IPAA OGIS SAN FRANCISCO SEPTEMBER 24, 2014 1 Whipkey Drilling Pad, Marshall County, West Virginia
About Trans Energy Company Overview Area of Operation Trans Energy: (OTCQB: TENG) Pure Play Marcellus Shale PD Reserves: 48.0 Bcfe (12/31/2013 Wright & Co. Estimates - Marcellus only) Recent Daily Production: 19,000 Mcfe…
Why Invest in Trans Energy Marcellus Shale pure play Predictable and repeatable inventory Marshall Prominent land position with strong Wetzel Monongalia upside potential Trades at a significant discount to NAV Tyler Marion…
Marcellus Overview Majority of Company acreage located in wet gas window NGL yields in the 1.1 1.9 gallons per mcf range Ft. Beeler processing plants provide 320 MMcf/day throughput capacity Williams is adding another 640…
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…
Corporate Strategy - Prove Acreage / Add Drillable Locations Consolidate acreage surrounding legacy positions in the core of the Marcellus Marshall, Wetzel and Marion counties Building upon local presence a West Virginia company…
Competitive Market Position 8
Acreage Wellbores There is no forced pooling in West Virginia Acreage has value, drillable pad sites have (much) more value. Four criteria four a drillable wellbore: Defensible title on 100% of the underlying acreage Topography…
Current Marcellus Acreage Significant Marcellus acreage that Acreage Breakdown 16,852 Net acres (a) is held by shallow well production Approximately 300 horizontal well 967 ac. locations from HBP acreage alone Primary term…
Overview of Recent Debt Refinancing On May 21, 2014, ASD closed on a new 200 mm financing Morgan Stanley advanced 102.5 mm at closing Initial advance repaid all debt to previous lender Additional contingent commitment of 47.5 mm…
Reserves and Resources (Internal 12/31/13) Trans Energy has exposure to more than 3 Tcfe of Marcellus resource potential More than 400/500 potential drilling locations (204/307 ready to drill today) (3) EUR per well of 1.4 2.9 Bcfe…
Wet Gas Provides Positive Economics 4.00 NYMEX Equals 5.21/MCF Wellhead Price 4.00 / MMBTU NYMEX Henry Hub 90 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 19 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…
Type Curve IRR Sensitivities By County IRR vs. Price of Gas Marshall Wetzel Marion 80% 70% Projected Horizontal Well Reserves Per Well: 9.75 Bcfe, 11.0 Bcfe, 11.5 Bcfe CAPEX per 5,000: 7.27 mm, 7.43 mm, 7.72 mm 60% Percent…
Marshall County JV has 12,475 gross acres of leased and owned minerals (4,639 net to ASD) 17 wells online Average 30-day IP of 4.9 MMcfe/d (1) / 5.7 MMcfe/d (2) 20% Liquids (excl. ethane) Average lateral length 4,030 (1) / 3,905…
Wetzel County JV has 18,212 gross acres of leased and owned minerals (5,583 net to ASD) 7 wells online Average 30-day IP of 8.1 MMcfe/d (1) 20% liquids (excl. ethane) v 5,000 Average lateral length (1) Average EUR / 1000…
Marion County JV has 20,460 gross acres of leased and Marion County owned minerals (6,630 net to ASD) 4 wells online Average 30-day IP of 8.9 MMcfe/d (1) 5,100 Average lateral length (1) BTU between 1050 and 1100 Marshall Total…
Drilling Program Recap 28 Hz wells online 2013 drilling program Completed (Online): included 8 wells Anderson 5H, 7H Beatty 1H, 2H Dewhurst 110H, 111H Doman 1H, 2H 2014 drilling program Freeland 1H, 2H Goshorn 1H, 2H, 3H, 4H…
IP Rates - Recent Marcellus Completions Incremental 30 Day Average Production/ 1000' Lateral 30 60 90 120 2,500 2,000 Average Production, MCF 1,500 1,000 500 0 Note: The Martinez 1H and the Freeland 1H,…
West Virginia Peer Well Performance TENG is drilling some of the best wells in the wet gas window of the Marcellus 30-Day IP Rates per 1,000 Lateral(1) EUR per 1,000 Lateral(1) 2,500 2.50 2,000 2.00 1,500 1.50 Mcfe/d…
Comparative Well Performance 90-Day IP Rates per 1,000 Lateral(1) 2,500 TENG Wells TENG Wells Turned In to Sales from 6/12 -12/13 Using New Completion Techniques Rice Energy Avg. 6/12 - IPO 2,000 1,500 Mcfe/d 1,000…
The Market Favors Appalachian Assets Precedent Transactions, Guideline Companies Trade at Premium Prices Transaction Daily Net Implied Value Production Net Undeveloped PDP Value Implied Date Buyer Seller ( mm) (Mcfe/d) Acres Acres…
Trading At a Significant Discount to Net Asset Value (NAV) NAV based on PDP and acreage values from precedent transactions 25.00 0.35 15.70 20.00 15.00 (0.85) 13.00 (5.77) 10.00 Unrealized Value 5.00 3.95 4.77 0.00 Share…
Why Invest in Trans Energy Marcellus Shale Pure Play Over 45,000 gross acres in core of the Marcellus Shale Utica Shale potential Upper Devonian upside potential High-BTU, liquid-rich…
Detailed NAV Assumptions Using 6,000 and 4,000 / Mcfe/d NAV based on Mcfe/d plus acreage valuation from precedent transactions Undeveloped Acreage Assumption Assumes 95% of Acreage is Undeveloped PDP Value in /Mcfe/d 6,000 4,000 Daily…
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