Teton (AMEX:TPE)
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Teton Petroleum Acquires 123,000 Acres in the Eastern
Denver-Julesburg Basin
Second Acquisition of Rocky Mountain Acreage Brings Teton's Land Base to
186,300 Gross Acres
DENVER, April 14 /PRNewswire-FirstCall/ -- Teton Petroleum (AMEX:TPE)
announced today that it closed on the purchase of 123,000 acres of an
180,000-acre acquisition in the Eastern Denver-Julesburg Basin. Teton
anticipates that it will purchase leases covering substantially all of the
remaining 57,000 acres in two separate tranches which are expected to close by
the end of May and June, respectively.
Today's exploratory acreage acquisition represents Teton's continued focus on
building a sizeable exploration and production footprint in the Rocky
Mountains. The Company's primary geologic focus underlying these lands is the
prolific Niobrara biogenic gas play. Teton will operate the acreage block with
a net revenue interest of approximately 82.3%. Lease terms are generally five
years with a preferential right at expiration to extend most of the acreage for
an additional five years. Fee lands comprise 95% of the acreage block.
This D-J Basin acreage project represents Teton's second acquisition in the
Rocky Mountain region. On February 16, 2005, the Company announced the
acquisition of a 25% interest in Piceance Gas Resources, which controls 6,300
gross acres directly northwest of Grand Valley Field in the Piceance Basin of
western Colorado.
A letter of intent between Teton Petroleum and two undisclosed private
companies was originally signed on December 17, 2004. On January 5, 2005, the
companies signed a purchase and sale agreement after which Teton paid $347,354
in earnest money. The total purchase price will be paid primarily from cash on
hand, with the remainder payment in stock and warrants. Total purchase terms
were not disclosed.
Management's Comments
Karl F. Arleth, Teton Petroleum CEO and President said: "Based on Niobrara well
data from adjacent fields -- the Waverly Field, 170 Bcf of cumulative
production, Republican Field, 35.6 Bcf, and the Bonnie Field, 39.1 Bcf -- we
believe our acreage has the potential for significant reserve and production
additions. We are in the planning stages of designing our initial exploratory
effort with particular concentration on acquiring additional 2-D and possibly
3-D seismic data, followed by a pilot drilling program focused on three areas.
Today's transaction, combined with our earlier announced acquisition in the
Piceance Basin, firmly strengthens our position in the Rocky Mountain region.
Going forward, it is our intention to develop multiple projects and prospects
that fully exploit the opportunities in each of these basins, as well as
identify new exploration and production opportunities within the Rockies."
About Teton Petroleum Company
Teton Petroleum is an exploration and production company with operations in the
Rocky Mountains of the U.S., and is headquartered in Denver, Colorado. The
Company's common stock trades as TPE on the American Stock Exchange. More
information on the acquisition will be made available on the Company's website,
http://www.tetonpetroleum.com/, and through additional press releases as the
projects develop.
Forward-Looking Statements
This news release may contain certain forward-looking statements, including
declarations regarding Teton and its subsidiary's expectations, intentions,
strategies and beliefs regarding the future. All statements contained herein
are based upon information available to Teton's management as at the date
hereof and actual results may vary based upon future events, both within and
without the control of the Teton's management. More information about
potential factors that could affect the Company's operating and financial
results is included in Teton's annual report on Form 10-K for the year ended
December 31, 2004. This and all previously filed documents are on file at the
Securities and Exchange Commission and can be viewed on Teton's website at
http://www.tetonpetroleum.com/. Copies are available without charge, upon
request from the Company.
DATASOURCE: Teton Petroleum
CONTACT: Gillian Kane of Teton Petroleum, +1-303-542-1878,
Web site: http://www.tetonpetroleum.com/