Teton looking to expand outside Russia, notably North America

Allen Baker

Petroleum News contributing writer

Teton Petroleum Co. has some change jingling in its pockets and is looking beyond the frontiers of Russia, where it has focused, for new opportunities — notably in North America.

The Denver-based company discussed its new strategy at the July 16 annual meeting, where shareholders approved the sale of Teton’s 35.3 percent interest in Goloil, the Russian closed joint stock company, for $8.9 million. Teton will also be repaid about $6 million in loans it made to Goloil, for total proceeds of about $15 million.

Once the check comes in, Teton will have about $18 million in cash and no corporate debt. And while Teton intends to continue its focus on Russia and the territories of the former Soviet Union, other areas will also be considered, including Alaska.

“If the deal makes sense in Alaska we will look at it, or in any state in the Lower 48,” said Gillian Kane, the company’s vice president for investor relations, in response to Petroleum News.

“Our goal is to replace Goloil with a balanced portfolio of properties, including some modest percentage of assets outside the (former Soviet Union),” said Igor Effimoff, Teton’s chief operating officer. “We are focused on identifying and acquiring properties that are discounted to relative values in the market, have existing production, and have proven reserves which we can drill with relatively low risk in order to provide upside for our shareholders.”