re: monday announcement SAMSON OIL & GAS ADVISORY Denver 1700...

re: monday announcement SAMSON OIL & GAS ADVISORY
Denver 1700 hours August 12th, 2012, Perth 0700 hours, August 13
th
, 2012
Samson Oil & Gas Limited (ASX: SSN; NYSE AMEX: SSN) provides details of a new acquisition
and Samson’s presentation at the Enercom Conference in Denver.
NEW PROJECT, WILLISTON BASIN
Samson has executed a definitive agreement to participate in the exploration of an area within the
Williston Basin. Pursuant to this agreement, Samson will acquire a 25% interest in 23,700 acres
(net 5,925 acres) at a price of $266 per acre, with the payment of $1.58 million due at closing
following normal due diligence on land title.
The exploration opportunity is a conventional oil project that is adjacent to existing production from
Mississippian aged reservoirs. The specific location of the project will remain undisclosed.
Highlights of the transaction include:
? The project covers 23,700 gross (5,925 net) acres prospective for conventional oil targets in
the Williston Basin.
? Low entry cost
? Approximately 20 million barrels of oil potential, based on 2-D seismic.
? 3-D seismic data acquisition survey and processing to high-grade new drilling prospects, to
be acquired before end of 2012.
? Drilling and completion cost estimated at $1.1 million per vertical well using conventional
drilling and completion techniques.
? Very attractive rates of return
Our partner has mapped several leads from 2-D seismic and well control which Samson presently
estimates to contain a gross recoverable contingent volume of approximately 20 million barrels of
oil. This estimate is based on the average production from analogous fields on trend of similar size
having produced between 1 to 6 million barrels of oil each. These leads will be further defined
using a 3-D seismic grid to be acquired later this year for which Samson is agreeing to fund
33.34% at an estimated net cost to Samson of $0.94 million.
“Leads” as used in this context is an industry term, in this case referring to a structural anomaly
mapped by existing 2-D seismic that is as yet unproven (from a seismic structural point of view). It
is expected that some of these “leads” will not mature into “Prospects” for exploratory drilling.
However, it is also possible that the 3-D seismic will identify additional prospects outside of what
has been currently identified on the existing 2-D seismic. Most of the targets depend on structural
closure, some on stratigraphic closure, which will be defined (or not) using 3-D seismic.
“Prospects” as used in this context is a seismically defined feature that has been proven closed by
the 3-D seismic.