Samson has initiated the mobilization of the Frontier 24 drilling rig to North Dakota and drilling operations are expected to commence next week on the completed four-well pad, with the drilling of the conductors with a spudder rig. Substantive drilling operations on the first of four wells are expected to commence in late March or early April, and two wells will be drilled as 6,300 foot laterals in the Middle Bakken Formation and two 6,300 foot laterals in the first bench of the Three Forks Formation.The drilling plan calls for the initial four wells to be drilled consecutively from a four-well pad that has been prepared for the project, which will increase the opportunity to realize operational efficiencies and productivity savings. During the drilling phase, production facilities will be constructed along with a pipeline to transport water to our disposal facility at a lower cost than trucking alternatives. Samson also intends to install a gas gathering system to transport associated natural gas to a processing and treatment plant located approximately three miles away from the surface location, providing the opportunity to realize the full value of the production stream from the extraction of natural gas liquids that typically have a higher value than dry natural gas. Samson is also planning to install an oil delivery gathering line which will alleviate any weather related downtime. The Company plans to fracture stimulate the wells simultaneously, which has a technical advantage in developing a comprehensive fracture system between wellbores and in reducing completion costs with less crew and equipment moves, along with efficiencies gained from being able to conduct wire line operations in one well, whilst pressure pumping into the neighbouring well bore. South Prairie Project (SSN working interest 25%, NRI 20.25%) Samson has acquired an interest in the South Prairie Project which is located in Renville and Ward Counties in North Dakota. The area is in the Williston Basin and is prospective for conventional oil trapped in Mississippian aged rocks as evidenced by offsetting producing oil fields.
A 76-square-mile 3-D seismic grid was acquired late in 2012 and that data has now been mapped and analysed. The joint venture has determined three individual prospects and has chosen the Forfar prospect as its priority target and expects to be drilling that prospect in June 1 st 2013.The Forfar prospect is developed as a 420 acre, dip closed structural feature similar to the Glenburn South Field to the north east of the prospect. The well will be drilled to a depth of 4,900 feet to test the Glenburn zone of the Mississippian Mission Canyon Formation. The estimated drilling and completion cost is $1 million gross. Wells in this area from the same Glenburn zone that have been drilled high on their individual structures yield recoveries of around 350,000 BO and if the initial well is successful, the structure would allow for the drilling of up to 9 development locations to be drilled on 40-acre spacing. Shareholder Webcast Meetings Samson is planning to conduct two webcasts to accommodate the various time zones in which its shareholders reside. The first webcast is planned for Thursday March 21 st at 6 pm US Mountain Time, which is equivalent to Friday March 22 nd at 11 am Australia Eastern Time (Sydney). To participate in the webcast please log into: http://event.on24.com/r.htm?e=599211&s=1&k=4EF968D9A85E34BF1254026F686E59CB Participants should log in early to ensure that they have loaded the appropriate software to fully participate in the webcast. The second webcast is planned for Friday March 22 nd at 6 am US Mountain Time which is equivalent to Friday March 22 nd at 11pm Australia Eastern Time in Sydney. To participate in the webcast please log in to http://event.on24.com/r.htm?e=599213&s=1&k=02005962339FB491B41EC7FC5B76F0A5 About Samson Oil & Gas Limited 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 MKT under the symbol "SSN". Each ADS represents 20 fully paid Ordinary Shares of Samson. Samson has a total of 1,986 million ordinary shares issued and outstanding, which would be the equivalent of 99.3 million ADSs. Accordingly, based on the NYSE MKT closing price of US$0.65 per ADS on March 19th, 2013 the Company has a current market capitalization of approximately US$68 million. Correspondingly, based on the ASX closing price of A$0.031 on March 19th, 2013, the Company has a current market capitalization of A$65 million.
For and on behalf of the board of SAMSON OIL & GAS LIMITEDTERRY BARRManaging Director This announcement does not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any offer or sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction. Offers to participate in the Rights Offering will be made only by means of a prospectus that meets the requirements of applicable law. Statements made in the presentation that is available on Samson’s website that are not historical facts may be forward looking statements, including but not limited to statements using words like “may”, “believe”, “expect”, “intend”, “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, a copy of which is available at www.sec.gov.