2012 drilling programme - update

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

Cheers OMR


HAWK SPRINGS PROJECT - NIOBRARA FORMATION



DEFENDER US33 #2-29H, (SSN 37.5% working interest)

- This well is 100% free carried by Halliburton and has been drilled and fracced. Due to the expected low down hole pressure, the well was placed on pump as soon as the fracture stimulation was finished but due to continuing gas flow gas problems , sand blockages and abrasion, the decision was made recently to pull the pump and replace it with a jet pump system, which will hopefully solve the problems. The well has produced 5084 barrels of oil to date with the highest single day production being 288 BOPD.


Schlumberger - Oil field glossary

JET PUMP

1. n. [Well Completions]

A type of pump that operates on the principle of a high-pressure fluid jet and the venturi effect it creates. Jet pumps are relatively inefficient but can tolerate a wide range of operating conditions, including easily handling sand-laden or abrasive fluids.



Halliburton's decision to free carry a second Hawk Springs well has been defered till the end of April to allow observation of Defender progress with the new pump format. One possible drilling location, located west of Defender could be Magic US 38 #3-38H, which was listed to be heard May 8th.




- SPIRIT OF AMERICA US34 #2-29, (SSN up to 100% working interest)

- The Frontier Rig 11 is currently due to arrive on approximately April 20thto commence operations
on the re-drill of the Spirit of America US34 #1-29.well. This well will test two conventional targets
in the Permian and Pennsylvanian aged rocks to a depth of approximately 11,000 feet.

I asked Terry recently about his stratergy for this 2nd attempt and he said.......

" We have a really decent plan to drill SOA2. We have consulted widely in the industry to get hold of any experience and we are confident that an intermediate casing string set over the bubblegum shale along with an oil based mud and plenty of weight in that will get us through the trouble spot. Also, having a bigger rig equipped with a top drive means that we can reciprocate the drill string through this section to keep the hole clean."


-CONSTELLATION US20 #1-36H ( Samson 100% working interest )

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





-All wells drilled by Chesapeake 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. Chesapeake 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.


Harstad 1-15H.......114,655 BOE

Leonard 1-23H.....97,270 BOE

Gary 1-24H..........62,841 BOE

Gene 1-22H........114,665 BOE

Earl 1-13H.........65,580 BOE

Rodney 1-14H.....82,128 BOE

Everett 1-15H......19,142 BOE



- Infill Bakken program....this has been locked in and drilling is programmed starting Q2 2012. Latest information suggests that these wells were approved last week. Zavanna is the operator of North Stockyard Field, in Williams County.

- In addition Samson is looking to drill an appraisal well to evaluate the production performance of the Three Forks Formation in North Stockyard Field. Last week, Whiting Petroleum reported a record 3 Forks well in neighbouring McKenzie County that holds promise for future production from this formation, both here and in Roosevelt County.




THE ROOSEVELT PROJECT- MONTANA

- LEASING PROGRAM

- 20,283 acres acquired.

- Subject to a buy back election by the vendor.

- Leasing and optioned acres will result in the
acquisition of a total gross of 53,000 acres.

- Samson’s net acres after the vendor buyback
and Samson election, on a most likely case
will be 31,000 acres net.

- Some additional acres at market risk could
take the total to 35,000 acres net.




AUSTRALIA 2 12KA 6, #1-29H, (SSN 100%, subject to a 33.34% back-in right)


The work-over rig successfully retrieved the stuck perforation gun from the Australia II well and has
drilled out the remaining frac plugs. This operation took longer than expected due to several
breakdowns of the rig and associated equipment. The rig is currently running the production tubing
after which the well will be flowed back. As noted, this rig is expected to mobilize to the Gretel II
location later this week.




GRETEL 2 12KA 3 #1-30H, (SSN 100%, subject to a 33.34% backin right)


As previously reported, the Gretel II fracture stimulation of the Bakken Formation was successfully
completed, however a frac plug was set in the vertical part of the well. This plug and an attached
perforating gun will be recovered when the work-over rig arrives later this week after having
completed the Australia II work-over.
During the intervening period the well has been flowed back and has recovered 12,000 barrels of
water. The stimulation operation injected a total of 43,000 barrels. The go forward plan is to
recover the fish, drill out the frac valves and run the production string and continue the flow back.

Note :
- Only 28% of the frac fluid has been recovered so far.
- The perforation gun is still in the hole.
- The frac balls have not been drilled out yet.
- During the drilling " green foamy oil was observed on the shale shakers "

In my opinion, this well, based on the above information has a good chance of success.


- ABERCROMBIE 1-10H (SSN 0.75%)

The Abercrombie well has been successfully stimulated, placing 2.8 million pounds of proppant in
30 stages. The bottom hole of this well is directly under the southern bank of the Missouri River. Our leases start on the northern bank so data from this well will help plan drilling in this area.


- RIVA RIDGE 6-7-33-56H (SSN 2.03%)

By virtue of its commercial relationship with Fort Peck Energy Company, Samson will be
participating in the Riva Ridge well to be drilled in Sheridan County, Montana, several townships
(T 56E, R 33N Section 6 and 7) to the north of Samson’s existing acreage holding. Samson’s
participation in the Riva Ridge well has the potential to lower the risk involved in Samson’s Bakken
play inside the Fort Peck Indian reservation. The well is proposed as a 10,000 foot lateral in the
middle Bakken Formation.



- STATE GC#2-( Samson 27% interest.)

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 #1 (Samson 60% Working Interest.) The well intends to spud by...... absolutely no idea, possibly before the next ice age. This is a gas well anyway and a very low priority.