Teton Energy Corporation announced that it has signed an exploration agreement with Unit Petroleum Company, a wholly-owned subsidiary of Unit Corporation to jointly explore and develop acreage controlled by Teton in the Big Horn Basin.
Teton and Unit have signed an exploration agreement whereby Unit will pay for certain specified well costs to drill two test wells on Teton's approximate 23,000 gross acre leasehold in the Big Horn Basin of Wyoming in order to earn a 50 percent non-operated working interest in Teton's acreage. Thereafter, all costs of the two wells shall be borne equally by Unit and Teton. Permits for the two planned wells are in process. The Company anticipates a spud date for the first test well sometime in the fourth quarter of 2008. Teton will remain the operator of the project, which is targeting the Greybull sandstone and Mowry Shale formations.
Dominic Bazile, Executive Vice President and Chief Operating Officer, commented, "We are very excited to have a partner of Unit's caliber join us in the exploration and development of our Big Horn Basin project. Our operational expertise coupled with their oil services experience and access to equipment should be a winning combination as we move this project forward. We believe their participation validates the potential we see in this new area of operations for the Company."
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