Denver-based Teton Energy Corp. is building its position in the Big Horn Basin of Wyoming following the purchase of 6,250 acres in which it will hold a 100% working interest. Teton already was in the process of buying 5,750 acres in the basin, and it expects to hold and operate 12,000 acres in the emerging leasehold by June 6.
The seller was not disclosed, and Teton did not provide financial details.
The Rocky Mountain-focused independent currently has 6,314 acres in the Piceance Basin, 266,572 acres in the Denver-Julesburg Basin and 87,032 acres in the Williston Basin. The company plans to continue building the acreage position over the next quarter and plans to drill at least one Teton-operated well by year-end.
The Big Horn purchase announced Tuesday "represents an important first step for Teton as we execute our long-term strategy of building our operating presence in the assets we own," said CEO Karl F. Arleth. "With a 100% working interest in this relatively untouched acreage, we believe this acquisition represents an excellent opportunity to develop new oil and gas resources that will be key drivers of Teton's growth going forward."
COO Dominic Bazile noted that Teton is "on the ground floor of an emerging horizontal gas play with a backup conventional oil/gas play. We believe that adding the potential returns of this emerging horizontal gas play to the returns from the conventional Greybull and Peay formations could provide promising economics for the total play."
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