THE OIL & SERVICES CONFERENCE 12 FEBRUARY 19, 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 Proved Reserves: 52.4 Bcfe (12/31/2012 Wright & Co. Estimates - Marcellus only) Recent Daily Production: 16,700 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…
Overview of Recent Tyler County Divestiture On December 13, 2013, Trans Energy finalized the sale of its interest in Tyler County Capacity on the Williams wet gas system was not part of the transaction Below summarizes the effects of…
Competitive Market Position 9
Current Marcellus Acreage Significant Marcellus acreage that Acreage Breakdown 18,324 Net acres is held by shallow well production Approximately 300 horizontal well 932 ac. locations from HBP acreage alone Primary term leased…
Reserves and Resources (SEC 12/31/12) Trans Energy has exposure to more than 3 Tcfe of Marcellus resource potential More than 400/500 potential drilling locations (179/269 ready to drill today) (3) EUR per well of 1.4 2.9 Bcfe /1000…
Proved Reserves (Internal 12/31/13 500 Ft. Spacing Est.) Trans Energy has exposure to more than 3 Tcfe of Marcellus resource potential More than 400/500 potential drilling locations (179/269 ready to drill today) (2) EUR per well of…
Wet Gas Provides Positive Economics 4.00 NYMEX Equals 4.96/MCF Wellhead Price 4.00 / MMBTU NYMEX Henry Hub 95 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 13,022 gross acres of leased and owned minerals (5,046 net to ASD) 15 wells online Average 30-day IP of 4.4 MMcfe/d (1) / 6.0 MMcfe/d (2) 20% Liquids (excl. ethane) Average lateral length 4,100 (1) / 3,420…
Wetzel County JV has 17,392 gross acres of leased and owned minerals (6,162 net to ASD) 5 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 25,317 gross acres of leased and Marion County owned minerals (7,116 net to ASD) Marcellus gains thickness relative to Wetzel BTU expected between 1050 and 1100 Marshall Monongalia Wetzel Total Potential…
Drilling Program Recap 25 Hz wells online (including 2 Beatty wells turned into sales this Completed (Online): week) Anderson 5H, 7H Beatty 1H, 2H Dewhurst 110H, 111H Doman 1H, 2H 2013 drilling program Freeland 1H, 2H Goshorn…
IP Rates - Recent Marcellus Completions Note: The Martinez 1H and the Freeland 2H were under significant flow restrictions due to pipeline constraints. 21
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 Since 6/30/12 Rice Energy Avg. Since 6/30/12 Using New Completion Techniques 2,000 1,500 Mcfe/d 1,000…
Trading At a Significant Discount to Net Asset Value (NAV) NAV based on PDP PV10, PV40 of drillable locations plus other acreage 18.00 16.30 16.00 14.34 14.00 11.36 12.00 9.93 11.36 10.00 8.00 Unrealized 6.00 Value 4.00 3.60…
Why Invest in Trans Energy Marcellus Shale Pure Play Over 55,000 gross acres in core of the Marcellus Shale Utica Shale potential Upper Devonian upside potential High-BTU, liquid-rich…
APPENDIX Doman Drilling Pad, Marshall County, West Virginia 26
Detailed NAV Assumptions Using Different Spacing NAV based on PDP PV10, PV40 of drillable locations plus other acreage EUR Assumption Avg. 2.15 Bcfe/1000 feet of lateral, 4.50 Pricing Spacing (ft) 750 500 Number of Wellbores 179 269…
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