Teton Energy Corporation has received a permit from the Bureau of Land Management to drill its first well on its acreage in the Big Horn Basin in northwest Wyoming. The 13,000-foot well will test the Greybull Sandstone formation. Teton's 50 percent partner will pay 90 percent of the cost of the well to casing point and the remaining cost of the well will be split 50-50 by the partners. Due to wildlife stipulations, the well will be drilled in the second half of the year. The Company expects to benefit from lower well costs, which are expected to decline over the next several months.

Additionally, on November 14, 2008 the Company and its partners spud the Viall #30-1 well in their Goliath project in the Williston Basin to test the Red River, Stonewall and Winnipeg formations. The well was successfully drilled and cased to its planned total depth of 14,430 feet. Teton has a 17.17 percent working interest in the well. Potential productive pay was identified on the log analysis in four separate zones and completion is expected during the first quarter of 2009. The well was drilled on the first of ten 3-D seismic Red River prospects identified on acreage in which Teton has working interests that vary from 5 to 25 percent. The well is approximately 2.5 miles northwest of the successful Solberg 32-2 Red River well, in which Teton has a 5.65 percent working interest.

After being utilized to drill an unrelated location, the rig used on the Viall well is expected to be moved to the first of four locations anticipated to be drilled in the Bakken Shale play under a participation agreement with Red Technology Alliance LLC (RTA) on Teton's 88,472 gross acreage block. The Ron Viall 1-25H single-lateral horizontal Bakken well is expected to spud in the first quarter of 2009. If RTA decides to drill all four wells (at 100 percent cost to RTA), RTA will earn a 40-percent working interest in the project and Teton's working interest will change from 25 percent to 15 percent.

Dominic Bazile, Executive Vice President and Chief Operating Officer, stated, "We are very pleased to receive the permit for our first well in the Big Horn Basin. Although we have to wait for wildlife restrictions to end, we hope to benefit from anticipated lower drilling and completion costs. In the Williston Basin, we expect completion operations to begin very shortly on the Viall #1-30 well and are excited about the potential in the Red River and several other formations on our acreage position. Additionally we hope to have drilling commence in the first quarter on the first of four wells to test the Bakken Shale, all of which would be drilled by RTA without an outlay of capital by Teton."

Tags: Teton Energy Corporation