Samson Oil & Gas Advisory

Samson Oil & Gas Limited (ASX: SSN; NYSE AMEX: SSN) provides details of a new acquisition and Samson’s presentation at the Enercom Conference in Denver.

NEW PROJECT, WILLISTON BASIN

Samson has executed a definitive agreement to participate in the exploration of an area within the Williston Basin. Pursuant to this agreement, Samson will acquire a 25% interest in 23,700 acres (net 5,925 acres) at a price of $266 per acre, with the payment of $1.58 million due at closing following normal due diligence on land title.

The exploration opportunity is a conventional oil project that is adjacent to existing production from Mississippian aged reservoirs. The specific location of the project will remain undisclosed.

Highlights of the transaction include:

• The project covers 23,700 gross (5,925 net) acres prospective for conventional oil targets in the Williston Basin.
• Low entry cost
• Approximately 20 million barrels of oil potential, based on 2-D seismic.
• 3-D seismic data acquisition survey and processing to high-grade new drilling prospects, to be acquired before end of 2012.
• Drilling and completion cost estimated at $1.1 million per vertical well using conventional drilling and completion techniques.
• Very attractive rates of return

Our partner has mapped several leads from 2-D seismic and well control which Samson presently estimates to contain a gross recoverable contingent volume of approximately 20 million barrels of oil. This estimate is based on the average production from analogous fields on trend of similar size having produced between 1 to 6 million barrels of oil each. These leads will be further defined using a 3-D seismic grid to be acquired later this year for which Samson is agreeing to fund 33.34% at an estimated net cost to Samson of $0.94 million.

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