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Rockies Producer Locks in $6.00/MMBtu CIG Floor

Denver-based Teton Energy Corp. initiated a costless collar gas hedging program for 2007 that is intended to improve financial flexibility by locking in a portion of revenues and cash flow in the event that gas prices decline. The strategy should allow Teton to develop its long-lived producing assets and increase borrowing under its credit facility with BNP Paribas.

Teton bought a Colorado Interstate Gas (CIG) put at $6.00/MMBtu and sold a CIG call at $7.25/MMBtu each for 30,000 MMBtu per month for January through December 2007 for a total of 360,000 MMBtu for the year. The company sells its gas in Colorado's Piceance Basin at CIG index. Teton completed the hedges with senior bank BNP Paribas.

Teton is an independent oil and gas exploration and production company focused on the acquisition, exploration and development of North American properties and has current operations in the Rocky Mountain region.

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