Trans Energy, Inc. Announces Expansion Of Existing Credit Facility To $75
Million From $50 Million
Additional $25 Million to Fund 2013 Marcellus Shale Development Program
ST. MARYS, W. Va., March 6, 2013
ST. MARYS, W. Va., March 6, 2013 /PRNewswire/ -- Trans Energy, Inc. (OTCQB:
TENG), a pure play Marcellus Shale exploration and production company, today
announced that it has increased the size of its existing credit facility to
$75 million from $50 million. The expanded facility closed and was funded on
February 28, 2013.
John Corp, President of Trans Energy, said, "The expanded credit facility
further strengthens our financial flexibility and increases our Company's
credit line to support Trans Energy's growth and 2013 drilling program in the
Marcellus Shale. The expanded credit facility, in conjunction with the
operating cash flow generated from our successful Marshall and Wetzel county
wells, helps us to fully fund our 2013 drilling program. We will continue to
maintain our focus on low-risk, high rate-of-return wells as we prove up our
acreage in the core wet-gas window of the Marcellus Shale in West Virginia. We
look forward to bringing two separate rigs to Marshall and Marion Counties
over the next few weeks."
The company expects to use the incremental $25 million in proceeds from this
facility primarily to fund the 2013 development program of its wholly-owned
subsidiary, American Shale Development, Inc. ("ASD"). ASD and its joint
venture partner, Republic Energy Ventures, have announced plans to drill and
complete seven horizontal wells in 2013, including three wells in Marion
County, two wells in Marshall County and two wells in Tyler County. These
seven well locations are expected to enable ASD to prove additional acreage in
Marion and Tyler Counties, as well as to hold additional acreage through
production. Funds are also expected to be used to hydraulically fracture the
Martinez well in Marshall County, as well as to fund certain additional
acreage purchases. The successful completion of the 2013 development program
will increase the company's total to 25 horizontal Marcellus wells.
The general terms of the credit facility remain unchanged, including the
maturity date, interest rate and financial covenants. There were no
meaningful changes to the existing warrant agreement with the lender, and
there is no make-whole applicable to the incremental $25 million of
borrowings. However, the lender is entitled to an additional fee under
certain circumstances, including but not limited to a change of control. For
details regarding the amended and restated credit agreement, see the 8-K filed
on March 6, 2013.
Additional information regarding Trans Energy, including maps, investor
presentations, news releases and videos can be found at the Company's website
www.transenergyinc.com. Trans Energy will regularly update information on the
website to provide investors with the most up to date information on the
Company and its operations.
About Trans Energy, Inc.
Trans Energy, Inc. (OTCQB: TENG) is a pure play Marcellus Shale oil and gas
exploration and development company, headquartered in the Appalachian Basin.
Further information can be found on the Company's website at
Safe Harbor Statement under the Private Securities Litigation Reform Act of
1995 - Forward-looking statements in this release do not constitute guarantees
of future performance. Such forward-looking statements are subject to risks
and uncertainties that could cause our actual results to differ materially
from those anticipated. Forward-looking statements in this document include
statements regarding the Company's exploration, drilling and development
plans, the Company's expectations regarding the timing and success of such
programs. Factors that could cause or contribute to such differences include,
but are not limited to, fluctuations in the prices of oil and gas,
uncertainties inherent in estimating quantities of oil and gas reserves and
projecting future rates of production and timing of development activities,
competition, operating risks, acquisition risks, liquidity and capital
requirements, the effects of governmental regulation, adverse changes in the
market for the Company's oil and gas production, dependence upon third-party
vendors, and other risks detailed in the Company's periodic report filings
with the Securities and Exchange Commission. For a more detailed discussion
of the risks and uncertainties of our business, please refer to our Annual
Report on Form 10-K for the fiscal year ended December 31, 2011 filed with the
Securities and Exchange Commission. We assume no obligation to update any
forward-looking information contained in this press release or with respect to
the announcements described herein.
SOURCE Trans Energy, Inc.
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