Teton Energy Spuds First Well in Williston Basin

Teton Energy has spud its first well in the Williston Basin on its Goliath leasehold of approximately 90,000 gross acres, 16,000 net to the Company's interest.

The Champion 1-25H, located in Section 24 and 25 of T157N - R97W in Williams County, North Dakota initiated drilling on September 25, 2006. The Mississippian Bakken Formation is the primary target zone of this horizontal, tri-lateral well and is located at a depth of approximately 10,500 feet. The well is currently drilling at approximately 1,825 feet. Drilling should take approximately 60 to 75 days with a testing period following fracture stimulation. Teton will have 25 percent working interest and 20 percent net revenue interest in this and subsequent wells. The partnership, consisting of American Oil and Gas, Inc. (Amex: AEZ) (50 percent working interest) and the designated operator, Evertson Operating Company (25 percent working interest) will continue to evaluate the project following results from this exploratory well.

Toby Schultz, Vice President of Production, stated, "This oil resource play could give Teton the opportunity to participate in over 100 gross un-risked locations based on 640-acre spacing. If successful, the use of innovative horizontal drilling technology will also assist in unlocking the value of this emerging play."