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, 2005

                                       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 March 31, 2005
------------------------------                --------------------------------
 Common Stock, $.001 par value                           4,815,098


<PAGE>

<TABLE>
<CAPTION>

                                TABLE OF CONTENTS

Heading                                                                                                   Page
-------                                                                                                   ----
                          PART I. FINANCIAL INFORMATION

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

                  Consolidated Balance Sheets - March 31, 2005 (Unaudited) and
                    December 31, 2004................................................................       4

                  Consolidated Statements of Operations - three months ended
                     March 31, 2005 and 2004 (Unaudited).............................................       6

                  Consolidated Statements of Stockholders' Equity (Deficit)..........................       7

                  Consolidated Statements of Cash Flows - three months ended
                     March 31, 2005 and 2004 (Unaudited).............................................       8

                  Notes to Unaudited Condensed Consolidated Financial Statements ....................      10

Item 2.      Management's Discussion and Analysis and Results of Operations..........................      18

Item 3.      Controls and Procedures.................................................................      20

                           PART II. OTHER INFORMATION

Item 1.      Legal Proceedings.......................................................................      20

Item 2.      Unregistered Sales of Equity Securities and Use of Proceeds.............................      21

Item 3.      Defaults Upon Senior Securities.........................................................      21

Item 4.      Submission of Matters to a Vote of Securities Holders...................................      21

Item 5.      Other Information.......................................................................      22

Item 6.      Exhibits and Reports on Form 8-K........................................................      22

             Signatures..............................................................................      23
</TABLE>



<PAGE>


                                     PART I

Item 1.       Financial Statements

     The accompanying  consolidated balance sheet of Trans Energy, Inc. at March
31, 2005  (unaudited)  and December 31, 2004,  related  unaudited  statements of
operations,  stockholders'  equity (deficit) and cash flows for the consolidated
three months ended March 31, 2005 and 2004, have been prepared by our management
in conformity with accounting principles generally accepted in the United States
of America. In the opinion of management,  all adjustments  considered necessary
for  a  fair  presentation  of  the  consolidated   results  of  operations  and
consolidated  financial position have been included and all such adjustments are
of a normal recurring nature.  Operating results for the quarter ended March 31,
2005, are not necessarily indicative of the results that can be expected for the
fiscal year ending December 31, 2005.






                               TRANS ENERGY, INC.
                                 AND SUBSIDARIES

                        CONSOLIDATED FINANCIAL STATEMENTS

                      March 31, 2005 and December 31, 2004









<PAGE>
<TABLE>
<CAPTION>
                       TRANS ENERGY, INC. AND SUBSIDIARIES
                           Consolidated Balance Sheets

                                     ASSETS

                                                                      March 31,    December 31,
                                                                        2005          2004
                                                                   -----------     -----------
                                                                    (Unaudited)
CURRENT ASSETS
<S>                                                                <C>             <C>
   Cash                                                            $   164,204     $    79,662
   Accounts receivable, net                                          1,811,473         653,917
   Other receivables                                                    53,420           8,825
   Prepaid expenses                                                     85,131           1,223
                                                                   -----------     -----------

     Total Current Assets                                            2,114,228         743,627
                                                                   -----------     -----------

PROPERTY AND EQUIPMENT, NET                                          8,665,050       3,372,599
                                                                   -----------     -----------

OTHER ASSETS
   Bonds                                                                50,159          50,159
   Prepaid loan costs                                                   19,810            --
   Deposits                                                             16,268           1,400
   Customer lists                                                      766,649            --
   Life insurance, cash surrender value                                 67,726          66,326
                                                                   -----------     -----------

     Total Other Assets                                                920,612         117,885
                                                                   -----------     -----------

     TOTAL ASSETS                                                  $11,699,890     $ 4,234,111
                                                                   ===========     ===========
</TABLE>

                   The accompanying notes are an integral part
              of these condensed consolidated financial statements.


                                      -3-
<PAGE>

<TABLE>
<CAPTION>

                       TRANS ENERGY, INC. AND SUBSIDIARIES
                     Consolidated Balance Sheets (Continued)

                 LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

                                                                   March 31,     December 31,
                                                                     2005            2004
                                                                 ------------    ------------
                                                                  (Unaudited)
CURRENT LIABILITIES
<S>                                                              <C>             <C>
   Accounts payable - trade                                      $  1,506,521    $  1,277,375
   Related party payables (Note 6)                                    989,377         719,199
   Accrued expenses                                                   986,254         844,858
   Judgments payable (Note 3)                                          70,379          70,379
   Debentures payable                                                  50,000          50,000
   Notes payable - current portion                                    611,795         762,247
                                                                 ------------    ------------


     Total Current Liabilities                                      4,214,326       3,724,058
                                                                 ------------    ------------

LONG-TERM LIABILITIES

   Notes payable                                                    4,555,876         108,190
   Asset retirement obligation                                      1,749,315       1,571,749
                                                                 ------------    ------------

     Total Long-Term Liabilities                                    6,305,191       1,679,939
                                                                 ------------    ------------

       Total Liabilities                                           10,519,517       5,403,997
                                                                 ------------    ------------

COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS' EQUITY (DEFICIT) (Note 7 and 8)

   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; 4,815,098 and 3,555,074 shares issued
   and outstanding, respectively                                        4,815           3,555
   Capital in excess of par value                                  30,365,935      27,854,647
   Comprehensive Income                                                (3,301)           --
   Deferred expenses                                                  (92,500)           --
   Accumulated deficit                                            (29,094,576)    (29,028,088)
                                                                 ------------    ------------

     Total Stockholders' Equity (Deficit)                           1,180,373      (1,169,886)
                                                                 ------------    ------------

     TOTAL LIABILITIES AND STOCKHOLDERS'
       EQUITY (DEFICIT)                                          $ 11,699,890    $  4,234,111
                                                                 ============    ============
</TABLE>
                   The accompanying notes are an integral part
              of these condensed consolidated financial statements.

                                      -4-
<PAGE>

<TABLE>
<CAPTION>

                       TRANS ENERGY, INC. AND SUBSIDIARIES
       Consolidated Statements of Operations and Other Comprehensive Loss
                                   (Unaudited)


                                                        For the Three Months Ended
                                                                 March 31,
                                                            2005           2004
                                                        -----------    -----------
<S>                                                     <C>            <C>
REVENUES                                                $ 2,550,540    $   579,730
                                                        -----------    -----------

COSTS AND EXPENSES

  Cost of sales and oil and gas                           1,714,950        619,521
  Salaries and wages                                         67,900         94,915
  Depreciation, depletion, amortization and accretion       305,892        341,188
  Selling, general and administrative                       443,967         35,875
                                                        -----------    -----------

     Total Costs and Expenses                             2,532,709      1,091,499
                                                        -----------    -----------

INCOME (LOSS) FROM OPERATIONS                                17,831       (511,769)
                                                        -----------    -----------

OTHER INCOME (EXPENSE)

  Gain on disposal of asset                                   2,355        175,910
  Loss on sale of asset                                     (14,894)          --
  Gain on settlement of debt                                  2,306       (246,836)
  Interest expense                                          (74,086)       (50,218)
                                                        -----------    -----------

     Total Other Income (Expense)                           (84,319)      (121,144)
                                                        -----------    -----------

LOSS FROM OPERATIONS BEFORE INCOME TAXES                    (66,488)      (632,913)

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

NET LOSS                                                $   (66,488)   $  (632,913)

OTHER COMPREHENSIVE LOSS
  Changes due to hedging activities                          (3,301)          --
                                                        -----------    -----------

NET COMPREHENSIVE LOSS                                  $   (69,789)   $  (632,913)
                                                        ===========    ===========

BASIC LOSS PER SHARE                                    $     (0.02)   $     (0.33)
                                                        ===========    ===========

WEIGHTED AVERAGE SHARES OUTSTANDING                       4,381,090      1,936,944
                                                        ===========    ===========
</TABLE>

                   The accompanying notes are an integral part
              of these condensed consolidated financial statements.

                                      -5-
<PAGE>

<TABLE>
<CAPTION>
                       TRANS ENERGY, INC. AND SUBSIDIARIES
            Consolidated Statement of Stockholders' Equity (Deficit)

                                          Preferred Stock             Common Stock
                                    --------------------------  -------------------------   Capital In
                                                               Comprehensive  Accumulated    Excess of   Comprehensive Accumulated
                                       Shares         Amount       Shares       Amount       Par Value      Income       Deficit
                                    ------------  ------------  ------------ ------------  ------------  ------------  -----------
<S>                                 <C>           <C>              <C>       <C>           <C>           <C>           <C>
Balance, December 31, 2004
   (Restated)                               --    $       --       3,555,074 $      3,555  $ 27,854,647  $       --    $(29,028,088)

Common stock issued for
   services to be rendered
   (unaudited)                              --            --          50,000           50        92,450          --            --

Common stock issued for
   the conversion of debt
   (unaudited)                              --            --          25,000           25        49,975          --            --

Common stock issued for
   purchase of Arvilla
   (unaudited)                              --            --       1,185,024        1,185     2,368,863          --            --

Changes due to hedging activities           --            --            --           --            --          (3,301)         --

Net loss for the three months ended
   March 31, 2005 (unaudited)               --            --            --           --            --            --         (66,488)
                                    ------------  ------------  ------------ ------------  ------------  ------------  -----------

Balance, March 31, 2005 (unaudited)         --    $       --       4,815,098 $      4,815  $ 30,365,935  $     (3,301) $(29,094,576)
                                    ============  ============  ============ ============  ============  ============  ============
</TABLE>

                   The accompanying notes are an integral part
              of these condensed consolidated financial statements.

                                      -6-
<PAGE>

<TABLE>
<CAPTION>

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


                                                               For the Three Months Ended
                                                                        March 31,
                                                                   2005           2004
                                                               -----------    -----------

CASH FLOWS FROM OPERATING ACTIVITIES:
<S>                                                            <C>            <C>
   Net loss                                                    $   (66,488)   $  (632,913)
   Adjustments to reconcile net loss to net cash provided by
    operating activities:
     Depreciation, depletion, amortization and accretion           305,892        341,188
     Net gain from sale of assets                                   (2,355)      (175,910)
     (Gain) loss on extinguishment of debt                          (2,306)       246,836
   Changes in operating assets and liabilities:
     (Increase) in accounts receivable                             (26,834)      (100,599)
     (Increase) in prepaids                                        (83,908)          --
     (Increase) in other current assets                            (41,365)          --
     (Decrease) increase in accounts payable and
      current liabilities                                         (229,610)       439,407
     Decrease in accrued expenses                                  (48,579)          --
                                                               -----------    -----------

       Net Cash Provided by Operating Activities                  (195,553)       118,009
                                                               -----------    -----------

CASH FLOWS FROM INVESTING ACTIVITIES:

   Proceeds from sale of assets                                      1,260        201,000
   Cash acquired from subsidiary                                   408,333           --
   Expenditures for property and equipment                        (198,443)          --
                                                               -----------    -----------

       Net Cash Provided by Investing Activities                   211,150        201,000
                                                               -----------    -----------

CASH FLOWS FROM FINANCING ACTIVITIES:

   Change in bank overdraft                                           --          (49,120)
   Payments on related party payables                               (6,640)       (88,997)
   Proceeds from related party notes                               168,328        185,000
   Principal payments on notes payable                             (92,743)      (272,036)
                                                               -----------    -----------

       Net Cash Used by Financing Activities                        68,945       (225,153)
                                                               -----------    -----------

NET INCREASE IN CASH                                                84,542         93,856

CASH, BEGINNING OF PERIOD                                           79,662            183
                                                               -----------    -----------

CASH, END OF PERIOD                                            $   164,204    $    94,039
                                                               ===========    ===========
</TABLE>

                  The accompanying notes are an integral part
              of these condensed consolidated financial statements.

                                      -7-
<PAGE>

<TABLE>
<CAPTION>
                       TRANS ENERGY, INC. AND SUBSIDIARIES
                Consolidated Statements of Cash Flows (Continued)
                                   (Unaudited)


                                                               For the Three Months Ended
                                                                       March 31,
                                                                2005                 2004
                                                              ----------          ----------

CASH PAID FOR:

<S>                                                           <C>                 <C>
   Interest                                                   $     --            $    4,918
   Income taxes                                               $     --            $     --

NON-CASH FINANCING ACTIVITIES:

   Common stock issued for debt relief                        $   50,000          $   47,856
   Common stock issued for services to                        $   92,500          $   26,000
     be rendered
   Common stock issued for the net assets
   over liabilities in the purchase
     of Arvilla Inc. and subsidiary                           $2,370,048          $     --
</TABLE>

                  The accompanying notes are an integral part
              of these condensed consolidated financial statements.

                                      -8-
<PAGE>
                       TRANS ENERGY, INC. AND SUBSIDIARIES
       Notes to the Unaudited Condensed Consolidated Financial Statements
                      March 31, 2005 and December 31, 2004


NOTE 1 - BASIS OF FINANCIAL STATEMENT PRESENTATION

     The accompanying unaudited condensed consolidated financial statements have
     been prepared by the Company  pursuant to the rules and  regulations of the
     Securities  and  Exchange  Commission.  Certain  information  and  footnote
     disclosures   normally  included  in  financial   statements   prepared  in
     accordance  with  accounting  principles  generally  accepted in the United
     States of America have been  condensed or omitted in  accordance  with such
     rules and regulations.  The information  furnished in the interim condensed
     consolidated financial statements includes normal recurring adjustments and
     reflects  all  adjustments,  which,  in  the  opinion  of  management,  are
     necessary for a fair  presentation of such financial  statements.  Although
     management believes the disclosures and information  presented are adequate
     to make the information not misleading,  it is suggested that these interim
     condensed consolidated financial statements be read in conjunction with the
     Company's  most  recent  audited  financial  statements  and notes  thereto
     included in its December 31, 2004 Annual  Report on Form 10-KSB.  Operating
     results  for the  three  months  ended  March 31,  2005 is not  necessarily
     indicative of the results that may be expected for the year ending December
     31, 2005.


NOTE 2 - GOING CONCERN

     The Company's  condensed  consolidated  financial  statements  are prepared
     using  accounting  principles  generally  accepted in the United  States of
     America applicable to a going concern which contemplates the realization of
     assets and liquidation of liabilities in the normal course of business. The
     Company has incurred cumulative  operating losses through March 31, 2005 of
     $  29,094,576,  and has a working  capital  deficit  at March  31,  2005 of
     $2,100,098.  The potential  proceeds  from the sale of common stock,  other
     contemplated debt and equity financing, and increases in operating revenues
     from new  development  would  enable  the  Company to  continue  as a going
     concern.  There can be no assurance that the Company can or will be able to
     complete  any  debt or  equity  financing.  If  these  are not  successful,
     management is committed to meeting the  operational  cash flow needs of the
     Company.

NOTE 3 - CONTINGENCIES AND COMMITTMENTS

     Core Laboratories, Inc.

     On July 28,  1999,  Core  Laboratories,  Inc.  (Core)  obtained  a judgment
     against the Company for  non-payment of an accounts  payable.  The judgment
     calls for monthly  payments  of $351 and is bearing  interest at 10.00% per
     annum.  At March 31,  2005 the  Company  had  accrued  a balance  including
     interest of $13,587 which is included in judgments payable.  The Company is
     currently in default on this judgment.

     RR Donnelly

     On July 1, 1998, RR Donnelly  (RR) obtained a judgment  against the Company
     for  non-payment  of  accounts  payable.  The  judgment  calls for  monthly
     payments of $3,244 and is bearing  interest  at 10.00% per annum.  At March
     31, 2005, the Company has accrued a balance  including  interest of $56,792
     which is included in judgment payable as a current  liability.  The Company
     is currently in default on this judgment.

                                      -9-
<PAGE>
                       TRANS ENERGY, INC. AND SUBSIDIARIES
       Notes to the Unaudited Condensed Consolidated Financial Statements
                      March 31, 2005 and December 31, 2004

NOTE 3 - CONTINGENCIES AND COMMITMENTS (continued)

     Arvilla  Oilfield  Services is required  under a certain loan  agreement to
     maintain  specific  financial ratios under covenants  contained in the loan
     agreement.  At  March  31,  2005  and  December  31,  2004  Arvilla  was in
     compliance with those covenants.


NOTE 4 - BUSINESS SEGMENTS

     The  Company  adopted  SFAS  No.  131,  "Disclosure  about  Segments  of an
     Enterprise  and  Related  Information."  Prior  period  amounts  have  been
     restated  to conform to the  requirements  of this  statement.  The Company
     conducts its operations  principally as oil and gas sales with Trans Energy
     and Prima Oil and  pipeline  transmission  with  Ritchie  County  and Tyler
     Construction.

     Certain  financial  information  concerning  the  Company's  operations  in
     different industries is as follows:
<TABLE>
<CAPTION>

                                For the
                              Three Months
                                Ended     Oil and Gas     Pipeline        Well
                               March 31,     Sales     Transmission     Servicing
                              ---------  -----------    -----------    -----------

<S>                               <C>    <C>            <C>            <C>
Oil and gas revenue               2005   $   227,621    $   524,312    $ 1,798,607
                                  2004        55,356        524,374           --

Operating income (loss)
 applicable to industry
 segment                          2005      (216,811)       (11,201)       245,843
                                  2004      (514,239)         2,470           --

General corporate expenses
 not allocated to industry
 segments                         2005          --             --             --
                                  2004          --             --             --

Interest expense                  2005       (18,867)        (8,198)       (47,021)
                                  2004       (45,450)        (4,768)          --

Other income (expenses)           2005       (12,601)        (1,120)         3,488
                                  2004      (115,836)        44,910           --

Assets
 (net of intercompany accounts)   2005     3,485,768        551,992      7,662,130
                                  2004       541,559        580,992           --
</TABLE>

                                      -10-
<PAGE>
                       TRANS ENERGY, INC. AND SUBSIDIARIES
       Notes to the Unaudited Condensed Consolidated Financial Statements
                      March 31, 2005 and December 31, 2004

<TABLE>
<CAPTION>

NOTE 4 -      BUSINESS SEGMENTS (continued)
<S>                               <C>          <C>           <C>           <C>
Depreciation and amortization     2005         85,415        18,441        202,036
                                  2004        322,467        18,721           --

Property and equipment
Acquisitions (Deletions)          2005        (14,286)         --          575,936
                                  2004        (67,722)        (88,750)       --
</TABLE>


NOTE 5 - SIGNIFICANT EVENTS

     Acquisition - On January 31, 2005, the Company finalized the acquisition of
     Arvilla Oilfield Services, LLC., a West Virginia limited liability company,
     and have assumed all operations, assets and liabilities of Arvilla. Arvilla
     provides well servicing,  work over and related transportation  services to
     independent  oil and natural gas producers in the  northeast  region of the
     United States.  It also performs  ongoing  maintenance  and major overhauls
     necessary to optimize the level of production from existing oil and natural
     gas wells and provides certain  ancillary  services during the drilling and
     completion of new wells. In consideration  for Arvilla  Oilfield  Services,
     1,185,024 shares of post split Trans Energy, Inc. stock was issued.

     The following  represents the condensed  financial  information for Arvilla
     Oilfield Services as of March 31, 2005:

                                     ASSETS

                                                               March 31,
                                                                 2005
                                                              (Unaudited)
                  CURRENT ASSETS
                    Cash                                     $  149,033
                    Accounts receivable, net                  1,271,365
                    Other receivables                            27,370
                                                             ----------

                         Total Current Assets                 1,447,768
                                                             ----------
                  PROPERTY AND EQUIPMENT, NET                 5,411,635
                                                             ----------
                  OTHER ASSETS
                    Prepaid loan costs                           19,810
                    Deposits                                     16,268
                    Customer lists                              766,649
                                                             ----------

                         Total Other Assets                     802,727
                                                             ----------

                          TOTAL ASSETS                       $7,662,130
                                                             ==========

                                      -11-
<PAGE>
                       TRANS ENERGY, INC. AND SUBSIDIARIES
       Notes to the Unaudited Condensed Consolidated Financial Statements
                      March 31, 2005 and December 31, 2004


  NOTE 5 -    SIGNIFICANT EVENTS (continued)

                  LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

                                                                 March 31,
                                                                   2005
                                                                (Unaudited)
              CURRENT LIABILITIES
                Accounts payable - trade                   $     472,499
                Related party payables                           (3,606)
                Accrued expenses                                 114,114
                Notes payable - current portion                  608,494
                                                           -------------

                    Total Current Liabilities                  1,191,501
                                                           -------------

              LONG-TERM LIABILITIES
                Notes payable                                  3,733,936
                Asset retirement obligation                      168,000
                                                           -------------

                  Total Long-Term Liabilities                  3,901,936
                                                           -------------

                  Total Liabilities                            5,093,437
                                                           -------------

              COMMITMENTS AND CONTINGENCIES

              STOCKHOLDERS' EQUITY (DEFICIT)
                Capital                                           25,000
                Comprehensive Income                             (3,301)
                Accumulated deficit                            2,546,994
                                                           -------------

                  Total Stockholders' Equity (Deficit)         2,568,693
                                                           -------------

                  TOTAL LIABILITIES AND STOCKHOLDERS'
                  EQUITY (DEFICIT)                         $   7,662,130
                                                           =============

                                      -12-
<PAGE>
                       TRANS ENERGY, INC. AND SUBSIDIARIES
       Notes to the Unaudited Condensed Consolidated Financial Statements
                      March 31, 2005 and December 31, 2004


NOTE 5 -    SIGNIFICANT EVENTS (continued)

                                                For the
                                           Three Months Ended
                                             March 31, 2005
                                           ------------------

REVENUES                                     $ 2,459,136
                                             -----------

COSTS AND EXPENSES
  Cost of oil and gas                          1,740,688
  Depreciation, depletion and amortization       202,036
  Selling, general and administrative            401,352
                                             -----------

     Total Costs and Expenses                  2,344,076
                                             -----------

INCOME (LOSS) FROM OPERATIONS                    115,060
                                             -----------

OTHER INCOME (EXPENSE)
  Gain on allocation of assets                 2,612,620
  Loss on sale of asset                             --
  Other income                                      (314)
  Gain on settlement of debt                        --
  Interest expense                               (73,361)
                                             -----------

     Total Other Income (Expense)              2,538,945
                                             -----------

LOSS FROM OPERATIONS BEFORE INCOME TAXES       2,654,005

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

NET INCOME                                   $ 2,654,005
                                             ===========

                                      -13-
<PAGE>


                       TRANS ENERGY, INC. AND SUBSIDIARIES
       Notes to the Unaudited Condensed Consolidated Financial Statements
                      March 31, 2005 and December 31, 2004


NOTE 6 - RELATED PARTIES

     Marketing Agreement - Sancho

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

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

     Certain  officers and directors of the Company have  personally  guaranteed
     specific notes payable.

NOTE 7 - OTHER COMPREHENSIVE INCOME

     The Company has entered into a loan arrangement containing an interest rate
     hedge.   The  hedge  is  based  on  the  difference   between  the  lending
     institutions  floating  rate index plus 280 basis  points and the  existing
     LIBOR  rate.  At March  31,  2005,  the  difference  in rates  resulted  in
     additional  interest  of $3,101 that was  recorded  as other  comprehensive
     income.

NOTE 8 - EQUITY

     In January  2005,  the Company  issued  50,000  shares of common  stock for
     services to be rendered valued at $100,000.

     In January 2005,  the Company issued 25,000 shares of common stock for debt
     relief of $50,000.

     In January 2005,  the Company issued  1,185,024  shares of common stock for
     the acquisition of Arvilla Inc.

     Under FASB  Statement  123,  the Company  estimates  the fair value of each
     stock  award at the grant date by using the  Black-Scholes  option  pricing
     model with the  following  weighted  average  assumptions  used for grants,
     respectively;  dividend  yield  of zero  percent  for all  years;  expected
     volatility of 68.72%; risk-free interest rate of 4.08 and expected lives of
     10 years for the three months ended March 31, 2005.

     Had compensation  cost for the Company's stock options granted to directors
     and  employees   been  based  on  the  fair  value  as  determined  by  the
     Black-Scholes  option  pricing model at the grant date under the accounting
     provisions  of SFAS No. 123, the Company  would have recorded an additional
     expense of $837,416 for the three  months ended March 31, 2005.  Also under
     these same  provisions,  the  Company's net loss would have been changed by
     the pro forma amounts indicated below:

                                      -14-
<PAGE>
                       TRANS ENERGY, INC. AND SUBSIDIARIES
       Notes to the Unaudited Condensed Consolidated Financial Statements
                      March 31, 2005 and December 31, 2004


NOTE 8 -      EQUITY (continued)
                                      For the Three Months Ended
                                               March 31,
                                      ----------------------------
                                         2005             2004
                                      -----------     ------------
              Net loss:
                As reported           $   (66,487     $   (632,913)
                Pro forma             $  (903,903)    $   (632,913)


                Basic loss per share:
                As reported           $     (0.01)    $     (0.33)
                Pro forma             $     (0.22)    $     (0.33)


     Stock  Options - A summary  of the  status of the  warrants  granted  under
     various agreements at March 31, 2005 and 2004, and changes during the years
     then ended is presented below:
<TABLE>
<CAPTION>

                                                             March 31, 2005          March 31, 2004
                                                       -----------------------   ---------------------
                                                       Weighted                  Weighted
                                                        Average      Exercise     Average     Exercise
                                                         Shares       Price       Shares       Price
                                                       ---------    ----------   ---------   ---------
<S>                                                    <C>          <C>          <C>        <C>
      Outstanding at beginning of period                    --      $     --          --     $    --
      Granted                                            553,324          1.95        --          --
      Exercised                                             --            --          --          --
      Forfeited                                             --            --          --          --
      Expired                                               --            --          --          --
                                                       ---------    ----------   ---------   ---------
      Outstanding at end of Period                       553,324          1.95        --     $    --
                                                       =========    ==========   =========   =========

      Weighted average fair value of options
        granted during the year                          553,324    $       1.95        --     $    --
                                                       =========    ============ =========   =========
      Weighted average fair value of options
        granted during the year                          553,324    $       1.51        --     $    --
                                                      =========    ============ =========   =========
</TABLE>

                                      -15-
<PAGE>
                       TRANS ENERGY, INC. AND SUBSIDIARIES
       Notes to the Unaudited Condensed Consolidated Financial Statements
                      March 31, 2005 and December 31, 2004


  NOTE 8 - EQUITY (continued)


              A summary of the status of the warrants  granted under the various
              agreements at March 31, 2005, are presented in the table below:
<TABLE>
<CAPTION>

                                                   Warrants Outstanding                    Warrants Exercisable
                                          ----------------------------------------   --------------------------------
                                          Weighted-Average       Weighted-Average                   Weighted-Average
          Range of          Number            Remaining              Exercise          Number           Exercise
       Exercise Prices    Outstanding     Contractual Life             Price         Exercisable          Price
       ---------------    ------------    -----------------      -----------------   -----------    ----------------
<S>       <C>                  <C>            <C>                   <C>                  <C>            <C>
          $1.95                553,324        9.75 years            $    1.95            553,324        $    1.95
                          ------------                                               ------------
                               553,324                                                   553,324
                          ============                                               ============

</TABLE>


                                      -16-
<PAGE>

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

Recent Developments

     On November 5, 2004, we acquired  Cobham Gas  Industries,  Inc. and certain
wells,  leases,  pipelines,  gas purchase  agreements,  oil hauling  agreements,
equipment,  right of ways and other  miscellaneous  items  related to the leases
located in West Virginia.  A total of 229 wells were  acquired,  of which 98 are
currently producing, located on approximately 15,000 leased acres.

     On January 31,2005, we finalized the acquisition of Arvilla,  Inc. a Nevada
corporation,  and its  subsidiary,  assuming  all  its  operations,  assets  and
liabilities.   Arvilla   provides   well   servicing,   workover   and   related
transportation  services to  independent  oil and natural gas  producers  in the
northeast region of the United States. It also performs ongoing  maintenance and
major overhauls  necessary to optimize the level of production from existing oil
and  natural  gas wells and  provides  certain  ancillary  services  during  the
drilling  and  completion  of new wells.  Arvilla  offers its  services in Ohio,
Pennsylvania, New York, Virginia, Kentucky and West Virginia.

     On November 29, 2004,  our board of directors  and  stockholders  holding a
majority of our  outstanding  common  stock  approved a one share for 150 shares
reverse split of our common stock. The reverse split was effected on January 28,
2005.

Results of Operations

     The  following  table  sets  forth  the  percentage  relationship  to total
revenues of principal  items  contained in the our  consolidated  statements  of
operations  for the three month periods ended March 31, 2005 and 2004. It should
be noted that  percentages  discussed  throughout this analysis are stated on an
approximate basis.

                                                            Three Months Ended
                                                                 March 31,
                                                             ----------------
                                                             2005      2004
                                                             ----      ----
                                   (Unaudited)
                  Total revenues..........................   100%      100%
                  Total costs and expenses................   100       188
                  Loss from operations....................    (0)       88
                  Other income (expense)..................    (3)      (20)
                  Other comprehensive loss (hedging)......    (0)       --
                  Net loss................................    (2)     (109)


     Total revenues for the three months ("first  quarter") ended March 31, 2005
increased  340%  compared  to the first  quarter of 2004,  primarily  due to the
acquisition  of Arvilla and  inclusion of its  revenues  for the first  quarter.
Increased  consolidated  revenues also reflect  increased oil and gas prices and
volume.  Our cost of oil and gas for the first  quarter of 2005  increased  176%
from the comparable 2004 period, also due to price and volume increases.

     Salaries and wages  decreased 28% for the first quarter of 2005 compared to
the  2004  period,  due to a  reduction  in  accrued  wages,  and  depreciation,
depletion, amortization and accretion expense decreased 10% in the first quarter
of 2005 due to assets  reaching the end of their  depreciable  lives.  The 1137%
increase in selling, general and administrative expenses in the first quarter of
2005,  from  $35,875 in 2004 to  $443,967  in 2005,  is also  attributed  to the
acquisition of Arvilla.

                                      -17-
<PAGE>

     Our  income  from  operations  for the first  quarter  of 2005 was  $17,831
compared to a loss of $511,769 for the first quarter of 2004. The improvement is
related to the acquisition of Arvilla and its increased contribution to revenues
and price and volume  increases.  We realized  total  other  expenses of $84,319
during the first  quarter of 2005  compared to total other  expenses of $121,144
for the first quarter of 2004.  The first quarter of 2005 results were primarily
due to interest expense of $74,086 and losses from the sale of assets.

     As a percentage of total revenues,  total costs and expenses decreased from
188% in the first quarter of 2004 to 100% for the first quarter of 2005. This is
also  attributed  to the  acquisition  of Arvilla  and its  additional  revenues
reported during the period.

     Our net loss for the first quarter of 2005 was $66,488 compared to $632,913
for the first quarter of 2004.

     For the remainder of fiscal year 2005, management expects selling,  general
and  administrative  expenses  to remain at  approximately  the same rate as the
first quarter of 2005 and significantly  higher that the prior year,  reflecting
the  Arvilla  acquisition.  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 2005.

Liquidity and Capital Resources

     Historically,  we have  satisfied our working  capital needs with operating
revenues and from borrowed  funds.  At March 31, 2005, we had a working  capital
deficit of $2,100,098  compared to a deficit of $2,980,431 at December 31, 2004.
This 30%  decrease in working  capital  deficit is primarily  attributed  to the
acquisition of Arvilla and decreases in current liabilities.

     During the first  quarter of 2005,  operating  activities  used net cash of
$195,553  compared to net cash  provided of  $118,099  for the first  quarter of
2004.  These  results  are  primarily  attributed  to the  reduction  in accrued
liabilities and accrued expenses.

  Net cash  provided by investing  activities  for the first quarter of 2005 was
$211,150,  compared to $201,000  for the first  quarter of 2004.  This result is
primarily attributed to cash acquired from our Arvilla subsidiary.

     During  the first  quarter  of  2005,we  realized  net cash from  financing
activities of $68,945 compared to net cash used of $225,153 in the first quarter
of 2004.  These results are  attributed to principal  payments  $272,036 made on
notes payable during the 2004 period,  partially offset by $185,000  realized in
proceeds from notes payable.  In 2005,  principal payments on notes payable were
$92,743 that was exceeded by proceeds from notes of $168,328.

     We anticipate meeting our working capital needs during the remainder of the
current fiscal year with revenues our newly acquired  subsidiaries  and from our
ongoing  operations,  particularly  from our Powder  River  Basin  interests  in
Wyoming and New Benson gas wells drilled in West  Virginia,  which gas goes into
our  6-inch  pipeline.  In the event  revenues  are not  sufficient  to meet our
working  capital needs,  we will explore the  possibility of additional  funding
from  either the sale of debt or equity  securities.  There can be no  assurance
such funding will be available to us or, if available,  it will be on acceptable
or favorable terms.

     As of March  31,  2005,  we had  total  assets  of  $11,699,890  and  total
stockholders'  equity of $1,180,373,  compared to total assets of $4,234,111 and
total stockholders' deficit of $1,169,886 at December 31, 2004.

                                      -18-
<PAGE>

     In  1998,  we  issued  $4,625,400  face  value  of 8%  Secured  Convertible
Debentures  Due March 31, 1999.  A portion of the proceeds  were used to acquire
the GCRL  properties  and interest in Wyoming.  During 2000,  all but one of the
remaining outstanding debentures were converted into commons stock. At March 31,
2005,  we owed  $50,000  for a  debenture,  $24,954  in  interest  and $2,500 in
penalties.

     Because we have incurred  significant  cumulative  operating losses through
March  31,  2005  and have a  working  capital  deficit  at  March  31,  2005 of
$2,100,098,  there exists  substantial  doubt about our ability to continue as a
going  concern.  Historically,  our revenues  have not been  sufficient to cover
operating  costs,  although  revenues  for the first  quarter  of 2005 did cover
operating  expenses.  However,  we may potentially need to rely on proceeds from
sale of common stock, debt or equity financing, and increased operating revenues
from new  developments to allow us to continue as a going concern.  There can be
no  assurance  that  we can or  will be able  to  complete  any  debt or  equity
financing.

     We have  included a footnote to our  financial  statements  for the periods
ended March 31, 2005  stating  that  because of our  continued  losses,  working
capital deficit and need for additional  funding,  there is substantial doubt as
to whether we can continue as a going  concern.  See Note 2 to the  consolidated
financial statements.

Inflation

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

Forward-looking and Cautionary Statements

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

     o   the sufficiency of existing capital  resources and our ability to raise
         additional capital to fund cash requirements for future operations;
     o   uncertainties  involved  in the  rate of  growth  of our  business  and
         acceptance of any products or services;
     o   volatility  of the stock  market,  particularly  within the  technology
         sector; and
     o   general economic conditions.

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

                                      -19-
<PAGE>

Item 3.       Controls and Procedures

     As of the end of the period  covered  by this  report,  we  carried  out an
evaluation,  under the  supervision  and with the  participation  of management,
including our chief executive officer and principal  financial  officer,  of the
effectiveness  of the  design  and  operation  of our  disclosure  controls  and
procedures  as  defined  in Rules  13a-15(e)  and  15d-15(e)  of the  Securities
Exchange Act of 1934.  Based upon that evaluation,  our chief executive  officer
and principal  financial  officer  concluded  that our  disclosure  controls and
procedures  are  effective  to cause the  material  information  required  to be
disclosed  by us in the reports that we file or submit under the Exchange Act to
be  recorded,  processed,  summarized  and  reported  within  the  time  periods
specified in the SEC's rules and forms.  There have been no significant  changes
in our internal  controls or in other factors which could  significantly  affect
internal controls subsequent to the date we carried out our evaluation.

                                     PART II

Item 1.       Legal Proceedings

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

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

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

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

     In connection with the closing of the merger agreement on January 31, 2005,
we  issued to the  holders  of  Arvilla,  Inc.  capital  stock an  aggregate  of
1,185,024 shares of Trans Energy common stock.  These shares were distributed as
follows:  Clarence E. Smith, 531,437 shares; Rebecca L. Smith 531,437 shares and
Howell B. Williams, 122,150 shares.

     Each  recipient  of  the  Trans  Energy  shares  is  a  sophisticated   and
knowledgeable  investor  and has  full  access  to all  pertinent  business  and
financial  information related to Trans Energy and Arvilla.  Accordingly,  Trans
Energy has relied upon the exemption from registration  under the Securities Act
of 1933  provided  by Section  4(2) of the Act that  exempts a  transaction  not
involving a public offering.

     On February 28, 2005,  our board of  directors  authorized  the issuance of
50,000 shares of authorized,  but previously  unissued shares of common stock to
Liberty  Consulting  International,  Inc.  The shares are in  consideration  for
services  pursuant to a Consulting  Services  Agreement  between the company and
Liberty  Consulting  International.  The shares have been issued and  constitute
less than 5% of the total  outstanding  shares of Trans Energy common stock. The
issuance  of shares  is being  made in a private  transaction  to a person  with
knowledge  of  the  company's  business  in  reliance  upon  an  exemption  from
registration under the Securities Act of 1933,  pursuant to Section 4(2) of that
Act.

                                      -20-
<PAGE>

     Our board also authorized the issuance of 25,000 shares of our common stock
in exchange for professional services rendered and valued at $50,000. The shares
are to be issued  pursuant to a  registration  statement,  although that has not
been finalized and the shares have not been certificated.

Item 3.       Defaults Upon Senior  Securities

     In  1998,  we  issued  $4,625,400  face  value  of 8%  secured  convertible
debentures due September 30, 1999.  Interest on the debentures  accrued upon the
date of issuance  until  payment in full of the  principal  sum was been made or
duly provided for. Holders of the debentures have the option, at any time, until
maturity, to convert the principal amount of their debenture,  or any portion of
the  principal  amount  which is at least  $10,000 into shares of the our common
stock at a  conversion  price for each share  equal to the lower of (a)  seventy
percent  (70%) of the  market  price  of the our  stock  averaged  over the five
trading  days prior to the date of  conversion,  or (b) the market  price on the
issuance  date of the  debentures.  Any  accrued  and unpaid  interest  shall be
payable,  at our option,  in cash or in shares of our common stock valued at the
then  effective  conversion  price.  During 2000,  all but one of the  remaining
outstanding  debentures were converted into commons stock. At March 31, 2005, we
owed  $50,000  to one  debenture  holder,  $24,954  in  interest  and  $2,500 in
penalties.

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

     In connection  with the reverse stock split  effected  January 28, 2005, we
filed with the State of Nevada on the same date an  amendment to our articles of
incorporation to reflect the reverse split.  The amendment  reported the reverse
stock split and stated that our current  authorized  capitalization  will remain
unchanged at 500 million shares of common stock with a par value of $0.001.  The
reverse  stock split and  amendment  were  approved  by the  written  consent of
shareholders  holding a majority  of our common  stock by a vote of  256,287,738
pre-split shares (51.6%) voting for, and zero shares voting against.

Item 5.       Other Information

     The following  reports were filed with the SEC on Form 8-K during the three
month period ended March 31, 2005.

     February  2, 2005 -  reporting  under Item 1.01,  the  entering of a merger
     agreement  and plan of  reorganization  dated  December  3, 2004 to acquire
     Arvilla  Oilfield  Services with our wholly owned  subsidiary  Trans Energy
     Acquisitions,  Inc.,  Arvilla,  Inc., and the  controlling  stockholders of
     Arvilla,  Inc. Also  reported (i) under Item 2.01that the merger  agreement
     was finalized and closed on January 31, 2005;  (ii) under Item 3.02 that in
     connection  with the  closing  of the  merger  agreement  we  issued to the
     current  holders of Arvilla,  Inc.  capital stock an aggregate of 1,185,024
     shares  of Trans  Energy  common  stock;  (iii)  under  Item  5.02  that in
     connection with the acquisition of Arvilla,  Inc., immediately prior to the
     effective time of the merger transaction our board of directors unanimously
     appointed  two new  directors,  Clarence  E. Smith and  Rebecca  L.  Smith,
     effective upon the closing of the transaction on January 31, 2005; and (iv)
     under Item 5.03 that in connection  with the reverse  stock split  effected
     January  28,  2005,  we filed  with the State of Nevada on the same date an
     amendment to our articles of incorporation to reflect the reverse split.

     March 9, 2005 - reporting under Item 3.02, the unregistered sales of equity
     securities  relating to the  issuance of 50,000  shares of common  stock in
     consideration for services pursuant to a consulting services agreement, and
     which  shares  have now been  issued.  Also  reporting  under Item 5.02 the
     appointment of new executive directors and a new director.

                                      -21-
<PAGE>

     June 9, 2005 - amendment to our Form 8-K filed November 11, 2004, reporting
     under Item 2.01 that in connection  with the completion of the  acquisition
     of Cobham Gas Industries, Inc. we are filing under Item 9.01 the applicable
     financial statements related to Cobham.

Item 6.       Exhibits

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

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

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

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

                                   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: June 20, 2005                 By  /S/  CLARENCE E. SMITH
                                        ----------------------------------------
                                        Clarence E. Smith
                                        Chief Executive Officer and Director




Date:  June 20, 2005                 By  /S/  WILLIAM F. WOODBURN
                                        ----------------------------------------
                                        WILLIAM F. WOODBURN
                                        Secretary / Treasurer
                                        (Principal Accounting Officer)



                                      -22-