2012 drilling programme - update

First for 2012, a big year ahead for Samson Oil and Gas

Cheers OMR


HAWK SPRINGS PROJECT - NIOBRARA FORMATION



- Defender.... this well is 100% free carried by Halliburton and has been drilled and fracced. Due to low down hole pressure a pump was installed to improve the flowback of fluids but valve damage has hampered this process and as the latest announcement stated.....

"The Defender US33 #2-29H work over rig is due to arrive on location on Friday January 13
th
and
will commence a pump change out. This operation will be completed over the weekend and the
well is expected to be pumping with the replaced pump Monday January 16
th
. As previously
advised the pump has not been operating efficiently and therefore the new pump is expected to
establish a rate that is diagnostic." SSN WI 37%


- Spirit of America....This vertical test of Permian and Pennsylvanian traps is currently on hold pending a complete rethink of the engineering design for appraising these targets. The initial drill resulted in failure at around 9050 ft due to difficulty penetrating an inconsistent salt/shale layer that continually collapsed and resulted in the loss of 2 motorised drilling heads. Total depth is programmed to be 11,000 ft. These targets have been estimated to contain 18 million barrels of oil and are an integral part of our programme in this play. Terry expects a second attempt to be made Q1 2012. WI 100 % Samson

- An unexpected development during drilling operations of SOA was oil and gas hits at 8400ft in the Muddy J Sandstone formation. Logging and other testing determined a single stage frac was warranted and flow back analysis is on going.

-Constellation....South-east of Defender and Spirit, the rat and mouse holes have been drilled. No date has been set to drill at this stage. WI 100 % Samson


-All wells drilled by Cheseapeake on the land that we sold them is subject to an on average 3.8% ORRI ( over riding royalty interest ) A significant development has occurred regarding these wells. Cheseapeake has recently placed some parts of this land on the market. The auction results are still unknown and the ORRI status of the wells listed below has not been reported.


THE LIST

Intrepid- dry hole
Enterprise- dry hole
Courageous
Alhbrandt
Gleam
Clark
Brandt 21-24-63 1H
Brandt 24-63-21 2H
Hall
Price
Dvorak
State 24-63 14-1H
State 24-63 10-1H



NORTH DAKOTA - BAKKEN - THREE FORKS FORMATION

Current well list....32 % average WI.

Leonard
Gary
Gene
Earl
Rodney
Everett - drilling and frac are complete, flow rates next week.

- Infill Bakken program....this has been locked in and drilling is programmed starting Q1 2012.

- In addition Samson is looking to drill an appraisal well to evaluate the production performance of the Three Forks Formation in North Stockyard Field.




THE ROOSEVELT PROJECT- MONTANA

- Tranches 1 and 2 are good. Tranch 3 has been consumed by others at higher prices then we paid.


Australia II-

"Australia II 12KA 6, Roosevelt County, MT (SSN 100%, subject to a 33.34% back-in option)
As previously advised the Australia II well has been successfully drilled to a total measured depth
of 14,972 feet.
The 4 ½ liner equipped with 15 external casing packers was then run to total depth and set in the 7
inch casing shoe. A retrievable bridge plug has been set such that the well is made safe.
Contract negotiations are being undertaken with two mainstream pressure pumping companies
such that this well can be fracture stimulated in the first quarter."

Gretel II-

" Gretel II 12KA 3, Roosevelt County, MT (SSN 100%, subject to a 33.34% back-in option)
The DHS Rig 1 is rigged up on the Gretel II well site and is ready to commence drilling operations
from the 9 5/8 inch casing shoe which had previously been set at 1,701 feet. A repair has been
necessary to the top drive unit and this is expected to be completed within the next 24 to 48 hours
and drilling operations are expected to start shortly thereafter.
The Gretel II 12 KA 3 well is Samson’s second Bakken well in the Roosevelt Project."



- State GC#2- This well will be fracture-stimulated as soon as a frac crew becomes available. The frac crew earmarked for this well are currently fraccing 2 wells on the moon and are expected to be back on Earth by 2018 at which time they will be released to frac this well. Samson 27% interest.

- Diamondback... Samson 100% Working Interest. The well intends to spud by...... absolutely no idea, possibly before the next ice age.