Teton Energy Corp., Denver, (Amex: TEC) has signed a definitive agreement with American Oil and Gas Inc. (Amex: AEZ) to acquire a 25% working interest in approximately 45,000 net acres in the Williston Basin in Williams County, North Dakota. Teton will pay American approximately $2 million cash and approximately $3 million cash of American's 50% share for drilling and completion on the two planned wells. In addition to the $3 million for working interest, Teton will also pay its 25% share of drilling and completion costs.