Development Plan

Samson is planning to mobilize the Frontier Rig 24 to the North Stockyard Field early in 2013 to drill an initial 6 development wells. These wells will be drilled from two pads utilizing the skiddable platform available on Frontier 24. As previously advised, Samson contracted for the use of this new build rig for an 18 month period at a contract cost of $14.2 million, although the drilling rig contract, as amended, caps the liability for cancellation during the term at $5 million. The development wells are designed as 5,000 horizontals in either the Middle Bakken or the First Bench of the Three Forks. The wells will be “batched” drilled which are expected to result in considerable cost savings.

Samson has the majority equity in a recently completed Salt Water Disposal well in the Northern Tier, as well as a water disposal pipeline system, that will be utilized to dispose of the water produced from the development wells in an economic manner. Existing gas gathering infrastructure is also already in place. Samson therefore expects that a relatively high net return will be extracted from the development of the Northern Tier. Samson’s ability to complete the development plan is contingent on its completion of a planned debt financing or another capital raising program.

South Prairie 3-D Project, Williston Basin, North Dakota (SSN 25% WI)

Acquisition of the South Prairie 3-D seismic survey has been completed as planned and the initial processed seismic data was received on schedule in early December. That seismic data is currently in the process of being mapped and evaluated.

Samson has a 25% working interest in 23,879 net acres within the South Prairie 3-D survey. Potential reservoirs include the Mississippian Mission Canyon Formation and the Devonian Nisku Formation. After the 3-D data has been evaluated, the first well is planned for the 1 st quarter of 2013.

As previously disclosed, the leads identified on the existing 2-D seismic data appear to be similar to the oil field immediately adjacent to the north of the project area. Wells in this other field have demonstrated recoveries of between 260,000 and 450,000 barrels of oil for wells drilled at the crest of the structure. Additional Mission Canyon fields along trend have demonstrated that some wells can recover as much as 900,000 barrels of oil per well when located on the crest of the structure. The 3-D seismic is expected to deliver excellent structural control, such that the wells can similarly be located at the crest of any structures. Given that the wells are presently expected to be drilled for approximately $1.1 million, Samson believes that the return on its investment will be attractive.

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