Teton Petroleum Acquires Interest in Piceance Basin Drilling Program

Teton Petroleum Acquires Interest in Piceance Basin Drilling
Program 


DENVER, Feb. 16  /PRNewswire-FirstCall/ -- Teton Petroleum Company (AMEX:TPE)
announced the purchase of 25% of the membership interest in Piceance Gas
Resources, LLC.  Piceance Gas Resources, LLC owns approximately 6,300 gross and
net acres directly northwest of the Grand Valley Field which has cumulative
production of over 210 billion cubic feet (bcf) in the Piceance Basin in
Western Colorado.

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Teton purchased its 25% interest in Piceance Gas Resources, LLC from PGR
Partners, LLC (who are former McMurray Energy Company executives), which is
headquartered in Denver, Colorado.  The purchase price of the 25% interest is
$5.25 million cash and 450,000 unregistered shares of Teton common stock. Teton
also issued PGR Partners, LLC warrants to purchase 200,000 shares of Teton
common stock at an exercise price of $2.00 per share, exercisable for five
years.

Piceance Gas Resources, LLC's 2005 capital program calls for the drilling of at
least 8 wells.  Long-term development plans may involve up to approximately 600
gross wells.  Development programs in this region of the Piceance Basin gas
fairway have recently been drilled on 10 acre density.

The purchase of the membership interest in Piceance Gas Resources is not
related to the other acquisition pending in North America, which was previously
disclosed by Teton in a Form 8-K filing on January 10, 2005.  The company is
continuing to implement its strategy of evaluating new exploration and
production opportunities.

This news release may contain certain forward-looking statements, including
declarations regarding Teton and its subsidiaries' 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.

   Gillian D. Kane,
   Vice President, Investor Relations
   Teton Petroleum Company
   Phone: [phone]
   

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DATASOURCE: Teton Petroleum Company



CONTACT:  Gillian D. Kane, Vice President, Investor Relations of

Teton Petroleum Company, [phone],  



Web site:  http://www.tetonpetroleum.com/ 

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