ssn quarterly announcement

Quarterly Report

FINANCIAL
- Samson?s oil production increased by 63% over the prior quarter following the successful completion to two wells in the North Stockyard field.
- Revenue increased by 57% and because of the timing of the actual receipt of cash, receipts of US$1.5million (A$1.4million) from the sale of oil and gas for the current quarter, was up 11.2% from March quarter.
- Samson?s realized prices for both natural gas and oil increased by 5.7% and 8.0% respectively.
- Samson has recorded a closing cash balance for the quarter of US$58.4 million (A$54.4 million).
- During the quarter the debt facility was repaid. The company is now debt free with significant cash resources.
OPERATIONAL
- North Stockyard Field (Williams County, North Dakota) saw significant activity with the drilling of the sixth Bakken well, the Everett #2-15H, and the initial production from the Rodney #1-14H and Earl #1-13H wells. The Everett #2-15H well will be completed in September. The Rodney 1-14H well recorded an IP rate of 1,439 BOPD during the drill-out of the fracture isolation plugs. The Earl #1-13H well flowed at an initial average rate of 1,033 BOPD and 1.9 MMcf/D over a 6 day period while pressure control equipment was being used to allow tubing to be run in and out of the borehole.
- Samson?s average net production from the North Stockyard Field for the quarter was 417 BOEPD. This includes production from both the Bakken and Bluell Formations and was higher than the previous quarter due to the Rodney #1-14H and Earl #1-13H wells being put on production.
- Hawk Springs Project (Goshen County, Wyoming). The first horizontal Niobrara appraisal well, the Defender US33 #2-29H well, is set to spud in early August with the Evergreen 22 rig. This well will be followed by the Spirit of America US34 #1-29 vertical well to test the deep Permo-Pennsylvanian formation.
- Roosevelt Project (Roosevelt County, Montana). Samson acquired a substantial addition to its Bakken exposure with the acquisition of 20,000 net acres and an option on an additional 20,000 acres in the Fort Peck Indian Reservation in Roosevelt, Montana. The Roosevelt project is located in a highly prospective area of the Bakken continuous oil accumulation. The agreement with the Fort Energy Company also contemplates a possible further 50,000 acre joint leasing effort.
- The Roosevelt acquisition will be evaluated with an initial two well drilling program and accordingly three Bakken well locations have been staked and surveyed and two will be drilled this northern hemisphere fall. These wells are Australia II 12 KA 6, and Gretel II 12 KA 3.


DRILLING PROGRAMME 2011
Roosevelt Project, Roosevelt County, Montana
Mississippian Bakken Formation, Williston Basin
Australia II 12 KA 6 and Gretel II 12 KA
Samson 100% Working Interest (subject to a 33.34% back in)
Two horizontal appraisal wells will be drilled in the Roosevelt Project this northern hemisphere fall to test the middle member of the Bakken Formation. Three locations have been staked and are undergoing the various stages of permitting. The Australia IV 12 KA 16 location has been approved and 20 inch casing has been set. Australia II 12 KA 6 and Gretel II 12 KA 3 have been staked and are in the process of being permitted.
Hawk Springs Project, Goshen County, Wyoming
Cretaceous Niobrara Formation, Northern D-J Basin
Defender US33 #2-29H
Samson 37.5% Working Interest
The first Niobrara appraisal well, the Defender US33 #2-29H, is scheduled to commence drilling operations in early August. Preparatory work including the well site construction and the setting of the 20 inch surface casing has been accomplished. This well will be drilled and funded 100% by Halliburton under their farmin agreement. Initially, a vertical pilot well will be drilled to around 7,450? and a conventional core will be cut from the Niobrara Formation. After the orientation of the fractures has been identified from core and FMI logs, the vertical pilot borehole will be plugged back to a kick-off point above the Niobrara. From the kick-off point, the borehole angle will be built until it is horizontal and the bit is positioned within the Niobrara ?B?. 7-inch intermediate casing will then be set through the curve and then the lateral will be drilled for a distance of approximately 4,300? within the Niobrara ?B?. The well will be completed by the plug and perforation process in 15-stages that will involve the placement of 3,000,000 pounds of proppant into the Niobrara Formation.
Hawk Springs Project, Goshen County, Wyoming
Permo-Pennsylvanian Leonard and Admire Formations, Northern D-J Basin
Sprit of America US34 #1-29H
Samson 100% Working Interest
The first Permian and Pennsylvanian appraisal well, the Spirit of America US34 #1-29, will be drilled immediately following the Defender US33 #2-29H well. Preparatory operations including the well site construction and the setting of the 20 inch surface casing have been accomplished. This well will be drilled as an 11,000? vertical test to the Precambrian basement to test multiple conventional targets; in particular, two closed structural traps in the Permian and Pennsylvanian sections.
Hawk Springs Project, Goshen County, Wyoming
Cretaceous Niobrara Formation, Northern D-J Basin
Constellation US20 State 31-36H
Samson 100% Working Interest
The Constellation US20 State #1-36H well is planned as Samson?s second Niobrara well and is located outside the Halliburton/Mountain Energy Joint Venture area. This drilling of this well is dependent on the results of the Defender US33 #2-29H well. Preparatory operations including the setting of the 20 inch surface casing have been accomplished.
Hawk Springs Project, Goshen County, Wyoming
Cretaceous Niobrara Formation, Northern D-J Basin
State 24-63 #10-1H
Samson 25% Working Interest
State 24-63 314-1H
Samson 12.5% Working Interest
Samson will participate in the drilling of the State 24-63 #10-1H well and the State 24-63 #14-1H well with Chesapeake Energy as operator. Both of these wells will be drilled as around 4,300? horizontal laterals in the Codell Sandstone (which lies directly beneath the Niobrara Formation). Upon completion of the well in the Codell Sandstone, the fracture stimulation job is expected to fracture the Niobrara Formation.
SAMSON OIL & GAS LIMITED
June 2011 Quarterly Report
Page 3 of 13
State GC Oil and Gas Field, Lea County, New Mexico
Permian Bone Spring Formation, Western Permian Basin
State GC #2
Samson 27% Working Interest
The Permian Bone Spring Formation in State GC#2 well will be fracture-stimulated as soon as a frac crew becomes available to the operator.