Teton Energy Announces Additional Drilling Locations in the DJ Basin and Completion...

Teton Energy Announces Additional Drilling Locations in the DJ Basin and
Completion of a 3D Seismic Program in the Williston Basin

DENVER, Jan. 22 /PRNewswire-FirstCall/ -- Teton Energy Corporation
("Teton") (Amex: TEC) announced today that it has permitted and staked
11 locations for Niobrara test wells in its Frenchman Creek prospect area in
Phillips County, Colorado. Drilling is expected to commence when state
approval has been received, which is anticipated to be late in the first
quarter of 2008. If the first two wells are commercially successful, Teton
and Targe Energy Exploration and Production, LLC, a 50% partner in the
Frenchman Creek project, expect to drill the remaining wells on 40 acre
spacing during 2008.
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Targe is carrying Teton on the two pilot wells and Targe's proportionate
share of 3-D seismic to earn their 50 percent interest in the acreage block.
Teton will operate the project and 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. The initial test wells will target
the Niobrara Beecher Island Chalk Interval, which is gas-bearing in fields in
close proximity to Teton's new well locations, at a depth of about 2,500 feet.
Teton believes that the Frenchman Creek prospect contains multiple Niobrara
structures which could yield up to 20 billion cubic feet gross of natural gas
resource potential. Including the Frenchman Creek prospect, Teton has an
interest in over 950,000 gross acres (approximately 840,000 net acres) in the
Denver-Julesburg Basin.
With its partners American Oil & Gas, Inc. and Evertson Operating Company,
Teton has also acquired and evaluated a new 3-D seismic survey in the
northeastern portion of its Goliath acreage in Williams County, North Dakota.
Several leads have been identified, including an Ordovician Red River
prospect. The prospect and leads are located directly north of the recent
Whiting Petroleum Corporation Red River discovery in the Solberg 32-5 well,
which was reported as testing at over 400 BOPD and 2 MMCFD. Teton has an
interest in approximately 87,000 gross acres (approximately 16,000 net acres)
in the Williston Basin, including the Goliath prospect.
For detailed maps of each project's acreage blocks and well locations,
please visit the Teton website at http://www.teton-energy.com.
Company Description. Teton Energy Corporation (AMEX: TEC), is an
independent oil and gas exploration and production company based in Denver,
Colorado. Teton 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. The Company's common stock is listed on the American Stock
Exchange under the ticker symbol "TEC". For more information about the
Company, please visit the Company's website at http://www.teton-energy.com.
Forward-Looking Statements. This news release may contain certain
forward-looking statements, including declarations regarding Teton's and its
subsidiaries' 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 Teton
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 for the year ended December 31, 2006, filed with the
Securities and Exchange Commission. More information about potential factors
that could affect the Company's operating and financial results are included
in Teton's annual report on Form 10-K for the year ended December 31, 2006.
Teton's disclosure reports are on file at the Securities and Exchange
Commission and can be viewed on Teton's website at
http://www.teton-energy.com. Copies are available without charge upon request
from the Company.
SOURCE Teton Energy Corporation

Lonnie Brock of Teton Energy Corporation, +1-303-565-4600,
lbrock@teton-energy.com