UNITED STATES
                SECURITIES AND EXCHANGE COMMISSION
                      Washington, D.C. 20549

                           FORM 10-QSB

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

             For the Quarter Ended September 30, 1998

                                OR

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

   For the transition period from             to               

                 Commission File Number  0-23530

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

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

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

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

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

               APPLICABLE ONLY TO CORPORATE ISSUERS

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

                    Class              Outstanding as of September 30, 1998
Common Stock, $.001 par value                          2,138,450
<PAGE>

                        TABLE OF CONTENTS

Heading                                                             Page
                  PART I.  FINANCIAL INFORMATION

Item 1.   Financial Statements . . . . . . . . . . . . . . . . . .    3

          Consolidated Balance Sheets -- September 30, 1998 
          and December 31, 1997. . . . . . . . . . . . . . . . . .    4

          Consolidated Statements of Operations -- 
          three and nine months ended September 30, 1998
          and 1997 . . . . . . . . . . . . . . . . . . . . . . . .    6

          Consolidated Statements of Stockholders' Equity             7

          Consolidated Statements of Cash Flows --
          three and nine months ended September 30, 1998 
          and 1997 . . . . . . . . . . . . . . . . . . . . . . . .    8

          Notes to Consolidated Financial Statements . . . . . . .   10

Item 2.   Management's Discussion and Analysis and 
          Results of Operations. . . . . . . . . . . . . . . . . .   11

                    PART II. OTHER INFORMATION

Item 1.   Legal Proceedings. . . . . . . . . . . . . . . . . . . .   13

Item 2.   Changes In Securities. . . . . . . . . . . . . . . . . .   14

Item 3.   Defaults Upon Senior Securities. . . . . . . . . . . . .   14

Item 4.   Submission of Matters to a Vote of
          Securities Holders . . . . . . . . . . . . . . . . . . .   14

Item 5.   Other Information. . . . . . . . . . . . . . . . . . . .   14

Item 6.   Exhibits and Reports on Form 8-K . . . . . . . . . . . .   14

          SIGNATURES . . . . . . . . . . . . . . . . . . . . . . .   15
<PAGE>

                              PART I

Item 1.   Financial Statements

     The following unaudited Consolidated Financial Statements for
the period ended September 30, 1998 and December 31, 1997, have
been prepared by the Company.











                        TRANS ENERGY, INC.

                CONSOLIDATED FINANCIAL STATEMENTS

             September 30, 1998 and December 31, 1997
<PAGE>

                        TRANS ENERGY, INC.
                   Consolidated Balance Sheets


                              ASSETS

                                                  September 30,     December 31,
                                                      1998              1997
                                                   (Unaudited)  

CURRENT ASSETS

 Cash                                             $      -          $   185,881
 Accounts receivable                                   64,187           175,161
 Prepaid and other current assets                        -                1,441

  Total Current Assets                                 64,187           362,483

PROPERTY AND EQUIPMENT

 Vehicles                                              94,589            94,589
 Machinery and equipment                               10,092            10,092
 Pipelines                                          2,231,308         2,231,308
 Well equipment                                       271,944           271,882
 Wells                                             6 ,917,567         3,850,429
 Leasehold acreage                                    767,500           597,221
 Accumulated depreciation                          (1,864,028)       (1,742,136)

  Total Fixed Assets                                8,428,972         5,313,385

OTHER ASSETS

 Note receivable - other                              100,002              -
 Deposits                                               1,508              - 
 Prepaid promotion expenses                           796,221              - 
 Loan acquisition costs                             1,726,458             4,733

  Total Other Assets                                2,624,189             4,733

  TOTAL ASSETS                                   $ 11,117,348       $ 5,680,601
<PAGE>

                        TRANS ENERGY, INC.
            Consolidated Balance Sheets (Continued)


              LIABILITIES AND STOCKHOLDERS' EQUITY

                                                  September 30,     December 31,
                                                     1998               1997
                                                  (Unaudited)  
CURRENT LIABILITIES

 Cash overdraft                                  $     19,404       $      - 
 Accounts payable - trade                           1,167,009         1,250,017
 Accrued expenses                                     657,456            72,195
 Salaries payable                                        -               64,602
 Notes payable - current portion                       94,263           898,098
 Debentures payable                                 4,625,400              - 

  Total Current Liabilities                         6,563,532         2,284,912

NET LIABILITIES IN EXCESS OF ASSETS OF
 DISCONTINUED OPERATIONS                              340,821           340,821

LONG-TERM LIABILITIES

 Notes payable                                      1,852,468           792,387
 
  Total Long-Term Liabilities                       1,852,468           792,387

  Total Liabilities                                 8,756,821         3,418,120

MINORITY INTERESTS                                       -              250,000

COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS' EQUITY

 Common stock: 30,000,000 shares authorized at 
  $0.001 par value; 2,138,450 and 1,415,808 shares
  issued and outstanding, respectively                  2,139             1,416
 Capital in excess of par value                    12,867,963        10,751,226
 Accumulated deficit                              (10,509,575)       (8,740,161)

  Total Stockholders' Equity                        2,360,527         2,012,481

  TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY       $ 11,117,348    $  5,680,601


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


                                  For the Nine Months       For the Three Months
                                  Ended September 30,        Ended September 30,
                                    1998         1997         1998      1997 

REVENUES

 Oil and gas sales             $   849,419  $   801,982  $   376,413  $ 258,432

  Total Revenues                   849,419      801,982      376,413    258,432

COSTS AND EXPENSES

 Cost of oil and gas               648,657      444,312      345,581    196,047
 Salaries and wages                 80,370      208,398       21,774     78,012
 Depreciation and amortization   1,286,478      219,136    1,205,217     42,784
 Selling, general and 
  administrative                   542,502      921,092      130,405    299,608

  Total Costs and Expenses       2,558,007    1,792,938    1,702,977    616,451

  Net Income (Loss) from
   Operations                   (1,708,588)    (990,956)  (1,326,564)  (358,019)

OTHER INCOME (EXPENSE)

 Gain on sale of assets            239,129         -            -          - 
 Bad debt expense                     -        (100,000)        -          - 
 Interest income                       466       10,229            7         74
 Interest expense                 (300,421)    (267,903)    (160,647)   (86,736)

  Total Other Income (Expense)     (60,826)    (357,674)    (160,640)   (86,662)

NET LOSS BEFORE INCOME TAXES
 AND MINORITY INTERESTS         (1,769,414)  (1,348,630)  (1,487,204)  (444,681)

INCOME TAXES                          -            -            -          - 

NET LOSS BEFORE  MINORITY
 INTERESTS                      (1,769,414)  (1,348,630)  (1,487,204)  (444,681)

MINORITY INTERESTS                    -            -            -          -  

NET LOSS                       $(1,769,414) $(1,348,630) $(1,487,204) $(444,681)

PRIMARY LOSS PER SHARE

NET LOSS                       $     (0.93) $     (1.24) $     (0.68) $   (0.36)

FULLY DILUTED LOSS PER SHARE   $     (0.93) $     (1.24) $     (0.68) $   (0.36)


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


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

Balance, December 31, 1996          956,015  $   956  $ 8,929,501  $ (6,710,711)

Common stock issued for services
 at $5.64 per share                  87,500       88      492,099          - 

Common stock issued for cash
 at $3.84 per share                 372,293      372    1,429,628          -  

Contribution of capital by
 shareholders                          -        -          49,998          - 

Common stock offering costs            -        -        (150,000)         - 

Net loss for the year ended
 December 31, 1997                     -        -            -       (2,029,450)

Balance, December 31, 1997        1,415,808    1,416   10,751,226    (8,740,161)

Common stock issued for well costs
 at $4.00 per share (unaudited)      12,500       13       49,987          -  

Contribution of capital by 
 shareholders (unaudited)              -        -         208,210          - 

Common stock issued for cash at
 $1.31 per share (unaudited)        236,312      236      310,514          - 

Common stock issued for services
 at $3.61 per share (unaudited)     473,830      474    1,548,026          - 

Net loss for the nine months ended
 September 30, 1998 (unaudited)        -        -            -       (1,769,414)

Balance, September 30, 1998
 (unaudited)                      2,138,450  $ 2,139  $12,867,963  $(10,509,575)
<PAGE>

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

                                   For the Nine Months     For the Three Months
                                   Ended September 30,     Ended September 30,
                                    1998         1997         1998      1997
CASH FLOWS FROM OPERATING ACTIVITIES:

 Net loss                      $(1,769,414) $(1,348,630) $(1,487,204) $(444,681)
 Adjustments to reconcile net 
  loss to cash provided by 
  operating activities:
   Depreciation, depletion and
     amortization                1,286,478      219,136    1,205,217     42,784
  Minority interest                   -            -            -          - 
  Common stock issued for 
   services                      1,548,500      421,875         -       250,000
 Changes in operating assets
  and liabilities:
 Decrease (increase) in accounts
    receivable                      10,972       65,351          499      4,114
  Decrease (increase) in prepaid
   expenses                     (1,061,695)    (113,155)        -      (172,756)
  Decrease (increase) in loan
   acquisition costs            (2,702,165)      98,973         -        98,973
  Increase (decrease) in accounts
   payable and accrued expenses    457,052      692,396       49,827    196,514
  Increase (decrease) in interest
   payable                            -          (9,154)        -          - 

    Cash Provided (Used) by
     Operating Activities       (2,230,272)      26,792     (231,661)   (25,052)

CASH FLOWS FROM INVESTING ACTIVITIES:

 Proceeds from sale of property   259,129          -            -          - 
   Expenditures for property and 
    equipment                  (3,461,818)     (911,363)        -      (113,027)

   Cash Provided (Used) by
    Investing Activities         (3,202,689)   (911,363)        -      (113,027)

CASH FLOWS FROM FINANCING ACTIVITIES:

 Proceeds from debentures         4,625,400        -            -          -
 Borrowings of long-term debt       918,610   1,312,700      659,402       -  
 Repayment to related parties          -       (410,541)        -          - 
 Common stock issued for cash       310,750        -            -          - 
 Principal payments on long-term 
  debt                             (607,680)   (454,390)    (427,741)  (300,326)

     Cash Provided (Used) by
      Investing Activities        5,247,080     447,769      231,661   (300,326)

NET INCREASE (DECREASE) IN CASH    (185,881)   (436,802)        -      (438,405)

CASH AND CASH EQUIVALENTS,
 BEGINNING OF PERIOD                185,881     481,846         -       483,449

CASH AND CASH EQUIVALENTS,
 END OF PERIOD                   $     -     $   45,044   $     -    $   45,044

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

                                    For the Nine Months     For the Three Months
                                    Ended September 30,      Ended September 30,
                                     1998         1997        1998       1997

CASH PAID FOR:

   Interest                     $   214,223  $   181,167   $  74,449 $    - 
   Income taxes                 $      -     $      -      $    -    $    - 

NON-CASH FINANCING ACTIVITIES:

   Common stock issued 
    for services                $ 1,548,500  $   421,875   $    -    $ 250,000
   Conversion of debentures 
    to equity                   $      -     $ 1,538,207   $    -    $1,038,207
   Common stock issued for 
    well costs                  $    50,000  $      -      $    -    $     -




<PAGE>
                         TRANS ENERGY, INC.
           Notes to the Consolidated Financial Statements 
              September 30, 1998 and December 31, 1997


NOTE 1 - CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

              The accompanying consolidated financial statements have been
       prepared by the Company without audit.  In the opinion of
       management, all adjustments (which include only normal
       recurring adjustments) necessary to present fairly the
       financial position, results of operations and cash flows at
       September 30, 1998 and for all periods presented have been
       made.

              Certain information and footnote disclosures normally included
       in consolidated financial statements prepared in accordance
       with general accepted accounting principles have been
       condensed or omitted.  It is suggested that these condensed
       consolidated financial statements be read in conjunction with
       the financial statements and notes thereto included in the
       Company's December 31, 1997 audited consolidated financial
       statements.  The results of operations for the periods ended
       September 30, 1998 and 1997 are not necessarily indicative of
       the operating results for the full year.
<PAGE>

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

    The following table sets forth the percentage relationship to
total revenues of principal items contained in the Company's
Consolidated Statements of Operations for the three month and nine
month periods ended September 30, 1998, and September 30, 1997. 
It should be noted that percentages discussed throughout this analysis
are stated on an approximate basis.

                                   Three Months Ended        Nine Months Ended
                                      September 30,             September 30,  
                                    1998         1997         1998         1997
                                       (Unaudited)               (Unaudited) 
Total revenues . . . . . . . . . .  100%         100%         100%         100%
Total costs and expenses . . . . .  452          238          301          223 
Net income (loss form 
  operations . . . . . . . . . . . (352)        (138)        (201)        (123)
Other income (expense) . . . . . .   43          (34)          (7)         (45)
Net (loss) before income 
  taxes, minority interest
  and extraordinary income
 (loss). . . . . . . . . . . . . . (395)        (172)        (208)        (168)
Income taxes . . . . . . . . . . .    -            -            -            - 
Minority interest. . . . . . . . .    -            -            -            - 
Net (loss) before 
  extraordinary income and
  discontinued operations          (395)        (172)        (208)        (168)
Loss from discontinued 
  operations . . . . . . . . . . .    -            -            -            - 
Net income (loss). . . . . . . . . (395)        (172)        (208)        (168)
                       

    Total Revenues for the third quarter ended September 30, 1998
("third quarter of 1998") and the nine months ended September 30, 1998
("first nine months of 1998") increased 46% and 6%, respectively,
compared with the corresponding 1997 periods.  The increase is
attributed to the Company's purchase of the Gulf Canada well interests
located in Wyoming.  Total costs and expenses as a percentage of total
revenues increased from 238% in the third quarter of 1997 to 452% for
the third quarter of 1998, and from 223% for the first nine months of
1997 to 301% for the 1998 period.  Total costs and expenses for the
third quarter of 1998 increased 176% compared to the 1997 period and
43% for the first nine months of 1998 compared to 1997 period.  This
increase is primarily attributed to the increase in depreciation and
amortization costs of 2717% and 487% for the third quarter and first
nine months of 1998, respectively, related to the Gulf Canada
properties

    Selling, general and administrative expenses decreased 46% and
60% in the third quarter and first nine months of 1998, respectively. 
Interest expense increased 85% to $160,647 for the third quarter and
12% to $300,421 for the first nine months of 1998 due to increased
borrowings to finance the Gulf Canada purchase.  Salaries and wages
decreased 72% and 61% for the third quarter and first nine months of
1998, respectively, compared to the same periods in 1997.

    The Company's net loss was $1,487,204 for the third quarter and
$1,769,414 for the first nine months of 1998.  Net losses for the
third quarter and first nine months of 1997 were $444,681 and
$1,348,630, respectively.  The increase in net loss is attributed to
the marked increase in depreciation and amortization costs for the
1998 periods.

    For the remainder of fiscal year 1998, management expects
salaries and wages to remain level and other general and
administrative expenses to remain at approximately the same rate as
for the third quarter of 1998.  The cost of oil and gas produced is
expected to fluctuate with the amount produced and with prices of oil
and gas.  Management anticipates that revenues will likely increase
during the remainder of 1998.

Net Operating Losses

    The Company has accumulated approximately $10,509,575 of net
operating loss carryforwards as of September 30, 1998, which may be
offset against future taxable income through the year 2011, when the
carryforwards expire.  The use of these carryforwards to reduce future
income taxes will depend on the generation of sufficient taxable
income prior to the expiration of the net operating loss
carryforwards.

    In the event of certain changes in control of the Company, there
will be an annual limitation on the amount of net operating loss
carryforwards which can be used.  No tax benefit has been reported in
the financial statements for the period ended September 30, 1998,
because the potential tax benefits of the loss carryforward is offset
by valuation allowance of the same amount.

Liquidity and Capital Resources

    Historically, the Company's working capital needs have been
satisfied through its operating revenues and from borrowed funds. 
Working capital at September 30, 1998 of a negative $6,499,345
increased from a negative $ 1,922,429 at December 31, 1997.  This
change is primarily attributed to the increase in debentures payable
of $4,625,000 related to the Gulf Canada acquisition.  The Company
anticipates meeting its working capital needs during the remainder of
the current fiscal year with revenues from operations.

    As of September 30, 1998, the Company had total assets of
$11,117,348 and total stockholders equity of $2,360,527 compared to
total assets of $5,680,601 and total stockholders equity of $2,012,481
at December 31, 1997.  This represents a $5,436,747 (96%) increase in
total assets due primarily to the purchase of wells, and a $348,046
(17%) increase in total stockholders equity for the period due to the
issuance of stock.  For this same period, cash decreased from $185,881
to $0 and total current assets decreased 82% due to decreased accounts
receivable and cash.  Total current liabilities increased 187%
attributed to the increase accrued expenses and debentures payable.

    At September 30, 1998, the Company's current portion of its long
term debt was $94,263.  In 1997, certain outstanding convertible
debentures having a face value of $50,000 plus accrued interest were
converted into common stock.  In 1998, convertible debentures with a
face value of $1,430,000 were converted into common stock.  The
Company currently anticipates that it will be able to provide for its
debt obligations and repayments coming due during the remainder of
1998 from operating revenues generated by the Company.

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

Risk Factors and Cautionary Statements

     Forward looking statements in this report are made pursuant to
the "safe harbor" provisions of the Private Securities Litigation
Reform Act of 1995.  The Company wishes to advise readers that actual
results may differ substantially from such forward-looking statements. 
Forward looking statements involve risks and uncertainties that could
cause actual results to differ materially from those expressed in or
implied by the statements, including, but not limited to, the
following: the ability of the Company to provide for its debt
obligations and to provide for working capital needs from operating
revenues, and other risks detailed in the Company's periodic report
filings with the Securities and Exchange Commission.

                               PART II

Item 1.   Legal Proceedings

    There are no material pending legal proceedings to which the
Company is a party or to which any of its property is subject except
as set forth below.

    On May 14, 1997, a complaint entitled R&K Oil Company, Inc. vs.
Vulcan Energy Corporation and Trans Energy, Inc. was filed in District
Court, Andrews County, Texas, 109th Judicial District (File #14,430). 
The complaint alleges the Company owes R&K Oil Company, Inc. $126,978
as a result of business transacted by Vulcan Energy Corporation.  The
complaint also seeks $500,000 for breach of contract. The Company 
denies all allegations and intends to vigorously defend its position.

    On March 12, 1997, a complaint entitled F. Worthy Walker vs.
Loren Bagley, William Woodburn, Mark Woodburn, Trans Energy, Inc. and
Vulcan Energy Corporation, was filed in the District Court of Dallas,
Texas (# 9702304C).  The complaint alleges that the Company breached
certain contracts related to Mr. Walker's employment with Vulcan
Energy Corporation, and seeks punitive and exemplary damages. The
Company denies all allegations and intends to vigorously defend its
position.  Management believes that the results of the proceedings
will not have a material adverse effect on the Company.  On February
17, 1998 the Company and the above named defendants filed a
countersuit against F. Worthy Walker alleging breach of contract,
fraud and fraudulent inducement, conversion, and breach of fiduciary
duty and seeks punitive damages. 
  
Item 2.   Changes In Securities

  This Item is not applicable to the Company.

Item 3.     Defaults Upon Senior Securities

  This Item is not applicable to the Company.

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

  This Item is not applicable to the Company.

Item 5.     Other Information

Recent Business Developments - Proposed Merger With Natural Gas
Technologies, Inc.

  On March 24, 1998, the Company entered into a Plan and Agreement
of Merger with National Gas Technologies, Inc. ("NGT"), a Dallas,
Texas based exploration company, pursuant to which NGT will be merged
with and into the Company with the Company being the surviving
corporate entity.  The merger will be accomplished by way of the
exchange of 100% of the issued and outstanding shares of NGT common
stock and preferred stock for shares of the Company's common stock. 
The merger is subject to shareholder approval of both corporations and
the effectiveness of the Company's registration statement which has
been filed on Form S-4.

Item 6.     Exhibits and Reports on Form 8-K

  (b)  Reports on Form 8-K

  During the three month period ended September 30, 1998, the
Company did not file any reports on Form 8-K.
<PAGE>

                             SIGNATURES
                                  

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

                                             TRANS ENERGY, INC.



Date: November 23, 1998                 By  /S/ Loren E. Bagley       
                                        LOREN E. BAGLEY, President 
                                        and Chief Executive Officer
                                        (Chief Financial Officer)




Date: November 23, 1998                 By  /S/ William F. Woodburn    
                                        William F. Woodburn, Vice
                                        President and Director
                                        (Principal Accounting Officer)