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Teton Energy Corporation Announces First Natural Gas Production From Piceance Basin; Company to Record First Revenues in Third Quarter

Posted on: Thursday, 28 July 2005, 09:00 CDT

DENVER, July 28 /PRNewswire-FirstCall/ -- Teton Energy Corporation today announced its first U.S. commercial production from the Piceance Basin in western Colorado. The Company and its partners in Piceance Gas Resources, LLC have completed two wells, the Chevron #36-42D and the Chevron #36-32D in Garfield County, Colorado. Chevron #36-42D and Chevron #36-32D are the first two wells of Piceance Gas Resources, LLC's 2005 eight-well drilling program on its 6,300-acre property in the Piceance Basin. Teton Energy Corporation is a 25% partner in Piceance Gas Resources, LLC.

(Logo: http://www.newscom.com/cgi-bin/prnh/20030611/TETONLOGO)

Both wells were drilled to and completed in the Williams Fork member of the Mesaverde formation. Chevron #36-42D was drilled to a total measured depth of 8,662 feet, and Chevron #36-32D was drilled to total measured depth of 8,885 feet. Each well was hydraulically fracture stimulated in 10 stages and placed on production. Initial test rates for the Chevron #36-42D were approximately 2.2 MMcf per day prior to choking back for sales. The Chevron #36-42D initial sales rate was constrained to 1.2 MMcf per day with 2,150 psi tubing pressure and 2,375 psi casing pressure on a 10/64-inch choke. Initial test rates for the Chevron #36-32D were approximately 2.4 MMcf per day prior to choking back for sales. The Chevron #36-32D initial sales rate was constrained to 1.0 MMcf per day with flowing tubing pressure of 2,000 psi and 2,400 psi casing pressure on a 14/64-inch choke. The wells will continue to produce in a constrained fashion until the metering equipment is expanded from a two inch configuration to a four inch configuration early in August 2005.

Both the Chevron #36-42D and the Chevron #36-32D are on line and flowing into a 6-inch sales line. Natural gas is being sold under terms of a contract with Bargath Inc., at a price based on various Rocky Mountain Indexes, less $0.48 per MMBtu for gathering and processing, transportation and fuel, and marketing fees. The Company will record revenues from these wells in third quarter of 2005.

About Teton Energy Corporation

Denver-based Teton Energy Corporation is an exploration and production company with operations in the Rocky Mountain region of the U.S. The Company's common stock trades as TEC on the American Stock Exchange. More information about the Company is 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 within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. 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, including risks and uncertainties that could cause actual results to differ materially including, among other things, the impact that additional acquisitions may have on the company and its capital structure, exploration results, market conditions, oil and gas price volatility, uncertainties inherent in oil and gas production operations and estimating reserves, unexpected future capital expenditures, competition, governmental regulations and other factors discussed in the Company's Annual Report on Form 10-K/A for the year ended December 31, 2004 filed with the Securities and Exchange Commission. 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/A for the year ended December 31, 2004. Teton's disclosure reports 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.

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Teton Energy Corporation

CONTACT: Gillian Kane of Teton Energy Corporation, +1-303-565-4600ext. 101, gkane@teton-energy.com

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

Source: PRNewswire-FirstCall

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