Samson Oil & Gas Limited has completed drilling operations at the Davis Bintliff #1 well. Casing and cementing operations were completed and the drilling rig was demobilized on the 5th of September. A completion rig will be used to perforate the casing and run the necessary completion tubing and packer. This operation is expected to commence on September 18th and will take approximately 7 days.

Samson currently estimates the proved recoverable reserves associated with the discovery between 12 and 17 BCFE. This estimate has been made using a deterministic volumetric method compliant with the Society of Petroleum Engineers and World Petroleum Congress guidelines set forth in May, 1997. The current Proven class of the estimated reserves is Proven Behind Pipe but this would be expected to be upgraded to Proven Developed Producing as soon as the well is brought on stream following completion operations.

Samson’s net share of this reserve is estimated between 0.80 and 1.2 BCFE and has a net present value calculated at a 10% discount rate, net to Samson of between US$ 6.2 million and US$7.4 million, utilizing current NYMEX forward pricing forecasts.

The Davis Bintliff #1 well is located in Brazoria County, in Texas’ onshore Gulf Coast producing region.

This reserve estimate was prepared by Robert A. Gardner, Vice President of Engineering at Samson Oil and Gas USA, Inc.

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