2009-04-23-2009-04-23

Canceled plans to purchase 12.5% nonop WI in 789 net acres in Garden Gulch development, Garfield Co., CO, in Piceance Basin, gaining 4.1 MMcfe/d.

Privately held Puckett Land Co., Greenwood Village, Colo., has canceled its plans to acquire a 12.5 % nonoperated working interest in the Piceance Basin in western Colorado from Teton Energy Corp., Denver, (Nasdaq: TEC) for $10.3 million. Puckett reported the deal was canceled in relation to unresolved obligations by Teton under the purchase agreement. Teton's assets include a 12.5% nonoperated working interest in approximately 789 net acres in the Garden Gulch development in Garfield County. Production is approximately 4.1 million cubic feet equivalent per day. Matt Wurtzbacher, Puckett president, says, "PLC elected termination per the terms specified in the agreement, although this was not the outcome we desired. We will continue to pursue our strategy of developing our existing Piceance Basin assets and acquiring high-quality, complementary assets using our new $120-million credit facility." Puckett's primary reserves and producing properties are in Garfield and Rio Blanco counties, Colorado. Teton has retained RBC Richardson Barr as financial advisor.