Attached files
| file | filename |
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| 8-K - 8-K - TRANS ENERGY INC | d493102d8k.htm |
| EX-99.2 - EX-99.2 - TRANS ENERGY INC | d493102dex992.htm |
 Whipkey Drilling Pad, Marshall County, West Virginia
Exhibit 99.1
THE
OIL
&
SERVICES
CONFERENCE
11
FEBRUARY
20,
2013 |
 2
This presentation contains “forward-looking statements” within the meaning of section
21E of the United States Securities Exchange Act of 1934, as amended (the “Exchange
Act”) which represent our expectations or beliefs about future events. These statements can be identified generally
by forward-looking words such as “expect”, “believe”, “anticipate”,
“plan”, “intend”, “estimate”, “may”, “will” or similar words. Forward-looking
statements are statements about the future and are inherently uncertain, and our actual achievements
or other future events or conditions may differ materially from those reflected in the
forward-looking statements due to a variety of risks, uncertainties and other factors, including, without
limitation, those described in Item 1A of the company’s annual report on form 10-K for the
year ended December 31, 2011 under the heading, “Risk Factors”, and elsewhere in the
annual report and our filings with the Securities and Exchange Commission. These risks and uncertainties
include, but are not limited to:
1. The risks of the oil and gas industry, such as operational risks in exploring for, developing and
producing crude oil and natural gas; 2. market demand; 3. risks and uncertainties involving
geology of oil and gas deposits; 4. the uncertainty of reserves estimates and reserves life; 5. the
uncertainty of estimates and projections relating to production, costs and expenses; potential delays
or changes in plans with respect to exploration or development projects or capital
expenditures; 6. fluctuations in oil and gas prices, foreign currency exchange rates and interest
rates; 7. health, safety and environmental risks; 8. uncertainties as to the availability and cost of
financing; 9. the possibility that government policies or laws may change or governmental
approvals may be delayed or withheld; 10. other sections of this presentation may include additional
factors that could adversely affect our business and financial performance. Moreover, we operate in a
very competitive and rapidly changing environment. New risk factors emerge from time to time
and it is not possible for our management to predict all risk factors, nor can we assess the
impact of all factors on our business or the extent to which any factor, or combination of factors,
may cause actual results to differ materially from those contained in any forward-looking
statements. Our forward-looking statements contained in this presentation are made as
of the respective dates set forth in this presentation. Such forward- looking statements are
based on the beliefs, expectations and opinions of management as of the date the statements are made. We do not intend
to update these forward-looking statements. For the reasons set forth above, investors should not
place undue reliance on forward-looking statements.
Readers are encouraged to read our December 31, 2011 Annual Report on Form 10-K and any and all of
our other documents filed with the SEC regarding information about Trans Energy, Inc. for
meaningful cautionary language in respect of the forward-looking statements herein. Interested
persons are able to obtain copies of filings containing information about Trans Energy, Inc., without
charge, at the SEC’s internet site
(http://www.sec.gov).
Disclaimer |
 About Trans Energy
Company Overview
Company Overview
9/30/2012
LTM Revenue
$9.9 million
Net Debt (as of 9/30/2012)
$41.4 million
Recent Stock Price (TENG)
$2.40
Shares Outstanding (11/9/2012)
13.2 million
Market Capitalization
$31.7 million
Enterprise Value
$73.1 million
Trans Energy: (OTCQB: TENG)
Pure Play Marcellus Shale
Proved Reserves: 52.4 Bcfe
(12/31/2012
Wright
&
Co.
Prelim.
Estimates
-
Marcellus
only)
Recent Daily Production: 13,900 Mcfe
52-Week
Range:
$1.55
-
$5.01
3-Month
Avg.
Daily
Volume
–
3,201
Shares
Shares Outstanding: 13.2 Million
Market Capitalization: $31.7 million
Experienced Management Team
3
Area of Operation
Area of Operation
Selected Financial Information
Selected Financial Information |
 Why
Invest in Trans Energy? 4
Marcellus Shale Pure Play
62,000 gross acres in core of the Marcellus Shale
Utica Shale potential
Upper Devonian upside potential
High-BTU, liquid-rich focus
$1.50 per MMBtu breakeven gas price
Extensive Organic Drilling Inventory
400 + potential drilling locations (186 ready to drill today)
3+ Tcfe gross upside potential (including JV & royalty partners)
Significant portion of acreage HBP (approx. 2/3)
Off-take agreements totaling up to 45,000 MMBtu per day
Improved Financials
$50 million credit facility funded near term drilling program
Experienced Management w/ Technical Expertise
More than 200 years combined management experience
Well-funded joint development partner has geologic /
engineering team
Marcellus Shale pure play
Predictable and repeatable inventory
Prominent land position with strong
upside potential
Trades at a significant discount to
NAV
Experienced Management Team
Dry Gas
Wet Gas |
 Corporate
Strategy
-
Prove
Acreage
/
Add
Drillable
Locations
Consolidate acreage surrounding legacy positions in the core
of the Marcellus
Marshall, Wetzel, Marion and Tyler counties
Building
upon
local
presence
–
a
West
Virginia
company
Drill to turn highly prospective acreage into 3P reserves
Secure and maintain land position via leasehold rights
Grow production and reserves / monetize assets
5 |
 Overview of Recent Shallow Asset Transaction
On
January
24,
2013,
as
part
of
its
efforts
to
focus
on
drilling
Marcellus
wells,
Trans
Energy
sold its shallow conventional wells and farmed out shallow conventional drilling
rights Marcellus leasehold and wells were not part of the transaction
Below summarizes the effects of the shallow asset transaction:
6
Production and operatorship with respect to approx. 300
shallow wells (over 100 active)
Daily production of approx. 800 mcfe/d as of
12/31/12
Proved reserves of approx. 2.5Bcfe as of 12/31/11
Acreage rights to drill shallow (not leases)
Approx. 26,000 net acres
Cash of $2.75 mm
ORRI of approx. 2.5% on most existing wells
ORRI of up to 5% on new wells drilled by the operator
Right to drill wells to ensure leases remain HBP
Right to drill wells to ensure term leases do not expire
Ability to effectively determine shallow well locations
Maximizes ability to hold deep rights through
shallow production
Ensures shallow operations do not impede
Marcellus drilling
Right to participate in shallow wells drilled by operator
20% / 50% for new wells dependent upon
shallow operator fulfilling drilling commitments
Rights are perpetual and do not require TENG to
participate in any previous wells to retain rights
Assets Monetized / Farmed Out
Consideration / Rights Retained |
 Marcellus Overview
Majority of Company acreage
located in wet gas window
NGL
yields
in
the
1.4
–
1.9
gallons
per
mcf
range
Ft. Beeler processing plants provide 320
MMcf/day throughput capacity
Condensate and NGLs provide
$1.00 -
$2.00 pricing uplift
vs. dry gas
$1.50 per MMBtu breakeven
natural gas price (with NGLs @
50% WTI price)
Low-cost, highly predictable and
repeatable play
In Trans Energy’s area of
operation, the Marcellus shale is
approximately 50 –
100 feet thick
7
Dry
Gas
Wet
Gas
Trans Energy Area
of Operation |
 Competitive Market Position
8
Marcellus Well
Permits
(thru Sept 20, 2012*)
Marion:
60
Marshall: 139
Tyler:
22
Wetzel: 150
*Permit
data acquired from WV Geologic Survey |
 Current Marcellus Acreage
Significant Marcellus acreage that
is held by shallow well production
Approximately 350 horizontal well
locations from HBP acreage alone
Primary term leased acreage can
generally be held by production
from shallow vertical or Marcellus
horizontal wells
Current drilling program
supplemented with selective
shallow drilling will HBP all strategic
acreage with near term lease
expirations over the next two years
Significant amount of acreage is
also prospective for the Utica shale
9
Acreage Breakdown –
23,649 Net acres
Leased-Termed
Held By Production
Mineral Rights
Purchased
823 ac
.
7,682 ac.
15,144 ac. |
 Reserves and Resources (Preliminary SEC 12/31/12 Est.)
Trans Energy has exposure to more than 3 Tcfe of Marcellus resource potential
More than 400 potential drilling locations (186 ready to drill today)
EUR
per
well
of
1.4
–
2.9
Bcfe
/1000’
of
lateral
(PDP
Preliminary
Est.
Reserves
as
of
12/31/12)
10
12/31/12 Preliminary SEC Reserve Summary Est.
(1)
(1)
Based reserve estimates for ASD from the 12/31/2012 Draft Preliminary SEC reserve
report prepared
by
independent
reserve
engineer
Wright
&
Company,
Inc.
(2012
SEC
pricing)
Trans Energy recently sold 2.53 Bcfe of PDP reserves associated with shallow assets
that are not included in the above figures.
Proved Reserve Mix
(1)
Proved Reserve Category Mix
(1)
(2)
Approximately
1/3
of
the
Non-proved
Reserves
shown
above
have
been
designated
as
“Probable”
due
to
funding
limitations.
Oil
Gas
NGL
Total
% of
(MMBbl)
(Bcf)
(MMBbl)
(Bcfe)
Total
PDP/PDNP
0.012
26.566
1.038
32.862
62.74%
$76.9
$34.6
PUD
0.004
15.827
0.611
19.517
37.26%
$26.7
$2.8
Total Proved
0.016
42.393
1.648
52.379
$103.6
$37.4
PROBABLE
(2)
0.078
244.752
8.020
293.338
$310.0
($22.5)
PV10%
Total |
 Reserves and Resources (Prelim. Internal 12/31/12 Est.)
Trans Energy has exposure to more than 3 Tcfe of Marcellus resource potential
More than 400 potential drilling locations (186 ready to drill today)
EUR
per
well
of
1.4
–
2.9
Bcfe
/1000’
of
lateral
(PDP
Preliminary
Est.
Reserves
as
of
12/31/12)
11
12/31/12 Preliminary Internal Reserve Summary Est.
(1)
Proved Reserve Mix
(1)
Proved Reserve Category Mix
(1)
Oil
Gas
NGL
Total
% of
(MMBbl)
(Bcf)
(MMBbl)
(Bcfe)
Total
PDP/PDNP
0.012
26.741
1.044
33.077
62.89%
$127.9
$48.8
PUD
0.004
15.827
0.611
19.517
37.11%
$61.4
$11.6
Total Proved
0.016
42.568
1.655
52.594
$189.2
$60.4
PROBABLE
(2)
0.078
244.752
8.020
293.338
$888.0
$127.5
Total
PV10%
(1)
Based on reserve estimates for ASD from the 12/31/2012 Draft Preliminary reserve report
prepared by independent reserve engineer Wright & Company, Inc. (Macquarie-Tristone 4Q12
Lender Survey pricing) Trans Energy recently sold 2.53 Bcfe of PDP reserves associated with
shallow assets that are not included in the above figures.
(2)
Approximately 1/3 of the Non-proved Reserves shown above have been designated as
“Probable” due to funding limitations. |
 Net
Reserves and Resources 12
BCFE
3
rd
Party Engineered
Probable Reserves
Disclosed
for
1
st
Time
Note: 9/20 and 12/31 reserve estimates incorporate pricing from Macquarie Tristone
Lender Price Surveys; Previous reserve estimates use SEC pricing
|
 Wet
Gas Provides Positive Economics $3.50 NYMEX Equals $4.59/MCF Wellhead
Price •
$3.50 / MMBTU NYMEX Henry Hub
•
$85 NYMEX WTI
13
Natural Gas
Natural Gas Liquids
Condensate
Production Breakdown
.84
MCF
1.6 Gallons/MCF
.00212 BBLS/MCF
Gross Realized Price by Product
$3.30 net
(1)(2)
$1.16 net
(3)(4)(5)
$0.13 net
(6)
Total Realized Price per 1 MCF
$4.59/MCF
Gathering, Transportation and
Processing
($0.75/MCF)
Net Realized Price per 1 MCF
$3.84/MCF
1.
$0.02 premium to NYMEX Henry Hub
2.
1.116 MMBTU/mcf residue BTU factor
3.
40% NYMEX WTI per NGLs
4.
42 gal/bbl conversion factor
5.
90% NGLs
6.
WTI less $26.00 for Appalachian Light Sweet
One mcf Natural Gas via Wellhead Production |
 Experienced Management Team
14
Steve Lucado
Chairman of the Board
Director since 2011
More than 18 years professional financial experience, including E&P CFO experience
Bachelor of Arts Degree Harvard University, MBA, University of Chicago
John Corp
President & Director
Director since 2005 and President since June 2010
More than 25 years drilling, production and operations experience
Received a Bachelor of Science Degree in Petroleum Engineering from Marietta
College
John Tumis
Chief Financial Officer
Chief Financial Officer of Trans Energy since April 2011
More than 25 years experience in financial and strategic business planning in the oil
and natural gas industry
Received a Bachelor of Science Degree from Ohio Northern University and is a
certified public accountant
Leslie Gearhart
Vice President of Operations
& General Secretary
Vice President of Operations and General Secretary
Has more than 25 years of experience in the oil and gas industry
in the Appalachian
Basin
Graduated with a Bachelor of Science Degree in Petroleum Engineering from
Marietta College |
 Joint Development Partner: Republic Energy
Republic is a privately held Dallas-based E&P company
Technical team has 200+ years combined industry
experience
Former VP Geology and Head of Completion Operations for North Texas
from Mitchell Energy Corporation
Mitchell
was
the
cutting
edge
Barnett
player
–
wrote
the
book
on
shale
fracing
Focused on assets in the JV with Trans Energy
Equity financing from Energy Trust Partners (an affiliate of
Energy Spectrum) and Wells Fargo
15 |
 Horizontal Marcellus Production History
16
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
Q1 2011
Q2 2011
Q3 2011
Q4 2011
Q1 2012
Q2 2012
Q3 2012
Q4 2012
Total MMCFE |
 Marshall
County
Type
Curve
(Pre
Doman
1H,
2H)
(1)
Excludes Whipkey 1H, Doman 1H and Doman 2H
(2)
Based on realized prices of $90 per barrel Oil, realized NGL prices of $45 per
barrel and $3.00 natural gas price. (3)
Realized $90 per barrel oil and realized NGL prices of $45 per barrel held
constant. Years
17
0
1
2
3
4
5
6
7
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
Horizontal Decline Curve (750' Spacing)
Projected Horizontal Well Results
Reserves per well: 7.8 Bcfe
IP Rates: 5.7 MMcfe/d
1
st
30
day
average:
4.4
MMcfe/d
(1)
Percent Liquids: 20%
Gross cost per well: $7.0MM
Average Lateral Length: 4000’
IRR
(2)
: 25%
Breakeven
Gas
Price
(3)
:
$1.50
per
MMBtu |
 Marshall
County
Type
Curve
(Pre
Doman
1H,
2H)
18
Projected Horizontal Well
Reserves per well: 7.8 Bcfe
IP Rates: 5.7 MMcfe/d
1
st
30 day average: 4.4 MMcfe/d
Percent Liquids: 20%
WTI Price/Bbl: $90
0%
10%
20%
30%
40%
50%
60%
$1.00
$1.25
$1.50
$1.75
$2.00
$2.25
$2.50
$2.75
$3.00
$3.25
$3.50
$3.75
$4.00
$4.25
$4.50
$4.75
$5.00
Natural Gas Price ($ per MMBtu)
IRR vs. Price of Gas
NGL 60% WTI
NGL 50% WTI
NGL 40% WTI |
 Marshall County
JV has 13,038 gross acres of leased and owned minerals
12 wells online, 1 well drilled waiting on frac
Average 30-day IP of 4.4 MMcfe/d
(1)
20% Oil/NGLs
4,100’
Average lateral length
(1)
Average EUR / 1000’
lateral
(1)
of 1.90 Bcfe
4.5 Frac Stages/1000' lateral
Drill time of 35 days spud
to rig release
Total Potential Wells: 127
Wells Drillable Today: 45
2013 Drilling Program: 2 wells
(1)
19
Excludes Whipkey 1H, Doman 1H and Doman 2H |
 Wetzel County
JV has 25,157 gross acres
of leased and owned
minerals
5 wells online
Average 30-day IP of 8.1
MMcfe/d
(1)
20% Oil/NGLs
5,000’
Average lateral length
(1)
Average EUR / 1000’
lateral
(1)
of 2.27 Bcfe
4.5 Frac Stages/1000' lateral
Drill time of 35 days spud to rig
release
Total Potential Wells: 200
Wells Drillable Today: 86
(1) Excludes Hart 28H
20 |
 IP
Rates - Recent Marcellus Completions
21 |
 Drilling
Program
–
Recap
17 wells online
2 Doman wells turned
online January 2013
Martinez well drilled
Scheduled for frac
March, 2013
2013 Drilling Program
Marion
(3)
Tyler
(2)
Marshall (2)
22 |
 Marion & Tyler Counties
23
…THE NEXT STEP… |
 Marion County
JV has 19,926 gross acres of leased and
owned minerals
Total Potential Wells: 199
Total Wells Drillable Today: 19
(pending permits)
2013 Drilling Program: 3 wells
24
Marion
County |
 Tyler County
JV has 4,000 gross acres of leased
and owned minerals
Total Potential Wells: 47
Total Wells Drillable Today: 36
(pending permits)
2013 Drilling Program: 2 wells
25
Tyler County
Tyler County |
 Gas
Off-Take
(Williams
&
Momentum
3)
20-year gas gathering agreement
with Williams for up to 45,000
MMBTU / day
90,000 MMBTU / day including
Republic capacity
Williams committed to provide off-
take
for
all
wells
to
be
drilled
(1)
Access to the TETCO, Columbia and
Dominion lines
Marshall and Wetzel County wells feed
into TETCO
Ft. Beeler cryogenic processing
facility started up in 2Q 2011
NGL
yields
up
to
1.4
–
1.9
gal/mcf
Second facility started
Moundsville fractionation plant online
November
12
Momentum 3 will provide
transportation in Marion County
(1) Excludes Marion County
26
th |
 Net
Asset Value 27
Trading at significant discount to net asset value (NAV)
Trans Energy
(1)
Sum-of-Parts NAV
Category
Low
High
Low
High
Low
High
12/31/2012 Proved Reserves (Preliminary Est.)
52.38
Bcfe
$1.00
$3.00
$52,380,000
$157,140,000
$3.98
$11.94
45 Other Current drilling locations from existing pads
(2, 3)
128
Bcfe
$1.00
$3.00
$128,250,000
$384,750,000
$9.75
$29.24
135 Current drilling locations from new pads
(2, 3)
385
Bcfe
$0.25
$0.75
$96,187,500
$288,562,500
$7.31
$21.93
Undeveloped Acreage:
Marcellus
8,000
Net acres
$1,000
$5,000
$8,000,000
$40,000,000
$0.61
$3.04
Utica
14,000
Net acres
$0
$0
$0
$0
$0.00
$0.00
Upper Devonian
14,000
Net acres
$0
$0
$0
$0
$0.00
$0.00
Less:
Net debt as of 9/30/12
($41,449,700)
($41,449,700)
($3.15)
($3.15)
Total (pre ASD warrants)
$243,367,800
$829,002,800
$18.50
$63.01
Total (post ASD warrants)
$201,048,159
$672,484,334
$15.28
$51.11
Shares outstanding
(4)
13,156,578
13,156,578
Notes
(1)
Figures below include only the assets in Trans Energy's 100% wholly-owned
subsidiary, ASD; Figures do not reflect shallow well assets. (2)
Assumes
an
average
EUR
of
7.6
Bcfe
per well
and
an
average
NRI
of
37.5%.
(3)
Current drilling locations defined as wells where:
(a)
ASD currently controls 100% of the acreage required to drill each well
(b)
The average lateral length on each pad site is at least 3,000 feet,
(c)
Each well is on a pad site from which ASD can currently drill at least two such
wells, and (d)
Each pad site has been surveyed, and a judgment has been made that the topography
will support the pad site (4)
Does not reflect potenital dilution due to outstanding options.
Value Per Share
Total Value
Unit Value |
 Why
Invest in Trans Energy? 28
Marcellus Shale Pure Play
Over 62,000 gross acres in core of the Marcellus Shale
Utica Shale potential
Upper Devonian upside potential
High-BTU, liquid-rich focus
$1.50 per MMBtu breakeven natural gas price
Extensive Organic Drilling
Inventory
w/ Large Acreage
Position
400 + potential drilling locations
3+ Tcfe upside potential (including JV and royalty partners)
Significant portion of acreage HBP (approx. 2/3)
Off-take agreements totaling up to 45,000 MMBtu per day
Improved Financials
$50 million credit facility funded near term drilling program
Experienced Management w/
Technical Expertise
More than 200 years combined management experience
Well-funded joint development partner has geologic / engineering team
|
 APPENDIX
Doman Drilling Pad, Marshall County, West Virginia |
 Overview of April 2012 Corporate Reorganization
The new credit facility involved a reorganization of the operating
subsidiaries and assets of Trans Energy
Below summarizes the movement of significant assets in the corporate
reorganization:
30
Trans Energy will continue to perform all accounting
and processing of mineral owner royalty payments
for Prima / shallow wells
Notes
Trans Energy, Inc. and Subsidiaries
21,739 net Marcellus acres
112 active shallow wells
Interest in 14 Marcellus wells
Office equipment and Corporate Functions
25,683 net acres (shallow rights)
Trans Energy, Inc. and Wholly Owned Subsidiaries:
Office equipment and Corporate Functions
Wells
112 active shallow wells
Acreage rights to drill shallow (not leases)
25,683 net acres
American Shale Development, Inc. (“ASD”):
Acreage Leases (All zones below the top of the
Rhinestreet Formation)
21,739 net acres
Interest in 14 producing Marcellus wells
Before Reorganization
After Reorganization |
 Marcellus BTU Content By County
Marshall, Wetzel, and Tyler counties have high BTU content with significant
liquids potential
Marion County is dry gas
31
Well
Well Type
BTU/SCF (Dry)
BTU/SCF (Saturated)
Marshall County
Lucey Pad
Horizontal
1,237
1,216
Doman Pad
Horizontal
1,184
1,165
Keaton #1H
Horizontal
1,238
1,216
Groves #1H
Horizontal
1,218
1,198
Stout #2H
Horizontal
1,186
1,165
Whipkey Pad
Horizontal
1,212
1,193
Goshorn Pad
Horizontal
1,207
1,187
Wetzel County
Hart #20
Horizontal
1,197
1,177
Dewhurst #50
Vertical
1,119
1,100
Dewhurst 110 Pad
Vertical
1,181
1,163
Dewhurst #73
Horizontal
1,090
Marion County
Blackshere #101
Vertical
1,073
1,020
@14.73 (PSIA)
Anderson Pad
Horizontal
1,156
1,124
Vertical
Hart #28H
1,115
1,072 |
 Shrink and Gallons/MCF Correlation
32
Jan
-11
Feb
-
11
Mar
-
11
Apr
-
11
May
-
11
Jun
-11
Jul
-11
Aug
-
11
Sep
-
11
Oct
-11
Nov
-
11
Dec
-
11
Jan
-12
Feb
-
12
Mar
-
12
Apr
-
12
May
-
12
Jun
-12
Jul
-12
Aug
-
12
Sep
-
12
Oct
-12
Nov
-
12
Dec
-
12
Shrink
91%
92%
95%
89%
89%
88%
81%
82%
80%
87%
94%
85%
91%
84%
80%
87%
84%
81%
83%
77%
73%
75%
76%
77%
GAL/MCF
0.30
0.24
0.34
0.89
1.21
0.80
1.60
1.44
1.70
1.71
1.65
1.67
1.57
1.40
1.39
1.64
1.56
1.87
1.28
2.02
1.49
1.43
1.50
1.60
-
0.50
1.00
1.50
2.00
2.50
0%
20%
40%
60%
80%
100% |
 Overview of ASD Entity
33
(1) Upon execution of its warrants, Lender will own 19.5% of ASD
Republic Energy
Ventures, LLC
Trans Energy, Inc.
(OTCBB: TENG)
Lender
Parent
Lender
Subsidiary
American Shale
Development,
Inc. (ASD)
Republic Energy
Operating, LLC
(REO)
3.AJDA
4.JOA
5.Contract
Operator
Agreement
7.Overhead
Support
1.Credit
Agreement
2.Warrant
(1)
6.Administrative
Services |
 AJDA Summary
Trans Energy entered into an AJDA with Republic Energy during 2007 to
develop its Marcellus acreage
34
36-50%
(3)
Contract Operator to REO
50-64%
100%
(1)
Technical Expertise & Admin
Services
Public & Management
Shareholders
Trans Energy, Inc.
Shallow Conventional Acreage Rights
American Shale Development
Utica (~26,000 net acres)
Marcellus
&
Other
Upper
Devonian
(2)
(4,897 acres not in AJDA)
AJDA Marcellus & Other Upper
Devonian Assets
63,500
Gross Acres in AMI
4 Vertical Marcellus Wells
17 Hz Marcellus Wells
1 Hz Marcellus Well waiting on frac (1Q 2013)
Republic Energy Ventures &
Affiliates
Republic Energy Operating
Republic Management & Energy
Trust Partners
(1)
Reflects Trans Energy’s ownership of American Shale Development (“ASD”) prior
to potential dilution that could occur upon the exercise of the lenders’ option for 19.5% of the stock
of ASD.
(2)
Includes acreage in Doddridge County that is outside of the AMI, plus approximately 4,500
acres in Wetzel County for which Republic has an option to obtain a 50% WI.
(3)
Reflects Trans Energy’s ownership of all assets within the AJDA, except for four
horizontal Marcellus wellbores in which Trans Energy owns 5% WI prior to payout, and 10% WI after
payout, per the terms of a farm out agreement with an unaffiliated third party. Trans Energy
owns between a 36% WI and a 50% WI in AJDA gross acres.
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