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Samson Oil & Gas Advisory

“Leads” as used in this context is an industry term, in this case referring to a structural anomaly mapped by existing 2-D seismic that is as yet unproven (from a seismic structural point of view). It is expected that some of these “leads” will not mature into “Prospects” for exploratory drilling. However, it is also possible that the 3-D seismic will identify additional prospects outside of what has been currently identified on the existing 2-D seismic. Most of the targets depend on structural closure, some on stratigraphic closure, which will be defined (or not) using 3-D seismic. “Prospects” as used in this context is a seismically defined feature that has been proven closed by the 3-D seismic.

Following the acquisition, processing and interpretation of this 3-D seismic, Samson will contribute at its working interest of 25% to the subsequent drilling program, which will be operated by one of the other joint venture partners. The wells are expected to cost a gross $1.1 million (drill and complete) given the relatively shallow depth of the targets and that the wells will be drilled vertically. Samson’s net revenue interest will be 81% of its working interest.

The relatively low cost of developing these potential fields is a very attractive feature of this project in light of the recent weakness in the price of oil because the development wells in this project can be drilled for $1.1 million, which in turn means that the rate return is very attractive.

The project, whilst being non-operated for Samson, nevertheless plays to the company’s exceptional capability in generating prospects from 3-D seismic.

ENERCOM CONFERENCE

Samson will be presenting at Enercom’s Denver Conference on Monday August 13 th at 3:35PM MST USA, or Tuesday August 14 th at 7:35AM EST Australia. The presentation can be accessed from the link below or from Samson’s website.

http://theoilandgasconference.com/webcast.shtml

http://www.samsonoilandgas.com.au

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 AMEX under the symbol "SSN". Each ADS represents 20 fully paid Ordinary Shares of Samson. Samson has a total of 1,996 million ordinary shares issued and outstanding (including 231 million options exercisable at AUD 1.5 cents), which would be the equivalent of 88.25 million ADSs. Accordingly, based on the NYSE AMEX closing price of US$1.15 per ADS on August 10th, 2012 the Company has a current market capitalization of approximately US$111 million. Correspondingly, based on the ASX closing price of A$0.053 on August 10th, 2012, the Company has a current market capitalization of A$103 million. The options have been valued at their closing price of A$0.040 on August 10th, 2012 and translated to US$ at the current exchange of 1.0519 for purposes of inclusion in the US$ market capitalization calculation.

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