----

----

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

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

| For the transition period from __________ | to __________ |   |
|-------------------------------------------|---------------|--------|

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

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

|   | (Exact name of registrant as specified in its charter) |
|--------|--------------------------------------------------------|

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

|   | 210 Second Street, P.O. Box 393, St. Marys, West Virginia  26170 |
|--------|----------------------------------------------------------------------------|

|   | (Address of principal executive offices) |
|--------|------------------------------------------|

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

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

|  Class                          |  Outstanding as of August 16, 2010 |
|--------------------------------------|-----------------------------------------|
|  Common Stock, $0.001 par value |  12,531,078                        |

----

|  Heading                               |                                                                                              |  Page     |
|---------------------------------------------|---------------------------------------------------------------------------------------------------|----------------|
|                                        |                                                                                              |           |
|                                        |  PART I --  FINANCIAL INFORMATION                                                       |           |
|                                        |                                                                                              |           |
|  Item 1.                | Financial Information                                                                             |    3 |
|                                        |                                                                                              |           |
|                                        | Consolidated Balance Sheets – June 30, 2010 (Unaudited)                                     |           |
|                                        |      and December 31, 2009 (Audited)                                          |  3        |
|                                        |                                                                                              |           |
|                                        | Consolidated Statements of Operations – Three and Six Months Ended                          |           |
|                                        |      June 30, 2010 and 2009 (Unaudited)                                  |  5        |
|                                        |                                                                                              |           |
|                                        | Consolidated Statement of Stockholders’ Deficit – Six Months                          |           |
|                                        |      Ended June 30, 2010 (Unaudited)                                          |  6        |
|                                        |                                                                                              |           |
|                                        | Consolidated Statements of Cash Flows -- Six Months Ended                          |           |
|                                        |      June 30, 2010 and 2009 (Unaudited)                             |  7        |
|                                        |                                                                                              |           |
|                                        | Notes to Consolidated Financial Statements (Unaudited)                                            |  8        |
|                                        |                                                                                              |           |
|  Item  2.     |  Management's Discussion and Analysis of Financial Condition and Results of Operations  |  18       |
|                                        |                                                                                              |           |
|  Item 4.                               |  Controls and Procedures                                                                     |  22       |
|                                        |                                                                                              |           |
|                                        |  PART II -- OTHER INFORMATION                                                                |           |
|                                        |                                                                                              |           |
|  Item 1.                               |  Legal Proceedings                                                                           |  23       |
|                                        |                                                                                              |           |
|  Item 2.                               |  Unregistered Sales of Equity Securities and Use of Proceeds                                 |  23       |
|                                        |                                                                                              |           |
|  Item 3.                               |  Defaults Upon Senior Securities                                                             |  23       |
|                                        |                                                                                              |           |
|  Item 4.                               |  (Removed and Reserved)                                                                      |  23       |
|                                        |                                                                                              |           |
|  Item 5.                               |  Other Information                                                                           |  23       |
|                                        |                                                                                              |           |
|  Item 6.                               |  Exhibits                                                                                    |  24       |
|                                        |                                                                                              |           |
|                                        |  Signatures                                                                                  |  24       |
|                                        |                                                                                              |           |

----

|   |   TRANS ENERGY, INC. AND SUBSIDIARIES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | Consolidated Balance Sheets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |  June 30, |   |  December 31, |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   | 2010 |   | 2009 |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |  Unaudited |   |  Audited |
|   |                                                                                                                                        |
|   | ASSETS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   | CURRENT ASSETS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |   |   |   |   |   |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | Cash |   |   |   |   |   |   | $        876,005 |   | $         4,602,170 |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | Accounts receivable,  trade |   |   | 1,373,025 |   | 1,370,029 |
|   | Accounts receivable,  related parties                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   |   | 18,500 |   | 18,500 |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | Advance Royalties |   |   |   | 94,381 |   | 94,381 |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | Accounts receivable due from non-operator, net |   |   |   | 2,043,431 |   | 687,515 |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | Note receivable |   |   |   | 188,007 |   | 289,149 |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | Deferred financing costs, net |   |   |   | - |   | 105,413 |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | Derivative assets |   |   |   |   |   | 282,104 |   | 227,961 |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | Total Current Assets |   |   |   |   |   | 4,875,453 |   | 7,395,118 |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |
|   | PROPERTY AND EQUIPMENT, net of accumulated depreciation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |   |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |      of $561,594 and $469,957, respectively |   |   | 1,101,093 |   | 1,140,406 |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |
|   | OIL AND GAS PROPERTIES, USING SUCCESSFUL EFFORTS ACCOUNTING                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | Proved properties |   |   |   |   |   | 29,526,246 |   | 24,662,761 |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | Unproved properties |   |   |   |   |   | 2,034,583 |   | 1,242,144 |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | Pipelines |   |   |   |   |   |   | 1,387,440 |   | 1,387,440 |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | Accumulated depreciation, depletion and amortization |   |   | (6,025,876) |   |         (4,983,747) |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | Oil and gas properties, net |   |   |   |   | 26,922,393 |   | 22,308,598 |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |
|   | OTHER ASSETS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | Note receivable | - |   | 54,444 |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | Derivative assets |   |   |   |   |   | 109,422 |   | 166,705 |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | Advances to operator |   |   |   |   |   | 9,000 |   | 9,000 |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | Other assets |   |   |   |   |   | 52,098 |   | 52,098 |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | Total Other Assets |   |   |   |   |   | 170,520 |   | 282,247 |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | TOTAL ASSETS |   |   |   |   |   | $      33,069,459 |   | $      31,126,369 |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |

----

|     TRANS ENERGY, INC. AND SUBSIDIARIES |
|-------------------------------------------------------------|
| Consolidated Balance Sheets (continued)                     |
|                                                        |   |   |   |   |   |   |   |   |   |   |
|                                                        |   |   |   |   |   |   |   |  June 30, |   |  December 31, |
|                                                        |   |   |   |   |   |   |   | 2010 |   | 2009 |
|                                                        |   |   |   |   |   |   |   |  Unaudited |   |  Audited |
| LIABILITIES AND STOCKHOLDERS' DEFICIT                       |
|                                                        |
| CURRENT LIABILITIES                                         |   |   |   |   |   |   |   |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |
|                                                        | Accounts payable, trade |   |   |   |   | $        5,523,807 |   | $       1,483,743 |
|                                                        | Accounts and notes payable,  related party |   |   |   |   | 2,150 |   | 581,008 |
|                                                        | Accrued expenses |   |   |   |   |   | 738,843 |   | 891,641 |
|                                                        | Notes payable – current, net of unamortized discount of                       |   |   |   |   | 30,057,262 |   | 29,876,521 |
|                                                        |    $0 and $145,677,  respectively |   |   |   |   |   |   |   |   |   |
|                                                        | Total Current Liabilities |   |   |   |   | 36,322,062 |   | 32,832,913 |
|                                                        |   |   |   |   |   |   |   |   |   |   |
| LONG-TERM LIABILITIES                                       |   |   |   |   |   |   |   |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |
|                                                        | Notes payable |   |   |   | 34,951 |   | 66,832 |
|                                                        | Asset retirement obligations |   |   |   |   | 210,922 |   | 202,366 |
|                                                        |   |   |   |   |   |   |   |   |   |   |
|                                                        | Total Long-Term Liabilities |   |   |   |   | 245,873 |   | 269,198 |
|                                                        |   |   |   |   |   |   |   |   |   |   |
|                                                        | Total Liabilities |   |   |   |   |   | 36,567,935 |   | 33,102,111 |
|                                                        |   |   |   |   |   |   |   |   |   |   |
| COMMITMENTS AND CONTINGENCIES                               |   |   |   |   | - |   | - |
|                                                        |   |   |   |   |   |   |   |
| STOCKHOLDERS' DEFICIT                                       |   |   |   |   |   |   |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |
|                                                        | Preferred stock; 10,000,000 shares authorized at $0.001 par value; -0- shares issued and outstanding |   |   |   | - |   | - |
|                                                        | Common stock; 500,000,000 shares authorized at $0.001 par value; 12,531,078 and 11,628,027 shares issued, respectively, and 12,529,078 and 11,626,027 shares outstanding, respectively | 12,531 |   | 11,628 |
|                                                        | Additional paid-in capital |   |   |   |   | 37,406,944 |   | 36,734,675 |
|                                                        | Treasury stock, at cost, 2,000 shares |   |   |   |   | (1,950) |   | (1,950) |
|                                                        | Accumulated deficit |   |   |   |   |   | (40,916,001) |   | (38,720,095) |
|                                                        |   |   |   |   |   |   |   |   |   |   |
|                                                        | Total Stockholders' Deficit |   |   |   |   | (3,498,476) |   | (1,975,742) |
|                                                        |   |   |   |   |   |   |   |   |   |   |
|                                                        | TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT |   | $      33,069,459 |   | $      31,126,369 |
|                                                        |   |   |   |   |   |   |   |   |   |   |
|                                                        |

----

| TRANS ENERGY, INC. AND SUBSIDIARIES                    |
|--------------------------------------------------------|
| Consolidated Statements of Operations                  |
| (Unaudited)                                            |
|                                                   |   |   |   |   |   |   |   |   |
|                                                   |   |  For the Three Months Ended |   |  For the Six Months Ended |
|                                                   |   | June 30, |   |  June 30, |
|                                                   |   | 2010 |   | 2009 |   | 2010 |   | 2009 |
|                                                   |   |   |   |   |   |   |   |   |
|  REVENUES                                         | $   1,502,711 |   | $     1,504,773 |   | $  2,610,070 |   |  $  3,037,034 |
|                                                   |   |   |   |   |   |   |   |   |
|  COSTS AND EXPENSES                               |   |   |   |   |   |   |   |
|                                                   |   |   |   |   |   |   |   |   |
|                                                   |  Production costs | 560,999 |   | 492,597 |   | 1,197,714 |   | 1,017,383 |
|                                                   |  Depreciation, depletion, amortization and accretion | 593,945 |   | 520,901 |   | 1,143,720 |   | 934,545 |
|                                                   |  Selling, general and administrative | 626,799 |   | 786,641 |   | 1,258,975 |   | 1,407,037 |
|                                                   |   |   |   |   |   |   |   |   |
|                                                   |  Total Costs and Expenses | 1,781,743 |   | 1,800,139 |   | 3,600,409 |   | 3,358,965 |
|                                                   |   |   |   |   |   |   |   |   |
| LOSS FROM OPERATIONS                                   | (279,032) |   | (295,366) |   | (990,339) |   | (321,931) |
|                                                   |   |   |   |   |   |   |   |   |
|  OTHER INCOME (EXPENSES)                          |   |   |   |   |   |   |   |
|                                                   |   |   |   |   |   |   |   |   |
|                                                   |  Interest income | 4,191 |   | 9,786 |   | 9,799 |   | 13,960 |
|                                                   |  Interest expense | (817,963) |   | (618,355) |   | (1,368,978) |   |  (1,354,983) |
|                                                   |  Gain on derivative contracts | 103,105 |   | 86,664 |   | 153,796 |   | 191,467 |
|                                                   |  Loss on sale of assets | - |   | (1,312) |   | (184) |   | (1,812) |
|                                                   |   |   |   |   |   |   |   |   |
|                                                   |  Total Other Income (Expenses) | (710,667) |   | (523,217) |   | (1,205,567) |   | (1,151,368) |
|                                                   |   |   |   |   |   |   |   |   |
|  NET LOSS BEFORE INCOME TAXES                     | (989,699) |   | (818,583) |   | (2,195,906) |   | (1,473,299) |
|                                                   |   |   |   |   |   |   |   |   |
|  INCOME TAXES                                     | - |   | - |   | - |   | - |
|                                                   |   |   |   |   |   |   |   |   |
|  NET LOSS                                         |  $   (989,699) |   |  $   (818,583) |   | $(2,195,906) |   |  $(1,473,299) |
|                                                   |   |   |   |   |   |   |   |   |
|  LOSS PER SHARE – BASIC AND DILUTED         |  $         (0.08) |   |  $         (0.08) |   |  $         (0.18) |   |  $         (0.14) |
|                                                   |   |   |   |   |   |   |   |   |
| WEIGHTED AVERAGE SHARES OUTSTANDING--BASIC AND DILUTED |  12,531,078 |   | 10,667,815 |   | 12,308,914 |   | 10,618,768 |
|                                                   |   |   |   |   |   |   |   |

----

| Consolidated Statement of Stockholders' Deficit |
|-------------------------------------------------|
| For the Six Months Ended June 30, 2010          |
| (Unaudited)                                     |
|                                            |   |   |   |   |   |   |   |   |   |
|                                            |   |   |   | Common Stock | Additional |   |   |   |
|                                            |   |   |   |   |   | Paid in | Treasury | Accumulated |   |
|                                            |   |   |   | Shares | Amount | Capital | Stock | Deficit | Total |
|                                            |   |   |   |   |   |   |
| Balance, December 31, 2009                      |    11,628,027 | $   11,628 | $ 36,734,675 | $    (1,950) | $ (38,720,095) | $   (1,975,742) |
|                                            |   |   |   |   |   |   |   |   |   |
| Stock issued for services                       |   | 12,500 | 12 | 14,363 | - | - | 14,375 |
|                                            |   |   |   |   |   |   |   |
| Stock Option Compensation Expense               |   |   |   | - | - | 79,939 | - | - | 79,939 |
|                                            |   |   |   |   |   |   |   |   |   |
| Stock issued for note conversion                |   |   |   | 890,551 | 891 | 577,967 | - | - | 578,858 |
|                                            |   |   |   |   |   |   |   |   |   |
| Net loss                                        |   | -  | - | - | - |  (2,195,906) |  (2,195,906) |
|                                            |   |   |   |   |   |   |   |   |   |
| Balance, June 30, 2010                          |   | 12,531,078 | $   12,531 | $ 37,406,944 | $    (1,950) | $ (40,916,001) | $   (3,498,476) |
|                                            |   |   |   |   |   |   |   |   |   |

----

|  TRANS ENERGY, INC. AND SUBSIDIARIES                 |   |
|-----------------------------------------------------------|--------|
| Consolidated Statements of Cash Flows                     |   |
| (Unaudited)                                               |   |
|                                                      |   | For the Six Months Ended |   |
|                                                      |   | June 30, |   |
|                                                      |   | 2010 |   |   | 2009 |   |
| CASH FLOWS FROM OPERATING ACTIVITIES:                     |   |   |   |   |   |   |
| Net loss                                                  |   | $ | (2,195,906 | ) |   | $ | (1,473,299 | ) |
| Adjustments to reconcile net loss                         |   |   |   |   |   |   |   |   |
| to net cash used by operating activities:                 |   |   |   |   |   |   |   |   |
| Depreciation, depletion, amortization and accretion       |   |   | 1,143,720 |   |   |   | 934,545 |   |
| Amortization of financing cost and debt discount          |   |   | 251,092 |   |   |   | 268,864 |   |
| Share-based compensation                                  |   |   | 94,314 |   |   |   | 570,286 |   |
| Loss on sale of assets                                    |   |   | 184 |   |   |   | 1,812 |   |
| Gain on derivative contracts                              |   |   | (153,796 | ) |   |   | (191,467 | ) |
| Changes in operating assets and liabilities:              |   |   |   |   |   |   |   |   |
| Accounts receivable,  trade                     |   |   | (2,996 | ) |   |   | (1,456,833 | ) |
| Accounts receivable,  related parties           |   |   | - |   |   |   | 1,200,536 |   |
| Accounts receivable due from non-operator, net            |   |   | (1,355,916 | ) |   |   | 291,845 |   |
| Advance royalties  and other assets             |   |   | - |   |   |   | (68,764 | ) |
| Accounts payable and accrued expenses                     |   |   | (843,026 | ) |   |   | (832,566 | ) |
| Net cash used by operating activities                     |   |   | (3,062,330 | ) |   |   | (755,041 | ) |
|                                                      |   |   |   |   |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES:                     |   |   |   |   |   |   |   |   |
|      Increase in note receivable |   |   | - |   |   |   | (311,440 | ) |
| Collections on note receivable                            |   |   | 155,586 |   |   |   | 97,211 |   |
| Proceeds from sale of assets                              |   |   | 1,500 |   |   |   | 10,200 |   |
| Expenditures for oil and gas properties                   |   |   | (925,632 | ) |   |   | (2,644,328 | ) |
| Expenditures for property and equipment                   |   |   | (55,406 | ) |   |   | (152,986 | ) |
| Net cash used by investing activities                     |   |   | (823,952 | ) |   |   | (3,001,343 | ) |
|                                                      |   |   |   |   |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES:                     |   |   |   |   |   |   |   |   |
| Proceeds from derivative contracts                        |   |   | 156,936 |   |   |   | 353,947 |   |
| Proceeds from notes payable                               |   |   | 52,756 |   |   |   | 2,014,586 |   |
| Payments on notes payable                                 |   |   | (49,575 | ) |   |   | (52,137 | ) |
| Net cash provided by financing activities                 |   |   | 160,117 |   |   |   | 2,316,396 |   |
|                                                      |   |   |   |   |   |   |   |   |
| NET CHANGE IN CASH                                        |   |   | (3,726,165 | ) |   |   | (1,439,988 | ) |
|                                                      |   |   |   |   |   |   |   |   |
| CASH, BEGINNING OF PERIOD                                 |   |   | 4,602,170 |   |   |   | 1,806,008 |   |
|                                                      |   |   |   |   |   |   |   |   |
| CASH, END OF PERIOD                                       |   | $ | 876,005 |   |   | $ | 366,020 |   |

| SUPPLEMENTAL DISCLOSURES FOR CASH FLOW INFORMATION: |   |   |      |   |   |   |
|-----------------------------------------------------|--------|--------|-----------|--------|--------|--------|
| Cash paid for interest                              |   | $      | 1,151,093 |   |   | $      | 1,037,729 |   |
| Cash paid for income taxes                          |   | $      | -         |   |   | $      | - |   |
|                                                |   |   |      |   |   |   |   |   |
| Non-cash investing and financing activities:        |   |   |      |   |   |   |   |   |
| Accrued expenditures for oil and gas properties     |   | $      | 4,730,292 |   |   | $      | 2,536,158 |   |
| Conversion of related party debt to common stock    |   | $      | 578,858   |   |   | $      | - |   |

----

----

|                                                | 2010                                         |   | 2009                                         |
|-----------------------------------------------------|----------------------------------------------|--------|----------------------------------------------|
| Asset retirement obligations at beginning of period | $      202,366 |   | $      178,954 |
| Liabilities incurred during the period              | -                                            |   | 2,749                                        |
| Accretion expenses                                  | 8,556                                        |   | 12,107                                       |
| Asset retirement obligations at end of period       | $      210,922 |   | $      193,810 |

----

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

----

|                          |   |                                            As of June 30, 2010 |    |
|-------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------|
|                          |   |                                                                                                                                                                                                                                                                                            |    |   |   |   |   | Fair Value Measurements Using: |   |
|                          |   | CarryingAmount                                                                                                                                                                                                                                                                                  |    |   | TotalFair Value |   |   | Quoted Pricesin Active Markets(Level 1) |   |   | Significant OtherObservable Inputs(Level 2) |   |   | SignificantUnobservable Inputs(Level 3) |   |
| Financial Assets:             |   |                                                                                                                                                                                                                                                                                            |    |   |   |   |   |   |   |   |   |   |   |   |   |
|   Derivative assets |   | $                                                                                                                                                                                                                                                                                               | 391,526 |   |   | $ | 391,526 |   |   | $ | - |   |   | $ | 391,526 |   |   | $ | - |   |

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

----

----

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

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

----

----

----

----

|                       | For the Three Months Ended June      30, | Oil and Gas          Sales | Pipeline Transmission                   | Corporate                       | Total                                         |
|----------------------------|-------------------------------------------------------------------|------------------------------------------------------------------------------|-----------------------------------------|---------------------------------|-----------------------------------------------|
|                       |                                                              |                                                                         |                                    |                            |                                          |
| Revenue                    | 2010                                                              | $ 1,393,663                                                                  | $  80,555                     | $    28,493 | $   1,502,711                  |
|                       | 2009                                                              | 1,389,359                                                                    | 114,251                                 | 1,163                           | 1,504,773                                     |
|                       |                                                              |                                                                         |                                    |                            |                                          |
| Income (loss) from         | 2010                                                              | 386,839                                                                      | (63,841)                                | (602,030)                       |    (279,032)                   |
| operations                 | 2009                                                              | 636,028                                                                      |      (147,257) | (784,137)                       |       (295,366) |
|                       |                                                              |                                                                         |                                    |                            |                                          |
| Interest expense           | 2010                                                              | 817,963                                                                      | --                                      | --                              | 817,963                                       |
|                       | 2009                                                              | 618,355                                                                      | --                                      | --                              | 618,355                                       |
|                       |                                                              |                                                                         |                                    |                            |                                          |
| Depreciation, depletion,   | 2010                                                              | 591,238                                                                      | 2,707                                   | --                              | 593,945                                       |
| amortization and accretion | 2009                                                              | 481,020                                                                      | 39,881                                  | --                              | 520,901                                       |
|                       |                                                              |                                                                         |                                    |                            |                                          |
| Property and equipment     | 2010                                                              | 3,652,329                                                                    | --                                      | --                              | 3,652,329                                     |
| acquisitions, including    | 2009                                                              | 1,411,777                                                                    | 108,951                                 | --                              | 1,520,728                                     |
| oil and gas properties     |                                                              |                                                                         |                                    |                            |                                          |

|                       |                                                            |                   |                                    |
|----------------------------|-----------------------------------------------------------------|------------------------|-----------------------------------------|
|                       |                                                            |                   |                                    |   |   |
|                       | For the Six Months Ended June      30, | Oil and Gas Sales | Pipeline Transmission                   | Corporate | Total |
|                       |                                                            |                   |                                    |   |   |
| Revenue                    | 2010                                                            | $ 2,372,219            | $  181,866                    | $    55,985 | $   2,610,070 |
|                       | 2009                                                            | 2,756,540              | 278,302                                 | 2,192 | 3,037,034 |
|                       |                                                            |                   |                                    |   |   |
| Income (loss) from         | 2010                                                            | 357,552                | (141,171)                               | (1,206,714) |    (990,525) |
| operations                 | 2009                                                            | 1,301,358              |      (220,286) | (1,403,003) |       (321,931) |
|                       |                                                            |                   |                                    |   |   |
| Interest expense           | 2010                                                            | 1,368,978              | --                                      | -- | 1,368,978 |
|                       | 2009                                                            | 1,354,983              | --                                      | -- | 1,354,983 |
|                       |                                                            |                   |                                    |   |   |
| Depreciation, depletion,   | 2010                                                            | 1,138,304              | 5,416                                   | -- | 1,143,720 |
| amortization and accretion | 2009                                                            | 855,389                | 79,156                                  | -- | 934,545 |
|                       |                                                            |                   |                                    |   |   |
| Property and equipment     | 2010                                                            | 5,711,330              | --                                      | -- | 5,711,330 |
| acquisitions, including    | 2009                                                            | 5,303,165              | 30,307                                  | -- | 5,333,472 |
| oil and gas properties     |                                                            |                   |                                    |   |   |

| Total assets, net of intercompany accounts: |   |         |                                   |
|---------------------------------------------|--------|--------------|----------------------------------------|
| June 30, 2010                               |   | $ 32,584,366 | $  485,093                   | $          -- | $ 33,069,459 |
| December 31, 2009                           |   | $ 30,554,379 | $     571,990 | $          -- | $ 31,126,369 |

----

|                           | ThreeMonths Ended |
|--------------------------------|-------------------|
|                           |  June 30,    |
|                           |  2010        |   |  2009 |
|                           |  100%        |   |  100% |
|  Total revenues           |  119%        |   |  120% |
|  Total costs and expenses |  (19%)       |   |  (20%) |
|  Loss from operations     |  (47%)       |   |  (35%) |
|  Total other expenses     |  (66%)       |   |  (55%) |
|  Net loss                 |              |   |   |
|                           |              |   |   |

----

|                           |  Six Months Ended |
|--------------------------------|------------------------|
|                           |  June 30,         |
|                           |  2010             |   |  2009 |
|                           |  100%             |   |  100% |
|  Total revenues           |  138%             |   |  110% |
|  Total costs and expenses |  (38%)            |   |  (10%) |
|  Loss from operations     |  (46%)            |   |  (37%) |
|  Total other expenses     |  (84%)            |   |  (47%) |
|  Net loss                 |                   |   |   |
|                           |                   |   |   |

----

----

----

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

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

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

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

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

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

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

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

----

----

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

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

| August 16, 2010 | TRANS ENERGY, INC.                                          |
|-----------------|-------------------------------------------------------------|
|            |                                                        |
|            | By:  /S/ JOHN G. CORP                             |
|            |        JOHN G. CORP      |
|            |        President         |
|            |                                                        |
| August 16, 2010 | By  /S/ LISA A. CORBITT                           |
|            |       LISA A. CORBITTs        |
|            |       Chief Financial Officer |
|            |                                                        |
|            |                                                        |

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----