Teton Energy Corporation has signed a Purchase and Sale Agreement for the sale of its 12.5 percent non-operated working interest position in the Piceance Basin in western Colorado to Puckett Land Company for $10.3 million before closing adjustments. The closing, which is subject to completion of due diligence, is anticipated to occur on or before May 22, 2009 with an effective date of January 1, 2009.
The sale represents approximately 4.1 million cubic feet per day equivalent ("MMcfed") of net production related to the Piceance Basin as of December 2008 and includes net acreage of approximately 789 acres in the Garden Gulch development area in Garfield County, Colorado.
Karl Arleth, President and Chief Executive Officer, commented, "We have completed another step in the process of executing our strategy to divest our non-operated assets and strengthen our balance sheet. We now more closely control the rate of both capital and operating expenditures related to our assets after this transaction. Net proceeds from the transaction will be used to pay down debt on our bank credit facility."
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