Samson Oil & Gas Operational Advisory

Samson Oil & Gas Limited (ASX: SSN; NYSE MKT: SSN):

TOTAL COMPANY PRODUCTION

Samson net production for 2014 is as follows:

There were several errors in the table presented in last week’s release, the table above has been corrected and uses the most recent data available.

NORTH STOCKYARD PROJECT, WILLIAMS COUNTY, NORTH DAKOTA

The infill development plan for North Stockyard consists of 8 middle Bakken wells that have been drilled and 22 Three Forks wells. The Three Forks wells consist of 8 First Bench Three Forks wells, 6 Second Bench Three Forks wells, and 8 Third Bench Three Forks wells. For ease of reference, the current status of each well is set out below with separate tables for each drill pad:

#The Avg. Daily rate is an average of the last week’s production or the average after the well was put back into production.

BO: Barrels of oil
BOE: Barrels of oil equivalent (gas converted at its heating value)
BOPD: Barrels of oil per day
MCF: Thousand cubic feet
BOEPD: Barrels of oil equivalent per day

NA: Not available
APD: Application for Permit to Drill
IP Rate: Gross first 24 hour oil rate
Current rate BOPD: Barrels of Oil per Day
Cum to Date: Cumulative gross BO

The Bootleg 4 and 5 wells are flowing, early rates are dominated by frack fluids and therefore higher oil rates are anticipated after these fluids are recovered.

Bootleg 6 and 7 have completed the cased hole logging program and have been pressure tested and are both ready to frack.

Bootleg 8 has been prepared for the running of a frack string. The Bootleg 6, 7 and 8 fracks are scheduled for the last half of Sept. Each well is programmed for a 30 stage frack.

Frontier Rig 24 is drilling the curve on Ironbank 4-14-13TFH at a depth of 10,923 feet. This well is targeting the Three Forks bench 1 and is the first of four the easterly directed laterals.

Samson’s working interest and its net revenue interest for the North Stockyard Project is set out in the following table:

* Wells have yet to be elected by Samson and therefore are subject to change.

RAINBOW PROJECT, WILLIAMS COUNTY, NORTH DAKOTA
Gladys 1-20H (SSN 23%)

The Gladys 1-20 H well has been drilled and fracked and is 10,000 foot lateral in the middle member of the Bakken Formation.

Gladys has been on stream for 4 days and the IP rate and the average rate are the averages for those 4 days. The total oil produced includes 717 BO produced during the coil tubing operation. The early production data from Gladys is in line with Samson’s type curve however, it is expected that the oil rate will improve and this has been demonstrated by a lift in the rate on the 14th of September to 695 BOPD.

SOUTH PRAIRIE PROJECT, WARD COUNTY, NORTH DAKOTA
York #3-9 well (SSN 25%)

The York #3-9 well located in T156N R82W S3 on the eastern flank of the Williston Basin spud over the weekend and surface casing was set and cemented. Preparations are currently being made to drill out of the surface casing to a total depth of approximately 5,000 feet. The York #3-9 well will test the Pubco Prospect which targets the Glenburn zone of the Mississippian Mission Canyon Formation. The York #3-9 well will be the first test of three different Glenburn structural closures mapped along the Prairie Salt dissolution edge on the South Prairie 3-D seismic survey.

REPORTING FORMAT

Samson has decided that it will revert to a regular monthly reporting format unless there is a need to announce a specific well result in accordance with our full disclosure policy. The monthly reports will be published on the Monday/Tuesday of the second week in the month and will include details of individual wells and the Company’s prior month’s production. This reporting format is expected to deliver a more meaningful report on the Company’s activities.

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 2,837 million ordinary shares issued and outstanding (including 230 million options exercisable at AUD 3.8 cents), which would be the equivalent of 141.85 million ADSs. Accordingly, based on the NYSE MKT closing price of US$0.35 per ADS on Sept 15th, 2014, the Company has a current market capitalization of approximately US$51.3 million (the options have been valued at an exchange rate of 0.8996). Correspondingly, based on the ASX closing price of A$0.020 for ordinary shares and a closing price of A$0.009 for the 2017 options, on Sept 15th, 2014, the Company has a current market capitalization of approximately A$58.6 million.

TERRY BARR
Managing Director

Statements made in this press 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 prospectus and prospectus supplement for its recent Rights Offering as well as the Company’s report to the U.S. Securities and Exchange Commission on Form 10-K, which are available at www.sec.gov/edgar/searchedgar/webusers.htm.