Australia II 12KA 6, #1-29H, (SSN 100%, subject to a 33.34% back-in right)The work-over rig has been moved onto the Australia II well so that the clean out string can be removed and the production string, pump and pump rods run. The surface facilities are largely complete with the beam pump, tanks, separator, and heater-treater all installed. Once the completion string is in place (expected Saturday this week), the well will be plumbed to the surface facilities, the various electrical controls will be installed and production operations will be initiated. This is expected to occur next week. During the work-over operations this week the first 12 hour shift was occupied attempting to kill the well with a 11.2 ppg brine fluid. This fluid density was insufficient and a 11.4 ppg fluid was required to overcome the reservoir pressure to enable the commencement of the work over. The reservoir pressure has exceeded our expectations. During the kill operations, 105 barrels of oil were recovered. Abercrombie 1-10H (SSN WI 0.75%) The Abercrombie well has completed its flow back operations and oil rates of between 380 BOPD and 630 BOPD (normalized 24 hour rates) were recorded prior to that operation being concluded. The Abercrombie well was drilled as a 10,000 foot horizontal in the middle Bakken and its bottom hole location is within 1 mile of the bottom hole location of the Gretel II location 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$1.52 per ADS on May 17th, 2012 the Company has a current market capitalization of approximately US$148 million. Correspondingly, based on the ASX closing price of A$0.078 on May 17th, 2012, the Company has a current market capitalization of A$151 million. The options have been valued at their closing price of A$0.059 on May 17th, 2012 and translated to US$ at the current exchange of 0.9958 for purposes of inclusion in the US$ market capitalization calculation.
For and on behalf of the board of SAMSON OIL & GAS LIMITEDTERRY BARRManaging Director Statements made in this 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 Company's report to the U.S. Securities and Exchange Commission on Form 10-K, which is available at www.sec.gov/edgar/searchedgar/webusers.htm.