Going Concern

3 Months Ended

Mar. 31, 2012

Going Concern [Abstract]

GOING CONCERN

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 March 31, 2012 of $13,364,037. At March 31, 2012, Trans Energy had stockholders’ equity of $26,185,422 and a working capital deficit of $19,951,135.

Revenues during the three months ended March 31, 2012 were not sufficient to cover its operating costs and interest expense to allow it to continue as a going concern. The potential proceeds from the sale of common stock, sale of drilling programs, and other contemplated debt and equity financing, and increases in operating revenues from new development and business acquisitions would enable Trans Energy to continue as a going concern. On April 26, 2012, a wholly owned subsidiary of the company closed a new $50 million credit agreement. See Note 6 for details on the new credit agreement.