Teton, Targe Team Up for DJ Basin Drilling

Teton Energy Corp. has formed a drilling partnership with privately held Targe Energy E&P, LLC ("Targe") to evaluate approximately 9,000 gross and net acres held by Teton outside of its 266,572 gross acre Area of Mutual Interest ("AMI")with Noble Energy Inc. The acreage block, named the Frenchman Creek prospect, is located in the eastern DJ Basin.

Targe will carry Teton on a two well pilot program and their proportionate share of 3-D seismic to earn a 50 percent interest in the acreage block. Teton will be the project operator, which will utilize coiled tubing drilling and completion technology. Coiled tubing is being successfully used by other operators in the area and it offers improved drilling time and other advantages gained by economies of scale.

Teton believes that the Frenchman Creek prospect contains multiple Niobrara structures that could yield up to 20 billion cubic feet gross of natural gas resource potential. The two initial exploratory wells will be followed up by infill drilling on 40-acre spacing, assuming commercial success. The initial tests will target the Niobrara formation at a depth of 2,500 feet.

Teton Energy Corp. is an independent oil and gas exploration and production company based in Denver, Colorado. It is focused on the acquisition, exploration and development of North American properties and has current operations in the Rocky Mountain region of the U.S.