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 September 30, 1996

                                    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 September 30, 1996
                    
Common Stock, $.001 par value                3,238,677

<PAGE>
                             TABLE OF CONTENTS

Heading                                                    Page  
                      PART I.  FINANCIAL INFORMATION

Item 1.   Financial Statements . . . . . . . . . . . . .    1
                                                             
          Consolidated Balance Sheets -- September 30, 
          1996 and December 31, 1995 . . . . . . . . . .    2

          Consolidated Statements of Operations -- 
          three months ended September 30, 1996 and
          1995, and nine months ended September 30,
          1996 and 1995. . . . . . . . . . . . . . . . .    4

          Consolidated Statements of Stockholders' Equity   5

          Consolidated Statements of Cash Flows --
          three months ended September 30,1996 and
          1995, and nine months ended September 30,
          1996 and 1995. . . . . . . . . . . . . . . . .    6

          Notes to Consolidated Financial Statements . .    8

Item 2.   Management's Discussion and Analysis and 
          Results of Operations. . . . . . . . . . . . .   22

                        PART II. OTHER INFORMATION

Item 1.   Legal Proceedings. . . . . . . . . . . . . . .   25

Item 2.   Changes In Securities. . . . . . . . . . . . .   25

Item 3.   Defaults Upon Senior Securities. . . . . . . .   25

Item 4.   Submission of Matters to a Vote of 
          Securities Holders . . . . . . . . . . . . . .   25

Item 5.   Other Information. . . . . . . . . . . . . . .   25

Item 6.   Exhibits and Reports on Form 8-K . . . . . . .   25

          SIGNATURES . . . . . . . . . . . . . . . . . .   26














                                    -i-

<PAGE>
                                  PART I

Item 1.  Financial Statements

     The following unaudited Consolidated Financial Statements for
the period ended September 30, 1996, have been prepared by the
Company.













                           TRANS  ENERGY,  INC.

                           FINANCIAL STATEMENTS
!
                 September 30, 1996 and December 31, 1995



<PAGE>
                            TRANS ENERGY, INC.
                        Consolidated Balance Sheets
                                     
                                  ASSETS

                                      December 31,   September 30,     
                                           1995          1996 
                                                      (Unaudited)       
CURRENT ASSETS

 Cash                                    $    -     $  151,939 
 Accounts receivable - trade (Note 1)      328,012     305,573 
 Inventory (Note 1)                         15,956       6,605 

   Total Current Assets                    343,968     464,117 

FIXED ASSETS (Note 2)

 Land                                       35,000      35,000 
 Building                                   65,000      65,000 
 Vehicles                                  113,244     141,010 
 Machinery and equipment                   588,493     617,322 
 Pipeline                                2,107,740   2,107,740 
 Well equipment                            290,972     290,972 
 Wells                                   3,178,916   3,204,829 
 Leasehold acreage                         263,500     263,500 
 Accumulated depreciation               (1,458,009) (1,608,426)

   Total Fixed Assets                    5,184,856   5,116,947 

OTHER ASSETS

 Deferred stock offering costs (Note 1)    275,000     156,591 
 Goodwill, net (Note 1)                    728,013     581,806 
 Deposits                                      355         491 
 Bond (Note 4)                              50,000      50,000 
 Loan acquisition costs                    149,137     214,233 
 Loan - related party (Note 6)              14,899       1,340 

   Total Other Assets                    1,217,404   1,004,461 

   TOTAL ASSETS                         $6,746,228 $ 6,585,525     

<PAGE>
                            TRANS ENERGY, INC.
                        Consolidated Balance Sheets


                   LIABILITIES AND STOCKHOLDERS' EQUITY


                                       December 31, September 30,
                                            1995        1996       
                                                     (Unaudited)  
CURRENT LIABILITIES

 Accounts payable - trade               $  521,438  $  902,976 
 Interest payable                           58,981      45,624 
 Accrued expenses                           71,231     121,459 
 Long-term debt - current portion (Note 3) 554,540   1,040,169     

   Total Current Liabilities             1,206,190   2,110,228 

LONG-TERM LIABILITIES

 Loans payable - related parties (Note 6)  683,586     633,722          
 Notes payable (Note 3)                  2,214,922   1,886,947 

   Total Long-Term Liabilities           2,898,508   2,520,669

   Total Liabilities                     4,104,698   4,630,897

MINORITY INTERESTS (Note 1)                 39,393      -     

STOCKHOLDERS' EQUITY (Note 9)

 Common Stock:  30,000,000 shares authorized
   at $0.001 par value; 3,174,122 and
   3,238,677 shares issued and 
   outstanding, respectively                 3,174       3,239 
 Capital in excess of par value          4,117,452   4,232,387 
 Accumulated deficit                    (1,518,489) (2,280,998)

   Total Stockholders' Equity            2,602,137   1,954,628

   TOTAL LIABILITIES AND STOCKHOLDERS'
     EQUITY                           $  6,746,228  $6,585,525     

<PAGE>
                            TRANS ENERGY, INC.
                   Consolidated Statements of Operations

                       For the Three Months     For the Nine Months      
                        Ended September 30,      Ended September 30,    
                           1995      1996          1995       1996
REVENUES              (Unaudited)(Unaudited)   (Unaudited)  (Unaudited)

  Oil and gas sales     $825,380  $1,895,025    $2,082,597   $4,202,029
  Other                     -          1,474           347        1,474 

    Total Revenues       825,380   1,896,499     2,082,944    4,203,503     

COSTS AND EXPENSES

  Cost of oil and gas    672,551   1,962,691     1,558,484    3,786,826     
  Salaries and wages      50,742      27,598       211,828      102,995 
  Depreciation and
   depletion              44,379      99,944       135,505      293,450
  Selling, general and
   administrative        144,615     239,672       346,165      575,625 

    Total Costs and
     Expenses            912,287   2,329,905     2,251,982    4,758,896

     Net (Loss) 
      from Operations    (86,907)   (433,406)     (169,038)    (555,393)

OTHER INCOME (EXPENSE)

  Interest               (60,870)   (102,046)     (130,790)    (266,509)

    Total Other Income
     (Expense)           (60,870)   (102,046)     (130,790)    (266,509)

NET (LOSS) BEFORE 
 INCOME TAXES, MINORITY 
 INTERESTS AND 
 EXTRAORDINARY INCOMES  (147,777)   (535,452)     (299,828)    (821,902)

INCOME TAXES                -           -             -            -  

NET (LOSS) BEFORE 
 MINORITY INTERESTS     (147,777)   (535,452)     (299,828)    (821,902)

MINORITY INTERESTS        10,187         (38)       (9,552)      39,393 

EXTRAORDINARY INCOME        -           -             -          20,000

NET (LOSS)             $(137,590)  $(535,490)    $(309,380)   $(762,509)

(LOSS) PER SHARE

PRIMARY                $   (0.04)  $   (0.17)    $   (0.09)   $   (0.24)

FULLY DILUTED           $  (0.04)  $   (0.17)    $   (0.09)   $   (0.24)


<PAGE>
                             TRANS ENERGY, INC.
              Consolidated Statements of Stockholders' Equity

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

Balance,
 December 31, 1994             3,024,122  $ 3,024    $3,612,852     $(866,643)

Common stock issued for
 services at $0.75 per share     100,000      100        74,900          -  

Common stock issued on 
 conversion of debentures at
 $0.90 per share                  50,000       50        44,950          -  

Stock options issued for services   -        -          275,000          -     
 (Note 8)

Common stock warrants issued
 (Note 8)                           -        -          109,750          -     

Net loss for the year ended
 December 31, 1995                  -        -             -         (651,846)

Balance,
 December 31, 1995             3,174,122    3,174     4,117,452    (1,518,489)

Common stock issued for
   debenture                      55,555       56        49,944          -   
  (Unaudited)

Common stock issued for services   9,000        9        23,991          -     
  (Unaudited)

Common stock warrants issued
 (Note 8) (Unaudited)               -        -           66,000          - 

Cancellation of stock options issued
  for services (Note 8) (Unaudited) -        -         (275,000)         -  

Shareholders loans contributed
 to capital (Unaudited)             -        -          250,000          -  

Net loss for the nine months ended
  September 30, 1996 (Unaudited)    -        -             -         (762,509)

Balance, September 30, 1996 
  (Unaudited)                  3,238,677  $ 3,239    $4,232,387    $(2,280,998)

<PAGE>
                              TRANS ENERGY, INC.
                    Consolidated Statements of Cash Flows


                                    For the Three Months   For the Nine Months
                                     Ended September 30,    Ended September 30,
                                     1995          1996      1995       1996
CASH FLOWS FROM 
 OPERATING ACTIVITIES:           (Unaudited) (Unaudited) (Unaudited) (Unaudited)

  Net income (loss)               $(137,590) $(535,490) $  (309,380) $ (762,509)
  Adjustments to Reconcile 
   Net Income to Cash
   Provided by Operating Activities:
    Depreciation and depletion       44,379     99,944      135,505     293,450
    Minority interest               (10,187)        38        9,552     (39,393)
    Common stock issued for services   -          -          75,000      24,000
  Changes in Operating Assets 
   and Liabilities:
    Decrease (increase) in accounts
     receivable                     188,841     35,440      220,553      22,439
    Decrease (increase) in inventory   -       323,910         -          9,351
    Decrease (increase) in deposits    -          -              23        (136)
    Decrease (increase) in loan 
     acquisition costs              (37,638)      -         (36,712)    (49,017)
    Increase (decrease) in
     accounts payable and
      accrued expenses             (271,406)   307,401     (328,806)    484,862 
    Increase (decrease) in 
     interest payable                 4,706      9,464       18,428     (13,357)

       Cash Provided (Used) 
        by Operating Activities    (218,895)   240,707     (215,837)    (30,310)

CASH FLOWS FROM 
 INVESTING ACTIVITIES:

  Purchase of subsidiary           (450,000)     -         (450,000)       - 
  Increase in notes receivable       (2,870)     -           (5,451)       -   
  Expenditures for property 
   and equipment                   (522,456)  (44,169)     (573,766)    (82,508)

       Cash Provided (Used) 
        by Investing Activities  $ (975,326) $(44,169)  $(1,029,217)  $ (82,508)

<PAGE>
                              TRANS ENERGY, INC.
              Consolidated Statements of Cash Flows (Continued)

                                  For the Three Months  For the Nine Months 
                                   Ended September 30,   Ended September 30,   
                                     1995       1996       1995        1996  
CASH FLOWS FROM FINANCING 
 ACTIVITIES:                     (Unaudited) (Unaudited) (Unaudited) (Unaudited)

  Payment of deferred stock offering 
   costs                           $(75,000)  $ (31,591)  $ (75,000)  $(156,591)
  Borrowings of long-term debt    1,303,052        -      1,420,622     551,309
  Loans to related parties             -         (1,313)       -         13,559 
  Borrowings from related parties      -        111,820        -        200,135
  Principal payments on long-term debt -       (142,550)    (72,372)   (343,655)

      Cash Provided (Used) by 
       Financing Activities       1,228,052     (63,634)  1,273,250     264,757

NET INCREASE (DECREASE) 
 IN CASH                             33,831     132,904      28,196     151,939

CASH AND CASH EQUIVALENTS,
  BEGINNING OF PERIOD                 1,468      19,035       7,103        - 

CASH AND CASH EQUIVALENTS,
  END OF PERIOD                    $ 35,299    $151,939    $ 35,299    $151,939

CASH PAID FOR:

  Interest                         $ 60,870    $ 92,582    $125,090    $260,938
  Income taxes                     $   -       $   -       $   -       $   - 

NON-CASH FINANCING ACTIVITIES:

  Common stock issued for services   $  -      $   -       $ 75,000    $   -
  Conversion of debentures to equity $  -      $   -       $   -       $ 50,000
  Warrants issued for loan acquisition 
   costs                             $  -      $   -       $   -       $ 66,000 
  Shareholder loans contributed
   to capital                        $  -      $250,000    $   -       $250,000 

<PAGE>
                            TRANS ENERGY, INC.
              Notes to the Consolidated Financial Statements 
                 December 31, 1995 and September 30, 1996

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

       a.  Organization

       The Company was originally incorporated in the State of
       Idaho on January 16, 1964 under the name of Alter Creek
       Mining Company, Inc.

       The Company was engaged in mining activities in the 1960's. 
       The Company was inactive for several years but started up
       operations again in August of 1987.  The Articles of
       Incorporation were reinstated on September 4, 1987.  On
       January 11, 1988, the Company changed its name to Apple
       Corporation.  In 1988, the Company acquired oil and gas
       leases and other assets from Ben's Run Oil Company (a
       Virginia limited partnership) and has since engaged in the
       business of oil and gas production.

       At a meeting on September 22, 1993, the shareholders
       approved a reverse stock split of  the outstanding common
       shares at a rate of 2 shares for every 5 shares
       outstanding.  This reduced the outstanding shares to
       1,024,122.  All references to shares outstanding and
       earnings per share have been retroactively restated to
       reflect the reverse stock split.

       The shareholders also approved the acquisition of certain
       oil and gas assets and stock in exchange for stock of the
       Company.  On November 15, 1993, the following shares were
       issued; 250,000 shares of common stock to the shareholders
       of The Pipeline, Ltd, 500,000 shares of common stock to the
       shareholders of Ritchie County Gathering Systems, Inc. and
       750,000 shares to the majority shareholders of Tyler
       Construction Company, Inc.  The acquisition was accounted
       for as a combination under the purchase method of
       accounting using predecessor cost.  Predecessor cost was
       used because the owners of the acquiring company are
       substantially the same as the owners of the acquired
       companies.  In other words, they are considered to be co-
       promoters.

       On November 5, 1993, the Board of Directors caused to be
       incorporated in the State of Nevada, a new corporation by
       the name of Trans Energy, Inc., with the specific intent of
       effecting a merger between Trans Energy, Inc. of Nevada and
       Apple Corp. of Idaho, for the sole purpose of changing the
       domicile of the Company to the State of Nevada.  On
       November 15, 1993, Apple Corp. and the newly formed Trans
       Energy, Inc. executed a merger agreement whereby the
       shareholders of Apple Corp. exchanged all of their issued
       and outstanding shares of common stock for an equal number
       of shares of Trans Energy, Inc. common stock.  Trans
       Energy, Inc. was the surviving corporation and Apple Corp.
       was dissolved. 

       On November 15, 1993, the Company also purchased certain
       oil and gas assets of Dennis Spencer.  The purchase price
       was 500,000 shares of the Company's common stock.  This
       acquisition of the subsidiary has been accounted for using
       the purchase method of accounting which is based on the
       market value of the assets acquired at the time of
       acquisition.  As a result of these transactions, there were
       3,024,122 shares of common stock issued and outstanding at
       December 31, 1994.

<PAGE>
                            TRANS ENERGY, INC.
              Notes to the Consolidated Financial Statements 
                 December 31, 1995 and September 30, 1996

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

       b.  Accounting Method

       The Company's financial statements are prepared using the
       accrual method of accounting.  The successful efforts
       method of accounting is used for oil and gas exploration
       and production activities which states that total net
       capitalized costs, as a minimum test, may not exceed future
       undiscounted net cash flows.  In any period that total net
       capitalized costs exceed future undiscounted net cash
       flows, the excess will be charged to current operations. 
       The Company has elected a calendar year end.

       c.  Loss per Share of Common Stock

       The loss per share of common stock is based on the weighted
       average number of shares issued and outstanding at the date
       of the financial statements.  

       d.  Provision for Taxes

       At December 31, 1995, and September 30, 1996 the Company
       had net operating loss carryforwards totaling approximately
       $1,500,000 and $2,200,000, respectively, may be offset
       against future taxable income through 2011.  No tax benefit
       has been reported in the financial statements, because the
       potential tax benefits of the net operating loss
       carryforwards is offset by a valuation allowance of the
       same amount.

       e.  Cash Equivalents

       The Company considers all highly liquid investments with a
       maturity of three months or less when purchased to be cash
       equivalents.

       f. Principles of Consolidation

       The consolidated financial statements include the Company
       and its wholly owned subsidiaries, Ritchie County Gathering
       Systems, The Pipeline Ltd., Dennis Spencer Wells, its 65%
       owned subsidiary, Tyler Construction Company, Inc. and its
       80% owned subsidiary, Vulcan Energy Corporation.  All
       significant intercompany accounts and transactions have
       been eliminated. 
       
       g. Depreciation

       Fixed assets are stated at cost.  Depreciation on vehicles,
       pipelines, machinery, equipment and well equipment is
       provided using the straight line method over expected
       useful lives of five to fifteen years.  Wells are being
       depreciated using the units-of-production method on the
       basis of total estimated units of proved reserves.

       h. Accounts Receivable

       Accounts receivable are shown net of the allowance for
       doubtful accounts.  This amount was determined to be $9,700
       at December 31, 1995 and September 30, 1996 after writing
       off all accounts determined to be uncollectible.

<PAGE>
                             TRANS ENERGY, INC.
               Notes to the Consolidated Financial Statements
                  December 31, 1995 and September 30, 1996

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

       i. Inventory

       Inventory at December 31, 1995 and September 30, 1996
       consists of crude oil held for resale and is stated at the
       lower of cost (computed on a first-in, first-out basis) or
       market.

       j. Goodwill

       Goodwill was recorded from the purchase of Vulcan Energy
       Corporation on August 7, 1995 (see Note 2).  The amount is
       amortized using the straight-line method over a useful life
       of five years.  Accumulated amortization at December 31,
       1995 and September 30, 1996 was $63,240 and $206,209,
       respectively.

       k. Deferred Stock Offering Costs

       The Company has capitalized the costs incurred in connection
       with its proposed stock offering.  The costs will be charged
       to paid-in capital upon completion of the offering.

NOTE 2 - FIXED ASSETS

       The Company acquired oil and gas leases from Ben's Run Oil
       Company (a Virginia limited partnership) in 1988 along with
       other assets and liabilities in exchange for shares of the
       Company's common stock. 

       The assets were recorded at predecessor cost since the
       former owners of Ben's Run Oil Company became the
       controlling shareholders of the Company.  The assets
       acquired had been fully amortized or depreciated. 
       Therefore, they were recorded at a cost of $0.

       In January of 1989 the Company acquired interests in oil and
       gas producing properties from Black Petroleum Corporation
       (Black). In exchange for the interests acquired, the Company
       paid $100,000 cash, 160,790 shares of common stock and
       assumed certain liabilities of Black.  The value of the
       stock issued was based on the estimated fair market value of
       the properties acquired less cash paid and liabilities
       assumed.  The purchase price for oil and gas properties
       totaled $2,015,109.  The purchase price also included the
       payment of an 18 3/4 percent override royalty on all future
       revenues from the properties in which Black had a 50 percent
       or greater interest and 25 percent of the net revenues of
       all properties in which Black had a less than 50 percent
       interest together with an agreement affecting all future
       issuances of capital stock by the Company.  This agreement
       requires that, at all times, Black is entitled to maintain
       a 20 percent equity interest in the Company.  This
       requirement expired on January 30, 1994.  The cost of the
       Black properties was recorded net of the royalty.  The
       acquisition included interests in wells located in Texas,
       Oklahoma, Kansas, and West Virginia.  Shortly after the
       acquisition from Black, the Company sold its interests in
       all the wells located in Texas, Oklahoma and Kansas for a
       total of $37,920 in cash.  The Company then had a formal
       study and appraisal of the oil and gas reserves performed on
       the West Virginia properties.  Based upon this study and
       appraisal, the Company estimated the fair market value of
       the properties to be $2,015,109 at the time of acquisition. 
       However, due to the uncertainties involved in estimating oil
       and gas reserves, there is no assurance that the Company
       will fully recover this amount recorded as the investment in
       the properties.
  
       On November 15, 1994, the Company acquired six oil and gas
       wells at a cost of $1,082,222 and other equipment totaling
       $8,710 from Dennis Spencer in exchange for shares of the
       Company's common stock.  All assets were recorded at their
       market value (which was approximately the same as book
       value) at the time of acquisition based on the purchase
       method of accounting.  

<PAGE>
                            TRANS ENERGY, INC.
              Notes to the Consolidated Financial Statements
                 December 31, 1995 and September 30, 1996

NOTE 2 - FIXED ASSETS (Continued)

       Based upon the reserve estimates, depletion and
       depreciation on these properties and the related equipment
       is computed under the units-of-production method as
       required by generally accepted accounting principles.  In
       1994 and 1993, the Company refurbished a number of wells. 
       In 1995, the Company obtained a reserve study which showed
       that the oil and gas reserves are higher than originally
       reported because the fix-up work allowed the producing
       wells to produce greater quantities and put some non-
       productive wells into production.  

       During 1994, the Company purchased leasehold acreage in
       Ohio known as Rose Run for $287,000.  The acreage was
       purchased from shareholders of the Company in part for
       forgiveness of receivables from those shareholders.  The
       balance of the purchase price of $135,867 is carried on the
       books as a related party loan payable.

       On August 7, 1995, the Company purchased 80 percent of the
       issued and outstanding stock of Vulcan Energy Corporation,
       a Texas corporation, for $800,000 plus the assumption of
       $300,000 in debt.  Vulcan will continue to operate as a
       subsidiary of the Company.  Vulcan Energy is located twenty
       miles southwest of San Antonio and is engaged in the oil
       gathering and marketing business.

NOTE 3 - LONG-TERM DEBT

       The Company had the following debt obligations at December
       31, 1995 and September 30, 1996:
                                                 December 31,      September 30,
                                                    1995               1996
                                                                    (Unaudited)
    Convertible Debentures (Note 5)              $  50,000         $       - 

    
    Bank of Paden City, secured by gas pipeline,
      interest and principal payments of $1,846
      due monthly at 9.0% interest beginning
      March 1994.                                    7,505                 - 

    Calhoun County Bank, secured by oil and
      gas well interests, payable in monthly
      installments of $3,136 including interest at
      variable rates, (lender's base rate of 9.75% 
      as of December 31, 1995) matures 
      September 1, 1996.                            59,472               53,166

    Calhoun County Bank, secured by oil and
      gas well interests, payable in monthly
      installments of $1,029 including interest at
      variable rates, (lender's base rate of 9,75%
      as of December 31, 1995) matures
      February 13, 1996.                             9,164                7,539

    Calhoun County Bank, secured by oil and
      gas well interests, payable in monthly
      installments of $3,651 including interest at
      variable rates, (lender's base rate of 9,75%
      as of December 31, 1995) matures
      February 19, 1996.                            43,359               36,455

    Balance forward                               $169,500             $ 97,160

<PAGE>
                            TRANS ENERGY, INC.
              Notes to the Consolidated Financial Statements
                 December 31, 1995 and September 30, 1996

NOTE 3 -      LONG-TERM DEBT (Continued)

                                                December 31,       September 30,
                                                    1995               1996 
                                                                   (Unaudited)

    Balance forward                              $169,500             $ 97,160

    New York Life, secured by cash value in policy,  
     principal and interest payments of $480 per
     month at 7.25% interest rate.                 18,617               18,617

    Wesbanco Bank, secured by oil and gas wells, 
     principal and interest payments of $841 at 
     12.5% interest rate, matures
     October 11, 1997.                            17,328                10,218

    Westbanco Bank, secured by vehicle,
     principal and interest payments of $155 at
     10.25% interest rate, matures
     September 30, 1997.                           3,115                 1,979

    First National Bank of St. Marys, $9,244
      payable monthly, 12.5% interest rate,
      secured by equipment.                      657,632               635,382

    Union Bank of Tyler County, interest at 
      11.5% due quarterly, renewable,
      secured by equipment.                       19,810                19,810 

    Note due private company, principal and
      interest of $163 payable monthly,
      interest rate of 10.75%, secured
      by vehicle.                                  4,997                 3,825

    United National Bank, interest payable
      quarterly, variable rate (prime 1% 
      or 9.75% as of December 31, 1995), 
      principal payment of $50,000 due 
      annually, secured by equipment.            285,000               285,000

    Note due private individual, secured by officers'
      personal guarantee, due March 15, 1997,
      interest due monthly at 12%.               100,000               100,000

    Bank of Paden City, secured by officers'
      personal assets, demand note, interest
      payments due monthly at 9.75%.             100,000               100,000

    Note due private individual, secured by
      officers' personal guarantee, due May 31,
      1997, interest due monthly at 12%.         150,000               150,000

    Note due private company, secured by officers'
      personal assets, due on October 15, 1997,
      with interest at 18%.                      135,000                92,725

    Balance forward                           $1,660,999            $1,514,716

<PAGE>
                            TRANS ENERGY, INC.
              Notes to the Consolidated Financial Statements
                 December 31, 1995 and September 30, 1996

NOTE 3 -  LONG-TERM DEBT (Continued)
                                                December 31,       September 30,
                                                    1995                1996 
                                                                   (Unaudited)

    Balance forward                               $1,660,999       $  1,514,716

    Note due private company, secured by
      officers guarantee, due September 30, 1997, 
      with interest at 18%.                          100,000             53,200

    Notes due Secured Promissory Note Holders, 
      secured by accounts receivable, due April
      24, 1997, with interest at 12%.                300,000            600,000

    Note payable to Ross Forbus in equal monthly
      installments of $6,529 with interest at 7.5%,
      secured by assets of subsidiary, matures on
      September 22, 2005.                            545,909            491,317

    Bank of Paden City, secured by officers personal
      assets, matures on August 19, 1996, interest
      due monthly at 10%.                             30,200             30,200

    Demand Note due Petrol Marketing Corporation
      on October 31, 1995 with no stated 
      interest rate.                                  50,000             50,000

    Commercial Bank, secured by officers guarantee, 
      due September 28, 1996, with interest at 11.25%.  -                12,995

    Bank of Paden City, secured by officers guarantee,
      due December 5, 1996 with interest at 10%.        -                20,000

    Note due private individual, secured by officers
     guarantee, due November 7, 1996, with interest
     at 20%.                                            -               100,000

    Various equipment purchase contracts secured
      by vehicles.                                    82,354             54,688

         Less Current Portion                       (554,540)        (1,040,169)

         Total Long-Term Debt                     $2,214,922         $1,886,947

    Schedule of Maturities

       1996                                 $554,540 
       1997                                  954,785 
       1998                                  160,735 
       1999                                  143,938        
       2000 and thereafter                   955,464 

            Total                           $2,769,462 

<PAGE>
                            TRANS ENERGY, INC.
              Notes to the Consolidated Financial Statements
                 December 31, 1995 and September 30, 1996

NOTE 4 - BOND

    Under the laws of the state of West Virginia, the Company
    is required to place funds in a deposit account with the
    state when drilling for oil and gas reserves.  The Company
    placed $50,000 in this reserve fund.  This fund has been
    established to cover future site restoration, dismantlement
    and abandonment costs.  No additional restoration costs
    have been recorded due to the fact the Company does not own
    the land and its involvement will be minimal.

NOTE 5 - CONVERTIBLE DEBENTURES

    The Company assumed obligations on debentures issued by
    Ben's Run Oil Co. during 1988.  The debentures, having a
    total face value of $50,000, were due on April 1, 1996. 
    However, subsequent to December 31, 1995, the remaining
    $50,000 was converted into 55,555 shares of common stock.

NOTE 6 - RELATED PARTY TRANSACTIONS

    a.  Loans

    At the end of December 1995, there were several related
    party loans payable and loans receivable outstanding.  The
    receivable amount is non-interest bearing and considered
    short-term in nature.  The payable amount is also non-
    interest bearing and considered long-term in nature.  Loans
    receivable at December 31, 1995 and September 30, 1996
    totalled $14,899 and $1,340, respectively.  Loans payable
    at December 31, 1995 and September 30, 1996 totalled
    $683,586, and $633,722, respectively.  In the third quarter
    of 1996, $250,000 of the loans payable were contributed to
    capital.

    b.  Management Agreement

    A Company owned by an officer of The Company's subsidiary
    Vulcan Energy Corporation (Vulcan) owns the remaining 20%
    of Vulcan's stock.  The management company is entitled to
    a management fee of $252,000 per year and 20% of net
    profits before taxes loss 20% of the principal paid to the
    seller of Vulcan.  This 20% net profits interest has had no
    effect on the Company's financial statements since the
    subsidiary has generated a net loss up through September
    30, 1996.

NOTE 7 - ECONOMIC DEPENDENCE AND MAJOR CUSTOMERS

    The Company is provided its office space at no cost by
    Sancho Oil and Gas Corporation (Sancho),a company owned by
    one of its major shareholders.  The Company's marketing
    arrangement with Sancho accounted for approximately 45% of
    the Company's revenue for the year ended December 31, 1995. 
    This marketing agreement is in effect until December 1,
    2003. Another customer also generated sales in excess of
    10% of the Company's total sales.  Sales to this customer
    made up approximately 14% of net revenues in 1995.   No
    other single customer accounted for more than 10% of the
    Company's business.

    In addition to the natural gas produced by the Company's
    wells, it also purchased natural gas.  Approximately 33% of
    the amount purchased by the Company was from Key Oil
    pursuant to a certain marketing agreement.  No other
    supplier accounted for more than 10% of the Company's
    natural gas purchasers.

<PAGE>
                            TRANS ENERGY, INC.
              Notes to the Consolidated Financial Statements
                 December 31, 1995 and September 30, 1996

NOTE 8 - COMMON STOCK OPTIONS AND WARRANTS

    On October 1, 1995, the Company issued an option to a
    consultant to purchase 100,000 shares of its common stock
    at $0.001 per share.  The option was valued at the
    difference between the exercise price and the trading price
    of the shares.  Accordingly the Company incurred $275,000
    of customary fees in 1995.

    The Company also received $5,000 during December of 1995
    for the purchase of 500,000 stock warrants at $0.01 per
    warrant.  The warrants are convertible to common stock at
    $0.50 per share for up to two years.  Upon the effective
    registration of the Company's proposed stock offering (Note
    10), the warrants convert to redeemable warrants redeemable
    at 120% of the proposed offering price which will be
    approximately $4.00 per share.  The amount is being treated
    as additional capital contributed until the warrants are
    exercised.

    In connection with the extension of the due date of a note
    payable the Company granted the noteholder a warrant to
    purchase up to 50,000 shares of the company's common stock
    at $2.25 per share.


NOTE 9 - COMMITMENTS AND CONTINGENCIES

    The Company leases office space at its Dallas location
    under a one year noncancellable operating lease at $1,747
    per month.  The lease term expires in February 1997.

NOTE 10 - GOING CONCERN

    The Company's financial statements are prepared using
    generally accepted accounting principles 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 operating losses for the
    years ended December 31, 1995, 1994 and 1993.  Revenues
    have not been sufficiently established to cover its
    operating costs and to allow it to continue as a going
    concern.  The Company, having recently purchased an 80%
    equity ownership of Vulcan Energy Corporation (the
    Subsidiary), has replaced management and recapitalized the
    Subsidiary with a $200,000 working capital infusion.  The
    Company has also entered into a letter of intent with L.B.
    Saks, Inc., a New York investment firm, to do an
    underwriting for a minimum of $3,000,000.  The Company
    believes that the acquisition and the proceeds from the
    public offering will help the Company continue as a going
    concern.

NOTE 11 - OTHER TRANSACTIONS

    a.  Line of Credit

    In 1996, the Company obtained a $1,000,000 line of credit
    with a lending institution.  Interest accrues on the unpaid
    balance at varying rates depending on the outstanding
    balance.  The line of credit will be used by Vulcan to
    secure purchases of oil.

    b.  Forgiveness of Debt

    In February 1996, $20,000 of the management fee payable by
    Vulcan was forgiven by the management company.

<PAGE>
                            TRANS ENERGY, INC.
              Notes to the Consolidated Financial Statements
                 December 31, 1995 and September 30, 1996

NOTE 11 - OTHER TRANSACTIONS (Continued)

    c.  Cancellation of Option

    On March 29,1996, the consultant returned to option for
    cancellation.  The option was not exercised and was
    cancelled without consideration, therefore the cancellation
    was accounted for as a decrease in the paid-in capital and
    the related expense was also decreased.

    d.  Secured Promissory Notes and Bridge Warrants

    In March 1996 the Company issued an additional $300,000 of
    secured promissory notes to the Company 330,000 Bridge
    Warrants.  The warrants are exercisable for 18 months from
    the date of issue and entitle the holder thereof to
    purchase 1 share of common stock at $0.50 per share.

NOTE 12 - CONSOLIDATED PROFORMA STATEMENTS OF OPERATIONS

    The historical information contained herein has been
    consolidated on a proforma basis.  The purchase of oil and
    gas assets from Vulcan Energy Corporation as described in
    Notes 1 and 2 was effective August 7, 1995.  The purchase
    has been presented as though it was effective January 1,
    1995.  All significant accounting policies for Vulcan
    Energy Corporation are the same as the Company's as defined
    in Note 1.  No proforma adjustments for depreciation and
    depletion have been recorded because the market value of
    Vulcan Energy Corporation is approximately the same as
    predecessor cost.

<PAGE>
                              TRANS ENERGY, INC.
                Notes to the Consolidated Financial Statements
                   December 31, 1995 and September 30, 1996

NOTE 12 - CONSOLIDATED PROFORMA STATEMENTS OF OPERATIONS (Continued)

                        For the    
                        Period Ended
                        August 31,                   For the Year Ended
                          1995                         December 31, 1995

                         Vulcan            Trans      
                         Energy            Energy and                  Proforma
                        Corporation        Subsidiaries   Adjustment  Combined

    OIL AND GAS SALES    $1,622,955         $2,828,162   $     -    $4,451,117

    COST AND EXPENSES

      Cost of oil and
       gas                1,493,811          2,392,907         -     3,886,718
      Selling, general and
       administrative        59,993            418,338         -       478,331
      Salaries and wages    142,444            178,558         -       321,002
      Depreciation, depletion
       and amortization      11,303            228,692      105,500    345,495 

         Total Costs and
               Expenses   1,707,551          3,218,495      105,500  5,031,546

    INCOME (LOSS) 
         FROM OPERATIONS    (84,596)          (390,333)    (105,500) (580,429)

    OTHER INCOME (EXPENSE)

      Interest income           697                444         -         1,141 
      Interest expense       (1,004)          (209,050)    (112,006)  (322,060)
      Gain on disposition
            of assets         7,683              2,046         -         9,729
      Bad debt expense         (500)           (44,550)        -       (45,050)

         Total Other Income 
              (Expense)       6,876           (251,110)    (112,006)  (356,240)

    NET INCOME (LOSS) BEFORE
     MINORITY INTERESTS     (77,720)          (641,443)    (217,506)  (936,669)

    MINORITY INTERESTS         -               (10,403)        -       (10,403)

    NET INCOME (LOSS)      $(77,720)         $(651,846)  $ (217,506) $(947,072)

    EARNINGS (LOSS)
          PER SHARE        $  (0.02)         $   (0.21)  $    (0.07) $   (0.30)

<PAGE>
                              TRANS ENERGY, INC.
                    S.F.A.S.  69  Supplemental Disclosures
                   December 31, 1995 and September 30, 1996
                                 (Unaudited)


S.F.A.S. 69  SUPPLEMENTAL DISCLOSURES


    (1)                 Capitalized Costs Relating to
                       Oil and Gas Producing Activities
                                       
                                             December 31,          September 30,
                                                 1995                 1996 
                                                                   (Unaudited)
    Proved oil and gas producing properties 
     and related lease and well equipment     $3,733,388          $ 3,759,301
    Accumulated depreciation and depletion      (390,540)            (431,976)

    Net Capitalized Costs                     $3,342,848          $ 3,327,325


    (2)            Costs Incurred in Oil and Gas Property 
            Acquisition, Exploration, and Development Activities 

                                   For the              For the Nine  
                                   Year Ended           Months Ended 
                                  December 31,          September 30, 
                                    1995                1996      
                                                       (Unaudited)
    Acquisition of Properties
       Proved                     $    -               $    -      
       Unproved                     100,000                 -      
    Exploration Costs                  -                    -      
    Development Costs                  -                  25,913 


    The Company does not have any investments accounted for by the equity
method.




<PAGE>
                              TRANS ENERGY, INC.
                    S.F.A.S.  69  Supplemental Disclosures
                   December 31, 1995 and September 30, 1996
                                 (Unaudited)

S.F.A.S.  69 SUPPLEMENTAL DISCLOSURES (CONTINUED)

    (3)                   Results of Operations for
                             Producing Activities

                                              For the       For the Nine   
                                            Year Ended       Months Ended 
                                           December 31,     September 30, 
                                                1995          1996       
                                                             (Unaudited)

    Sales                                  $ 205,152         $ 253,692 

    Production costs                        (110,141)         (136,202)
    Depreciation and depletion               (10,556)           (9,952)

    Results of operations
     for producing activities
     (excluding corporate
     overhead and interest
     costs)                                $  84,455         $ 107,538 


    (4)                  Reserve Quantity Information

                                                 Oil        Gas      
                                                 BBL        MCF     
    Proved developed and undeveloped reserves:

    Balance, December 31, 1994                 200,485  1,457,405 

        Production                              (1,103)   (89,874)
    Quantity estimates made                       (312)   422,123

    Balance, December 31, 1995                 199,070  1,789,654
      (Unaudited)

        Production                              (2,208)   (72,306)
        Quantity estimates made                   -          -      

    Balance, September 30, 1996                196,862  1,717,348 

       Proved developed reserves:
                                                Oil         Gas     
                                                BBL         MCF     

         Beginning of the year 1995            200,485  1,457,405
         End of the year 1995                  199,070  1,789,654
         Beginning of the year 1996            199,070  1,789,654
         End of September 1996                 196,862  1,717,348

<PAGE>
                              TRANS ENERGY, INC.
                     S.F.A.S 69 Supplemental Disclosures
                   December 31, 1995 and September 30, 1996

S.F.A.S 69 SUPPLEMENTAL DISCLOSURES (CONTINUED)

(4)                Reserve Quantity Information (Continued)

During 1995, 1992, 1991 and 1990, the Company had reserve studies and
estimates prepared on the various properties acquired from Black
Petroleum Corporation.  The difficulties and uncertainties involved in
estimating proved oil and gas reserves makes comparisons between
companies difficult.  Estimation of reserve quantities is subject to
wide fluctuations because it is dependent on judgmental interpretation
of geological and geophysical data.

(5)                   Standardized Measure of Discounted
                      Future Net Cash Flows Relating to
                         Proved Oil and Gas Reserves

                             At December 31, 1995

                                                       Trans Energy
                                                            and      
                                                         Subsidiaries 
Future cash inflows                                      $19,846,963
Future production and development costs                   (7,125,060)
Future net inflows before income taxes                    12,721,903
Future income tax expense                                 (4,325,447)
Future net cash flows                                      8,396,456
10% annual discount for estimated timing of cash flows    (4,332,571)

Standardized measure of discounted future net cash flows  $4,063,885


                            At September 30, 1996
                                 (Unaudited)
                                                         Trans Energy
                                                             and      
                                                        Subsidiaries 
Future cash inflows                                      $19,358,130
Future production and development costs                   (6,937,592)
Future net inflows before income taxes                    12,420,538
Future income tax expense                                 (4,222,983)
Future net cash flows                                      8,197,555
10% annual discount for estimated timing of cash flows    (4,251,160)

Standardized measure of discounted future net cash flows $ 3,946,395 

Future income taxes were determined by applying the statutory income tax
rate to future pre-tax net cash flow relating to proved reserves.

<PAGE>
                              TRANS ENERGY, INC.
                     S.F.A.S 69 Supplemental Disclosures
                   December 31, 1995 and September 30, 1996

S.F.A.S 69 SUPPLEMENTAL DISCLOSURES (CONTINUED)

The following schedule summarizes changes in the standardized measure of
discounted future net cash flow relating to proved oil and gas reserves:

                                             For the              For the Nine  
                                           Year Ended            Months Ended
                                           December 31,           September 30,
                                               1995                1996       
                                                                 (Unaudited)
         
Standardized measure, beginning of year      $3,602,626          $ 4,063,885
Oil and gas sales, net of production costs     (107,818)            (117,490)
Sales of mineral in place                          -                    -  
Quantity estimates made                         569,077                 -    

Standardized measure, end of period          $4,063,885          $ 3,946,395

The above schedules relating to proved oil and gas reserves,
standardized measure of discounted future net cash flows and changes in
the standardized measure of discounted future net cash flows have their
foundation in engineering estimates of future net revenues that are
derived from proved reserves and with the assumption of current pricing
and current costs of production for oil and gas produces in future
periods.  These reserve estimates are made from evaluations conducted by
Sam M. Deal, and independent geologist, of such properties and will be
periodically reviewed based upon updated geological and production date. 
Estimates of proved reserves are inherently imprecise.  The above
standardized measure does not include any restoration costs due to the
fact the Company does not own the land.

Subsequent development and production of the Company's reserves will
necessitate revising the present estimates.  In addition, information
provided in the above schedules does not provide definitive information
as the results of any particular year but, rather, helps explain and
demonstrate the impact of major factors affecting the Company's oil and
gas producing activities.  Therefore, the Company suggests that all of
the aforementioned factors concerning assumptions and concepts should be
taken into consideration when reviewing and analyzing this information.

                                             December 31,        September 30, 
                                                 1995                1996       
                                                                  (Unaudited) 
Weighted average outstanding
 shares based on primary
 earnings per share                           3,116,435            3,233,298

Primary earnings per share                   $    (0.21)          $    (0.24)

Weighted average outstanding
 shares based on fully
 diluted earnings per share                   3,182,415            3,233,298

Fully diluted earnings per share             $    (0.20)          $    (0.24)
<PAGE>
Item 2.     Management's Discussion and Analysis of Financial Condition
            and Results of Operations

    The following table sets forth the percentage relationship to total
revenues of principal items contained in the Company's Consolidated
Statements of Operations for the three month and nine month periods
ended September 30, 1996 and 1995.  It should be noted that percentages
discussed throughout this analysis are stated on an approximate basis.

                             Three Months Ended     Nine Months Ended
                                September 30,         September 30,
                             1996          1995    1996        1995
                                  (Unaudited)         (Unaudited)  
Total revenues . . . . . . .  100%          100%    100%        100%
Total costs and expenses . .  128           118     119         114 
Net income (loss) before
  income taxes and
  minority interest. . . . .  (28)          (18)    (19)        (14)
Income taxes . . . . . . . .    -             -       -           - 
Minority interest. . . . . .    1             1       1          (1)
Net income (loss). . . . . .  (27)          (17)    (18)        (15)
                       

Results of Operations

  Total revenues for the three month period ended September 30, 1996
("third quarter of 1996") and the nine month period ended September 30,
1996 ("first nine months of 1996"), increased 130% and 102%,
respectively, as compared to the corresponding periods for 1995 ("third
quarter of 1995" and "first nine months of 1995", respectively).  This
increase is primarily attributed to the acquisition by the Company of
Vulcan Energy Corp. ("Vulcan") on August 7, 1995.  During the first nine
months of 1996, the Company has provided a line of credit to Vulcan
which has allowed Vulcan to purchase larger quantities of oil than it
was historically able to finance.  The increase in revenues is also due
to the increase in the market prices for natural gas and oil in 1996.  

  Total costs and expenses as a percentage of total revenues
increased for the third quarter of 1996 as compared to the corresponding
1995 period, and also increased for the first nine months of 1996 as
compared to the first nine months of 1995.  Actual costs and expenses
for the third quarter of 1996 and first nine months of 1996 increased
150% and 110%, respectively, as compared to the corresponding 1995
periods.  These increases are primarily attributed to the 192% increase
in cost of oil and gas sales for the third quarter of 1996, and the 143%
increase in the cost of oil and gas sales for the first nine months of
1996.  Because the increase in the costs of sales was larger than the
increase in sales, the Company's loss from operations increased from
$86,907 to $433,406, and from $169,038 to $555,393 in the comparative
three month and nine month periods of 1996.


  Salaries and wages decreased 46% and 51% for the third quarter of
1996 and first nine months of 1996, respectively, due to the issuance by
the Company in 1995 of common stock for additional compensation for 
services rendered to the Company valued at $75,000.  Depreciation and
depletion increased 125% for the third quarter of 1996 and 117% for the
first nine months of 1996, respectively, because of the goodwill
acquired in the Vulcan purchase. Interest increased 68% for the third
quarter of 1996 and 104% for the first nine months of 1996,
respectively, as compared to the respective corresponding periods in
1995, attributed to the debt incurred in the Vulcan acquisition. 
General and administrative expenses increased 66% for both the third
quarter of 1996 and the first nine months of 1996 as compared to the
corresponding 1995 periods, reflecting increased overhead due to the
Company's expanded oil sale operations.

  The Company's subsidiary, Tyler Construction Company, continued to 
generate losses which resulted in an adjustment to the minority interest
account of $38 for the third quarter of 1996 and $39,393 for the first
nine months of 1996.  The Company experienced net losses for the third
quarter and first nine months of 1996 of $535,490 and $762,509,
respectively, compared to net losses of $137,590 and $309,380 for the
corresponding 1995 periods, primarily attributed to the increase in the
cost of oil and gas sales and the increased overhead activities of the
Company.

  For the remainder of 1996, management expects salaries and wages
and other general and administrative expenses to remain at approximately
the same rate that existed in the third quarter of 1996.  The cost of
oil and gas produced is expected to fluctuate with the amount produced
and with prices of oil and gas, and revenues are expected to fluctuate
with market prices of oil and gas during the remainder of 1996.

Net Operating Losses

  The Company has accumulated approximately $2,200,000 of net
operating loss carryforwards as of September 30, 1996, which may be
offset against future taxable income through the year 2011 when the
carryforwards expire.  The use of these losses to reduce future income
taxes will depend on the generation of sufficient taxable income prior
to the expiration of the net operating loss carryforwards.  In the event
of certain changes in control of the Company, there will be an annual
limitation on the amount of net operating loss carryforwards which can
be used.  No tax benefit has been reported in the financial statements
for the period ended  September 30,1996 because the potential tax
benefits of the loss carryforwards are offset by a valuation allowance
of the same amount.

Liquidity and Capital Resources

  Historically, the Company's working capital needs have been
satisfied through its operating revenues and from borrowed funds.  As of
September 30, 1996, the Company's working capital was a negative
$1,646,111 compared with a negative $862,222 at December 31, 1995.  This
decrease in working capital for the first nine months of 1996 is
primarily attributed to due dates of certain loans to the Company which
will become due in less than one year from September 30, 1996.

  The Company believes that in the absence of the public offering,
cash flows from operations will be sufficient to cover the general and
administrative costs of the Company, including salaries and wages.  The
Company used $30,310 in cash in its operating activities for the nine
month period ended September 1996, compared to $215,837 in the
corresponding 1995 period.  In the event that the proposed public
offering does not close before December 31, 1996, the Company would
immediately negotiate the extension of the current portion of its long-
term debt which makes up almost one-half (49%) of current liabilities. 
Management believes that it can negotiate an extension of the due dates
of approximately $800,000 of the current portion of its long-term debt
for an additional one-year period.  The Company also believes that
$600,000 of the $800,000 previously discussed could be converted into
stockholders' equity.  For the balance of the approximately $200,000 of
the current portion of its long-term debt, the Company believes that it
will be able to secure financing from both private and institutional
lenders.  The Company has in place a $1,000,000 line of credit for the
factoring of Vulcan's accounts receivable which enables Vulcan to buy
and sell oil at its present levels.  The Company, in anticipation of
further growth, has expanded its overhead activities.  In the event the
proposed public offering does not occur, the Company intends to
eliminate costs associated with such expansion, approximately $15,000
per month, without affecting revenues.  Such elimination would be
effective starting January 1, 1997.

  As of September 30, 1996, the Company had total assets of
$6,585,525 and total stockholders' equity of $1,954,628, compared to
total assets of $6,746,228 and total stockholders' equity of $2,602,137
at December 31, 1995.  This represents a $160,703 (2%) decrease in total
assets and a $647,509 (25%) decrease in total stockholders equity.  For
this same period, cash increased from $0 to $151,939 and total current
assets increased 35% due to increased cash.  Total current liabilities
increased 75% from December 31, 1995 to September 30, 1996, primarily
due to certain loans of the Company which become due in less than one
year from September 30, 1996.

  The Company's current portion of its long term debt is  $1,040,169. 
In 1995 and 1996, certain outstanding convertible debentures having a
face value of $95,000 plus accrued interest, were converted to common
stock.

  For the third quarter of 1996 cash provided by the Company's
operating activities was $240,707 compared to cash used of $218,895 for
the third quarter of 1995.  For the first nine months of 1996, cash used
by operating activities was $30,310 compared to cash used of $215,837
for the corresponding period in 1995.  Net cash used by investing
activities for the third quarter and first nine months of 1996 was
$44,169 and $82,508, respectively, compared to $975,326 and $1,029,217
for each of the corresponding periods of 1995.  The decreases for the
1996 periods are attributed to decreases in expenditures by the Company
for property and equipment and also acquisitions during the 1996
periods.  Cash used by financing activities for the third quarter of
1996 was $63,634 and cash provided for the first nine months of 1996 was
$264,757, respectively, compared with cash provided of $1,228,052 and
$1,273,250 for the corresponding 1995 periods.  The decreases for the
1996 periods are directly attributed to a decrease in borrowing by the
Company.

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

                                   PART II

Item 1.  Legal Proceedings

    There are presently no material pending legal proceedings to
which the Company or any of  its subsidiaries is a party or to which any
of its property is subject and, to the best of its knowledge, no such
actions against the Company are contemplated or threatened.

Item 2.  Changes In Securities

    This Item is not applicable to the Company.

Item 3.  Defaults Upon Senior Securities

    This Item is not applicable to the Company.

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

    This Item is not applicable to the Company.

Item 5.  Other Information

    This Item is not applicable to the Company.

Item 6.  Exhibits and Reports on Form 8-K

    (a)     Exhibit 27 - Financial Data Schedules

    (b)     Reports on Form 8-K

       No report on Form 8-K was filed by the Company during the
        three month period ended September 30, 1996.

<PAGE>
                                  SIGNATURES
                                       

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

                                               TRANS ENERGY, INC.



Date:  November 19, 1996        By       /S/ Loren E. Bagley       
                                            (Signature)
                               LOREN E. BAGLEY, President,    
                                Chief Executive Officer and   
                                Principal Financial Officer