Samson O&G Commences Rights Offering

Samson Oil and Gas is commencing a rights offering to holders of its American Depositary Shares as of the record date, September 16, 2009. The rights offering is being conducted concurrently with a substantially similar rights offering being made to ordinary shareholders in Australia and New Zealand.

Each ADS owned of record at the close of business in New York City on September 16, 2009, entitles its holder to purchase six ADSs for the U.S. dollar equivalent of A$0.24 per ADS, and two warrants will be included at no charge with each ADS purchased. Each warrant will entitle its holder to purchase 0.05 of an ADS (so that 20 warrants will be required to purchase one ADS) at a cash exercise price of A$0.30 per ADS, subject to adjustment. Warrants will be nontransferable and nonvoting, and may be exercised until December 31, 2012. Rights will be nontransferable. Each ADS represents 20 ordinary shares (or a right to receive 20 ordinary shares) deposited with The Bank of New York Mellon, the depositary.

Samson intends to use the net proceeds of the combined U.S. and Australian offerings to reduce amounts outstanding under its loan facility and carry out its drilling programs for the fiscal years ending June 30, 2010 and June 30, 2011.

The drilling programs involve the expected drilling of eight wells within Samson’s prospect portfolio; these wells include oil development wells in Samson’s Bakken Formation oilfield in North Dakota and in its New Mexico State GC oil field. In addition, Samson plans to use the proceeds from the combined U.S. and Australian rights offerings to support the drilling of several 3D seismic data supported prospects such as Diamondback and Screech Owl located in the Texas Gulf Coast Basin and is also expected to include gas developments wells in the Jonah Field in Wyoming. The combined contingent recoverable reserves associated with wells included in the programs amount to 0.5 mmstb of oil and 2.3 Bcf net to Samson.

The rights subscription period is scheduled to expire at the close of business in New York City on September 29, 2009. Holders should timely contact the financial intermediary through which they hold ADSs and rights. Please see the complete subscription procedure instructions included in the prospectus supplement filed with the SEC.

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