |   |   |
| Non-cash investing and financing activities:        |   |   |      |   |   |   |   |   |
| Accrued expenditures for oil and gas properties     |   | $      | 2,553,461 |   |   | $      | 2,439,449 |   |
| Conversion of related party debt to common stock    |   | $      | 578,858   |   |   | $      | - |   |
| Increase in asset retirement obligation             |   | $      | 3,091     |   |   | $      | 2,749 |   |

----

----

|                                                |   | 2010   |    |   | 2009   |   |
|-----------------------------------------------------|--------|--------|---------|--------|--------|--------|
|                                                |   |   |    |   |   |   |
| Asset retirement obligations at beginning of period |   | $      | 202,366 |   |   | $      | 178,954 |   |
| Liabilities incurred during the period              |   |   | 3,091   |   |   |   | 2,749 |   |
| Accretion expense                                   |   |   | 9,743   |   |   |   | 16,385 |   |
| Asset retirement obligations at end of period       |   | $      | 215,200 |   |   | $      | 198,088 |   |

----

----

| Level 1 |   | Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.                                                                                                                                                                                                                                                             |
|--------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|         |   |                                                                                                                                                                                                                                                                                                                                                                         |
| Level 2 |   | Inputs reflect quoted prices for identical assets or liabilities in markets that are not active; quoted prices for similar assets or liabilities in active markets; inputs other than quoted prices that are observable for the asset or the liability; or inputs that are derived principally from or corroborated by observable market data by correlation or other means. |
|         |   |                                                                                                                                                                                                                                                                                                                                                                         |
| Level 3 |   | Unobservable inputs reflecting Trans Energy's own assumptions incorporated in valuation techniques used to determine fair value. These assumptions are required to be consistent with market participant assumptions that are reasonably available.                                                                                                                          |

----

|                          |   |                                            As of September 30, 2010 |    |
|-------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------|
|                          |   |                                                                                                                                                                                                                                                                                                 |    |   |   |   |   | Fair Value Measurements Using: |   |
|                          |   | CarryingAmount                                                                                                                                                                                                                                                                                       |    |   | TotalFair Value |   |   | Quoted Pricesin Active Markets(Level 1) |   |   | Significant OtherObservable Inputs(Level 2) |   |   | SignificantUnobservable Inputs(Level 3) |   |
| Financial Assets:             |   |                                                                                                                                                                                                                                                                                                 |    |   |   |   |   |   |   |   |   |   |   |   |   |
|   Derivative assets |   | $                                                                                                                                                                                                                                                                                                    | 324,428 |   |   | $ | 324,428 |   |   | $ | - |   |   | $ | 324,428 |   |   | $ | - |   |

|                          |   |                                            As of December 31, 2009 |
|-------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                          |   |                                                                                                                                                                                                                                                                                                |   |   |   |   |   | Fair Value Measurements Using: |
|                          |   | CarryingAmount                                                                                                                                                                                                                                                                                      |   |   | TotalFair Value |   |   | Quoted Pricesin Active Markets(Level 1) |   |   | Significant OtherObservable Inputs(Level 2) |   |   | SignificantUnobservable Inputs(Level 3) |
| Financial Assets:             |   |                                                                                                                                                                                                                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |
|   Derivative assets |   | $                                                                                                                                                                                                                                                                                                   | 394,666 |   |   | $ | 394,666 |   |   | $ | - |   |   | $ | 394,666 |   |   | $ | - |

----

----

----

|           |           |        | Average |
|----------------|----------------|-------------|---------|
| Start          | End            | Volume      | Floor   |
| Month          | Month          | MMBTU/Month | $/MMBTU |
| Oct. ‘10 | Dec. ‘10 | 5,560       | $ 7.350 |
| Jan. ‘11 | Dec. ‘11 | 5,244       | $ 7.350 |

| Start          | End            | Volume    | Floor | Ceiling |
|----------------|----------------|-----------|-------|---------|
| Month          | Month          | BBL/Month | $/BBL | $/BBL   |
| Oct. ‘10 | Dec. ‘10 | 488       | $100  | $172    |
| Jan. ‘11 | Dec. ‘11 | 449       | $100  | $172    |

----

----

----

----

|                                                           |   | For the nine months ended |       |
|----------------------------------------------------------------|--------|---------------------------|------------|
|                                                           |   | September 30,             |       |
|                                                           |   | 2010                      |       |   | 2009 |   |
|                                                           |   |                      |       |   |   |   |
|  Weighted average number of common shares outstanding     |   |                      |       |   |   |   |
|  used in the basic earnings per common share calculations |   |                      | 12,383,783 |   |   |   | 10,682,897 |   |
|                                                           |   |                      |       |   |   |   |   |   |
|  Dilutive effect of stock options                         |   |                      | 548,399    |   |   |   | - |   |
|                                                           |   |                      |       |   |   |   |   |   |
|  Dilutive effect of warrants                              |   |                      | 3,271      |   |   |   | - |   |
|                                                           |   |                      |       |   |   |   |   |   |
|  Weighted average number of common shares outstanding     |   |                      |       |   |   |   |   |   |
|  adjusted for effective of dilutive options and warrants  |   |                      | 12,935,453 |   |   |   | 10,682,897 |   |

|                                                           |   | For the three months ended |       |
|----------------------------------------------------------------|--------|----------------------------|------------|
|                                                           |   | September 30,              |       |
|                                                           |   | 2010                       |       |   | 2009 |   |
|                                                           |   |                       |       |   |   |   |
|  Weighted average number of common shares outstanding     |   |                       |       |   |   |   |
|  used in the basic earnings per common share calculations |   |                       | 12,531,078 |   |   |   | 10,809,065 |   |
|                                                           |   |                       |       |   |   |   |   |   |
|  Dilutive effect of stock options                         |   |                       | 1,645,196  |   |   |   | - |   |
|                                                           |   |                       |       |   |   |   |   |   |
|  Dilutive effect of warrants                              |   |                       | 9,815      |   |   |   | - |   |
|                                                           |   |                       |       |   |   |   |   |   |
|  Weighted average number of common shares outstanding     |   |                       |       |   |   |   |   |   |
|  adjusted for effective of dilutive options and warrants  |   |                       | 14,186,089 |   |   |   | 10,809,065 |   |

----

|                       |  For the Three Months Ended |   |                   |      |   |                  |   |     |      |   |   |       |   |
|----------------------------|----------------------------------|--------|------------------------|-----------|--------|-----------------------|--------|----------|-----------|--------|--------|------------|--------|
|                       | September  30,         |   | Oil and Gas Sales |      |   | Pipeline Transmission |   |     | Corporate |   |   | Total      |   |
|                       |                             |   |                   |      |   |                  |   |     |      |   |   |       |   |
| Revenue                    | 2010                             |   | $                      | 1,966,747 |   |                  | $      | 59,147   |      |   | $      | 7,342      |   |   | $ | 2,033,236 |   |
|                       | 2009                             |   |                   | 1,053,006 |   |                  |   | 51,004   |      |   |   | 7,881      |   |   |   | 1,111,891 |   |
|                       |                             |   |                   |      |   |                  |   |     |      |   |   |       |   |   |   |   |   |
| Income (loss) from         | 2010                             |   |                   | 700,063   |   |                  |   | (59,207  | )         |   |   | (1,251,365 | )      |   |   | (610,509 | ) |
| operations                 | 2009                             |   |                   | 546,119   |   |                  |   | (182,399 | )         |   |   | (715,424   | )      |   |   | (351,704 | ) |
|                       |                             |   |                   |      |   |                  |   |     |      |   |   |       |   |   |   |   |   |
| Interest expense           | 2010                             |   |                   | 182,259   |   |                  |   | --       |      |   |   | --         |   |   |   | 182,259 |   |
|                       | 2009                             |   |                   | 614,122   |   |                  |   | --       |      |   |   | --         |   |   |   | 614,122 |   |
|                       |                             |   |                   |      |   |                  |   |     |      |   |   |       |   |   |   |   |   |
| Depreciation, depletion,   | 2010                             |   |                   | 780,434   |   |                  |   | 2,709    |      |   |   | --         |   |   |   | 783,143 |   |
| amortization and accretion | 2009                             |   |                   | 245,732   |   |                  |   | 40,631   |      |   |   | --         |   |   |   | 286,363 |   |
|                       |                             |   |                   |      |   |                  |   |     |      |   |   |       |   |   |   |   |   |
| Property and equipment     | 2010                             |   |                   | 4,146,239 |   |                  |   | --       |      |   |   | --         |   |   |   | 4,146,239 |   |
| acquisitions, including    | 2009                             |   |                   | 444,386   |   |                  |   | --       |      |   |   | --         |   |   |   | 444,386 |   |
| oil and gas properties     |                             |   |                   |      |   |                  |   |     |      |   |   |       |   |   |   |   |   |

|                       |                             |   |                   |      |   |                  |   |     |      |   |
|----------------------------|----------------------------------|--------|------------------------|-----------|--------|-----------------------|--------|----------|-----------|--------|
|                       |   For the Nine Months Ended |   |                   |      |   |                  |   |     |      |   |   |   |   |
|                       | September  30,         |   | Oil and Gas Sales |      |   | Pipeline Transmission |   |     | Corporate |   |   | Total |   |
|                       |                             |   |                   |      |   |                  |   |     |      |   |   |   |   |
| Revenue                    | 2010                             |   | $                      | 4,338,966 |   |                  | $      | 241,013  |      |   | $ | 63,327 |   |   | $ | 4,643,306 |   |
|                       | 2009                             |   |                   | 3,809,546 |   |                  |   | 329,306  |      |   |   | 10,073 |   |   |   | 4,148,925 |   |
|                       |                             |   |                   |      |   |                  |   |     |      |   |   |   |   |   |   |   |   |
| Income (loss) from         | 2010                             |   |                   | 1.057,614 |   |                  |   | (200,384 | )         |   |   | (2,458,078 | ) |   |   | (1,600,848 | ) |
| operations                 | 2009                             |   |                   | 1,847,477 |   |                  |   | (402,685 | )         |   |   | (2,118,427 | ) |   |   | (673,635 | ) |
|                       |                             |   |                   |      |   |                  |   |     |      |   |   |   |   |   |   |   |   |
| Interest expense           | 2010                             |   |                   | 1,551,237 |   |                  |   | --       |      |   |   | -- |   |   |   | 1,551,237 |   |
|                       | 2009                             |   |                   | 1,969,105 |   |                  |   | --       |      |   |   | -- |   |   |   | 1,969,105 |   |
|                       |                             |   |                   |      |   |                  |   |     |      |   |   |   |   |   |   |   |   |
| Depreciation, depletion,   | 2010                             |   |                   | 1,918,738 |   |                  |   | 8,125    |      |   |   | -- |   |   |   | 1,926,863 |   |
| amortization and accretion | 2009                             |   |                   | 1,101,121 |   |                  |   | 119,787  |      |   |   | -- |   |   |   | 1,220,908 |   |
|                       |                             |   |                   |      |   |                  |   |     |      |   |   |   |   |   |   |   |   |
| Property and equipment     | 2010                             |   |                   | 9,857,569 |   |                  |   | --       |      |   |   | -- |   |   |   | 9,857,569 |   |
| acquisitions, including    | 2009                             |   |                   | 5,747,551 |   |                  |   | 30,307   |      |   |   | -- |   |   |   | 5,777,858 |   |
| oil and gas properties     |                             |   |                   |      |   |                  |   |     |      |   |   |   |   |   |   |   |   |

| Total assets, net of intercompany accounts: |   |   |       |   |   |   |    |   |   |   |
|---------------------------------------------|--------|--------|------------|--------|--------|--------|---------|--------|--------|--------|
| September 30, 2010                          |   | $      | 39,600,458 |   |   | $      | 442,098 |   |   | $      | -- |   |   | $ | 40,042,556 |   |
| December 31, 2009                           |   | $      | 30,554,379 |   |   | $      | 571,990 |   |   | $      | -- |   |   | $ | 31,126,369 |   |

----

|                          |   | Three Months Ended |   |
|-------------------------------|--------|--------------------|--------|
|                          |   | September 30,      |   |
|                          |   | 2010               |   |   | 2009 |   |
|                          |   |               |   |   |   |   |
| Total revenues                |   |               | 100    | % |   |   | 100 | % |
| Total costs and expenses      |   |               | (130   | %) |   |   | (132 | %) |
| Loss from operations          |   |               | (30    | %) |   |   | (32 | %) |
| Total other income (expenses) |   |               | 1,189  | % |   |   | (82 | %) |
| Net income (loss)             |   |               | 1,159  | % |   |   | (114 | %) |

----

|                          |   | Nine Months Ended |   |
|-------------------------------|--------|-------------------|--------|
|                          |   | September 30,     |   |
|                          |   | 2010              |   |   | 2009 |   |
|                          |   |              |   |   |   |   |
| Total revenues                |   |              | 100    | % |   |   | 100 | % |
| Total costs and expenses      |   |              | (134   | %) |   |   | (116 | %) |
| Loss from operations          |   |              | (34    | %) |   |   | (16 | %) |
| Total other income (expenses) |   |              | 495    | % |   |   | (50 | %) |
| Net income (loss)             |   |              | 461    | % |   |   | (66 | %) |

----

----

----

| ·   | the ability to continue as a going concern; |
|--------------------|---------------------------------------------|

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

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

| ·   | success of our drilling activities; |
|--------------------|-------------------------------------|

| ·   | production volumes; |
|--------------------|---------------------|

| ·   | realized natural gas and oil prices; |
|--------------------|--------------------------------------|

| ·   | volatility of the stock market, particularly within the energy sector; and |
|--------------------|----------------------------------------------------------------------------|

| ·   | general economic conditions. |
|--------------------|------------------------------|

----

|   | Exhibit 31.1 | Certification of Principal Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
|--------|--------------|---------------------------------------------------------------------------------------------------------|

----

|   | Exhibit 31.2 | Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
|--------|--------------|-----------------------------------------------------------------------------------------------------|

|   | Exhibit 32.1 | Certification of Principal Executive Officer 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 Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
|--------|--------------|----------------------------------------------------------------------------------------------------------------------------------------------------|

|                               | TRANS ENERGY, INC.                                                                                                                                                                                                                                                                                                                                                                                                                           |
|------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                               |                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| Date:  November 15, 2010 | By  /S/  JOHN G. CORP                                                                                                                      |
|                               | JOHN G. CORP                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|                               | Principal Executive Officer                                                                                                                                                                                                                                                                                                                                                                                                                  |
|                               |                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|                               |                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| Date: November 15, 2010            | By  /S/  LISA A. CORBITT                                                                 |
|                               | LISA A. CORBITT                                                                                                                                                                                                                                                                                                                                                                                                                              |
|                               | Chief Financial Officer                                                                                                                                                                                                                                                                                                                                                                                                                      |
|                               |                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|                               |                                                                                                                                                                                                                                                                                                                                                                                                                                         |

----

----