operational advisory

AMSON OIL & GAS OPERATIONAL ADVISORY
Denver 1700 hours February 13th, 2011, Perth 0700 hours February 14th, 2011
Samson Oil & Gas Limited (ASX: SSN; NYSE AMEX: SSN) advises on the three wells which it is
operating in the Hawk Springs and Roosevelt Projects.
HAWK SPRINGS PROJECT, GOSHEN COUNTY, WYOMING
Defender US33 #2-29H, (SSN 37.5% working interest)
Facilities construction has been completed on the Defender well. These facilities include
permanent tanks, a heater-treater and a flare stack. Operation of this facility commenced on
February 9th. As expected with a new facility there has been downtime, some of which has been
related to excessive gas slugs which have tripped the automatic shut-in control device. These
problems have been largely rectified and we are expecting to have the facility running smoothly in
the near term, which should allow the well performance to be established.
Water
(bbls)
Oil
(bbls)
Total
Fluid
(bbls)
Pump
Time
(hrs)
Oil
Cut
9
February
45
45
90
6
50%
10
February
354
90
444
20.5
20.3%
11
February
115
220
335
21
65.7%
12
February
165
227
392
24
57.9%
The Defender US33 #2-29H is the first Niobrara appraisal well in Samson’s Hawk Springs Project
with costs fully carried by Samson’s farmin partner, until yesterday, when it was turned over to
Samson to operate. The costs (essentially operating expense) going forward will now be borne by
the respective working interests. Revenues have been accruing to the working interests from first
oil sales.
Samson
Oil
&
Gas
USA
1331,
17th
Street,
Suite
710,
Denver
Colorado
80202
Tel
+
1
303
295
0344
Fax
+
1
303
295
1961
ROOSEVELT PROJECT, ROOSEVELT COUNTY, MONTANA
Gretel II 12KA 3 #1-30H, (SSN 100%, subject to a 33.34% back-in right)
Gretel II successfully recovered 100% of the cored interval in the Bakken and Three Forks
Formations and then drilled the vertical pilot hole to a depth of 8,925 feet.
The well was then logged and a cement kick-off plug set and the wellbore deviated into the Middle
Bakken target zone where a 7 inch casing string was set and cemented at 10,816 feet (measured
depth)
The 6 inch horizontal lateral is currently drilling ahead at a depth of 12,262 feet. Significant oil and
gas shows have been observed with “greenish foamy oil” being observed on the shale shakers.
The lithology of the lateral has some variation and the best shows are being recorded in a dolomitic
lithology, which is possibly consistent with the geology of the adjacent Elm Coulee Oil Field.
The forward plan is to drill the lateral to a measured depth of 16,400 feet and run the 4 inch
completion liner. The well would then be stimulated, and whilst a frac date has yet to be set, the job
has been awarded to Schlumberger, who has advised that they see no undue delays in the supply
of the frac spread. The timing of the frac will most likely be determined by flow back operations on
the Australia II well.
Australia II 12KA 6, #1-29H, (SSN 100%, subject to a 33.34% back-in right)
Rig up operations in preparation for the fracture stimulation have been underway during last week
and those operations are essentially complete and the first stage of the stimulation is being
pumped today.
The forward plan is to complete the 16 stage fracture stimulation, which is expected to take 4 days
on a trouble free basis.
The Australia II well was previously drilled to a total measured depth of 14,972 feet and completed
with a 4 inch liner equipped with 15 external casing packers.