Teton Energy Corp., Denver, (Nasdaq: TEC) plans to drill its first well on its acreage in the Big Horn Basin in northwestern Wyoming.

The 13,000-foot well will test the Greybull Sandstone formation. Teton's 50% partner will pay 90% of the cost of the well to casing point and the remaining cost of the well will be split 50-50 by the partners. Due to wildlife stipulations, the well will be drilled in the second half of the year. The company expects to benefit from lower well costs, which are expected to decline over the next several months.

On Nov. 14, Teton and its partners spud the Viall #30-1 well in their Goliath project in the Williston Basin to test the Red River, Stonewall and Winnipeg formations. The well was successfully drilled and cased to its planned total depth of 14,430 feet. Teton has a 17.17% working interest.

After being utilized to drill an unrelated location, the rig used on the Viall well is expected to be moved to the first of four locations anticipated to be drilled in the Bakken shale play under a participation agreement with Red Technology Alliance LLC on Teton's 88,472-gross-acreage block.

The Ron Viall 1-25H single-lateral horizontal Bakken well is expected to spud in the first quarter. If RTA decides to drill all four wells (at 100% cost to RTA), RTA will earn a 40% working interest in the project and Teton's working interest will change from 25% to 15%.

Teton executive vice president and chief operating officer Dominic Bazile says, “We are very pleased to receive the permit for our first well in the Big Horn Basin. Although we have to wait for wildlife restrictions to end, we hope to benefit from anticipated lower drilling and completion costs. In the Williston Basin, we expect completion operations to begin very shortly on the Viall #1-30 well and are excited about the potential in the Red River and several other formations on our acreage position.”

Teton has oil and gas assets in the Rockies and Midcontinent regions.