Teton signs agreement with Unit Petroleum

North America company, Teton Energy Corporation, has signed an exploration agreement with Unit Petroleum Company, a wholly-owned subsidiary of Unit Corporation to jointly explore and develop acreage controlled by Teton in the Big Horn Basin.

Teton and Unit have signed an exploration agreement whereby Unit will pay for certain specified well costs to drill two test wells on Teton’s approximate 23,000 gross acre leasehold in the Big Horn Basin of Wyoming in order to earn a 50 percent non-operated working interest in Teton’s acreage.

Thereafter, all costs of the two wells shall be borne equally by Unit and Teton. Permits for the two planned wells are in process.

The Company anticipates a spud date for the first test well sometime in the fourth quarter of 2008. Teton will remain the operator of the project, which is targeting the Greybull sandstone and Mowry Shale formations.