SAMSON OIL & GAS PAYS OFF DEBT FACILITY, ADVISES ON OPERATIONS Denver 1800 hours May 31St, Perth 0800 hours June 1st 2011 DEBT FACILITY Samson Oil & Gas Limited (ASX: SSN, NYSE AMEX: SSN) advises that it has fully repaid its debt facility today. After this final repayment of the facility, which once stood at US$21 million, Samson no longer has any debt on its balance sheet, and its current cash balance is approximately US$61.2 million. Samson holds its cash and cash equivalents in three US dollar denominated bank accounts ($54.8 million) and one Australian dollar denominated account (A$6.0 million). EVERETT #1-15H (31% WORKING INTEREST) The Everett #1-15H well has reached a total measured depth of 17,350 feet, as planned, and is currently conditioning the hole prior to running the 4 1/2 inch production liner. This liner will enable a 20 stage fracture stimulation to be undertaken. Oil and gas shows consistent with the balance of the Bakken wells in this field were observed whilst drilling the final part of the lateral. The Everett #1-15H well is located in Township 154N, Range 99W, Section 15 in Williams County, North Dakota. The Everett #1-15H well is Samson?s sixth Bakken well in the North Stockyard Field. EARL #1-13H (32% WORKING INTEREST) As expected, the remaining parted tubing was extracted from the stuck point and was tripped out of the hole to the vertical part of the well bore. As the fish was moved, a marked increase in the flow rate was observed, and this flow rate of approximately 1,200 BOPD was too high to safely trip the balance of the tubing out of the well at that time. The work over crew then stood down for the holiday weekend. Forecasted high winds in the area have curtailed operations today, but the forward strategy is to pump a well control fluid into the well and trip the fish out of the hole. Inspection of that recovery will determine the next step; if the entire bottom hole assembly is recovered, then the balance of the plugs will then be drilled out. The Earl #1-13H well is located in Township 154N, Range 99W, Section 13 in Williams County, North Dakota.
SSN Price at posting:
12.5¢ Sentiment: Buy Disclosure: Held
