Oil and gas exploration and production company Teton Energy Corp. said Friday it has signed an agreement with a subsidiary of Unit Corp. to jointly explore and develop land controlled by Teton in the Big Horn Basin of Wyoming.
Under the deal's terms, Unit Petroleum Co. will pay for certain costs related to the drilling of two test wells on Teton's approximately 23,000 acres, and in turn will earn a 50 percent non-operating working stake in the land.
After that, all costs of the two wells will be split equally by the companies. Permits to drill the two test wells are still pending. Teton expects to begin drilling the first well in the fourth quarter.
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