SAMSON OIL & GAS OPERATIONAL ADVISORY Denver 1700 hours November 10th, 2011, Perth 0700 hours November11th, 2011 HAWK SPRINGS PROJECT Spirit of America US34 #1-29H, Goshen County, Wyoming, Samson 100% working interest Samson Oil & Gas Limited (ASX: SSN; NYSE AMEX: SSN) advises that drilling operations on the Spirit of America well successfully deviated the wellbore, however the drill string then became stuck at a depth of 9,040 feet. While jarring efforts to release the drill string were successful the bit was left in the hole. The forward plan is to log the well and evaluate the oil and gas shows that were previously observed in the Muddy Formation. If the logs are encouraging, a seven inch casing string will be run so that this zone can be further evaluated with a production test. Given the operational difficulties associated with drilling the Permian and Pennsylvanian targets with this drilling rig and well design, the attempt to evaluate these targets will be temporarily abandoned. The attractiveness of this prospect remains however and a future drilling effort will be attempted once a suitable engineering design can be established. Defender US33 #2-29H, Goshen County, Wyoming, Samson 37.5% working interest (carried) The Defender US33 #2-29H well is due to start pumping operations late this evening. A delay in the start of this operation was due to a hold up on the previous stimulation job. The Defender US33 #2-29H is the first Niobrara appraisal well in Samson’s Hawk Springs project. ROOSEVELT PROJECT AUSTRALIA II 12KA 6 #1-29, (SSN 100%, subject to a 33.34% back-in right) The rig up and mobilization of the DHS Rig 1 has continued and drilling operations on the Australia II well are expected to begin Friday, November 11th. GRETEL II 12KA 3 #1-30H (SSN 100%, subject to a 33.34% backin right) The surface casing operation has continued and the well is at depth 1,000 feet, the forward plan is set the 9 and 5/8 inch casing at 1,800 feet Both Australia II and Gretel II will be drilled initially as vertical pilot holes, where cores of the Bakken Formation will be taken, after which a 5,000 foot lateral will be drilled in the Middle Bakken Formation. These laterals will be fracture stimulated. Samson committed to drill these two wells as part of its acquisition of a 20,000 acre land position with a 20,000 acre option. Samson’s land position is subject to a 33.34% back in right by Fort Peck Energy Company.
SSN Price at posting:
10.5¢ Sentiment: Hold Disclosure: Held
