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 March 16, 2015 - 8:00 PM EDT
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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 last five months is as follows;

                     
    October   November   December   January   February
OIL, BO   6,591   17,619   18,906   15,221   22,590
GAS, MCF   11,861   9,363   12,102   15,384   21,694
BOE   8,567   19,180   20,923   17,785   26,206
BOEPD   285   618   675   574   845
         

February production was significantly higher due to a number of North Stockyard being returned to production. All of the infill development wells drilled in North Stockyard during 2014 are now in a position to be produced, however given the low oil price, 6 of the wells will remain shut in pending the recovery of the oil price.

HEDGE BOOK

Samson has the following hedges in place:

             
Calendar year   Volume bbls.   Floor   Ceiling
2015   15,000   $85.00   $89.85
2016   2,788   $85.00   $89.85
             
Calendar year   Volume bbls.   Average per month   Swap
2015   33,478   3,316   $92.27
             
Calendar year   Volume bbls   Sub Floor   Floor
2016   36,600   67.50   82.50
     

As at March 13th, 2015 the book value of the hedge was $2.2 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 curtailment of the infill development program, 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   On production   1,249   495   12,934

Sail and Anchor
4-13-14HBK

  6,375 ft.   Bakken   On production   1,323   255   58,517

Blackdog
3-13-14 HBK

  8,383 ft.   Bakken   On production   1,995   248   115,979
           
                         

 

  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   260   99,502

Coopers
2-15-14HBK

  6,360 ft.   Bakken   On production   556   291   71,668

Little Creature
3-15-14HBK

  7,578 ft.   Bakken   On production   501   105   72,503
           
                         
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   60   36,998

Matilda Bay
1-15-HBK

  4,215 ft.   Bakken   On production   318   96   20,926
           
                         
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   128   71,770
Bootleg

5-14-15TFH

  7,495 ft.   Three Forks 1   On production   NA   148   57,831
Ironbank

4-14-13TFH

  7,466 ft.   Three Forks 1   Rig on location   715   NA   6,636
Ironbank

5-14-13TFH

  7,495 ft.   Three Forks 1   Rig on location   528   NA   30,732
           
                         
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   Shut in   NA   NA   NA
Bootleg

7-14-15TFH

  6,973 ft.   Three Forks 1   Shut in   NA   NA   NA
Bootleg

8-14-15TFH

  6,771 ft.   Three Forks 2   Shut in   922   NA   922
Ironbank

6-14-13TFH

  7,434 ft.   Three Forks 1   Shut in   NA   NA   NA
Ironbank

7-14-13TFH

  7,458 ft.   Three Forks 1   On production   642   311   6,105
           

COMMENTARY

All wells in the North Stockyard field are currently being produced at lower than maximum capacity due to pipeline constraints and the weak oil price.

All of the 17 drilled in fill wells in North Stockyard have now been fracked and cleaned out and are capable of producing however 6 are currently shut in, waiting on an improvement in the oil price.

 
#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   On production   717   350   63,158
           

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 DSs. Accordingly, based on the NYSE MKT closing price of US$0.24 per ADS on March 16th, 2015, the Company has a current market capitalization of approximately US$27.87 million (the options have been valued at an exchange rate of 0.7642). Correspondingly, based on the ASX closing price of A$0.013 for ordinary shares and a closing price of A$0.002 for the 2017 options, on March 16th, 2015, the Company has a current market capitalization of approximately A$37.3 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 (March 16, 2015 - 8:00 PM EDT)

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