Samson Oil & Gas Limited (ASX: SSN; NYSE AMEX: SSN) provides...

Samson Oil & Gas Limited (ASX: SSN; NYSE AMEX: SSN) provides advice on its current projects.
HAWK SPRINGS PROJECT, GOSHEN COUNTY, WYOMING
Spirit of America US34 #2-29, (SSN 100% WI)
The Spirit of America #2 well intersected 61 feet of pay as defined by the electric logging program
and its subsequent analysis. Log analysis requires several rock and fluid property assumptions and
these assumptions have in part been resolved by the initial perforation and swab tests (such as the
determination of the salinity of formation water). The net pay intervals so defined by these
measurements and calculations will now be fracture stimulated in three stages. The initial frac will
stimulate the lower perforations at around 10,000 feet, comprising 31 feet of log pay. The second
stage at around 9,300 feet will stimulate a single 7 feet of log pay and the third stage at around
9,200 feet will stimulate several sandstones with 22 feet of log pay. Detailed engineering of these
fracs have been completed.
The frac treatment has yet to be scheduled, however it is not expected that there will be any undue
delay in the provision of the required frac equipment. Assuming that an adequate rate can be
obtained from this frac, then there would be many opportunities to pursue this result, both within
the SOA prospect itself (such as drilling the Clipper location immediately adjacent, and
subsequently the twenty-four, 40-acre spaced wells within this prospect) and in addition, the 24
seismically defined anomalies within the project area. These anomalies have substantially identical
properties to the SOA #2 prospect which has now been proved to be generated by porosity
development within the Permian section. Some of these prospects are located at substantially
shallower depths, and could provide a consequential improvement in reservoir quality.
Therefore the SOA #2 results thus far have been encouraging for the successful exploitation of the
prospects that have been seismically defined both within the prospect itself and the project
generally. Part of that encouragement is the operational success, in being able to demonstrate the
capability of the drilling and casing of this geologically attractive section.
Defender US33 #2-29H, (SSN 37.5% working interest)
Informal approval has been received from the joint venture partners to work-over the well. This
operation has two objectives. Firstly, to ensure that the complete horizontal lateral is clean of sand
and debris, and secondly to change out the jet pump which was on rental, for the joint venture
owned rod pump. The well remains shut in pending this workover.
Samson Oil & Gas USA
1331, 17th Street, Suite 710, Denver Colorado 80202 Tel + 1 303 295 0344 Fax + 1 303 295 1961
ROOSEVELT PROJECT, ROOSEVELT COUNTY, MONTANA
Australia II 12KA 6, #1-29H, (SSN 100%, subject to a 33.34% back-in right)
The production from the Australia II well has continued with the well producing an average oil rate
over the last 7 days of 37 BOPD. Cumulative oil production to date is 3,082 barrels.
Gretel II 12KA 3 #1-30H, (SSN 100%, subject to a 33.34% backin right)
The production from the Gretel II well has averaged 20 BOPD over the last 7 days. Cumulative oil
production to date is 138 barrels.
Log analysis in the vertical part of the Gretel II well has suggested that there is 10 feet of log pay in
the Amsden Formation at around 5,800 feet. It is understood from a competitor’s public statements
that this zone is equivalent to the zone that produced at a rate of 107 BOPD from the East Polar
Unit #120.The forward plan for the Gretel well is to continue to produce the well such that a
definitive oil rate and oil cut can be established and then to perforate and produce the indicated log
pay in the Amsden Formation. Given the depth of the Amsden and conditional on the oil rate that
might be obtained, this zone could provide an attractive target to develop. The equivalent zone
does not appear be prospective in the Australia II well.
Abercrombie 1-10H (SSN WI 0.75%)
The Abercrombie well has produced at an average oil rate over the last 7 days under natural flow
at a rate of 350 BOPD.
The toe end of the Abercrombie well is approximately 1.5 mile southwest of the toe end of the
Gretel II well and is evidence that the adjacent Samson acreage to the immediate north and east of
the Abercrombie well and to the south of the Brockton Fault zone should be considered
prospective for similar flow rates as the Abercrombie well. Seismic data clearly puts the Gretel well
in a different structural element than that of the Abercrombie well and the current interpretation is
that this structural difference is providing the substantially different results between the two wells.
The Gretel location which was selected to be southeast of the surface expression of the Brockton
Fault however, with the benefit of the data obtained from the two wells Gretel II would have been
better located to the south and east of its current location in the same structural element as the
Abercrombie well. This refinement is not unusual in the early stages of developing the knowledge
of the project area.
Samson Oil & Gas USA
1331, 17th Street, Suite 710, Denver Colorado 80202 Tel + 1 303 295 0344 Fax + 1 303 295 1961
Samson’s Ordinary Shares are traded on the Australian Securities Exchange under the symbol
"SSN". Samson's American Depository Shares (ADSs) are traded on the New York Stock
Exchange AMEX under the symbol "SSN". Each ADS represents 20 fully paid Ordinary Shares of
Samson. Samson has a total of 1,996 million ordinary shares issued and outstanding (including
231 million options exercisable at AUD 1.5 cents), which would be the equivalent of 88.25 million
ADSs. Accordingly, based on the NYSE AMEX closing price of US$0.97 per ADS on June 28th,
2012 the Company has a current market capitalization of approximately US$93 million.
Correspondingly, based on the ASX closing price of A$0.05 on June 28th, 2012, the Company has
a current market capitalization of A$95 million. The options have been valued at their closing price
of A$0.032 on June 28th, 2012 and translated to US$ at the current