April 5, 2004

News Release: Teton Petroleum Signs Binding Agreement to Acquire Majority Share in Producing Russian Oilfield

Teton Petroleum Company ('Teton') (Amex: TPE), an independent oil and gas exploration and production company with its principal assets in Russia, today announced that it has signed a binding purchase and sale agreement ('Agreement') to acquire a majority interest in a producing field in Russia.

Upon the closing of the acquisition, the property will be jointly operated by Teton and a major western European partner. Teton estimates that the current production is approximately 3,400 barrels of oil per day net to Teton. The closing of the acquisition is subject to many conditions. Prior to closing, Teton intends to conduct additional due diligence of the properties and complete its planned financing program. The acquisition also includes two additional exploration licenses. The Agreement was signed, effective March 31, 2004, and a deposit in excess of $3 million USD has also been made by Teton to the seller. The Agreement provides for a closing date of on or before July 1, 2004.

Teton will make additional information on this transaction available as it is jointly released by its potential partner and the seller over the next several weeks.

About Teton Petroleum Company:

Denver-based Teton Petroleum Company (Amex: TPE) is the only publicly traded U.S. oil and gas exploration and production company with all of its producing assets in Russia. The company is currently developing three oil fields at its Goloil license in Western Siberia. The company has been producing and exporting oil from Russia since 1998.

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. 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.

For Further Information, Please Contact: Gillian Kane, Vice President, Investor Relations (970) 870-1417 This email address is being protected from spambots. You need JavaScript enabled to view it.

SOURCE Teton Petroleum Company

Gillian Kane, Vice President, Investor Relations of TetonPetroleum Company, +1-970-870-1417, This email address is being protected from spambots. You need JavaScript enabled to view it.
http://www.tetonpetroleum.com

WEBSITE EMAIL