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TEC 5.00 Teton Energy Announces Additions to Natural Gas Hedging Program
Jun 15, 2007 7:30:00 AM

DENVER, June 15 /PRNewswire-FirstCall/ -- Teton Energy Corporation ("Teton") (Amex: TEC) announced today that it will add to its natural gas hedging program starting July 2007 and continuing through October 2008.

Teton entered a Colorado Interstate Gas ("CIG") fixed price swap at a strike price of $5.78 per MMBtu for 30,000 million British Thermal Units ("MMBtu") per month for July 2007 through October 2008, for a total of 480,000 MMBtu for the respective period.

During November 2006, the Company entered into a costless collar hedge for the 2007 calendar year. Teton purchased a CIG put at a price of $6.00 per MMBtu and sold a CIG call at a price of $7.25 per MMBtu each for 30,000 MMBtu per month for January 2007 through December 2007, for a total of 360,000 MMBtu for the 2007 year.

Currently, the Company sells most of its natural gas in the Piceance Basin of Colorado at CIG index prices. The Company completed the hedging transaction with its senior bank, BNP Paribas.

These hedges are intended to improve the Company's financial flexibility by locking in a portion of its revenues and cash flow in the event that natural gas prices decline. The hedging strategy should allow Teton to develop its long-lived producing assets and to increase borrowing under its credit facility with BNP Paribas.

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 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 for the year ended December 31, 2005 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, 2005. 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

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Andrea Brown of Teton Energy Corporation
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