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 January 12, 2015 - 7:48 PM EST
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Samson Oil & Gas Advisory

Samson Oil & Gas Limited (ASX: SSN; NYSE MKT: SSN):

TOTAL COMPANY PRODUCTION

Samson’s net monthly production for the December 2014 quarter is as follows:

      October     November     December
OIL, BO 6,591 17,619 18,906
GAS, MCF 11,861 9,363 12,102
BOE 8,567 19,180 20,923
BOEPD 285 618 675

Samson’s net production by quarter for the calendar year ended December 31, 2014 is as follows:

      Q1     Q2     Q3     Q4
OIL, BO 29,430 53,317 35,074 43,116
GAS, MCF 48,049 47,998 46,581 33,326
BOE 37,494 59,041 43,361 48,670
BOEPD 416 656 481 540

Samson’s net production for the year ended December 31, 2014 compared to its net production for the year ended December 31, 2013 is as follows:

      2013     2014
OIL, BO 51,994 160,937
GAS, MCF 174,300 175,954
BOE 81,044 190,262
BOEPD 222 521

The North Stockyard field continues to come back on line as the remaining three development wells (Billabong, Ironbank 6 and 7) are fracked. 5 existing wells around these wells remain shut-in whilst the recently drilled wells are fracked to prevent any damage to the well bores from this fracking activity. Harsh winter conditions have slowed the fracking operation.

HEDGE BOOK

Samson has the following hedges in place:

Calendar year     Volume bbls.     Floor     Ceiling
2015 18,270 $85.00 $89.85
2016 2,788 $85.00 $89.85
       
Calendar year Volume bbls. Average per month Swap
2014 4,588 4,488 $97.92
2015 39,791 3,316 $92.61

As at January 9, 2014 the book value of the hedge was $2.7 million as valued by Samson’s counterparty.

NORTH STOCKYARD PROJECT, WILLIAMS COUNTY, NORTH DAKOTA

The infill development plan for North Stockyard consists of 8 middle Bakken wells that have been drilled and 22 Three Forks wells of which 9 have been drilled (8 in the First Bench and 1 in the Second Bench). Given the infill development curtailment there will remain an undrilled balance of 13 wells. For ease of reference, the current status of each well is set out below with separate tables for each drill pad:

TOFTE 1 PAD    

Lateral
length

    Objective     Status    

IP rate
BOPD

   

Avg. Rate
BOPD#

   

Cum to
Date BO

Billabong
2-13-14HBK

6,147 ft. Bakken Frack scheduled for January NA NA NA

Sail and Anchor
4-13-14HBK

6,375 ft. Bakken Shut in for frack program 1,323 SI 56,233

Blackdog
3-13-14 HBK

8,383 ft. Bakken Shut in for frack program 1,995 SI 109,878

 

   

Lateral
length

    Objective     Status    

IP rate
BOPD

   

Avg. Rate
BOPD#

   

Cum to
Date BO

Tooheys
4-15-14HBK

6,740 ft. Bakken On production 1,078 543 74,806

Coopers
2-15-14HBK

6,360 ft. Bakken On production 556 388 55,417

Little Creature
3-15-14HBK

7,578 ft.

Bakken

Shut in for frack program 501 SI 72,284

MATILDA BAY
PAD

   

Lateral
length

    Objective     Status    

IP rate
BOPD

   

Avg. Rate
BOPD#

   

Cum to
Date BO

Matilda Bay

2-15-HBK

4,215 ft. Bakken On Production 1,117 82 31,191
Matilda Bay

1-15-HBK

4,215 ft. Bakken On Production 318 11 12,799
TF NORTH PAD    

Lateral
length

    Objective     Status    

IP rate
BOPD

   

Avg. Rate
BOPD#

   

Cum to
Date BO

Bootleg
4-14-15TFH

7,211 ft. Three Forks 1 On production 471 238 54,943

Bootleg
5-14-15TFH

7,495 ft. Three Forks 1 Shut in NA SI 49,866

Ironbank
4-14-13TFH

7,466 ft. Three Forks 1 Requires a CTU cleanout NA NA NA

Ironbank
5-14-13TFH

7,495 ft. Three Forks 1 On production 528 471 15,609
TF SOUTH PAD    

Lateral
length

    Objective     Status    

IP rate
BOPD

   

Avg. Rate
BOPD#

   

Cum to
Date BO

Bootleg
6-14-15TFH

6,867 ft. Three Forks 1 Frack completed, SI NA NA NA

Bootleg
7-14-15TFH

6,973 ft. Three Forks 1 Frack completed, SI NA NA NA

Bootleg
8-14-15TFH

6,771 ft. Three Forks 2 Frack completed, SI 922 NA 922

Ironbank
6-14-13TFH

7,434 ft. Three Forks 1 Drilling completed, awaiting frack NA NA NA

Ironbank
7-14-13TFH

7,458 ft. Three Forks 1 Frack commenced NA NA NA

COMMENTARY

Frack operations have commenced on the Ironbank 7 well but have been hampered by adverse weather conditions. This frack is expected to be followed by Ironbank 6 and Billabong. A work over rig is currently over Billabong running the frack string.

#The Avg. Daily rate is an average of the last week’s production or the average after the well was put back into production.
BO: Barrels of oil
BOE: Barrels of oil equivalent (gas converted at its heating value)
BOPD: Barrels of oil per day
MCF: Thousand cubic feet
BOEPD: Barrels of oil equivalent per day

NA: Not available
APD: Application for Permit to Drill
IP Rate: Gross first 24 hour oil rate
Current rate BOPD: Barrels of Oil per Day
Cum to Date: Cumulative gross BO

Samson’s working interest and its net revenue interest for the North Stockyard Project is set out in the following table:

Well     Working interest     Net revenue Interest
Billabong 2-13-14HBK 28.77220% 22.01073%
Sail and Anchor 4-13-14HBK 25.028509% 19.146809%
Blackdog 3-13-14H 24.863526% 19.020597%
Tooheys 4-15-14HBK 28.232033% 21.597505%
Coopers 2-15-14HBK 28.232033% 21.597505%
Little Creature 3-15-14H 27.759719% 21.236185%
Matilda Bay 2-15-H 32.972255% 25.223775%
Matilda Bay 1-15-H 32.972255% 25.223775%
Bootleg 4-14-15TFH 28.386344% 21.715553%
Bootleg 5-14-15TFH 28.386344% 21.715553%
Ironbank 4-14-13TFH 26.746521% 20.461089%
Ironbank 7-14-13TFH 26.746521% 20.461089%
Bootleg 6-14-15TFH 28.386344% 21.715553%
Bootleg 7-14-15TFH 28.386330% 21.715553%
Bootleg 8-14-15H 28.386330% 21.715553%
Ironbank 6-14-13TFH 26.746521% 20.461089%
Ironbank 7-14-13TFH 26.746521% 20.461089%

RAINBOW PROJECT, WILLIAMS COUNTY, NORTH DAKOTA
Gladys 1-20H (SSN 23%)

The Gladys 1-20 H well has been drilled by Continental Resources to a total depth of 19,994 feet. The well is a 1,280 acre lateral (approximately 10,000 feet) in the middle member of the Bakken Formation.

     

Lateral
length

    Objective     Status    

IP rate
BOPD

   

Avg. Rate
BOPD#

   

Cum to
Date BO

Gladys 1-20H 9,558 ft. Middle Bakken SI 717 NA 34,054

EXPIRY OF UNLISTED OPTIONS

The following unlisted options have expired, unexercised on 31 December 2014.

Exercise Price     Expiry     Number of options
$0.08 31 December 2014 60,500,000
$0.164 31 December 2014 4,000,000

Following the expiry of the above mentioned unlisted options, the Company’s capital structure is as follows:

Class of share     Number of options

Listed

    Ordinary fully paid shares 2,837,782,022
Options ($0.038 exp. 31 March 2017) 229,634,519
 

Unlisted

Options ($0.155 expiring 31 October 2015) 4,000,000
Options ($0.039 expiring 30 November 2017) 4,000,000
Options ($0.033 expiring 30 April 2018) 87,033,246

Samson’s Ordinary Shares are traded on the Australian Securities Exchange under the symbol "SSN". Samson's American Depository Shares (ADSs) are traded on the New York Stock Exchange MKT under the symbol "SSN". Each ADS represents 20 fully paid Ordinary Shares of Samson. Samson has a total of 2,837 million ordinary shares issued and outstanding (including 230 million options exercisable at AUD 3.8 cents), which would be the equivalent of 141.85 million ADSs. Accordingly, based on the NYSE MKT closing price of US$0.18 per ADS on January 12th, 2014, the Company has a current market capitalization of approximately US$26.1 million (the options have been valued at an exchange rate of 0.8244). Correspondingly, based on the ASX closing price of A$0.014 for ordinary shares and a closing price of A$0.003 for the 2017 options, on January 12th, 2014, the Company has a current market capitalization of approximately A$40.4 million.

SAMSON OIL & GAS LIMITED

TERRY BARR
Managing Director

Statements made in this press release that are not historical facts may be forward looking statements, including but not limited to statements using words like “may”, “believe”, “expect”, “anticipate”, “should” or “will.” Actual results may differ materially from those projected in any forward-looking statement. There are a number of important factors that could cause actual results to differ materially from those anticipated or estimated by any forward looking information, including uncertainties inherent in estimating the methods, timing and results of exploration activities. A description of the risks and uncertainties that are generally attendant to Samson and its industry, as well as other factors that could affect Samson’s financial results, are included in the prospectus and prospectus supplement for its recent Rights Offering as well as the Company's report to the U.S. Securities and Exchange Commission on Form 10-K, which are available at www.sec.gov/edgar/searchedgar/webusers.htm.

Samson Oil & Gas Limited
Terry Barr, CEO, 303-296-3994 (US office)
970-389-5047 (US cell)


Source: Business Wire (January 12, 2015 - 7:48 PM EST)

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