Teton Energy Corporation (“Teton”) (AMEX:TEC) today provided an update on the first well in the Williston Basin on its Goliath leasehold of approximately 90,000 gross acres. Teton is participating in the drilling of its first prospect on its Goliath leasehold of approximately 90,000 gross acres, 14,500 net to the Company’s interest.

The Champion 1-25H well, located in Section 24 and 25 of T157N – R97W in Williams County, North Dakota is targeting the Mississippian Bakken Formation as the primary target zone. All three horizontal laterals have been drilled, made ready for completion and fracture stimulation occurred on January 19, 2007. Following flow back of the liquids used during the fracture stimulation process, the production testing period will commence. Teton will have 25 percent working interest and 20 percent net revenue interest in this Williston Basin well. The partnership consists of American Oil and Gas, Inc. (AMEX:AEZ) (50 percent working interest) and the designated operator, Evertson Operating Company (25 percent working interest).

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 www.teton-energy.com.