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, 2007

                                       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]

     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 August 11, 2007
-----------------------------               ----------------------------------
Common Stock, $.001 par value                           9,513,065


Transitional Small Business Disclosure Format (Check one):  Yes [ ]  No [X)]



<PAGE>

<TABLE>
<CAPTION>

                                Table of Contents

Heading                                                                                               Page
-------                                                                                               ----

PART I.  FINANCIAL INFORMATION

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

                  Consolidated Balance Sheets - June 30, 2007 and
                      December 31, 2006 (Unaudited)......................................................3

                  Consolidated Statements of Operations - three and six months ended
                      June 30, 2007 and 2006 (Unaudited).................................................5

                  Consolidated Statements of Stockholders' Equity - six months ended
                      June 30, 2007 (Unaudited)..........................................................6

                  Consolidated Statements of Cash Flows - six months ended
                      June 30, 2007 and 2006 (Unaudited).................................................7

                  Notes to Consolidated Financial Statements (Unaudited).................................8


Item 2.           Management's Discussion and Analysis or Plan of Operation.............................13

Item 3.           Controls and Procedures...............................................................16

PART II  OTHER INFORMATION

Item 1.           Legal Proceedings.....................................................................16

Item 2.           Unregistered Sales of Equity Securities and Use of Proceeds...........................17

Item 3.           Defaults Upon Senior Securities.......................................................17

Item 4.           Submission of Matters to a Vote of Securities Holders.................................17

Item 5.           Other Information.....................................................................17

Item 6.           Exhibits..............................................................................17

                  Signatures............................................................................18

</TABLE>


                                      -2-
<PAGE>


                                     PART I

<TABLE>
<CAPTION>

                                     TRANS ENERGY, INC.
                                 Consolidated Balance Sheets
                                         (Unaudited)


                                                                  June 30,     December 31,
                                                                    2007           2006
                                                                -----------    -----------
     ASSETS
CURRENT ASSETS

<S>                                                             <C>            <C>
      Cash                                                      $ 2,276,692    $   208,815
      Accounts Receivable, net of allowance for doubtful
           accounts of $-0- and $25,076, respectively               255,593        275,272
      Accounts Receivable, related parties                          575,100        569,600
      Deferred Financing Costs - current portion                    167,429           --
      Prepaid Expenses                                                1,250         22,500
                                                                -----------    -----------

      Total Current Assets                                        3,276,064      1,076,187
                                                                -----------    -----------

PROPERTY AND EQUIPMENT, net of accumulated depreciation
           of $114,209 and $84,510, respect                         582,361        490,753

OIL AND GAS PROPERTIES, USING SUCCESSFUL EFFORTS ACCOUNTING

      Proved Properties                                           3,816,864      4,816,138
      Unproved Properties                                           243,454         10,156
      Pipelines                                                   1,392,648      1,392,648
      Accumulated depreciation, depletion                        (1,651,177)    (1,569,997)
                                                                -----------    -----------

      Net oil and gas properties                                  3,801,789      4,648,945
                                                                -----------    -----------

OTHER ASSETS

      Deferred Financing Costs, net of amortization of $6,528       326,313           --
      Other Assets                                                  208,334         35,524
                                                                -----------    -----------

      Total Other Assets                                            534,647         35,524
                                                                -----------    -----------

      TOTAL ASSETS                                              $ 8,194,861    $ 6,251,409
                                                                ===========    ===========

                          See notes to consolidated financial statements.
</TABLE>

                                      -3-
<PAGE>
<TABLE>
<CAPTION>

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

                  LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

                                                                   June 30,       December 31,
                                                                     2007            2006
----------------------------------------------------------------------------------------------

CURRENT LIABILITIES
<S>                                                              <C>             <C>
   Accounts payable - trade                                      $  1,128,654    $  1,165,846
   Related party payables                                             224,242         237,347
   Accrued expenses                                                   386,836         357,781
   Judgments payable                                                     --           118,046
   Notes payable - Current Portion                                     60,075       1,258,381
   Notes payable - Related Parties                                       --           549.739
                                                                 ------------    ------------


     Total Current Liabilities                                      1,799,807       3,687,140
                                                                 ------------    ------------

LONG-TERM LIABILITIES

   Notes payable, net of unamortized discount
     of $953,522 and $0                                             5,637,576       1,663,509
   Asset retirement obligation                                        194,072         190,364
                                                                 ------------    ------------

     Total Long-Term Liabilities                                    5,831,648       1,853,873
                                                                 ------------    ------------

       Total Liabilities                                            7,631,455       5,541,013
                                                                 ------------    ------------

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; 9,153,065 and 9,450,565 shares issued and
    outstanding, respectively                                           9,513           9,451
   Additional paid-in capiital                                     34,039,154      33,727,680
   Accumulated deficit                                            (33,485,261)    (33,026,735)
                                                                 ------------    ------------

     Total Stockholders' Equity (Deficit)                            (563,406)        710,396
                                                                 ------------    ------------

     TOTAL LIABILITIES AND STOCKHOLDERS'
       EQUITY (DEFICIT)                                          $  8,194,861    $  6,251,409
                                                                 ============    ============
</TABLE>

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

                                      -4-
<PAGE>
<TABLE>
<CAPTION>
                                        TRANS ENERGY, INC. AND SUBSIDIARIES
                                       Consolidated Statements of Operations

                                                    (Unaudited)

                                                            For the Three Months Ended   For the Six Months Ended
                                                                     June 30,                   June 30,
                                                                2007          2006          2007          2006
                                                             ----------    ----------    ----------    ----------

<S>                                                             <C>           <C>           <C>           <C>
REVENUES                                                        417,152       422,793       702,672       752,514
                                                             ----------    ----------    ----------    ----------

COSTS AND EXPENSES

                 Production Costs                               185,525       127,217       294,459       265,023
                 Depreciation, Depletion, and Amortization       58,187        54,267       126,682       194,017
                 Exploration Costs                               20,355          --         159,105          --
                 Selling, General and Administrative            640,724       396,244     1,135,030       589,842
                 Gain on Sale of Assets                        (775,139)     (704,116)     (775,139)     (704,116)
                                                             ----------    ----------    ----------    ----------

                 Total Costs and Expenses                       129,652      (126,388)      940,137       344,766
                                                             ----------    ----------    ----------    ----------

INCOME (LOSS) FROM OPERATIONS                                   287,500       549,181      (237,465)      407,748
                                                             ----------    ----------    ----------    ----------

OTHER INCOME (EXPENSES)

                 Interest Income                                  3,009          --           3,009          --
                 Gain on Extinguishment of Debt                    --           5,208        45,783         5,208
                 Interest Expense                              (171,440)      (40,429)     (269,852)      (71,799)
                                                             ----------    ----------    ----------    ----------

                 Total Other Income (Expenses)                 (168,431)      (35,221)     (221,060)      (66,591)
                                                             ----------    ----------    ----------    ----------

INCOME (LOSS) FROM OPERATIONS
                 BEFORE INCOME TAXES                            119,069       513,960      (458,525)      341,157

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

INCOME (LOSS) FROM CONTINUING OPERATIONS                        119,069       513,960      (458,525)      341,157
INCOME FROM DISCONTINUED OPERATIONS                                --         307,279          --         183,775
LOSS FROM DISPOSAL OF DISCONTINUED OPERATIONS                      --            --            --      (1,558,802)
                                                             ----------    ----------    ----------    ----------

NET INCOME (LOSS)                                               119,069       821,239      (458,525)   (1,033,870)
                                                             ==========    ==========    ==========    ==========

BASIC (LOSS) PER SHARE

                 Continuing Operations                             0.01          0.12         (0.05)         0.07
                 Discontinued Operations                           --            0.07          --           (0.30)
                                                             ----------    ----------    ----------    ----------

                 Total                                             0.01          0.19         (0.05)        (0.23)
                                                             ==========    ==========    ==========    ==========

DILUTED INCOME (LOSS) PER SHARE

                 Continuing Operations                             0.01          0.11         (0.05)         0.07
                 Discontinued Operations                           --            0.06          --           (0.27)
                                                             ----------    ----------    ----------    ----------

                 Total                                             0.01          0.17         (0.05)        (0.20)
                                                             ==========    ==========    ==========    ==========


WEIGHTED AVERAGE SHARES OUTSTANDING                           9,458,807     4,328,961     9,454,709     4,514,311
                                                             ==========    ==========    ==========    ==========

DILUTED WEIGHTED AVERAGE SHARES OUTSTANDING                   9,458,807     4,882,285     9,454,709     5,067,635
                                                             ==========    ==========    ==========    ==========


                                              See notes to consolidated financial statements.

                                                                  -5-
</TABLE>
<PAGE>


<TABLE>
<CAPTION>

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





                                               Common Stock
                                        ----------------------------       Additional
                                                                           Paid-in          Accumulated
                                           Shares          Amount          Capital            Deficit            Total
                                        ------------    ------------      ------------     -------------     ------------

<S>                                                     <C>               <C>              <C>               <C>
Balance, December 31, 2006                 9,450,565    $     9,451       $ 33,727,680     $ (33,026,736)    $  710,395


Shares received for discontinued
  operations on March 31, 2007
  (unaudited)                                   --             --              261,536             --           261,536


Shares issued for services (unaudited)         52,500            52             49,938             --            50,000


Net loss for the six months ended
   June 30, 2007 (unaudited)                    --              --                --           (458,525)         (458,625)
                                        ------------   ------------       ------------     ------------      ------------

Balance, June 30, 2007 (unaudited)         9,513,065    $      9,513      $ 34,039,154     $(33,485,261)     $    563,406
                                        ============    ============      ============     ============      ============




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

                                      -6-
<PAGE>

<TABLE>
<CAPTION>

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

                                                                  For the Six Months Ended
                                                                           June 30,
                                                                     2007          2006
                                                                 -----------    -----------
<S>                                                              <C>            <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
      Net loss                                                   $  (458,525)   $(1,033,870)
      Loss on discontinued operations                                   --        1,375,027
                                                                 -----------    -----------
      Loss from continuing operations                               (458,525)       341,157
      Adjustments to reconcile net loss
         to net cash from operating activities:
           Depreciation, depletion and amortization                  126,682        244,539
           Share-based compensation                                  261,536        118,000
           Gain on debt extinguishment                               (45,783)          --
           Gain of sale of assets                                   (775,139)      (704,116)
           Interest and accretion expense                             52,374           --
      Changes in operating assets and liabilities:
           Accounts receivable                                        19,679        535,487
           Accounts receivable related party                          (5,500)          --
           Prepaid expenses                                           21,250       (300,606)
           Accounts payable                                            8,591       (896,511)
           Related party payables                                    (13,105)          --
           Accrued expenses                                           29,058           --
           Judgments payable                                        (118,046)      (114,837)
                                                                 -----------    -----------

             Net cash provided (used) in operating activities:
              Continuing operations                                 (896,928)      (776,887)
              Discontinued operations                                   --          263,187
                                                                 -----------    -----------
              Net cash provided (used) in operating activities      (896,928)      (513,700)
                                                                 -----------    -----------

CASH FLOWS FROM INVESTING ACTIVITIES:
      Proceeds from sale of oil and gas properaties                1,442,139        726,824
      Expenditures for oil and gas properties                       (869,768)          --
      Expenditures for property and equipment                       (137,110)      (685,123)
                                                                 -----------    -----------
           Net cash provided by investing activities                 435,261         41,701
                                                                 -----------    -----------

CASH FLOWS FROM FINANCING ACTIVITIES:
      Net proceeds from notes payable                              6,376,200        683,866
      Payments on notes payable                                   (3,346,917)       (58,261)
      Payments on related party debt                                (499,739)      (105,349)
                                                                 -----------    -----------
           Net cash provided by financing activities               2,529,544        520,256
                                                                 -----------    -----------

NET INCREASE IN CASH                                               2,067,877         48,257

CASH, BEGINNING OF PERIOD                                            208,815        439,258
                                                                 -----------    -----------

CASH, END OF PERIOD                                              $ 2,276,692    $   487,515
                                                                 ===========    ===========

CASH PAID FOR:
      Interest                                                   $   217,478    $    44,886
                                                                 ===========    ===========
      Income taxes                                               $      --      $      --
                                                                 ===========    ===========


Non-cash investing and financing activities
      Discount on debt for net profits interest                  $   765,000    $      --
      Conversion of related-party debt to common stock                50,000           --
</TABLE>


                        See notes to consolidated financial statements.


                                      -7-
<PAGE>


                       TRANS ENERGY, INC. AND SUBSIDIARIES
                   Notes to Consolidated Financial Statements
                                   (Unaudited)

NOTE 1 -  BASIS OF FINANCIAL STATEMENT PRESENTATION

          The accompanying  unaudited interim 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  omitted  in
          accordance with such rules and regulations.  The information furnished
          in the  interim  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 consolidated financial
          statements  be read in  conjunction  with Trans  Energy's  most recent
          audited  financial  statements  and  notes  thereto  included  in  its
          December 31, 2006 Annual Report on Form 10-KSB.  Operating results for
          the six months ended June 30, 2007 are not  necessarily  indicative of
          the results  that may be expected  for the year  ending  December  31,
          2007.

          Certain  reclassifications  have been made to amounts in prior periods
          to conform with the current period presentation.

          Debt Issuance Costs

          Trans Energy accounts for debt issuance costs paid to third parties as
          deferred financing cost assets which are amortized to interest expense
          using  the  effective  interest  method  over the same  period  as the
          related  loans.  Non-cash debit  issuance  costs  directly  related to
          proceeds of  borrowings  from lenders are recorded as discounts on the
          amounts borrowed and amortized to interest expense using the effective
          interest method over the same period as the related loans.

NOTE 2 -  GOING CONCERN

          Trans Energy's unaudited interim 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 June 30, 2007 of  $33,485,261.  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
          financings,  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 COMMITMENTS

          Effective  April 11, 2007,  Trans Energy  finalized an agreement  with
          Dominion Transmission, Inc. to tap Dominion's transmission line for an
          additional  point of sale  for  natural  gas in  Wetzel  County,  West
          Virginia. Trans Energy is responsible for reimbursing Dominion for all
          related  expenses,  which  are  estimated  to cost  $101,600.  The tap
          installation was completed July 22, 2007.


                                      -8-
<PAGE>


                       TRANS ENERGY, INC. AND SUBSIDIARIES
                   Notes to Consolidated Financial Statements
                                   (Unaudited)

NOTE 4 -  SIGNIFICANT EVENTS

          Effective  January  9,  2007,  Trans  Energy  completed  the  sale  to
          Leatherwood  Inc. for net cash  proceeds of $667,000 of six oil and/or
          gas wells located in West Virginia.  Trans Energy  assigned all of its
          right,  title,  operating  rights and interest  including the right to
          produce, operate and maintain the wells.

          Effective  January 10, 2007,  Trans Energy acquired from National Gulf
          Production,  Inc. 75% of National Gulf's rights and interest in and to
          certain  oil  and gas  leases  covering  the oil and gas in and  under
          certain tracts of land containing approximately 3,120 acres located in
          Trego  County,  Kansas  for cash of  $146,250.  In  addition,  cash of
          $138,750  was paid in advance  for Trans  Energy's  proportionate  75%
          share of the seismic acquisition,  processing and interpretation cost,
          which was subsequently expensed.

          Effective  February 7, 2007,  Trans  Energy  entered into an agreement
          with P.D. Farr to purchase all rights,  title and interests in the 384
          acre Ezra Hays  Lease in West  Virginia  including  oil and gas wells,
          associated well equipment, interest in the natural gas sales pipeline,
          all rights to Dominion Gas sales meter and all pertinent rights-of-way
          for  $138,000.  On December  16,  2006,  Trans  Energy paid the sum of
          $10,000 as a down payment to be applied  against the  purchase  price,
          with the unpaid balance of $128,000 due in installments, to be paid in
          full by July 10,  2007.  As of June 30,  2007,  the balance in full of
          $128,000 has been paid in cash.

          Effective  April 4, 2007,  Trans  Energy  farmed  out 11,200  acres of
          unproven leases in Wetzel County to a Republic  Partners VI, LP. Under
          the terms of the farm out  agreement,  Republic  will conduct  seismic
          data  gathering,  drilling,  coring,  and  completion  and  production
          operations jointly with Trans Energy to earn a 50% working interest in
          the leases.

          Effective  June  19,  2007,   Trans  Energy   completed  the  sale  to
          Leatherwood  Inc. of three  non-producing  well bores  located in West
          Virginia for net cash proceeds of $774,505.  Trans Energy assigned all
          of its right, title, operating rights and interest including the right
          to produce,  operate and maintain the wells.  Trans Energy  recorded a
          gain on sale of the property of $774,505

          Effective June 20, 2007,  Trans Energy  completed the purchase of 3.75
          acres located in Wetzel  County,  West Virginia for cash in the amount
          of $44,000. This acreage was purchased for the purpose of installing a
          tap into Dominion's transmission line to create an additional point of
          sale for future wells drilled in Wetzel County, West Virginia.

NOTE 5 -  NOTES PAYABLE

          On June 18, 2007, Trans Energy repaid a short term related party note,
          dated  September  11,  2006,  bearing  interest at the rate of 10% per
          annum, with cash in the amount of $100,000 plus accrued interest,  for
          a total paid of $107,589.

          On June 18, 2007, Trans Energy repaid a short term related party note,
          dated  September  11,  2006,  bearing  interest at the rate of 10% per
          annum, with cash in the amount of $30,000 plus accrued interest, for a
          total paid of $36,027. In addition, 62,500 shares of common stock were
          issued for the remaining balance due of $50,000.


                                      -9-
<PAGE>



                       TRANS ENERGY, INC. AND SUBSIDIARIES
                   Notes to Consolidated Financial Statements
                                   (Unaudited)


NOTE 5 - NOTES PAYABLE (continued)

         On June 22, 2007, Trans Energy finalized a financing agreement with CIT
         Capital USA Inc. Under the terms of the agreement, CIT Capital USA Inc.
         will lend up to $18,000,000 (the "Borrowing  Base"), to Trans Energy in
         the form of a senior secured  revolving credit  facility.  Trans Energy
         has the ability, at additional cost, to increase the credit facility to
         $30,000,000 in the future, with increases in its reserves. Trans Energy
         gave CIT Capital USA Inc. a promissory  note for all  borrowings  under
         the  terms  of the  agreement.  The  note  contains  customary  default
         provisions and additional financial covenants.  Funds realized from the
         financing  agreement  will be used to  facilitate  the  company's  2007
         drilling  program.  As part of the  financing  agreement,  Trans Energy
         conveyed to CIT Capital USA Inc. a first priority  continuing  security
         interest  in,  lien  on  and  right  of  setoff  against,  all  pledged
         securities  and books and  records  pertaining  to the  collateral.  In
         addition,  Trans  Energy  conveyed  to CIT  Capital  USA Inc.  a 2% Net
         Profits  Interest in and to all oil and gas properties  currently owned
         and any  additional  oil  and gas  properties  acquired  in the  future
         through to the date of maturity.  The  conveyance of the 2% Net Profits
         Interest has been accounted for as a sale,  which was recorded  against
         the values of oil and gas properties.  Under the terms of the financing
         agreement,  CIT Capital USA Inc. can elect after June 22, 2008,  but on
         or prior to June 22, 2009 to sell the 2% NPI to Trans Energy at a value
         equal to 2% of Trans  Energy's  total reserve report value at the time.
         Trans Energy can elect after June 22, 2009, but on or prior to June 22,
         2010 to buy the 2% NPI from CIT Capital USA Inc. at a value equal to 3%
         of Trans Energy's total reserve report value at the time.  Trans Energy
         can elect after June 22,  2010,  to buy the 2% NPI from CIT Capital USA
         Inc.  at a value equal to 2% of Trans  Energy's  total  reserve  report
         value at the time.  The reserve  report  value is to be based on proved
         reserves  and to be  calculated  using  a 10%  discount,  no  inflation
         adjustment for expenditures  and  differential  adjusted market pricing
         for  revenues.  The fair  value of  $765,000  has  been  recorded  as a
         reduction of oil and gas  properties and a discount on the note payable
         to CIT Capital USA Inc., with no gain recognized. The discount is being
         amortized  using the  effective  interest  method  over the term of the
         note.  Trans Energy also agreed to enter into hedge  positions over the
         next five years on 70 % to 80% of natural gas production volumes. Under
         the terms of the  agreement  Trans  Energy can elect  varying  interest
         payment terms and a variable  interest  rate based on different  posted
         rates, at no additional  cost.  Borrowings under the note bear interest
         at either LIBOR plus a variable  margin based on the utilization of the
         Borrowing Base,  ranging from 1.75% to 5.25%; or at the Prime Rate plus
         the Federal  Funds Rate plus 0.5% plus a variable  margin  based on the
         utilization of the Borrowing Base ranging from 1.75% to 5.25%. Interest
         payment due dates are elected at the time of  borrowing  and range from
         monthly to six months.  Principal  payments are due at maturity on June
         15, 2010 for all borrowing outstanding on that date. Trans Energy shall
         have the right at any time to prepay any borrowing in whole or in part,
         before the date of maturity. Trans Energy also must pay CIT Capital USA
         Inc. a commitment  fee for any unused  commitments,  including  related
         letters of  credit.  The  commitment  fees range from 0.5% to 0.75% per
         annum of unused  average  commitments.  Trans  Energy paid  $500,000 in
         financing  fees to a placement  agent in  securing  the CIT Capital USA
         Inc. financing  agreement.  These financing fees are being deferred and
         amortized  using the  effective  interest  method  over the term of the
         note.  Trans  Energy  paid  $200,000  to  CIT  Capital  USA  Inc.  as a
         structuring  fee in securing  the note.  The  structuring  fee has been
         recorded  as a discount  on the note and is being  amortized  using the
         effective interest method over the term of the note. During the quarter
         ended June 30, 2007, Trans Energy received  borrowings in the amount of
         $6,513,146, leaving an unused credit facility of $11,486,854.



                                      -10-
<PAGE>



                       TRANS ENERGY, INC. AND SUBSIDIARIES
                   Notes to Consolidated Financial Statements
                                   (Unaudited)

NOTE 5 - NOTES PAYABLE (continued)

          On June 22, 2007,  Trans Energy repaid various  related party notes in
          the amount of $96,985.  In addition,  the company repaid the following
          notes payable:

                                             Principal             Interest
                                             ---------             --------
                  Wesbanco                  $  240,226            $  1,218
                  United Bank                1,817,952              24,719
                  Huntington National          932,255               9,458
                  Karla Spencer                292,078               - 0 -

NOTE 6 - BUSINESS SEGMENTS

         The Company  conducts its  operations  principally as oil and gas sales
         with Trans Energy and Prima Oil Company, and pipeline transmission with
         Ritchie County Gathering Systems and Tyler Construction Company.

         Certain financial  information  concerning Trans Energy's operations in
different segments is as follows:
<TABLE>
<CAPTION>

                                                For the six
                                                Months Ended    Oil and Gas      Pipeline
                                                  June 30,        Sales        Transmission       Corporate        Total
                                                 ---------     -----------      -----------      -----------    ------------

<S>                                                  <C>       <C>              <C>              <C>            <C>
Revenue                                              2007      $   571,681      $   130,991      $      --      $   702,672
                                                     2006          599,545          152,969             --          752,514

Income (Loss) from                                   2007          768,090          129,475       (1,356,090)      (458,525)
continuing operations                                2006          884,059          113,531         (656,433)       341,157

Depreciation, depletion                              2007          113,655           13,027             --          126,682
and amortization                                     2006          157,313           36,705             --          194,017

Property and equipment                               2007        1,006,878             --               --        1,006,878
acquisitions, including                              2006          685,123             --               --          685,123
oil and gas properties


Total assets, net of intercompany accounts, as at:

June 30, 2007                                                  $ 7,471,206      $   723,655      $      --      $ 8,194,861
December 31, 2006                                                5,514,899          736,510             --        6,251,409
</TABLE>





                                      -11-
<PAGE>


NOTE 7 - SUBSEQUENT EVENTS

         Effective July 1, 2007,  Trans Energy  implemented  an employee  401(k)
         plan  whereby  Trans  Energy  will  make  basic  safe-harbor   matching
         contributions to those employees electing to participate in the plan.

         On July 6, 2007,  Trans Energy finalized an agreement with Triad Energy
         Corporation,  Inc. for the  transportation of natural gas through Trans
         Energy's  transmission  line in  Pleasants  and  Tyler  Counties,  West
         Virginia.

         As required by the the CIT Creditor Agreement,  on July 13, 2007, Trans
         Energy purchased a commodity put option for $310,000 in cash. The terms
         of the option are an exercise  price of  $7.35/MMBTU,  Settlement  Date
         Henry Hub price of  Natural  Gas as quoted by the  NYMEX,  and  volumes
         ranging from 8,241 MMBTU per month to 5,244 MMBTU per month,  beginning
         settlement  on  August  2,  2007 and  ending  settlement  on  ending on
         December 1, 2011, respectively.





                                      -12-
<PAGE>

Item 2.           Management's Discussion and Analysis or Plan of Operation
                  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 three month period ended June 30, 2007 and 2006. It should be
noted that  percentages  discussed  throughout  this  analysis  are stated on an
approximate basis.


                                                         Three Months Ended
                                                              June 30,
                                                      -------------------------
                                                       2007              2006
                                                      -------           -------
                                                            (Unaudited)

Total revenues ......................................  100%              100%
Total costs and expenses ............................   31%              (30%)
Income (loss) from operations .......................   69%              130%
Other income (expense) ..............................  (40%)              (8%)
Discontinued operations ..........................       --               73%
Net income (loss)...................................    29%              194%

         Total  revenues from  continuing  operations for the three months ended
June 30, 2007 decreased 1% compared to the second quarter of 2006, primarily due
to decreased production and lower pipeline transmission revenues. We focused our
efforts  during the second  quarter of 2007 on a work over  program on our wells
located in Wetzel  County,  West  Virginia and capital  raising  activities.  We
expect production to continue to increase from this work over program during the
third quarter of 2007. In addition,  we started a drilling program in the second
quarter of 2007 which will continue throughout the year.

         Depreciation,   depletion  and  amortization   and  accretion   expense
increased  7% in the 3 months ended June 30, 2007 as compared to the same period
for 2006.

         Our income from  operations for the second quarter of 2007 was $287,500
compared to a gain from  operations of $549,181 for the second  quarter of 2006.
This  decrease  is due to an increase  in  selling,  general and  administrative
expenses due to the  associated  expenses of our debt financing and the increase
in our production  costs  associated  with the  implementation  of our work over
program.

         Our net income for the second quarter of 2007 was $119,069  compared to
a net income of $821,239 for the second  quarter of 2006.  In 2006,  we recorded
income  from  continuing  operations  of  $513,960  and  $307,279 in income from
discontinued operations due to the disposal of Arvilla.

         The following  table sets forth the  percentage  relationship  to total
revenues  of  principal  items  contained  in  our  consolidated  statements  of
operations  for the six month period ended June 30, 2007 and 2006.  It should be
noted that  percentages  discussed  throughout  this  analysis  are stated on an
approximate basis.


                                      -13-
<PAGE>



                                                           Six Months Ended
                                                              June 30,
                                                      -------------------------
                                                       2007              2006
                                                      -------           -------
                                                            (Unaudited)

Total revenues ......................................  100%              100%
Total costs and expenses ............................  134%              (46%)
Income (loss) from operations .......................  (34%)              54%
Other income (expense) ..............................  (31%)              (9%)
Discontinued operations ..........................       --             (183%)
Net income (loss)...................................   (65%)            (137%)

         Total revenues from continuing operations for the six months ended June
30, 2007 decreased 7% compared to the second  quarter of 2006,  primarily due to
lower  pipeline  revenues  as well as the  sale of the  Wyoming  wells.  We have
focused our efforts  during the first six months of 2007 on a work over  program
on our wells located in Wetzel County,  West Virginia.  We expect  production to
continue to increase  from this work over  program  during the third  quarter of
2007.  In  addition,  we  started a  drilling  program  in June 2007  which will
continue throughout the year.

         Depreciation,   depletion  and  amortization   and  accretion   expense
decreased  35% in the six months  ended June 30,  2007 as  compared  to the same
period in 2006.

         We had a loss from operations for the six months ended June 30, 2007 of
$237,465 compared to a gain from operations of $407,748 for the six months ended
June 30, 2006 due to an increase in selling, general and administrative expenses
due to the  associated  expenses of our debt  financing  and the increase in our
production costs associated with the implementation of our work over program.

         Our net loss for the first six months of 2007 was $458,525  compared to
a loss of  $1,033,870  for the first six months of 2006. We recorded a loss from
discontinued operations in 2006 of $1,558,802 due to the disposal of Arvilla.

         For the  remainder  of fiscal year 2007,  management  expects  selling,
general  and  administrative  expenses  to  increase.  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 2007.

Liquidity and Capital Resources
-------------------------------

         Historically,   we  have  satisfied  our  working  capital  needs  with
operating  revenues and from borrowed  funds. At June 30, 2007, we had a working
capital  surplus of  $1,476,257  compared to a deficit of $2,610,953 at December
31, 2006. This increase in working  capital  surplus is primarily  attributed to
the sale of wells in Marion County from which we realized  cash of $760,000,  as
well as cash received from our debt financing.

         During the first six months of 2007, operating activities used net cash
of $896,928  compared to $513,700  for the same period of 2006.  This  increased
negative  cash flow from  operating  activities  is  primarily  attributable  to
decreased  revenues  and our  decision to pay off the  outstanding  payables and
judgments, as well as increased expenses related to the workover program and the
seismic acquisition in Kansas.

         Net cash provided by investing  activities  for the first six months of
2007 was $435,261 compared to $41,701 in 2006. We used $869,768 for the purchase
of oil and gas  properties  and $137,110 to purchase  property and equipment and


                                      -14-
<PAGE>

$1,442,139  was  received  from the sale of wells for the six month period ended
June 30,  2007  compared  to no  expenditures  for the  purchase  of oil and gas
properties  and  $685,123 to purchase  property and  equipment  and $726,824 was
received from the sale of wells in the six month period ended June 30, 2006.

         During  the first  six  months of 2007,  we were  provided  net cash in
financing  activities of  $2,529,544  compared to $520,256 in the same period of
2006. In 2007, we borrowed $6,376,200 and repaid $3,346,917 in 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,  Marion and Doddridge Counties,  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. In addition, we have an available credit facility of $11,486,854 which we
plan to use to fund our  drilling  program  in  Wetzel,  Marion,  and  Doddridge
Counties, West Virginia.

         Because of our continued losses,  working capital deficit, and need for
additional funding, 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 the
sale of  common  stock,  debt or  equity  financings,  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.

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 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    success of our drilling activities;

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

                                      -15-
<PAGE>

         o    general economic conditions.

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

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.
Based upon that evaluation,  management  concluded that our disclosure  controls
and  procedures  were not  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.  The
disclosure  controls and  procedures  were  considered  not effective due to the
adjusting  entries  proposed by our auditors  related to the discount on the new
financing. We have put procedures in place to properly disclose these amounts in
the future.

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


                                      -16-
<PAGE>


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
-------           -----------------------------------------------------------

On June 18, 2007, we issued  62,500 shares of our common stock,  valued at $0.80
per share,  to William F. Woodburn in  consideration  for the balance of $50,000
remaining  on a  short-term  related  party  note.  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.

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

No matters were submitted to a vote of our securities  holders during the second
quarter ended June 30, 2007.

Item 5.           Other Information
-------           -----------------

The  following  reports were filed with the SEC on Form 8-K during the six month
period ended June 30, 2007.

         April 7, 2007 - reporting  under Item 3.01 the notice of  delisting  or
failure to satisfy a continued listing rule or standard.

         June 22,  2007 -  reporting  under  Item 1.01 the entry into a material
definitive agreement for financing with CIT Capital USA, Inc.


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.



                                      -17-
<PAGE>


                                   SIGNATURES

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

                                   TRANS ENERGY, INC.

Date:  August 16, 2007              By  /S/  JAMES K. ABCOUWER
                                        -----------------------
                                    JAMES K. ABCOUWER
                                    Chief Executive Officer and Director


Date:  August 16, 2007              By  /S/  LISA A. CORBITT
                                        -------------------------------
                                    LISA A. CORBITT
                                    Controller, Principal Financial Officer
                                    (Principal Accounting Officer)



                                      -18-