Teton Set to Acquire Stake in Russian Field

Teton Petroleum Company has signed a binding purchase and sale agreement to acquire a majority interest in a producing field in Russia.

Upon the closing of the acquisition, the property will be jointly operated by Teton and a major western European partner. Teton estimates that the current production is approximately 3,400 barrels of oil per day net to Teton. The closing of the acquisition is subject to many conditions. Prior to closing, Teton intends to conduct additional due diligence of the properties and complete its planned financing program. The acquisition also includes two additional exploration licenses. The Agreement was signed, effective March 31, 2004, and a deposit in excess of $3 million USD has also been made by Teton to the seller. The Agreement provides for a closing date of on or before July 1, 2004. Teton will make additional information on this transaction available as it is jointly released by its potential partner and the seller over the next several weeks.