DENVER, Jan. 22 /PRNewswire-FirstCall/ -- Teton Energy Corporation ("Teton") (Amex: TEC - News) announced today that it has permitted and staked 11 locations for Niobrara test wells in its Frenchman Creek prospect area in Phillips County, Colorado. Drilling is expected to commence when state approval has been received, which is anticipated to be late in the first quarter of 2008. If the first two wells are commercially successful, Teton and Targe Energy Exploration and Production, LLC, a 50% partner in the Frenchman Creek project, expect to drill the remaining wells on 40 acre spacing during 2008.
Targe is carrying Teton on the two pilot wells and Targe''s proportionate share of 3-D seismic to earn their 50 percent interest in the acreage block. Teton will operate the project and will utilize coiled tubing drilling and completion technology. Coiled tubing is being successfully used by other operators in the area, and it offers improved drilling time and other advantages gained by economies of scale. The initial test wells will target the Niobrara Beecher Island Chalk Interval, which is gas-bearing in fields in close proximity to Teton''s new well locations, at a depth of about 2,500 feet. Teton believes that the Frenchman Creek prospect contains multiple Niobrara structures which could yield up to 20 billion cubic feet gross of natural gas resource potential. Including the Frenchman Creek prospect, Teton has an interest in over 950,000 gross acres (approximately 840,000 net acres) in the Denver-Julesburg Basin.
With its partners American Oil & Gas, Inc. and Evertson Operating Company, Teton has also acquired and evaluated a new 3-D seismic survey in the northeastern portion of its Goliath acreage in Williams County, North Dakota. Several leads have been identified, including an Ordovician Red River prospect. The prospect and leads are located directly north of the recent Whiting Petroleum Corporation Red River discovery in the Solberg 32-5 well, which was reported as testing at over 400 BOPD and 2 MMCFD. Teton has an interest in approximately 87,000 gross acres (approximately 16,000 net acres) in the Williston Basin, including the Goliath prospect.
For detailed maps of each project''s acreage blocks and well locations, please visit the Teton website at
Company Description. Teton Energy Corporation (AMEX: TEC - News), is an independent oil and gas exploration and production company based in Denver, Colorado. Teton is focused on the acquisition, exploration and development of North American properties and has current operations in the Rocky Mountain region of the U.S. The Company''s common stock is listed on the American Stock Exchange under the ticker symbol "TEC". For more information about the Company, please visit the Company''s website at
Forward-Looking Statements. This news release may contain certain forward-looking statements, including declarations regarding Teton''s and its subsidiaries'' expectations, intentions, strategies and beliefs regarding the future within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements contained herein are based upon information available to Teton''s management as at the date hereof and actual results may vary based upon future events, both within and without the control of the Teton''s management, including risks and uncertainties that could cause actual results to differ materially including, among other things, the impact that additional acquisitions may have on Teton and its capital structure, exploration results, market conditions, oil and gas price volatility, uncertainties inherent in oil and gas production operations and estimating reserves, unexpected future capital expenditures, competition, governmental regulations, and other factors discussed in the Company''s Annual Report on Form 10-K for the year ended December 31, 2006, filed with the Securities and Exchange Commission. More information about potential factors that could affect the Company''s operating and financial results are included in Teton''s annual report on Form 10-K for the year ended December 31, 2006. Teton''s disclosure reports are on file at the Securities and Exchange Commission and can be viewed on Teton''s website at Copies are available without charge upon request from the Company.
Source: Teton Energy Corporation