2010-07-20-2010-07-20-2010-07-20

Acquired 50% interest and overriding royalty position in West Virginia in more than 13,600 gross net acres.

Republic Energy Ventures LLC has purchased a 50% stake and small overriding royalty position in the Marcellus shale in West Virginia from its joint-venture partner Trans Energy Inc., St. Marys, W.Va., (OTCBB: TENG) for $23.5 million in cash and $3.5 million in drilling credits.

The acquired 50% interest is held in approximately 5,000 net acres in Marion County and 2,600 net acres in Tyler County. The overriding royalty position comprises more than 6,000 net acres in Wetzel County.

In conjunction, Trans Energy has paid $15 million on its senior credit facility and will direct proceeds toward its working capital in the Marcellus shale and also for general corporate purposes.

Trans Energy president John G. Corp says, "The entry of the joint venture into both Marion and Tyler counties expands our relationship with Republic into two additional counties we believe hold substantial reserves and the potential to add significantly to our production. We continue to move forward with our plan to rapidly develop our acreage position in the Marcellus shale along with our experienced partner."

The Trans Energy-Republic JV plans to drill up to five additional horizontal Marcellus wells in 2010.