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, 2006

                                       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 [ ]

          Indicate by check mark whether the  registrant  is a shell company (as
defined by Rule 12b-2) of the Exchange Act. Yes [ ] No [X]

                      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, 2006
-----------------------------               ------------------------------------
Common Stock, $.001 par value                             9,433,565


<PAGE>

<TABLE>
<CAPTION>

                                TABLE OF CONTENTS

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

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

             Consolidated Balance Sheets - September 30, 2006 (Unaudited) and
               December 31, 2005.....................................................................       4


             Consolidated Statements of Operations - three months and nine months ended
                September 30, 2006 and 2005 (Unaudited)..............................................       6

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


             Consolidated Statements of Cash Flows - nine months ended

                September 30, 2006 and 2005 (Unaudited)..............................................       9

             Notes to Unaudited Condensed Consolidated Financial Statements .........................      11

Item 2.      Management's Discussion and Analysis or Plan of Operations..............................      16

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

                           PART II. OTHER INFORMATION

Item 1.      Legal Proceedings.......................................................................      21

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

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

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

Item 5.      Other Information.......................................................................      21

Item 6.      Exhibits and Reports on Form 8-K........................................................      21

             Signatures..............................................................................      22

</TABLE>
                                      -2-
<PAGE>


                                     PART I

Item 1.       Financial Statements

     The  accompanying  consolidated  balance  sheets of Trans  Energy,  Inc. at
September  30,  2006  (unaudited)  and  December  31,  2005,  related  unaudited
consolidated  statements  of  operations,  stockholders'  equity  (deficit)  and
consolidated  statements  of cash flows for the nine months ended  September 30,
2006  and  2005,  have  been  prepared  by our  management  in  conformity  with
accounting principles generally accepted in the United States of America. In the
opinion  of  management,   all  adjustments  considered  necessary  for  a  fair
presentation  of  the  consolidated   results  of  operations  and  consolidated
financial  position have been included and all such  adjustments are of a normal
recurring  nature.  Operating  results for the nine months ended  September  30,
2006, are not necessarily indicative of the results that can be expected for the
fiscal year ending December 31, 2006.


                                      -3-
<PAGE>


<TABLE>
<CAPTION>

                               TRANS ENERGY, INC.
                           Consolidated Balance Sheets


                                     ASSETS

                                                                 September 30, December 31,
                                                                     2006          2005
                                                                 -----------   -----------
                                                                               (Unaudited)
CURRENT ASSETS
<S>                                                              <C>           <C>
   Cash                                                          $   386,346   $   439,258
   Accounts receivable, net of allowance for doubtful accounts
      of $15,621                                                     377,264       396,696
   Accounts receivable - related parties                             418,000     1,000,000
   Prepaid expenses                                                    6,794         9,617
                                                                 -----------   -----------


     Total Current Assets                                          1,188,404     1,845,571
                                                                 -----------   -----------


   Oil and gas properties, using successful efforts accounting
     and property and equipment, net of accumulated depletion
     and depreciation of $1,576,765 and $ 4,101,429                5,636,913     2,160,256
                                                                 -----------   -----------


OTHER ASSETS

   Assets of discontinued operations                                    --       6,672,688
   Loan fees, net of accumulated amortization of $106,                 7,433          --
   Deposits                                                            2,873         4,914
   Investments                                                       627,628       175,000
   Life insurance, cash surrender value                               75,995        75,995
                                                                 -----------   -----------


     Total Other Assets                                              713,929     6,928,597
                                                                 -----------   -----------


     TOTAL ASSETS                                                $ 7,539,246   $10,934,424
                                                                 ===========   ===========

</TABLE>

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


                                      -4-
<PAGE>


<TABLE>
<CAPTION>

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


                      LIABILITIES AND STOCKHOLDERS' EQUITY

                                                                 September 30,    December 31,
                                                                     2006            2005
                                                                 ------------    ------------
                                                                 (Unaudited)
CURRENT LIABILITIES


<S>                                                              <C>             <C>
   Accounts payable - trade                                      $  1,132,030    $  2,355,429
   Accounts payable - related parties                                 211,404            --
   Accrued expenses                                                   546,758         860,368
   Judgments payable                                                  116,102          77,767
   Debentures payable                                                  50,000          50,000
   Short term debt - related parties                                  552,431         855,502
   Notes payable - current portion                                    712,377         659,205
                                                                 ------------    ------------
     Total Current Liabilities                                      3,321,101       4,858,271
                                                                 ------------    ------------


LONG-TERM LIABILITIES


   Notes payable                                                    1,835,616           6,872
   Liabilities of discontinued operations                                --         4,772,812
   Asset retirement obligation                                      1,677,888         799,393
                                                                 ------------    ------------
   Total Long-Term Liabilities                                      3,513,504       5,579,077
                                                                 ------------    ------------
       Total Liabilities                                            6,834,606      10,437,348
                                                                 ------------    ------------


COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS' EQUITY

   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; 9,433,565 and 4,952,148 shares issued and

    9,433,565 and 4,707,515 shares outstanding, respectively            9,433           4,952
   Capital in excess of par value                                  33,365,976      30,856,798
   Treasury stock                                                        --          (286,467)
   Accumulated deficit                                            (32,670,769)    (30,078,207)
                                                                 ------------    ------------
     Total Stockholders' Equity                                       704,640         497,076
                                                                 ------------    ------------
     TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                  $  7,539,246    $ 10,934,424
                                                                 ============    ============

                  The accompanying notes are an integral part
             of these condensed consolidated financial statements.
</TABLE>


                                      -5-
<PAGE>

<TABLE>
<CAPTION>


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

                                                              For the                        For the
                                                         Three Months Ended            Nine Months Ended
                                                            September 30,                 September 30,
                                                     --------------------------    --------------------------
                                                         2006           2005           2006           2005
                                                     -----------    -----------    -----------    -----------
<S>                                                  <C>            <C>            <C>            <C>
REVENUES                                             $   921,062    $ 1,100,355    $ 3,445,587    $ 2,714,043
                                                     -----------    -----------    -----------    -----------

COSTS AND EXPENSES

  Cost of oil and gas                                    660,170        918,826      2,780,681      2,322,168
  Depreciation, depletion and
   amortization                                           50,426         99,839        244,444        315,525
  Selling, general and
   administrative                                      1,885,604        276,952      2,476,947        740,796
                                                     -----------    -----------    -----------    -----------
     Total Costs and Expenses                          2,596,200      1,295,617      5,502,072      3,378,489
                                                     -----------    -----------    -----------    -----------
LOSS FROM OPERATIONS                                  (1,675,138)      (195,262)    (2,056,485)      (664,446)
                                                     -----------    -----------    -----------    -----------

OTHER INCOME (EXPENSE)
 Gain on extinguishment
   of debt                                                11,864          5,000         17,072          7,306
  Net gain (loss) on sale of assets                       14,900        (38,725)       719,016        (46,590)
  Other income (expense)                                 (21,027)         1,264         63,949          6,845
  Interest expense                                       (73,409)       (31,884)      (145,599)       (85,156)
                                                     -----------    -----------    -----------    -----------

     Total Other Income
      (Expense)                                          (67,672)       (64,345)       654,438       (117,595)
                                                     -----------    -----------    -----------    -----------

NET LOSS BEFORE

DISCONTINUED OPERATIONS                               (1,742,810)      (259,607)    (1,402,047)      (782,041)
GAIN (LOSS) FROM DISCONTINUED
 OPERATIONS                                                 --         (175,295)       183,775       (245,206)
GAIN (LOSS) ON DISPOSAL OF
 DISCONTINUED OPERATIONS                                    --             --       (1,374,290)          --
                                                     -----------    -----------    -----------    -----------

NET LOSS                                             $(1,742,810)   $  (434,902)   $(2,592,562)   $(1,027,247)
                                                     ===========    ===========    ===========    ===========

BASIC AND DILUTED NET LOSS
PER SHARE
   Continuing Operations                                   (0.25)         (0.07)         (0.26)         (0.17)
   Discontinued Operations                                  0.00          (0.04)         (0.22)         (0.05)
                                                     -----------    -----------    -----------    -----------

                                                     $     (0.25)   $     (0.11)   $     (0.48)   $     (0.22)
                                                     ===========    ===========    ===========    ===========

BASIC AND DILUTED WEIGHTED
 AVERAGE SHARES
 OUTSTANDING                                           6,938,208      4,815,098      5,405,293      4,692,358
                                                     ===========    ===========    ===========    ===========
</TABLE>


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


                                      -6-
<PAGE>

<PAGE>

<TABLE>
<CAPTION>

                       TRANS ENERGY, INC. AND SUBSIDIARIES
            Consolidated Statement of Stockholders' Equity (Deficit)
                      Nine months ended September 30, 2006
                                  (unaudited)



                                        Preferred Stock             Common Stock
------------------------------------------------------------ -------------------------
                                                               Treasury
                                      Shares       Amount       Shares       Amount
                                   ------------ ------------ ------------ ------------

<S>                                <C>          <C>             <C>       <C>
Balance, December 31, 2005                 --   $       --      4,952,148 $      4,952


Shares received for discontinued
  operations on March 31, 2006
  (unaudited)                              --           --           --           --

hares issued for services
  (unaudited)                              --           --      2,790,000        2,790

Shares issued for debt                     --           --      1,119,961        1,120

Shares issued for cash                     --           --        337,500          337

Shares issued for properties               --           --      1,000,000         1,000

Value of options granted                   --           --           --           --

Treasury stock cancelled                   --           --       (766,044)         (766)

Net loss for the nine months ended
   September 30, 2006 (unaudited)          --           --           --           --
                                   ------------ ------------ ------------ ------------

Balance, June 30, 2006 (unaudited)         --   $       --      9,433,565 $      9,433
                                   ============ ============ ============ ============

</TABLE>
                                                                (continued)

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

                                      -7-
<PAGE>

<TABLE>
<CAPTION>

                       TRANS ENERGY, INC. AND SUBSIDIARIES
            Consolidated Statement of Stockholders' Equity (Deficit)
                      Nine months ended September 30, 2006
                                  (unaudited)



                                   Capital In
                                    Excess of
                                   Accumulated    Treasury    Accumulated    Total
                                    Par Value       Stock       Deficit
                                   ------------ ------------ ------------   ------------

<S>                                <C>          <C>           <C>           <C>
Balance, December 31, 2005         $ 30,856,798 $   (286,467) $(30,078,207) $    497,076


Shares received for discontinued
  operations on March 31, 2006
  (unaudited)                              --       (469,270)        --         (469,270)

Shares issued for services
  (unaudited)                         1,669,210         --           --        1,672,000

Shares issued for debt                  608,015         --           --          609,135

Shares issued for cash                  269,663         --           --          270,000

Shares issued for properties            679,000         --           --          680,000

Value of options granted                 38,261         --           --           38,261

Treasury stock cancelled               (754,971)     756,737         --             --

Net loss for the nine months ended
   September 30, 2006 (unaudited)          --           --      (2,592,562)    (2,592,562)
                                   ------------ ------------  ------------   ------------

Balance, June 30, 2006 (unaudited) $ 33,365,976 $       --    $(32,670,769)  $    704,640
                                   ============ ============  ============   ============

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

</TABLE>


                                      -8-
<PAGE>
<TABLE>
<CAPTION>

                       TRANS ENERGY, INC. AND SUBSIDIARIES
                      Consolidated Statements of Cash Flows
                                   (Unaudited)
                                                              For the Nine Months Ended
                                                                    September 30,
                                                                 2006           2005
                                                             -----------    -----------

CASH FLOWS FROM OPERATING ACTIVITIES:


<S>                                                          <C>            <C>
   Net loss                                                  $(2,592,562)   $(1,027,247)
   Adjustments to reconcile net loss to net cash used in
    operating activities:

     Depreciation, depletion, amortization and accretion         244,444      1,164,307
     Net (gain) loss from sale of assets                        (719,016)       160,275
     (Gain) loss on extinguishment of debt                          --             --
      Discontinued operations                                  1,374,290           --
      Contributed services                                          --          175,000
      Gain on settlement of debt                                 (17,072)          --
      Shares issued for services                               1,672,000           --
      Value of options and beneficial conversion feature          38,261           --


   Changes in operating assets and liabilities:

     Accounts receivable                                         601,432       (564,511)
     Prepaid expenses                                              2,823        (57,243)
     Other assets                                                 (5,392)        (1,400)
     Accounts payable                                         (1,188,835)       384,160
     Accrued expenses                                           (149,987)        53,123
                                                             -----------    -----------
       Net cash provided by (used in) operating activities      (739,614)       286,464
                                                             -----------    -----------


CASH FLOWS FROM INVESTING ACTIVITIES:


   Investment in joint venture                                  (245,019)      (236,791)
   Proceeds from sale of assets                                1,003,000         76,575
   Cash acquired from subsidiary                                    --          408,333
   Expenditures for property and equipment                    (2,446,590)      (556,155)
                                                             -----------    -----------
       Net cash used in investing activities                  (1,688,609)      (308,038)
                                                             -----------    -----------


CASH FLOWS FROM FINANCING ACTIVITIES:


   Common stock issued for cash                                  270,000           --
   Proceeds from notes payable                                 1,929,671           --
   Payments on related party payables                            (18,997)       (67,765)
   Proceeds from related party notes                             450,000        637,088
   Principal payments on notes payable                          (255,362)      (388,401)
                                                             -----------    -----------
       Net cash provided by financing activities               2,375,312        180,922
                                                             -----------    -----------

NET CHANGE IN CASH                                               (52,911)       159,348


CASH, BEGINNING OF PERIOD                                        439,258         79,662
                                                             -----------    -----------


CASH, END OF PERIOD                                          $   386,346    $   239,010
                                                             ===========    ===========
</TABLE>


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


                                      -9-
<PAGE>



<TABLE>
<CAPTION>

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


                                                              For the Nine Months Ended
                                                                    September 30,
                                                                2006            2005
                                                             -----------    -----------

CASH PAID FOR:
<S>                                                          <C>            <C>
   Interest                                                  $  102,224     $     --
   Income taxes                                              $     --       $     --

NON-CASH FINANCING ACTIVITIES:

   Common stock issued for debt relief                       $  609,135     $  305,000
   Common stock issued for the net assets
   over liabilities in the purchase

     of Arvilla Inc. and subsidiary                          $     --       $2,370,048
   Contributed services                                      $     --       $  175,000
   Investments purchased by the assumption of debt           $  207,608     $     --
   Property acquired for common stock                        $  680,000     $     --
   Treasury stock cancelled                                  $  755,737     $     --
</TABLE>


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

                                      -10-
<PAGE>



                       TRANS ENERGY, INC. AND SUBSIDIARIES
       Notes to the Unaudited Condensed Consolidated Financial Statements
                    September 30, 2006 and December 31, 2005

NOTE 1 - BASIS OF FINANCIAL STATEMENT PRESENTATION


     The accompanying unaudited condensed consolidated financial statements have
     been prepared by Trans Energy,  Inc.  pursuant to the rules and regulations
     of the Securities and Exchange Commission. Certain information and footnote
     disclosures   normally  included  in  financial   statements   prepared  in
     accordance  with  accounting  principles  generally  accepted in the United
     States of America have been  condensed or omitted in  accordance  with such
     rules and regulations.  The information  furnished in the interim condensed
     consolidated financial statements includes normal recurring adjustments and
     reflects  all  adjustments,  which,  in  the  opinion  of  management,  are
     necessary for a fair  presentation of such financial  statements.  Although
     management believes the disclosures and information  presented are adequate
     to make the information not misleading,  it is suggested that these interim
     condensed  consolidated  financial  statements be read in conjunction  with
     Trans Energy's most recent audited  financial  statements and notes thereto
     included in its December 31, 2005 Annual  Report on Form 10-KSB.  Operating
     results for the nine months  ended  September  30, 2006 are not necessarily
     indicative of the results that may be expected for the year ending December
     31, 2006.


NOTE 2 - GOING CONCERN


     Trans Energy's  condensed  consolidated  financial  statements are prepared
     using  accounting  principles  generally  accepted in the United  States of
     America applicable to a going concern which contemplates the realization of
     assets and  liquidation  of  liabilities  in the normal course of business.
     Trans Energy has incurred cumulative operating losses through September 30,
     2006 of  $32,670,769,  and has a working  capital  deficit at September 30,
     2006 of  $2,132,697.  Revenues  have  not  been  sufficient  to  cover  its
     operating  costs  and to  allow  it to  continue  as a going  concern.  The
     potential  proceeds  from  the  sale of  common  stock,  sale  of  drilling
     programs,  and other contemplated debt and equity financing,  and increases
     in operating revenues from new development and business  acquisitions would
     enable  Trans  Energy  to  continue  as a going  concern.  There  can be no
     assurance  that Trans  Energy can or will be able to  complete  any debt or
     equity financing.  Trans Energy's consolidated  financial statements do not
     include  any  adjustments  that  might  result  from  the  outcome  of this
     uncertainty.



NOTE 3 - CONTINGENCIES AND COMMITTMENTS

     On July 28, 1999 Core Laboratories, Inc. obtained a judgment against us for
     non-payment of an account payable.  The judgment calls for monthly payments
     of $351 and is bearing  interest at 10.00% per annum. At September 30, 2006
     we had  accrued  a  balance  including  interest  of  $21,204  as a current
     liability. We are currently in default on this judgment.

     On July 1, 1998, RR Donnelly obtained a judgment against us for non-payment
     of accounts payable.  The judgment calls for monthly payments of $3,244 and
     is bearing  interest at 10.00% per annum.  At September  30,  2006,  we had
     accrued a balance including interest of $94,898 as a current liability.  We
     are currently in default on this judgment.

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

                                      -11-
<PAGE>




                       TRANS ENERGY, INC. AND SUBSIDIARIES
       Notes to the Unaudited Condensed Consolidated Financial Statements
                    September 30, 2006 and December 31, 2005

NOTE 4 - SIGNIFICANT EVENTS

     Sale of Arvilla


     Effective March 31, 2006,  Trans Energy finalized the agreement to sell its
     well  servicing  and  maintenance  business in exchange for shares of Trans
     Energy   common   stock,   certain   natural  gas   properties   and  other
     considerations,  which  agreement was initially  entered into on January 3,
     2006. Under the terms of the definitive  agreement,  100% of Trans Energy's
     wholly  owned  subsidiary,  Arvilla,  Inc.  was  sold  to  several  of  its
     directors.

     Trans Energy  originally  acquired  Arvilla,  Inc. from those  directors on
     January  31, 2005  through a merger of our  subsidiary,  As  consideration,
     Trans Energy issued 1,185,024 shares of its common stock.

     As a  result  of  consummating  the  definitive  agreement,  the  directors
     returned to Trans Energy 521,411 shares of Trans Energy's  common stock and
     all of their  interest  in and to five oil and gas wells  located  in Tyler
     County, West Virginia.


     Sale of Wyoming Wells and Properties

     In April 2006,  Trans Energy  finalized a definitive  Agreement for Sale of
     Oil and Gas  Properties  related to the sale of certain  wells,  overriding
     royalties and undeveloped acreage located in Campbell County,  Wyoming. The
     gross sales price for the properties is $1,003,000.


     Purchase of West Virginia Wells

     In  August  2006,  Trans  Energy  purchased  various  oil and gas wells and
     interests  in West  Virginia for  1,000,000  shares of its common stock and
     cash of $600,000.


     Employee Stock Bonuses

     In April and August  2006,  Trans  Energy  issued  2,790,000  shares of its
     common  stock to its officers  and  directors as bonuses for entering  into
     employment agreements.


     Debt Settled for Common Stock

     In August 2006, Trans Energy issued 1,052,693 shares of its common stock as
     settlement for debts owed to its officers, directors and attorney.


                                      -12-
<PAGE>



                       TRANS ENERGY, INC. AND SUBSIDIARIES
       Notes to the Unaudited Condensed Consolidated Financial Statements
                    September 30, 2006 and December 31, 2005


NOTE 5 -RELATED PARTIES

     Marketing Agreement - Sancho


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

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

     Certain  officers and directors of Trans Energy have personally  guaranteed
     specific notes payable.


NOTE 6 - EQUITY

     On January 1, 2006,  Trans  Energy  adopted SFAS No.  123(R),  "Share-Based
     Payment"  ("SFAS  123(R)").  This replaced SFAS No. 123 and  supersedes APB
     Opinion No. 25. SFAS 123(R) requires all share-based payments to employees,
     including  grants  of  employee  stock  options,  to be  recognized  in the
     financial  statements based on their fair values. The pro forma disclosures
     previously  permitted  under  SFAS  123 are no  longer  an  alternative  to
     financial statement recognition. Trans Energy adopted SFAS 123(R) using the
     modified   prospective   method  which  requires  the  application  of  the
     accounting  standard  as of  January 1, 2006.  The  consolidated  financial
     statements as of and for the quarter  ended  September 30, 2006 reflect the
     impact of adopting SFAS 123(R). In accordance with the modified prospective
     method,  the consolidated  financial  statements for prior periods have not
     been restated to reflect, and do not include, the impact of SFAS 123(R).


                                      -13-
<PAGE>

                       TRANS ENERGY, INC. AND SUBSIDIARIES
       Notes to the Unaudited Condensed Consolidated Financial Statements
                    September 30, 2006 and December 31, 2005


          Prior to 2006, compensation was recorded for stock-based  compensation
          grants based on the excess of the  estimated  fair value of the common
          stock  on  the  measurement   date  over  the  exercise   price.   Had
          compensation  cost for our stock option plans been determined based on
          the fair value at the grant  date for  awards in fiscal  year 2006 and
          2005  consistent  with the provisions of SFAS No. 123, our approximate
          net loss and loss per share  would  have  been the pro  forma  amounts
          indicated below:

                                                For the Nine Months Ended
                                                      September 30,
                                                  2006            2005
                                              -------------    -----------
              Net loss:

  As reported                             $      (2,592,563)   $(1,027,247)
Add back:

  Stock-based employee compensation
  expense determined under intrinsic value
  based method for all awards, net of
  related tax effects                                  --             --
Deduct:
  Total stock-based employee compensation
  expense determined under fair value based
  method for all awards, net of related
  tax effects                                          --         (837,416)
                                              -------------    -----------

  Pro forma                           $          (2,592,563)   $(1,864,663)
                                              =============    ===========



Basic loss per share:

As reported                                   $          (0.48)$     (0.22)
Pro forma                                     $          (0.48)$     (0.40)


          Stock  Warrants - A summary of the status of the options and  warrants
          granted under various  agreements at September 30, 2006 and 2005,  and
          changes during the years then ended is presented below:
<TABLE>
<CAPTION>

                                            September 30, 2006        September 30, 2005
                                         -----------------------   -----------------------
                                         Weighted                  Weighted
                                          Average     Exercise      Average      Exercise
                                          Shares        Price       Shares         Price
                                         ---------   -----------   ---------   -----------
<S>                                        <C>       <C>           <C>         <C>
Outstanding at beginning of period         553,324   $      1.95        --     $      --
Granted                                    950,000          0.65     553,324          1.95
Exercised                                     --            --          --            --
Forfeited                                     --            --          --            --
Expired                                       --            --          --            --
                                         ---------   -----------   ---------   -----------
Outstanding at end of Period             1,503,324   $      1.13     553,324   $      1.95
                                         =========   ===========   =========   ===========

Weighted average fair value of options
  and warrants granted during the year     950,000   $      0.65     553,324   $      1.95
                                         =========   ===========   =========   ===========
</TABLE>

                                      -14-
<PAGE>


                       TRANS ENERGY, INC. AND SUBSIDIARIES
       Notes to the Unaudited Condensed Consolidated Financial Statements
                    September 30, 2006 and December 31, 2005


          A summary of the status of the options and warrants  granted under the
          various  agreements at September 30, 2006,  are presented in the table
          below:
<TABLE>
<CAPTION>

                                     Options and Warrants Outstanding               Options and Warrants Exercisable
                          --------------------------------------------------------  ---------------------------------
                                          Weighted-Average       Weighted-Average                    Weighted-Average
          Range of           Number          Remaining               Exercise           Number           Exercise
       Exercise Prices    Outstanding     Contractual Life            Price          Exercisable          Price
       ---------------    ------------    -----------------      ----------------    ------------    ----------------
<S>         <C>              <C>               <C>                 <C>                    <C>         <C>
            $0.65            950,000           3.00 years          $         0.65         300,000     $         0.65
            $1.95            553,324           8.25 years          $         1.95         553,324     $         1.95
                           ---------                                                 ------------


                           1,503,324                                                      853,324
                           =========                                                 ============
</TABLE>



                                      -15-
<PAGE>


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

Recent Developments

     Sale of Arvilla

     On April 7, 2006, we finalized the agreement to sell our well servicing and
maintenance  business  in  exchange  for shares of Trans  Energy  common  stock,
certain  natural gas properties and other  considerations,  which  agreement was
initially  entered  into on January 3, 2006. Part of the reason for the sale was
the  inability  of our board of  directors  to agree on the  direction  of Trans
Energy  with  Arvilla  as a  significant  subsidiary.  Under  the  terms  of the
definitive  agreement,  our wholly owned subsidiary,  Arvilla,  Inc. was sold to
Clarence  E.  Smith and  Rebecca  L.  Smith,  both  directors  of Trans  Energy,
including  100% of the  outstanding  membership  interests  of Arvilla  Oilfield
Services, LLC, a West Virginia limited liability company ("AOS").

     AOS provides well servicing,  workover and related transportation  services
to  independent  oil and natural gas  producers in the  northeast  region of the
United  States.  It  also  performs  ongoing  maintenance  and  major  overhauls
necessary to optimize the level of production  from existing oil and natural gas
wells and provides certain ancillary services during the drilling and completion
of new wells. AOS offers its services in Ohio, Pennsylvania, New York, Virginia,
Kentucky and West Virginia and also owns a fleet of well service equipment.

     We  originally  acquired AOS from Clarence and Rebecca Smith on January 31,
2005 through a merger of our  subsidiary,  Trans Energy  Acquisitions,  with and
into Arvilla,  Inc., with Arvilla being the surviving  entity. As consideration,
we issued  1,185,024  shares of our common stock, of which 1,042,821 shares were
issued to the Smiths,  both of whom became  directors of Trans Energy  following
the acquisition.  AOS's  operations were previously  conducted as Arrow Oilfield
Service  Company,  a division of Belden & Blake  Corporation,  a privately  held
company  engaged  in the  exploration,  development  and  production  of oil and
natural gas. In September 2004, the Smiths acquired Arrow Oilfield Services from
Belden & Blake and  created  Arvilla  Oilfield  Services,  LLC as the  operating
entity.  Subsequently,  the Smiths created  Arvilla,  Inc. that acquired all the
membership  interests of Arvilla  Oilfield  Services in order to facilitate  its
acquisition by Trans Energy.

     As a result of consummating the definitive agreement,  Clarence and Rebecca
Smith  returned to us 521,411  shares of their Trans Energy  common  stock.  The
Smiths have also  conveyed to Trans Energy all of their  interest in and to five
oil and gas wells located in Tyler County,  West Virginia.  Assignments  for the
wells  originally was to be held in escrow pending  satisfaction by Trans Energy
of two promissory  notes in the aggregate  amount of $763,000 payable to AOS and
to Arvilla Pipeline  Construction Co., Inc., a separate entity owned by Clarence
and Rebecca  Smith.  However,  pursuant  to the First  Amendment  to  Definitive
Agreement, the parties agreed that the wells would be transferred at the closing
and we agreed to pay AOS $176,239 on or before  April 30, 2006,  and pay Arvilla
Pipeline $115,000 on or before April 30, 2006. To secure these payments by Trans
Energy,  Clarence and Rebecca Smith held a lien on a certain Lyon Leasehold Deed
of Trust  until the debt is  satisfied.  These notes have been paid and the lien
released.  A further  condition of the closing  included the written consent for
the sale of AOS from certain  banks and lenders  having the right to call a loan
on the ownership transfer of AOS.

     Upon execution of the definitive agreement,  Clarence Smith resigned as our
Chief  Executive  Officer,  but  remained  on our board of  directors  until the
closing.  At the closing,  both Clarence and Rebecca Smith resigned as directors
of Trans Energy and Arvilla,  Inc.  Clarence and Rebecca  Smith have also agreed
not to sell an amount of their  remaining  Trans Energy common stock during each
calendar quarter on or after March 22, 2006, in an aggregate amount greater that
(i) 50,000  shares  (adjusted for stock splits or stock  dividends;  or (ii) one
percent of the total outstanding shares of Trans Energy common stock on the date
of any such sale.


                                      -16-
<PAGE>



     Finally,  the closing of the transaction  was expressly  conditioned on the
receipt of a fairness  opinion from a qualified  independent  party stating that
the  transactions  contemplated  by the  definitive  agreement are fair to Trans
Energy and our  stockholders.  That  opinion was issued and  delivered  to Trans
Energy on March 31, 2006.

Sale of Wyoming Wells and Properties

     In April 2006, we finalized a definitive  Agreement for Sale of Oil and Gas
Properties  related  to the sale of  certain  wells,  overriding  royalties  and
undeveloped  acreage located in Campbell County,  Wyoming.  The assets have been
sold at public  auction  through the Oil & Gas Asset  Clearinghouse  in Houston,
Texas. The gross sales price for the properties is $1,003,000.

     The wells sold by us, all located in Campbell County, Wyoming,  include the
Pinion Fee #1, Sagebrush  Federal #1, Sagebrush Federal #2, Sagebrush Federal #3
(injector),  Boley #31-36 Sandbar,  State #1-36 Sandbar and State #2-36 Sandbar.
Also  included in the sales were  overriding  royalties on two wells  (Sagebrush
Federal #1 and  Sagebrush  Federal #2) and Tract  TR4-B,  and 2,530  undeveloped
acres, also located in Campbell County.

Purchase of West Virginia Wells

     On August 14, 2006, we finalized an acquisition of certain assets of Cobham
Gas Industries,  Inc. These assets included  certain interest in 120 oil and gas
wells,  both  producing  and  non-producing,  located  in  Marion  County,  West
Virginia,  together  with  all of the  equipment  and  other  tangible  personal
property  physically attached to the wells,  including all pipelines,  rights of
way, easements,  well head equipment, and approximately 2,500 acres of leasehold
estates;  certain vehicles and other equipment;  and a $50,000  reclamation bond
pursuant to which all of the Marion County wells are permitted.

Results of Operations

     The  following  table  sets  forth  the  percentage  relationship  to total
revenues  of  principal  items  contained  in  our  consolidated  statements  of
operations  for the nine and three month  periods  ended  September 30, 2006 and
2005. It should be noted that percentages discussed throughout this analysis are
stated on an approximate basis.
                                                           Nine Months Ended
                                                             September 30,
                                                             2006    2005
                                                              (Unaudited)

Total revenues ...........................................    100%    100%
Total costs and expenses .................................    160     124
Loss from operations .....................................    (60)    (24)
Other income (expense) ...................................     19      (4)
Discontinued operations ..................................    (35)    (10)
Net loss .................................................    (75)    (38)


                                                          Three Months Ended
                                                             September 30,
                                                             2006    2005
                                                              (Unaudited)

Total revenues ...........................................    100%    100%
Total costs and expenses .................................    282     118
Loss from operations .....................................   (182)    (18)
Other income (expense) ...................................     (7)     (6)
Discontinued operations ..................................     --     (16)
Net loss .................................................   (189)    (40)



                                      -17-
<PAGE>


     Total  revenues from  continuing  operations  for the three months  ("third
quarter")  ended  September 30, 2006 decreased 19% compared to the third quarter
of 2005,  primarily due to the sale of the Cobham properties in the fall of 2005
and the sale of the  Wyoming  properties  in the  spring  of 2006  offset  by an
increase in energy prices and the gas distribution contracts the Company entered
into in the  summer of 2005.  Our cost of oil and gas for the third  quarter  of
2006 also decreased by $260,256 or 28% from the comparable 2005 period,  because
more of the gas used to fulfill  our  distribution  contracts  came from our own
wells.

     Depreciation,  depletion and amortization and accretion  expense  increased
136% due to the increased  production  from the  Company's  own wells.  Selling,
general and administrative expenses increased $1,608,652 in the third quarter of
2006 from the same quarter of 2005 due to a signing bonus given to the Company's
officers  and  directors  in  shares of the  Company's  common  stock  valued at
$1,554,000.

     Our loss from  operations  for the  third  quarter  of 2006 was  $1,675,138
compared to a loss of $195,262  for the third  quarter of 2005.  The increase is
related to the value of the shares issued as signing bonuses to its officers and
directors.  We realized total other expenses of $67,672 during the third quarter
of 2006  compared  to total other  expenses  of $64,345 for the same  quarter of
2005.  The third  quarter of 2006  interest  expense  was  $73,409  compared  to
interest  expense  of  $31,884  in 2005.  The  increase  was the  result  of the
operating funds borrowed by the Company in 2006.


     We recorded the  disposition  of Arvilla in the second quarter of 2006. Our
statement of  operations  for the third  quarter of 2005 was restated to reflect
the operations of Arvilla as discontinued.


     Our net loss for the third  quarter of 2006 was  $1,742,810  compared  to a
loss of $434,902 for the third quarter of 2005.


     For the remainder of fiscal year 2006, management expects selling,  general
and  administrative  expenses  to remain at  approximately  the same rate as the
first quarter of 2006. The cost of oil and gas produced is expected to fluctuate
with  the  amount  produced  and with  prices  of oil and  gas,  and  management
anticipates  that revenues are likely to increase  during the remainder of 2006.
We do not  expect to  recognize  a gain from the sale of  properties  during the
remainder of 2006.

     Total  revenues  from  continuing  operations  for the  nine  months  ended
September  30,  2006  increased  27%  compared to the first nine months of 2005,
primarily due to the gas distribution  contracts the Company entered into in the
summer of 2005.  Our cost of oil and gas for the first nine  months of 2006 also
increased by $458,513 or 20% from the  comparable  2005 period,  because more of
the gas used to fulfill our distribution contracts came from our own wells.


     Depreciation,  depletion and amortization and accretion  expense  increased
36% due to increased production from Company owned wells.  Selling,  general and
administrative  expenses  increased  $1,736,151 in the first nine months of 2006
from the  same  period  of 2005  due to  signing  bonus  given to the  Company's
officers  and  directors  in  shares of the  Company's  common  stock  valued at
$1,672,000.

     Our loss from  operations  for the first nine months of 2006 was $2,056,485
compared to a loss of $664,446  for the first nine months of 2005.  The increase
is the result of the shares issued as signing  bonuses.  We realized total other
income of $654,438  during the first nine months of 2006 compared to total other
expenses of $117,595 for the same period of 2005.  The first nine months of 2006
results  were due to a gain on the sale of the  Wyoming  properties  of $719,016
offset by interest  expense of $145,599  compared to interest expense of $85,156
in 2005. The increase in interest expense is due to the additional debt incurred
in 2006.

     We recorded a loss of $1,374,290 on the disposition of Arvilla in the first
nine months of 2006.  Our statement of  operations  for the first nine months of
2005 was restated to reflect the operations of Arvilla as discontinued.


                                      -18-
<PAGE>


     Our net loss for the first nine months of 2006 was $2,592,562 compared to a
loss of $1,027,247 for the same period of 2005.


     For the remainder of fiscal year 2006, management expects selling,  general
and  administrative  expenses  to remain at  approximately  the same rate as the
first quarter of 2006. The cost of oil and gas produced is expected to fluctuate
with  the  amount  produced  and with  prices  of oil and  gas,  and  management
anticipates  that revenues are likely to increase  during the remainder of 2006.
We do not  expect to  recognize  a gain from the sale of  properties  during the
remainder of 2006.

Liquidity and Capital Resources

     Historically,  we have  satisfied our working  capital needs with operating
revenues  and from  borrowed  funds.  At September  30,  2006,  we had a working
capital  deficit of  $2,132,697  compared to a deficit of $3,012,700 at December
31, 2005. This 29% decrease in working  capital deficit is primarily  attributed
to the sale of the Wyoming  properties and the conversion of $609,135 of debt to
equity in 2006.

     During the first nine months of 2006, operating activities used net cash of
$739,614  compared to net cash provided of $286,464 for the same period of 2005.
These results are primarily  attributed to the reduction in accounts  receivable
offset by a decrease in current liabilities.

     Net cash used by investing activities for the first nine months of 2006 was
$1,688,609.  $2,446,590 of cash was used for the purchase of well  equipment and
the  drilling  of wells and cash of  $1,003,000  was  received  from the sale of
wells,  compared to net cash used of $308,038 in 2005.  In 2005 cash of $556,155
was used in the purchase of well equipment and the drilling of wells and cash of
$408,333 was received from the acquisition of a subsidiary.

     During  the  first  nine  months  of  2006,  we were  provided  net cash in
financing activities of $2,379,671 from the borrowings of notes payable compared
to net cash  provided  by related  party  notes  payable of $637,088 in the same
period of 2005. Our cash was used to repay related and unrelated notes payable.

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


     As of September  30,  2006,  we had total  assets of  $7,539,246  and total
stockholders'  equity of $704,640,  compared to total assets of $10,934,424  and
total  stockholders'  equity of $497,076 at December 31, 2005.  The decrease was
due to the disposition of Arvilla and the Wyoming properties.

     Because we have incurred  significant  cumulative  operating losses through
September 30, 2006 and have a working  capital  deficit at September 30, 2006 of
$2,132,697,  there exists  substantial  doubt about our ability to continue as a
going  concern.  Historically,  our revenues  have not been  sufficient to cover
operating costs.  However, we may potentially need to rely on proceeds from sale
of common stock, debt or equity financing, and increased operating revenues from
new  developments  to allow us to continue as a going  concern.  There can be no
assurance that we can or will be able to complete any debt or equity financing.


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


                                      -19-
<PAGE>


Inflation

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

Forward-looking and Cautionary Statements

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

         *    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;

         *    volatility  of the stock  market,  particularly  within the energy
              sector; and

         *    general economic conditions.

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

Item 3.       Controls and Procedures

     We maintain  disclosure  controls  and  procedures  that are designed to be
effective in providing  reasonable  assurance  that  information  required to be
disclosed in our reports under the Securities  Exchange Act of 1934 is recorded,
processed,  summarized  and reported  within the time  periods  specified in the
rules  and  forms of the SEC,  and that  such  information  is  accumulated  and
communicated  to our  management to allow timely  decisions  regarding  required
disclosure.

     In designing and evaluating disclosure controls and procedures,  management
recognizes  that any controls and  procedures,  no matter how well  designed and
operated,  can provide only reasonable,  not absolute assurance of achieving the
desired  objectives.  Also, the design of a control system must reflect the fact
that  there are  resource  constraints  and the  benefits  of  controls  must be
considered relative to their costs.  Because of the inherent  limitations in all
control systems,  no evaluation of controls can provide absolute  assurance that
all control  issues and instances of fraud,  if any, have been  detected.  These
inherent limitations include the realities that judgments in decision-making can
be faulty and that breakdowns can occur because of simple error or mistake.  The
design of any system of controls is based,  in part,  upon  certain  assumptions
about the  likelihood  of future  events and there can be no assurance  that any
design will succeed in achieving  its stated  goals under all  potential  future
conditions.

     As of the end of the period  covered  by this  report,  we  carried  out an
evaluation,  under the  supervision  and with the  participation  of management,
including our chief executive officer and principal  financial  officer,  of the
effectiveness  of the  design  and  operation  of our  disclosure  controls  and
procedures  as defined in Rules  13a-15(e)  and  15d-15(e) of the Exchange  Act.


                                      -20-
<PAGE>


Based upon that evaluation,  management  concluded that our disclosure  controls
and procedures are effective to cause the  information  required to be disclosed
by us in reports  that we file or submit  under the  Exchange  Act is  recorded,
processed,  summarized and reported  within the time periods  prescribed by SEC,
and that  such  information  is  accumulated  and  communicated  to  management,
including  our chief  executive  officer and  principal  financial  officer,  as
appropriate, to allow timely decisions regarding required disclosure.

     There was no change  in our  internal  controls  over  financial  reporting
identified in connection with the requisite  evaluation that occurred during our
last fiscal quarter that has  materially  affected,  or is reasonably  likely to
materially affect, our internal control over financial reporting.

                                     PART II

Item 1.       Legal Proceedings

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

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

     On July 28, 1999 Core Laboratories, Inc. obtained a judgment against us for
non-payment of an accounts  payable.  The judgment calls for monthly payments of
$351 and is bearing  interest  at 10% per annum.  At  September  30, 2006 we had
accrued a balance including interest of $20,687 as a current  liability.  We are
currently in default on this judgment.

     On July 1, 1998, RR Donnelly obtained a judgment against us for non-payment
of accounts  payable.  The judgment calls for monthly  payments of $3,244 and is
bearing  interest at 10% per annum.  At  September  30,  2006,  we had accrued a
balance including interest of $93,471 as a current  liability.  We are currently
in default on this judgment.

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

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

      Date           No. of Shares    Title           At         Reason
      ----           -------------    -----           --         ------
April 27, 2006          200,000       Common       $   0.59     Services
August 14, 2006       1,000,000       Common       $   0.68     Oil and Gas
                                                                  Properties
August 15, 2006       2,590,000       Common       $   0.60     Services
August 15, 2006       1,052,693       Common       $   0.53     Debt
August 15, 2006         337,500       Common       $   0.80     Cash
August 29, 2006          67,268       Common       $   0.80     Services

   The shares were issued in a private, non public isolated transaction pursuant
to exemption from registration provided by Section 4(2) of the Securities Act of
1933.

Item 3.       Defaults Upon Senior Securities

     None.


                                      -21-
<PAGE>


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

     No matters were  submitted to a vote of our  securities  holders during the
third quarter ended September 30, 2006.

 Item 5.      Other Information

     The following  reports were filed with the SEC on Form 8-K during the three
month period ended September 30, 2006.

     August 17,  2006 -  reporting  under Item 1.01 the  acquisition  of certain
     wells, properties and equipment in Marion County, West Virginia.

     September  13,  2006 - reporting  under Item 4.01 the change in  certifying
     accountant from HJ & Associates, LLC to Malone & Bailey, PC.



Item 6.       Exhibits

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

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

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

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

                                   SIGNATURES


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

                                        TRANS ENERGY, INC.




Date: November 20, 2006             By  /S/  JAMES K. ABCOUWER
                                       -----------------------------------------
                                    JAMES K. ABCOUWER
                                    Chief Executive Officer and Director





Date: November 20, 2006             By  /S/  LISA A. CORBITT
                                       -----------------------------------------
                                    LISA A. CORBITT
                                    Controller, Principal Financial Officer
                                    (Principal Accounting Officer)




                                      -22-
<PAGE>