XML 41 R7.htm IDEA: XBRL DOCUMENT v3.3.0.814
Going Concern
9 Months Ended
Sep. 30, 2015
Text Block [Abstract]  
Going Concern

NOTE 2 — GOING CONCERN

Trans Energy’s unaudited interim consolidated financial statements are prepared using account principles generally accepted in the United State of America applicable to a going concern, which contemplates the realization of assets and liquidation of liabilities in the normal course of business.

We have incurred net losses for the three months and nine months ended September 30, 2015, of $(4,600,476) and $(10,414,022), respectively. Although our current and prior year-to-date revenues were not sufficient to cover our operating costs and interest expense, we are focusing on completing Marcellus Shale wells which have been drilled in order to increase our cash flow. If our cash flows from operations are not sufficient to meet liquidity requirements, we may need to sell assets, obtain additional financing or issue equity.

Our net losses and cash flows used in operating and investing activities during the nine months ended September 30, 2015 were primarily due to reductions in the sales price of our production and a decrease in accounts payable and accrued expenses that was funded by the monetization of certain of our hedges. Our net losses and cash flows used in operating and investing activities during the nine months ended September 30, 2014 were funded using net proceeds from notes payable to Chambers and Morgan Stanley (see Note 8), in addition to proceeds from the sale of certain oil and gas properties (see Note 6).