Teton Energy Corporation focuses on the acquisition, exploration and development of oil and natural gas in North America. The company’s current operations are concentrated in the prolific Rocky Mountain and Midcontinent regions of the U.S. Teton has leasehold interests in the eastern Denver-Julesburg Basin in Nebraska, the Piceance Basin in western Colorado, the Williston Basin in North Dakota, the Big Horn Basin in Wyoming and its newest property in the Central Kansas Uplift. Teton is headquartered in Denver, Colorado and is publicly traded on the American Stock Exchange under the ticker symbol TEC.

Teton’s objective is to expand its natural gas and oil reserves, production and revenues through a strategy that includes growth through the acquisition and development of high repeatability resource play acreage, acquisition of operated properties to control the level and timing of capital spending and the pursuit of strategic acquisitions that expand or complement existing operations and provide consolidation opportunities.

On April 2, 2008 Teton Energy announced the completion of its purchase of oil and gas properties in the Central Kansas Uplift. The purchase price was $53.4 million before closing adjustments and was effective March 1, 2008. The purchase price includes:
• an estimated 12.9 Bcfe of proved reserves, an increase of 91 percent over Teton's year-end proved reserves of 14.1 Bcfe
• 710 Boe (4.26 MMcfe) per day of net production, an increase of 99 percent from year end production of 4.3 MMcfe per day
• 50 producing wells, 22 wells with production behind pipe, five proved undeveloped locations and 29 identified probable locations on 92-percent Teton owned and operated 8,719 acres
• 52 square miles of 3-D seismic with additional seismic to be acquired in 2008
• 39,385 gross (23,631 net) undeveloped acres where Teton will operate, at 60 percent working interest to Teton and 40 percent working interest to the sellers. The Company believes the undeveloped acreage could yield additional upside resource potential to Teton estimated to be equivalent to the proved reserves.

In addition, Teton and the seller formed a 5,000 square mile area of mutual interest (AMI) on a 60/40 working interest split with Teton as the majority working interest and operator.

Teton holds a 12.5 percent interest in 6,314 leasehold acres in the Grand Valley area of the Piceance Basin, in which the Company has 559 remaining gross unrisked locations. As of January 2008, 54 gross wells were producing and 15 were drilling or waiting on completion. Net production was 3.5 MMcfe per day at year end 2007. We plan to participate in the drilling of an additional 52 gross wells in 2008.

In the eastern D-J Basin in Colorado, Kansas and Nebraska, Teton has one non-operated and three operated projects targeting Niobrara gas and Lansing Kansas City oil. In 2007, Teton drilled and acquired 152 wells and acquired 703,560 gross acres of new leasehold, bringing the Company’s total D-J interests to an approximate 73 percent working interest in over 970,000 gross acres. We plan to participate in the drilling of 180 gross wells in the D-J Basin in 2008.
Teton has a 25 percent working interest in 88,472 gross acres in the Williston Basin in North Dakota. The target formation in this emerging basin centered play is the Mississippian Bakken for oil and the Red River formation for natural gas at a depth of approximately 10,500 feet. In 2008, Teton plans to drill two gross wells in the Bakken formation and two gross wells in the Red River formation, utilizing horizontal drilling.

In May of 2007 Teton acquired a 100 percent working interest acreage position in the Big Horn Basin in Wyoming. Teton has acquired over 20,000 gross acres. We will be the operator and are looking for an industry partner to participate in up to four gross wells in 2008. We are targeting the Greybull sands for oil and natural gas and the Mowry Shale for natural gas.