SSN 0.00% 1.5¢ samson oil & gas limited

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  1. 251 Posts.
    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
 
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