form 8-k for samson oil & gas ltd

Hi All

I came across this on yahoo and thought that it would be good to get everyone's thoughts / opinions on the 6 month bonus structure that SSN have implemented.

Personally I would have preferred to see a higher minimum threshold implemented as that would reinforce the company's view point that they are currently around liquidation value.

With the implecations of Fort Peck & potential Defender results I see 18cps VWAP as a reasonable target however a 200% bonus for that is a little excessive, although the production & reserves required for that level are impressive for a 6 month period (and are a vast improvement from current levels).

I also would have liked to see some details surrounding the "Discretionary" weighting of 30%.

Also apologies if the tables do not post properly, I'm currently using an iPhone so if it doesn't work just follow the below link.

http://biz.yahoo.com/e/120106/ssn8-k.html

6-Jan-2012

Change in Directors or Principal Officers

ITEM 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
(e) On December 31, 2011, the Compensation Committee of Samson Oil & Gas Limited (the "Company") adopted an Incentive Compensation Plan (the "Plan") pursuant to which the named executive officers became eligible for Cash Awards for the six month period beginning January 1, 2012, to June 30, 2012 based on the extent to which specified performance targets are met during the six month period. The performance metrics and targets of the Plan are as follows:

Performance Metric Achievement 6/30/12
MINIMUM TARGET STRETCH WEIGHTING

Production1 (in bbls) 55,000 75,000 100,000 0.2

Reserves (in bbls)2 850,300 1,159,500 1,546,000 0.2

VWAP (in AUS ?) 12 15 18 0.3

Discretionary 0.3

Cash Award Earned (% of Target) 25 100 200

1 Barrels net to the Company after royalties between January 1, 2012 and June 30, 2012.

2 Reserves as defined by the SEC and independently evaluated as of June 30, 2012.

1. For performance between Achievement values, a pro rata cash award will be paid. Pro rata weighting will be applied to Cash Awards for performance above the Minimum and below the Stretch. No pro rata adjustment will be made for performance below the Minimum or for performance above the Stretch.

2. The target values are as of June 30, 2012.

The levels for the weighting of each performance metric level are:

Performance Achieved % of Target Cash Award
Below Minimum: 0 %
Meeting Minimum: 25 %
Meeting Target: 100 %
Meeting Stretch: 200 %

Due to the six month term of the Plan, the Target Cash Award for each named executive officer will be equal to 50% of the following percentages of base salary on January 1, 2012:

125% - Terence M. Barr (based on annual salary of $420,000) 80% - David Ninke (based on annual salary of $276,717), Dan Gralla (based on annual salary of $265,300), Robyn Lamont (based on annual salary of $242,000) 50% - Denis Rakich (based on annual salary of $109,090)