Samson Oil & Gas Limited advises on the following field operations:

ROOSEVELT PROJECT

Australia II 12KA 6, Roosevelt County, MT (SSN 100%, subject to a 33.34% back-in option)

The vertical pilot hole has been drilled to a total depth of 9,738 feet in the Australia II 12 KA 6 well. 120 feet of core were successfully cut and recovered from the Bakken and Upper Three Forks Formations. Good hydrocarbon shows were recorded on the mud log when coring through the Middle Member of the Bakken Formation. Following coring operations, electric logs were run and showed very similar results when compared to productive Bakken offset wells in the vicinity.

Preliminary examination of the reservoir sequence in the core recovered within the Middle Bakken (the target zone in which the lateral is to be drilled) showed an instant streaming hydrocarbon cut evidencing oil saturation. Mud filtrate invasion observed on the exterior of the core is qualitative evidence that this sequence is permeable.

The Australia II well has now been plugged back and preparations are underway to kick-off the well bore to the 7 inch casing landing point, after which the 4,500 foot lateral will be drilled within the Middle Member of the Bakken Formation.

HAWK SPRINGS PROJECT

Defender US33 #2-29H, Goshen County, WY (SSN 37.5% carried working interest)

The Defender US33 #2-29H well has been flowing without artificial lift since the fracture stimulation was concluded and modest amounts of oil are starting to flow into the tanks, however no rate has been established. The artificial lift system (production tubing, sucker rods, downhole pump and pump jack) have been installed and production will continue both naturally and with the artificial lift system as appropriate.

The well has been shut in during the intervening overnight periods and has thereafter exhibited a buildup of pressure, indicating that the well is beginning to see a pressure response from the formation.

Once the installation of the pump jack is complete, the pump jack will enable the removal of completion fluids from the wellbore to allow formation fluids to enter the well. The Defender US33 #2-29H is the first Niobrara appraisal well in Samson's Hawk Springs project and is being fully carried by Samson's farmin partner.

Spirit of America US34 #1-29, Goshen County, WY (SSN 100% working interest)

Cased-hole logs were run on the Spirit of America US34 #1-29 well and the well perforated over the Cretaceous Muddy Formation (J-Sand). The well is now ready to be fracture stimulated. In light of the size of the frac job (only a single stage with approximately 200,000 lbs of proppant), the frac will not have a set date but is expected to be completed on an 'opportunity basis' in the near future.

The re-drill of the Permian/Pennsylvanian prospect at this location remains a priority for Samson. It is currently expected that a revised engineering plan for the replacement well will be completed in late January so that the drilling of the well can be considered during the first quarter of 2012.

Given the difficulties encountered in the first attempt, a well construction plan that accounts for the Permian 'mobile shale' and salt will be required. This is likely to include setting a casing string close to this level and increasing the mud weight significantly to counteract the 'mobile shale' and salt.

Tags: Samson Oil & Gas Limited