TPE Teton Petroleum New

Teton and Partners Begin Drilling First Piceance Basin Gas Well Second Well to be Drilled From Same Surface Location DENVER, May 11 /PRNewswire-FirstCall/ -- Teton Petroleum Company (AMEX:TPE) announced today that Piceance Gas Resources, LLC (PGR LLC), the partnership in which Teton owns a 25% interest, has begun drilling its first well in the Piceance Basin of Western Colorado. Chevron #36-42D, located in Township 5 South, Range 96 West, Section 36 in Garfield County, Colorado, is permitted to drill to a total depth of 9,500 feet to test the Mesaverde Sandstone Formation. The well is an offset to the currently producing Williams Red Point well #44-36 located in the Southeast quarter of Section 36 which was completed in the Mesaverde in 1997. Orion Energy Partners, a privately held Denver company and 50% owner of PGR LLC, is the contract operator of the well. Following the completion of the first well, a second well, Chevron #36-32D, will be drilled from the same drilling pad to a different bottom hole location. These two wells represent the initiation of the 2005 PGR LLC capital program, which targets a minimum of 8 wells over the 6,300 acre PGR LLC leasehold (see Teton announcement February 16, 2005). The estimated drilling and completion cost of each well is $1.6 million gross; of which Teton's 25% working interest is approximately $400,000. The Company expects to fund its interest in the 2005 PGR LLC drilling program with existing working capital and does not anticipate the need to raise additional capital in 2005 to fund either the Piceance drilling program or the recently announced Eastern Denver-Julesburg Basin project. About Teton Petroleum Company Teton Petroleum is an exploration and production company with operations in the Rocky Mountains of the U.S., and is headquartered in Denver, Colorado. The Company's common stock trades as TPE on the American Stock Exchange. More information about the Company is available on the Company's website, http://www.tetonpetroleum.com/, and through additional press releases as the projects develop. 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, 2004 filed with the Securities and Exchange Commission. More information about potential factors that could affect the Company's operating and financial results is included in Teton's annual report on Form 10-K for the year ended December 31, 2004. Teton's disclosure reports are on file at the Securities and Exchange Commission and can be viewed on Teton's website at http://www.tetonpetroleum.com/. Copies are available without charge, upon request from the Company. DATASOURCE: Teton Petroleum Company CONTACT: Gillian Kane of Teton Petroleum Company, +1-303-542-1860, Web site: http://www.tetonpetroleum.com/

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