Samson Oil & Gas Limited advises that the Rodney #1-14H well has completed the vertical and the curve portions of the well, such that the well has landed horizontally in the middle member of the Mississippian Bakken Formation at a total vertical depth of 11,288 feet on August 4th. Very good oil and gas shows were recorded upon drilling into the middle member of the Bakken Formation. Casing will now be run into the hole, and after the cementing of the casing, the horizontal portion of the well will be drilled for another 5,500 feet within the middle member of the Bakken Formation.

The Rodney #1-14H well is located in Township 154N, Range 99W, Section 14 in Williams County, North Dakota. This is Samson's fourth Bakken well in the North Stockyard Field. Based on the previous wells drilled, Samson expects the Rodney #1-14H to take approximately 17 days to drill.

Goshen County Transaction As previously advised, Samson expects to receive $10 million as a good faith deposit on the transaction this week. Samson will confirm the receipt of cleared funds into its bank account of this deposit on Monday August 9th. While the receipt of this deposit will not alter the conditions required for the closing of the transaction, all indications at this time suggest that those conditions will be satisfied and the final closing of the cash sale will occur on or about September 6, 2010, at the originally contemplated aggregate purchase price of between US$61 million and US$79 million. As previously disclosed, the most important conditions affecting the purchase price relate to the protection or extension of existing leases that would otherwise expire later this year, as to which Samson has made significant progress since the June 23 agreement. The purchase agreement also provides that if Samson is unable to deliver marketable title to twenty percent (20%) of the contracted properties other than the expiring leases, then the purchaser has the right, but not the obligation, to cancel the purchase transaction entirely. Samson believes that it has marketable title to all or substantially all of the properties that are the subject of the agreement and also believes that, in any event, the buyer will close on all acreage with marketable title.

Tags: Samson Oil & Gas Limited