Teton has sold its 25 percent non-operated working interest position in the Teton/Noble AMI in the Denver Julesburg Basin ("DJ Basin") in western Nebraska to its operating partner and 75 percent working interest owner, Noble Energy Inc. ("Noble") in exchange for the forgiveness of all outstanding and future amounts owed to Noble by Teton, related to the development of the Teton/Noble AMI project. Included in the sale is the Company's 50 percent operated working interest in its undeveloped Frenchman Creek acreage in eastern Colorado.
The closing occurred on March 31, 2009 with an effective date of February 1, 2009.
The sale represented approximately 763 thousand cubic feet per day equivalent ("Mcfed") of net production related to the Teton/Noble AMI as of December 2008. No net production is associated with the Frenchman Creek acreage. Net acreage included in the transaction is approximately 68,789 acres in the Teton/Noble AMI and 13,939 acres in the Frenchman Creek prospect.
"This transaction represents another step in our plan to shed non-operating assets as well as improve our liquidity position as we navigate through these challenging economic times," said Karl Arleth, President and Chief Executive Officer. "We are divesting a non-operated asset, where we had elected not to participate in new wells drilled in late 2008 due to disappointing well performance. We had no capital expenditures planned in these two areas in 2009 and expect minimal impact from this sale on Teton's business plans going forward."
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