THE ENERCOM OIL & SERVICES CONFERENCE FEBRUARY 20, 2013 1 Whipkey Drilling Pad, Marshall County, West Virginia
About Trans Energy Company Overview Area of Operation 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…
Why Invest in Trans Energy 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 Wet Gas Dry 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…
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 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 Trans Energy Area of Condensate and…
Competitive Market Position Marcellus Well Permits (thru Sept 20, 2012*) Marion: 60 Marshall: 139 Tyler: 22 Wetzel: 150 *Permit data acquired from WV Geologic Survey 8
Current Marcellus Acreage Significant Marcellus acreage that Acreage Breakdown 23,649 Net acres is held by shallow well production Approximately 350 horizontal well 823 ac. locations from HBP acreage alone Primary term leased…
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…
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…
Net Reserves and Resources 3rd Party Engineered BCFE Probable Reserves Disclosed for 1st Time Note: 9/20 and 12/31 reserve estimates incorporate pricing from Macquarie Tristone Lender Price Surveys; Previous reserve estimates…
Wet Gas Provides Positive Economics 3.50 NYMEX Equals 4.59/MCF Wellhead Price 3.50 / MMBTU NYMEX Henry Hub 85 NYMEX WTI One mcf Natural Gas via Wellhead Production Natural Gas Natural Gas Liquids Condensate Production Breakdown…
Experienced Management Team Steve Lucado Director since 2011 Chairman of the Board More than 18 years professional financial experience, including E&P CFO experience Bachelor of Arts Degree Harvard University, MBA, University of…
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…
Marshall County Type Curve (Pre Doman 1H, 2H) Horizontal Decline Curve (750' Spacing) 7 Projected Horizontal Well Results 6 Reserves per well: 7.8 Bcfe IP Rates: 5.7 MMcfe/d 5 1st 30 day average: 4.4 MMcfe/d (1) Percent Liquids:…
Marshall County Type Curve (Pre Doman 1H, 2H) IRR vs. Price of Gas NGL 40% WTI NGL 50% WTI NGL 60% WTI 60% Projected Horizontal Projected Horizontal Well Well Results Average Reserves Reserves per per well:7.8 well: 7.6 BCFE…
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…
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…
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 THE NEXT STEP 23
Marion County JV has 19,926 gross acres of leased and Marion County owned minerals Total Potential Wells: 199 Total Wells Drillable Today: 19 (pending permits) 2013 Drilling Program: 3 wells 24
Tyler County JV has 4,000 gross acres of leased Tyler County and owned minerals Total Potential Wells: 47 Total Wells Drillable Today: 36 (pending permits) 2013 Drilling Program: 2 wells 25
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…
Net Asset Value Trading at significant discount to net asset value (NAV) Trans Energy (1) Sum-of-Parts NAV Unit Value Total Value Value Per Share Category Low High Low High Low High 12/31/2012 Proved Reserves (Preliminary Est.) 52.38…
Why Invest in Trans Energy 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…
APPENDIX Doman Drilling Pad, Marshall County, West Virginia 29
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…
Marcellus BTU Content By County Marshall, Wetzel, and Tyler counties have high BTU content with significant liquids potential Marion County is dry gas 14.73 (PSIA) Well Well Type BTU/SCF (Dry) BTU/SCF (Saturated) Marshall County…
Overview of ASD Entity Trans Energy Republic Energy Trans Energy, Inc. Lender Ventures, LLC Energy, Inc. (OTCBB: TENG) Lender Parent Parent LLC (OTCBB: TENG) 7.Overhead Support Ownership 100% 5.Contract Operator…
AJDA Summary Trans Energy entered into an AJDA with Republic Energy during 2007 to develop its Marcellus acreage Public & Management Republic Management & Energy Shareholders Trust Partners Trans Energy, Inc. Contract Operator…
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