Teton Petroleum Reports Record Production in 2003

Teton Petroleum Company an independent oil and gas exploration and production company active in Russia, reported its financial and operational results for the year 2003.

"We had another strong year of production and revenue growth in 2003", said Karl Arleth, President and CEO. "Our 2003 performance sets the stage for additional growth through drilling and acquisitions in 2004."

When comparing year over year, Teton continued to grow in a number of categories. Highlights for the year ended December 31, 2003 compared to December 31, 2002 include:

  • Annual sales increased by 42% from 443,268 barrels to 631,626 barrels net to Teton because more successful wells were drilled which led to an increase in oil production;
  • Average daily production rate rose by 34% from 1,291 barrels per day to 1,732 barrels per day net to Teton due to the successful drilling of additional oil wells;
  • Revenue grew by 65% from $6,923,320 to $11,437,802 net to Teton because of an increase in the price of world oil and production;
  • Teton's net loss before non cash charges related to the issuance and conversion of Preferred Stock was $5,634,844 or $0.82 per share, versus $10,973,923 or $3.53 per share in 2002. Teton's comprehensive loss was $8,247,281 or $1.23 per share, versus $11,114,696 or $3.53 per share in 2002.
  • A working capital raise of $9.8 million was completed in November 2003 through a Series A Convertible Preferred offering.

  • Seven new development wells were drilled on the Goloil property in 2003 and one existing well was placed back on production. All were successful.

    At year-end, 16 wells were producing from the 3 fields on the Goloil License. An additional 4 wells will begin producing pending expansion of the gathering system by April, 2004. A 5th well is awaiting completion.

    Plans for the Goloil license in 2004 call for the partners to drill 4 horizontal wells in the Golevaya Field and to conduct 4 fracture stimulations on 4 existing Jurassic wells in the Eguryak Field. Development plans for South Eguryak Field will be completed once the results of the 3D seismic program are evaluated.