SAMSON OIL & GAS OPERATIONAL ADVISORY Denver 1700 hours October 23rd, 2011, Perth 0700 hours October 24th, 2011 HAWK SPRINGS PROJECT Defender US33 #2-29H, Goshen County, Wyoming, Samson 37.5% working interest (carried) Samson Oil & Gas Limited (ASX: SSN; NYSE AMEX: SSN) advises that the routine DFIT (diagnostic fracture injection test) on Defender US33 #2-29H has now been completed. The data collected from this test has been analysed and preparations are now underway for the fracture stimulation, which is scheduled to commence on November 7th (approximately sixty frac tanks have been mobilized to the well site). The Defender US33 #2-29H is the first Niobrara appraisal well in Samson’s Hawk Springs project. Spirit of America US34 #1-29H, Goshen County, Wyoming, Samson 100% working interest The Spirit of America US34 #1-29H well has been drilled to a depth of 9,076 feet, which is in the formation above the Permian target zone. Based on adjacent well data, Samson had recognized that this section might be difficult to drill because of the expected salt within the section. This has proven to be the case, as the drill pipe became stuck at this depth. With the use of a specialized drilling fluid, the drill pipe was released but, in doing so, the drill bit was left in the hole. A cement plug has now been set in order to deviate around the drill bit. The rig is currently undertaking a minor repair. The forward plan, which is subject to change based on drilling conditions, is to drill through the Permian target, at which point a logging run will be undertaken and in order to put the salt section behind pipe, 7 inch casing will be run. This will enable the balance of the well can be drilled to the planned total depth of 11,000 feet. The Spirit of America well is appraising the multiple conventional targets identified in the North Platte 3D seismic data set. These targets consist of a Permian age stratigraphic trap and a Pennsylvanian age structural trap. Competitor Activity Samson has noted that Chesapeake Energy has appointed a broker to market their considerable land position in the area adjacent to Samson’s Goshen County holding. Subsequent informal discussions with Chesapeake has established that they do not intend in the short term to drill the two wells, State 24-63 #10-1H and State 24-63 314-1H that they had previously proposed and which Samson had elected to participate in. They have further advised that these elections are now invalid because neither party entered into a joint operating agreement. Samson intends to evaluate this land offering.
SSN Price at posting:
11.5¢ Sentiment: Hold Disclosure: Held
