April 13, 2015 - 9:00 PM EDT
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Samson Oil & Gas Advisory

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


Samson’s net monthly production, for the last six months, is as follows:

        October     November     December     January     February     March
OIL, BO       6,591     17,619     18,906     15,221     22,590     26,893
GAS, MCF       11,861     9,363     12,102     15,384     21,694     26,555
BOE       8,567     19,180     20,923     17,785     26,206     31,408
BOEPD       285     618     675     574     845     1,013

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

Samson’s net production for March continued to grow as the results of the 2014 infill drilling in North Stockyard are incorporated. Seven wells remain shut in as the Operator manages the field with minimal operating cost in response to the current oil price. Given that all of the wells have been drilled and fracked, the individual well reports will be discontinued, however we will provide mid-monthly production reports with commentary.


North Stockyard has a total well count of 23 wells made up of 14 middle Bakken, 8 Three Forks bench 1 (TF1), and 1 Three Forks bench 2 (TF2) wells. Rainbow has a single middle Bakken well. The status of these wells at the end of April was as follows:

        Middle Bakken     TF 1     TF 2
Well count       15     8     1
Producing       12     5     0
Shut in       3     3     1


In early April, Samson closed out its 2015 hedge book to crystalize that value of $1.2 million and some additional down side protection was put in place in the form of deferred puts which will capture any future upside in the oil market. The hedged portfolio is now as follows:

Calendar year     Volume bbls.     Floor     Ceiling
2016     2,788     $85.00     $89.85
Calendar year     Volume bbls     Sub Floor     Floor
2015     73,500     45.00     32.50
2016     36,600     67.50     82.50

As at April 10th, 2015 the book value of the hedge was approximately $480,000, valued by Samson’s counterparty.


Samson commissioned Ryder Scott Company to determine its reserve as at March 1st. This was done to capture the Proved Developed Producing reserves value from several additional wells bought on line in North Stockyard after January 1st, the date of our last report. The net present value (NPV10) was calculated at a 10% discount rate using the New York Mercantile Exchange (NYMEX) strip price adjusted for regional differences. As of March 1st, 2015 our reserves and NPV10 are:

        PDP     PNP     PROVED
Oil MBBLS       1,133     430     1,563
Plant Products MBBLS       1           1
Gas MMCF       1,273     391     1,664
BOE MBBLS       1,346     495     1,841
NPV 10 M$       $27,360     $10,093     $37,453

NYMEX strip price and gas price assumptions:

        2015     2016     2017     2018     2019     2020     2021
Oil per BBL       $55.38     $62.62     $65.40     $67.32     $68.98     $70.80     $71.55
Plant Products per BBL       $19.38     $21.92     $22.98     $23.62     $24.14     $24.78     $25.04
Gas peer MMBTU       $2.87     $3.19     $3.47     $3.60     $3.70     $3.80     $4.13

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 200 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 14.185 million ADSs. Accordingly, based on the NYSE MKT closing price of US$1.49 per ADS on April 13th, 2015, the Company has a current market capitalization of approximately US$21.5 million (the options have been valued at an exchange rate of 0.7596). Correspondingly, based on the ASX closing price of A$0.009 for ordinary shares and a closing price of A$0.002 for the 2017 options, on April 13th, 2015, the Company has a current market capitalization of approximately A$26.0 million.


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, 303-296-3994 (US office) or 970-389-5047 (US cell)

Source: Business Wire (April 13, 2015 - 9:00 PM EDT)

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