Samson Canada to Acquire Courage Energy

Samson Canada, Ltd. is pleased to announce that an agreement has been reached whereby Samson will make an offer to acquire all of the outstanding common shares of Courage Energy Inc. at a price of Cdn. $5.20 per share in cash. The transaction value, including Courage's net debt, is approximately Cdn. $171 million ($111 million U.S.).

The offer is subject to the tendering of a minimum of 66 2/3 per cent of the Courage common shares to Samson and obtaining the required regulatory approvals and other customary conditions. All of the directors and officers of Courage have advised Courage that they intend to tender their Courage Shares to the Offer. UBS Warburg acted as financial advisor to Samson in this transaction and will act as soliciting dealer manager.

The board of directors of Courage will recommend that shareholders accept the offer and Courage has agreed that it will not solicit or initiate discussions or negotiations with any other party concerning the assets or shares of Courage. Courage has also agreed to pay a Cdn. $6.9 million non- completion fee to Samson under certain circumstances. An independent investment dealer has provided an opinion to Courage's board of directors that the consideration under the Offer is fair from a financial point of view to the shareholders of Courage.

Samson Canada is a subsidiary of Samson Investment Company, a privately- held Tulsa, Oklahoma based oil and gas company with operations in the United States, Canada, Russia and Venezuela. Samson has operated in Canada since 1989, actively exploring for and acquiring production in western Canada. Samson Canada produces approximately 13,000 barrels of oil equivalent per day, with core areas including Rainbow, Central Alberta and N.E. British Columbia. This acquisition will significantly increase Samson's interests in the Fort St. John and Peace River Arch areas.


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