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 June 30, 2005

                                       OR

[ ]  TRANSITION  REPORT  PURSUANT  TO  SECTION  13 OR  15(d)  OF THE  SECURITIES
     EXCHANGE ACT OF 1934

                        For the transition period from to

                         Commission File Number 0-23530

                               TRANS ENERGY, INC.
        -----------------------------------------------------------------
        (Exact name of small business issuer as specified in its charter)

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

         210 Second Street, P.O. Box 393, St. Marys, West Virginia 26170
                    (Address of principal executive offices)

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

     Check  whether  the issuer (1) filed all  reports  required  to be filed by
Section 13 or 15(d) of the  Securities  Exchange  Act of 1934 during the past 12
months (or for such shorter period that the registrant was required to file such
reports),  and (2) has been subject to such filing  requirements for the past 90
days. Yes [X] No [ ]

                      APPLICABLE ONLY TO CORPORATE ISSUERS

     State the number of shares  outstanding of each of the issuer's  classes of
common equity, as of the latest practicable date.

           Class                                 Outstanding as of June 30, 2005
-----------------------------                    -------------------------------
Common Stock, $.001 par value                              4,815,098

<PAGE>

<TABLE>
<CAPTION>
                                TABLE OF CONTENTS

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

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

                  Consolidated Balance Sheets - June 30, 2005 (Unaudited) and
                    December 31, 2004................................................................       4

                  Consolidated Statements of Operations and Other Comprehensive Loss -
                  three and six months ended June 30, 2005 and 2004 (Unaudited)......................       6

                  Consolidated Statement of Stockholders' Equity (Deficit)...........................       8

                  Consolidated Statements of Cash Flows - six months ended
                     June 30, 2005 and 2004 (Unaudited)..............................................       9

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

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

Item 3.      Controls and Procedures.................................................................      19

                                            PART II. OTHER INFORMATION

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

Item 2.      Unregistered Sales of Equity Securities and Use of Proceeds.............................      20

Item 3.      Defaults Upon Senior Securities.........................................................      20

Item 4.      Submission of Matters to a Vote of Securities Holders...................................      20

Item 5.      Other Information.......................................................................      20

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

             Signatures..............................................................................      21
</TABLE>


                                                         -2-
<PAGE>

                                     PART I

Item 1.       Financial Statements

     The accompanying  consolidated  balance sheet of Trans Energy, Inc. at June
30, 2005  (unaudited)  and  December 31, 2004,  related  unaudited  consolidated
statements  of  operations  for the three and six months ended June 30, 2005 and
2004,  stockholders'  equity  (deficit)  and cash flows for the six months ended
June 30, 2005 and 2004,  have been prepared by our management in conformity with
accounting principles generally accepted in the United States of America. In the
opinion  of  management,   all  adjustments  considered  necessary  for  a  fair
presentation  of  the  consolidated   results  of  operations  and  consolidated
financial  position have been included and all such  adjustments are of a normal
recurring nature. Operating results for the quarter ended June 30, 2005, are not
necessarily  indicative  of the results that can be expected for the fiscal year
ending December 31, 2005.









                               TRANS ENERGY, INC.
                                 AND SUBSIDARIES

                        CONSOLIDATED FINANCIAL STATEMENTS

                       June 30, 2005 and December 31, 2004


                                      -3-
<PAGE>



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



                                                           ASSETS

                                                                              June 30,            December 31,
                                                                               2005                  2004
                                                                           -------------         -------------
                                                                            (Unaudited)
CURRENT ASSETS

<S>                                                                        <C>                  <C>
   Cash                                                                    $     334,629        $       79,662
   Accounts receivable, net                                                    1,955,100               653,917
   Other receivables                                                              27,557                 8,825
   Prepaid expenses                                                               75,549                 1,223
                                                                           -------------         -------------

     Total Current Assets                                                      2,392,835              743,627
                                                                           -------------         -------------
PROPERTY AND EQUIPMENT, NET                                                    8,525,794            3,372,599
                                                                           -------------         -------------
OTHER ASSETS
   Bonds                                                                           50,159               50,159
   Prepaid loan costs                                                              19,810                    -
   Deposits                                                                        17,491                1,400
   Investment in Texas Keystone Wells                                             175,000                    -
   Customer lists                                                                 662,106                    -
   Life insurance, cash surrender value                                            67,726               66,326
                                                                           -------------         -------------
     Total Other Assets                                                           992,292              117,885
                                                                           -------------         -------------
     TOTAL ASSETS                                                          $   11,910,921        $   4,234,111
                                                                           ==============        ==============
</TABLE>

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

                                      -4-
<PAGE>


<TABLE>
<CAPTION>
                       TRANS ENERGY, INC. AND SUBSIDIARIES
                     Consolidated Balance Sheets (Continued)


                 LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

                                                                                June 30,           December 31,
                                                                                  2005                 2004
                                                                           -------------         -------------
                                                                               (Unaudited)
CURRENT LIABILITIES
<S>                                                                        <C>                   <C>
   Accounts payable - trade                                                $   1,678,113         $  1,277,375
   Related party payables (Note 5)                                             1,458,137              719,199
   Accrued expenses                                                            1,161,282              844,858
   Judgments payable (Note 3)                                                     70,379               70,379
   Debentures payable                                                             50,000               50,000
   Notes payable - current portion                                               865,727              762,247
                                                                           -------------         -------------

      Total Current Liabilities                                                5,283,638            3,724,058
                                                                           -------------         -------------

LONG-TERM LIABILITIES

   Notes payable                                                               4,137,330              108,190
   Asset retirement obligation                                                 1,758,944            1,571,749
                                                                           -------------         -------------

     Total Long-Term Liabilities                                               5,896,274            1,679,939
                                                                           -------------         -------------

       Total Liabilities                                                      11,179,912            5,403,997
                                                                           -------------         -------------

COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS' EQUITY (DEFICIT) (Note 7)

   Preferred stock; 10,000,000 shares authorized at $0.001 par
    value; -0- shares issued and outstanding                                        --                   --
   Common stock; 500,000,000 shares authorized at $0.001 par
    value; 4,815,098 and 3,555,074 shares issued
   and outstanding, respectively                                                   4,815                3,555
   Capital in excess of par value                                             30,440,935           27,854,647
   Comprehensive Income                                                           (1,808)                --
   Deferred expenses                                                             (92,500)                --
   Accumulated deficit                                                       (29,620,433)         (29,028,088)
                                                                           -------------         -------------

     Total Stockholders' Equity (Deficit)                                        731,009           (1,169,886)
                                                                           -------------         -------------

     TOTAL LIABILITIES AND STOCKHOLDERS'
       EQUITY (DEFICIT)                                                    $  11,910,921         $  4,234,111
                                                                           =============         =============
</TABLE>

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

                                      -5-
<PAGE>

<TABLE>
<CAPTION>
                       TRANS ENERGY, INC. AND SUBSIDIARIES
Consolidated Statements of Operations and Other Comprehensive Loss (Continued)
                                   (Unaudited)

                                               For the                      For the
                                          Three Months Ended            Six Months Ended
                                               June 30,                     June 30,
                                     --------------------------    --------------------------
                                        2005            2004           2005           2004
                                     -----------    -----------    -----------    -----------

<S>                                  <C>            <C>            <C>            <C>
REVENUES                             $ 3,338,661    $   555,245    $ 5,889,201    $ 1,134,975
                                     -----------    -----------    -----------    -----------

COSTS AND EXPENSES

  Cost of oil and gas                  2,620,237        448,850      4,335,187      1,068,371
  Salaries and wages                      48,779         85,107        116,679        180,022
  Depreciation, depletion and
   amortization                          414,886        128,168        720,778        467,857
  Selling, general and
   administrative                        671,650         74,784      1,115,617        112,158
                                     -----------    -----------    -----------    -----------

     Total Costs and Expenses          3,755,552        736,909      6,288,261      1,828,408
                                     -----------    -----------    -----------    -----------

LOSS FROM OPERATIONS                    (416,891)      (181,664)      (399,060)      (693,433)
                                     -----------    -----------    -----------    -----------

OTHER INCOME (EXPENSE)

 Gain (loss) on extinguishment
   of debt                                  --             --            2,306       (246,836)
  Net gain (loss)on sale of assets         4,674           --           (7,864)       175,910
  Other income                             8,293          9,128          8,293          9,128
  Interest expense                      (121,933)       (58,982)      (196,020)      (109,200)
                                     -----------    -----------    -----------    -----------

     Total Other Income
      (Expense)                         (108,966)       (49,854)      (193,285)      (170,998)
                                     -----------    -----------    -----------    -----------

LOSS FROM OPERATIONS
 BEFORE INCOME TAXES
                                        (525,857)      (231,518)      (592,345)      (864,431)

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

NET LOSS                             $  (525,857)   $  (231,518)   $  (592,345)   $  (864,431)
                                     -----------    -----------    -----------    -----------
</TABLE>
                  The accompanying notes are an integral part
             of these condensed consolidated financial statements.

                                      -6-
<PAGE>

<TABLE>
<CAPTION>

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


                                                 For the                      For the
                                           Three Months Ended            Six Months Ended
                                                June 30,                     June 30,
                                        -------------------------    --------------------------
                                           2005           2004           2005           2004
                                       -----------    -----------    -----------    -----------
<S>                                    <C>            <C>            <C>            <C>
NET LOSS                               $  (525,857)   $  (231,518)   $  (592,345)   $  (864,431)

OTHER COMPRHENSIVE LOSS
   Changes due to hedging
       Activities                            1,493           --           (1,808)          --

NET COMPREHENSIVE LOSS                 $  (524,364)   $  (231,518)   $  (594,153)   $  (864,431)
                                       ===========    ===========    ===========    ===========


BASIC LOSS PER SHARE                   $     (0.11)   $     (0.12)   $     (0.13)   $     (0.46)
                                       ===========    ===========    ===========    ===========

WEIGHTED AVERAGE
 NUMBER OF SHARES
 OUTSTANDING                             4,815,098      1,957,108      4,599,293      1,865,040
                                       ===========    ===========    ===========    ===========
</TABLE>


                  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)


                                              Preferred Stock         Common Stock
                                     ------------------------- -------------------------  Capital In
                                                               Comprehensive Accumulated    Excess of
                                        Shares       Amount        Shares      Amount        Par Value    Income        Deficit
                                     ------------ ------------ ------------ ------------  ------------ ------------  ------------

<S>                                  <C>          <C>             <C>       <C>           <C>          <C>           <C>
Balance, December 31, 2004                   --   $       --      3,555,074 $      3,555  $ 27,854,647 $       --    $(29,028,088)

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

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

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

Changes due to hedging activities
   (unaudited)                               --           --           --           --            --         (1,808)         --

Contributed services (unaudited)             --           --           --           --          75,000         --            --

Net loss for the six months ended
   June 30, 2005 (unaudited)                 --           --           --           --            --           --        (592,345)
                                     ------------ ------------ ------------ ------------  ------------ ------------  ------------

Balance, June 30, 2005 (unaudited)           --   $       --      4,815,098 $      4,815  $ 30,440,935 $     (1,808) $(29,620,433)
                                     ============ ============ ============ ============  ============ ============  ============
</TABLE>

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

                                      -8-
<PAGE>

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


                                                                For the Six Months Ended
                                                                        June 30,
                                                                  2005            2004
                                                               -----------    -----------

CASH FLOWS FROM OPERATING ACTIVITIES:

<S>                                                            <C>            <C>
   Net loss                                                    $  (592,345)   $  (864,431)
   Adjustments to reconcile net loss to net cash provided by
    operating activities:
     Depreciation, depletion, amortization and accretion           720,778        467,857
     Net gain from sale of assets                                   (3,254)      (175,910)
     (Gain) loss on extinguishment of debt                          (2,306)       246,836
     Non-cash expense                                               75,000           --
   Changes in operating assets and liabilities:
     (Increase) in accounts receivable                            (170,461)      (138,625)
     (Increase) in prepaids                                        (74,326)          --
     (Increase) in other current assets                            (15,502)          --
     (Increase) in other assets                                    (71,680)          --

     (Decrease) increase in accounts payable and
      current liabilities                                          (58,018)       113,124
     Decrease in accrued expenses                                  126,449           --
                                                               -----------    -----------

       Net Cash Used by Operating Activities                       (65,665)      (351,149)
                                                               -----------    -----------

CASH FLOWS FROM INVESTING ACTIVITIES:

   Proceeds from sale of assets                                     15,260        201,000
   Borrowings from life insurance policy                              --            1,708
   Cash acquired from subsidiary                                   408,333           --
   Expenditures for property and equipment                        (477,545)          (440)
                                                               -----------    -----------

       Net Cash Provided (Used) by Investing Activities            (53,952)       202,268
                                                               -----------    -----------

CASH FLOWS FROM FINANCING ACTIVITIES:

   Change in bank overdraft                                           --          (49,120)
   Payments on related party payables                               (6,640)      (228,488)
   Proceeds from related party notes                               637,088        603,750
   Principal payments on notes payable                            (255,864)      (172,928)
                                                               -----------    -----------

       Net Cash Provided by Financing Activities                   374,584        153,214
                                                               -----------    -----------

NET INCREASE IN CASH                                               254,967          4,333

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

CASH, END OF PERIOD                                            $   334,629    $     4,516
                                                               ===========    ===========
</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 Six Months Ended
                                                                         June 30,
                                                                  2005           2004
                                                               -----------    -----------

CASH PAID FOR:

<S>                                                            <C>            <C>
   Interest                                                    $     --       $   30,810
   Income taxes                                                $     --       $     --

NON-CASH FINANCING ACTIVITIES:

   Common stock issued for debt relief                         $   50,000     $   47,856
   Common stock issued for services to
     be rendered                                               $   92,500     $   26,000

   Common stock issued for the net assets
     over liabilities in the purchase
     of Arvilla Inc. and subsidiary                            $2,370,048     $     --

   Contributed Services                                        $   75,000     $     --
</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
                       June 30, 2005 and December 31, 2004


NOTE 1 -  BASIS OF FINANCIAL STATEMENT PRESENTATION

          The accompanying unaudited condensed consolidated financial statements
          have  been  prepared  by  the  Company   pursuant  to  the  rules  and
          regulations  of  the  Securities  and  Exchange  Commission.   Certain
          information and footnote  disclosures  normally  included in financial
          statements prepared in accordance with accounting principles generally
          accepted  in the  United  States of  America  have been  condensed  or
          omitted in accordance with such rules and regulations. The information
          furnished in the interim condensed  consolidated  financial statements
          includes normal  recurring  adjustments and reflects all  adjustments,
          which,  in  the  opinion  of  management,  are  necessary  for a  fair
          presentation  of  such  financial   statements.   Although  management
          believes the  disclosures  and  information  presented are adequate to
          make the  information  not  misleading,  it is  suggested  that  these
          interim  condensed   consolidated  financial  statements  be  read  in
          conjunction   with  the  Company's  most  recent   audited   financial
          statements and notes thereto  included in its December 31, 2004 Annual
          Report on Form 10-KSB.  Operating results for the three and six months
          ended June 30, 2005 are not necessarily indicative of the results that
          may be expected for the year ending December 31, 2005.

NOTE 2 -  GOING CONCERN

          The Company's condensed consolidated financial statements are prepared
          using accounting principles generally accepted in the United States of
          America   applicable  to  a  going  concern  which   contemplates  the
          realization  of assets and  liquidation  of  liabilities in the normal
          course of  business.  The Company has  incurred  cumulative  operating
          losses through June 30, 2005 of $ 29,545,433 and has a working capital
          deficit  at June  30,  2005 of  $2,890,803.  Revenues  have  not  been
          sufficient to cover its operating costs and to allow it to continue as
          a going concern.  he potential proceeds from the sale of common stock,
          other  contemplated  debt  and  equity  financing,  and  increases  in
          operating  revenues from new  development  would enable the Company to
          continue  as a going  concern.  There  can be no  assurance  that  the
          Company can or will be able to complete any debt or equity  financing.
          If these are not  successful,  management  is committed to meeting the
          operational cash flow needs of the Company.

NOTE 3 -  CONTINGENCIES AND COMMITTMENTS

          Core Laboratories, Inc.

          On July 28, 1999, Core  Laboratories,  Inc. (Core) obtained a judgment
          against the  Company  for  non-payment  of an  accounts  payable.  The
          judgment calls for monthly payments of $351 and is bearing interest at
          10.00% per annum.  At June 30,  2005 the Company had accrued a balance
          including  interest of $13,587 which is included in judgments payable.
          The Company is currently in default on this judgment.

          RR Donnelly

          On July 1, 1998,  RR  Donnelly  (RR)  obtained a judgment  against the
          Company for  non-payment of accounts  payable.  The judgment calls for
          monthly  payments  of $3,244  and is  bearing  interest  at 10.00% per
          annum.  At June 30, 2005, the Company has accrued a balance  including
          interest of $56,792 which is included in judgment payable as a current
          liability. The Company is currently in default on this judgment.

                                      -11-
<PAGE>
NOTE 3 -  CONTINGENCIES AND COMMITMENTS (continued)

          Arvilla  Oilfield  Services is required under a certain loan agreement
          to maintain specific financial ratios under covenants contained in the
          loan agreement.  At June 30, 2005 and December 31, 2004 Arvilla was in
          compliance with those covenants.

NOTE 4 -  BUSINESS SEGMENTS

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

          Certain financial  information  concerning the Company's operations in
          different industries is as follows:
<TABLE>
<CAPTION>
                                 For the
                               Six Months
                                  Ended       Oil and Gas      Pipeline        Well
                                 June 30         Sales       Transmission    Servicing
                               -----------    -----------    ------------   -----------

<S>                               <C>         <C>            <C>            <C>
Oil and gas revenue               2005        $   509,770    $ 1,103,917    $ 4,275,514
                                  2004            150,737        984,238           --

Operating income (loss)
 applicable to industry
 segment                          2005           (450,426)       (64,875)       116,241
                                  2004           (680,184)       (13,249)          --

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

Interest expense                  2005            (35,283)       (17,990)      (142,747)
                                  2004            (91,505)       (17,695)          --

Other income (expenses)           2005            (38,570)       (14,681)      (140,034)
                                  2004           (198,812)        27,814           --

Assets
 (net of intercompany accounts)   2005          6,875,953        588,788      4,446,180
                                  2004            403,814        537,804           --
</TABLE>

                                      -12-
<PAGE>

NOTE 4 -      BUSINESS SEGMENTS (continued)

<TABLE>
<CAPTION>
<S>                                            <C>         <C>          <C>        <C>
              Depreciation, depletion,
                Amortization and accretion     2005        178,805      36,881     505,092
                                               2004        430,695      37,162        --

              Property and equipment
               Acquisitions (Deletions)        2005        187,875      36,881     237,529
                                               2004        (67,282)    (88,750)       --
</TABLE>


NOTE 5 -  RELATED PARTIES

          Marketing Agreement - Sancho

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

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

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

NOTE 6 -  OTHER COMPREHENSIVE INCOME

          The Company has entered into a loan arrangement containing an interest
          rate hedge.  The hedge is based on the difference  between the lending
          institutions  floating  rate  index  plus  280  basis  points  and the
          existing  LIBOR  rate.  At June  30,  2005,  the  difference  in rates
          resulted in  additional  interest of $1,808 that was recorded as other
          comprehensive income.

NOTE 7 -  EQUITY

          In January 2005,  the Company issued 50,000 shares of common stock for
          services to be rendered valued at $92,500.

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

                                      -13-
<PAGE>

NOTE 7 -  EQUITY (continued)

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

          Under FASB Statement 123, the Company estimates the fair value of each
          stock  award at the  grant  date by  using  the  Black-Scholes  option
          pricing model with the following weighted average assumptions used for
          grants,  respectively;  dividend  yield of zero percent for all years;
          expected  volatility  of 68.72%;  risk-free  interest rate of 4.08 and
          expected lives of 10 years for the six months ended June 30, 2005.

          Had  compensation  cost for the  Company's  stock  options  granted to
          directors and employees  been based on the fair value as determined by
          the  Black-Scholes  option  pricing  model at the grant date under the
          accounting provisions of SFAS No. 123, the Company would have recorded
          an  additional  expense of $837,416  for the six months ended June 30,
          2005. Also under these same  provisions,  the Company's net loss would
          have been changed by the pro forma amounts indicated below:
<TABLE>
<CAPTION>
                                                   For the                              For the
                                             Three Months Ended                    Six Months Ended
                                                   June 30,                             June 30,
                                        ------------------------------   ----------------------------------
                                            2005              2004            2005                 2004
                                        ------------     -------------   --------------        ------------
<S>                                     <C>              <C>             <C>    <C>            <C>
              Net loss:
                As reported             $   (525,857)    $   (231,518)   $   (  592,345)       $   (864,431)
                Pro forma               $   (525,857)    $   (231,518)   $   (1,429,191)       $   (837,416)


              Basic loss per share:
              As reported               $      (0.11)    $      (0.12)   $        (0.13)       $      (0.46)
              Pro forma                 $      (0.11)    $      (0.12)   $        (0.31)       $      (0.46)
</TABLE>

                                      -14-
<PAGE>

NOTE 7 -  EQUITY (continued)

          Stock Options - A summary of the status of the warrants  granted under
          various  agreements at June 30, 2005 and 2004,  and changes during the
          periods then ended is presented below:
<TABLE>
<CAPTION>

                                               June 30, 2005              June 30, 2004
                                         -------------------------   ---------------------
                                         Weighted                     Weighted
                                          Average       Exercise       Average    Exercise
                                          Shares         Price         Shares      Price
                                         ---------   -------------   ---------   ---------
<S>                                      <C>         <C>             <C>         <C>
Outstanding at beginning of period            --     $        --          --     $    --
Granted                                    553,324            1.95        --          --
Exercised                                     --              --          --          --
Forfeited                                     --              --          --          --
Expired                                       --              --          --          --
                                         ---------   -------------   ---------   ---------
Outstanding at end of Period               553,324   $        1.95        --     $    --
                                         =========   =============   =========   =========
Weighted average fair value of options
  granted during the year                  553,324   $        1.95        --     $    --
                                         =========   =============   =========   =========
Weighted average fair value of options
  granted during the year                  553,324   $        1.51   $    --     $    --
                                         =========   =============   =========   =========
</TABLE>


              A summary of the status of the warrants  granted under the various
              agreements at June 30, 2005, are presented in the table below:
<TABLE>
<CAPTION>

                                           Warrants Outstanding                           Warrants Exercisable
                                        ------------------------------------------   --------------------------------
                                          Weighted-Average       Weighted-Average                   Weighted-Average
          Range of          Number            Remaining              Exercise          Number          Exercise
       Exercise Prices    Outstanding     Contractual Life             Price         Exercisable        Price
       ---------------    ------------    -----------------    -------------------   ------------   -------------
<S>       <C>                  <C>            <C>              <C>                        <C>       <C>
          $1.95                553,324        9.50 years       $         1.95             553,324   $        1.95
                          ------------                                               ------------
                             553,324                                                    553,324
                          ============                                               ============
</TABLE>



                                      -15-
<PAGE>

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

Recent Developments

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

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

     On November 29, 2004,  our board of directors  and  stockholders  holding a
majority of our  outstanding  common  stock  approved a one share for 150 shares
reverse split of our common stock. The reverse split was effected on January 28,
2005.  All  references  to per share data and common stock have been restated to
reflect the effect of this reverse split.

Results of Operations

     The  following  table  sets  forth  the  percentage  relationship  to total
revenues  of  principal  items  contained  in  the  our  unaudited  consolidated
statements of operations for the three and six month periods ended June 30, 2005
and 2004. It should be noted that percentages discussed throughout this analysis
are stated on an approximate basis.
<TABLE>
<CAPTION>

                                                Three Months Ended         Six Months Ended
                                                     June 30,                  June 30,
                                               --------------------     ----------------------
                                                2005         2004        2005            2004
                                               ------       -------     ------          ------
                                                    (Unaudited)               (Unaudited)

<S>                                              <C>           <C>        <C>          <C>
         Total Revenues.....................     100%          100%       100%         100%
         Total costs and expenses...........     110           133        106          161
         Loss from operations...............     (12)          (33)        (7)         (61)
         Other income (expense).............      (3)           (9)        (3)         (15)
         Net loss...........................     (16)          (42)       (10)         (76)
</TABLE>


     Revenues for the three months  ("second  quarter")  and six months  ("first
half") ended June 30, 2005  increased 501% and 419%,  respectively,  compared to
the same  periods of 2004,  primarily  due to the  acquisition  of  Arvilla  and
inclusion of its revenues for the 2005 periods.  Increased consolidated revenues
also reflect  increased  oil and gas prices and volume.  Our cost of oil and gas
for the  second  quarter  and  first  half  of 2005  increased  484%  and  306%,
respectively,  compared  to the  2004  periods,  also due to  price  and  volume
increases.
                                      -16-
<PAGE>

     Selling,  general and  administrative  expenses increased 798% and 828% for
the second  quarter and first half of 2005,  respectively,  compared to the same
2004  periods,  attributed  to the  acquisition  of Arvilla.  Salaries and wages
decreased  43%  and  35%  for  the  second  quarter  and  first  half  of  2005,
respectively, when compared to the 2004 periods, primarily due to a reduction in
accrued  wages.  Depreciation,  depletion,  amortization  and accretion  expense
increased 224% and 54% for the second quarter and first half of 2005, due to the
addition of Arvilla Assets. Also, the first quarter contained only two months of
Arvilla expenses in contrast to the second quarter that contained the full three
months of expenses.

     Loss from  operations  for the  second  quarter  and first half of 2005 was
$416,891 and $399,060, respectively,  compared to a loss of $181,664 and 693,433
for the like  periods  of 2004.  The  improvement  for the first half of 2005 is
related  to the  acquisition  of  Arvilla  and  its  increased  contribution  to
revenues,  price and volume increases,  although the loss for the second quarter
increased  from the 2004 period due to a decrease  in April  revenues in Arvilla
related to poor weather conditions. We realized total other expenses of $108,966
and  $193,285  during the second  quarter and first half of 2005,  respectively,
compared to total other  expenses of $49,854 and $170,998 for the 2004  periods.
The  increased  expenses  for the 2005  periods  were  primarily  attributed  to
interest  expense  increases due to additional  debt and an increase in variable
interest rates.

     As a percentage of total revenues,  total costs and expenses decreased from
133% in the second  quarter of 2004 to 110% for the second  quarter of 2005, and
also  decreased  from 161% for the first half of 2004 to 106% for the first half
of 2005.  This  improvement is also attributed to the acquisition of Arvilla and
its additional revenues reported during the periods.

     Our net loss for the second quarter and first half of 2005 was $525,857 and
$592,345, respectively,  compared to $231,518 and $864,431for the second quarter
and first half of 2004.

     For the remainder of fiscal year 2005, management expects selling,  general
and  administrative  expenses  to remain at  approximately  the same rate as the
first half of 2005 and significantly higher than the prior year,  reflecting the
Arvilla  acquisition.  The cost of oil and gas produced is expected to fluctuate
with  the  amount  produced  and with  prices  of oil and  gas,  and  management
anticipates that revenues are likely to increase during the remainder of 2005.

Liquidity and Capital Resources

     Historically,  we have  satisfied our working  capital needs with operating
revenues and from borrowed  funds.  At June 30, 2005,  we had a working  capital
deficit of $2,890,803  compared to a deficit of $2,980,431 at December 31, 2004.
This 3% decrease  in working  capital  deficit is  primarily  attributed  to the
acquisition of Arvilla and decreases in current liabilities.

     During  the  first  half of  2005,  operating  activities  used net cash of
$65,665  compared to net cash used of $351,149 for the first half of 2004. These
results are  primarily  attributed  to the decrease in net loss,  an increase in
depreciation,  depletion and  amortization  and a decrease in accrued  expenses.
Also during the first half of 2005,  net cash used by investing  activities  was
$53,952,  compared to net cash  provided of $202,268 for the first half of 2004.
This  result  is  primarily   attributed  to  cash  acquired  from  our  Arvilla
subsidiary.

     During  the  first  half  of  2005,we  realized  net  cash  from  financing
activities  of $374,584  compared to net cash  provided of $153,214 in the first
half of 2004.  These  results are  attributed  to an  increase in related  party
payable.
                                      -17-
<PAGE>

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

     As of  June  30,  2005,  we had  total  assets  of  $11,910,921  and  total
stockholders'  equity of $731,009,  compared to total assets of  $4,234,111  and
total stockholders' deficit of $1,169,886 at December 31, 2004.

     In  1998,  we  issued  $4,625,400  face  value  of 8%  Secured  Convertible
Debentures Due June 30, 1999. A portion of the proceeds were used to acquire the
GCRL  properties  and  interest  in  Wyoming.  During  2000,  all but one of the
remaining outstanding  debentures were converted into commons stock. At June 30,
2005, we owed $50,000 for a debenture plus approximately $25,000 in interest.

     Because we have incurred  significant  cumulative  operating losses through
June 30, 2005 and have a working capital deficit at June 30, 2005 of $2,890,803,
there exists substantial doubt about our ability to continue as a going concern.
Historically, our revenues have not been sufficient to cover operating costs and
we may potentially  need to rely on proceeds from sale of common stock,  debt or
equity  financing,  and increased  operating  revenues from new  developments to
allow us to continue as a going  concern.  There can be no assurance that we can
or will be able to complete any debt or equity financing.

     We have  included a footnote to our  financial  statements  for the periods
ended June 30,  2005  stating  that  because of our  continued  losses,  working
capital deficit and need for additional  funding,  there is substantial doubt as
to whether we can continue as a going  concern.  See Note 2 to the  consolidated
financial statements.

Inflation

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

Forward-looking and Cautionary Statements

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

     o   the sufficiency of existing capital  resources and our ability to raise
         additional capital to fund cash requirements for future operations;
     o   uncertainties  involved  in the  rate of  growth  of our  business  and
         acceptance of any products or services;
     o   volatility  of the stock  market,  particularly  within the  technology
         sector; and
     o   general economic conditions.
                                      -18-
<PAGE>

     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

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


                                      -19-
<PAGE>

                                     PART II

Item 1.       Legal Proceedings

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

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

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

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

     Not applicable.

Item 3.       Defaults Upon Senior Securities

     In  1998,  we  issued  $4,625,400  face  value  of 8%  secured  convertible
debentures due September 30, 1999.  Interest on the debentures  accrued upon the
date of issuance  until  payment in full of the  principal  sum was been made or
duly provided for. Holders of the debentures have the option, at any time, until
maturity, to convert the principal amount of their debenture,  or any portion of
the  principal  amount  which is at least  $10,000 into shares of the our common
stock at a  conversion  price for each share  equal to the lower of (a)  seventy
percent  (70%) of the  market  price  of the our  stock  averaged  over the five
trading  days prior to the date of  conversion,  or (b) the market  price on the
issuance  date of the  debentures.  Any  accrued  and unpaid  interest  shall be
payable,  at our option,  in cash or in shares of our common stock valued at the
then  effective  conversion  price.  During 2000,  all but one of the  remaining
outstanding  debentures  were converted into commons stock. At June 30, 2005, we
owed $50,000 to one debenture holder plus approximately $25,000 in interest.

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

     Not applicable.

Item 5.       Other Information

     The following  reports were filed with the SEC on Form 8-K during the three
month period ended June 30, 2005.

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


                                      -20-
<PAGE>

Item 6.       Exhibits

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

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

         Exhibit  32.1     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: August 18, 2005           By  /S/  CLARENCE E. SMITH
                                    --------------------------------------------
                                    Clarence E. Smith
                                    Chief Executive Officer and Director




Date:  August 18, 2005          By  /S/  WILLIAM F. WOODBURN
                                    --------------------------------------------
                                    WILLIAM F. WOODBURN
                                    Secretary / Treasurer
                                    (Principal Accounting Officer)



                                      -21-