Teton has received notification from the operator, Noble Energy that the first 20 wells have been drilled for the Denver-Julesburg Basin Niobrara pilot project. As part of the initial agreement with Noble Energy, Teton was carried for all well costs associated with the drilling, completion and hookup of the first 20 wells. Noble Energy has now earned 75 percent in all acreage within the Area of Mutual Interest ("AMI"). Future development costs will be split according to each party's working interest percentage; Teton, 25 percent and Noble Energy, 75 percent. Teton will receive 25 percent of any revenues derived from the first 20 and all subsequent wells.
"We are pleased that Noble Energy has completed this program ahead of schedule," said Andrew Schultz, the Company's Vice President of Production. "We are currently in the process of hooking these wells up to sales to confirm commercial production before moving on with additional development."
In addition, on December 15, 2006, Teton closed on an agreement to purchase additional leasehold interest in the Denver-Julesburg Basin with an undisclosed third party, which was originally announced on November 7, 2006. The agreement called for the acquisition of approximately 56,000 gross acres (42,000 net). Approximately 33,600 net acres are within the Noble Energy and Teton Energy AMI and approximately 8,400 net acres outside the AMI. Noble Energy has agreed to accept its 75 percent interest in the acreage within the AMI.
Teton Energy Corporation 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.
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