Samson Oil & Gas Operational Advisory

Samson Oil & Gas Limited (ASX: SSN) (NYSE AMEX: SSN) provides operational advice.

HAWK SPRINGS PROJECT, GOSHEN COUNTY, WYOMING

Spirit of America US34 #2-29, (SSN 100% WI)

As previously advised, the Spirit of America #2 well intersected 61 feet of pay as interpreted by the electric logging program, and its subsequent analysis in the Permo-Pennsylvanian section.

The frac equipment is onsite, and pumping operations are expected to commence this evening.

The initial frac will stimulate the lower perforations at around 10,000 feet, comprising 31 feet of interpreted log pay. The second stage at around 9,300 feet will stimulate a single 7 feet of interpreted log pay and the third stage at around 9,200 feet will stimulate three sandstones with 23 feet of interpreted log pay.

All three stages are expected to be completed in the next 48 hours; however, this schedule is dependent on being able to latch on and relocate both the bridge plug and packer to each of the subsequent stages. Given that the well will be flowed back between each stage, frac sand could be deposited on the bridge plug, making this operation difficult. It is therefore possible that the tubing will be required to be tripped out of the hole, thus extending the time required to complete the three stages.

If an adequate rate is obtained from this frac, then there would be many opportunities to pursue, both within the SOA prospect itself (such as drilling the Clipper location immediately adjacent, and subsequently the twenty-four, 40-acre spaced wells within this prospect) and in the 24 seismically defined prospects within the project area. These prospects have substantially identical seismic properties to the SOA #2 prospect, which has now been proved to be generated by porosity development within the Permian section. Some of these prospects are located at substantially shallower depths, and could provide a consequential improvement in reservoir quality.

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