Samson O&G Updates Montana, Wyoming Ops

Samson Oil & Gas Limited provided operational advice on its current projects.


Gretel II 12KA 3 #1-30H, (SSN 100%, subject to a 33.34% backin right)

Gretel II has been drilled to a total measured depth of 15,555 feet and the liner completion has been successfully run.

The completion liner utilizes the sliding sleeve and drop ball method which will allow for a 20 stage hydraulic fracture treatment. We anticipate the hydraulic fracture operations will commence mid-March.

Australia II 12KA 6, #1-29H, (SSN 100%, subject to a 33.34% back-in right)

The hydraulic fracture stimulation operations have been concluded with a total of 1.1 million pounds of proppant being pumped. During one wire line run, the frac plug and perforating tools were separated from the wire line and left in the well.

A coil tubing unit was utilized to drill the last seven frac plugs; however, due to early sand production, the well was shut in for two days to allow the fracture to heal, and the flow rate has been reduced to ensure excessive sand does not come out of the fractures. The well will be flowed back until such time as we feel it appropriate to recover the wire line “fish” and drill out the remaining frac plugs.

Abercrombie 1-10H (SSN 0.75%)

Samson and its partner FPEC have elected into a well being drilled by Continental Resources to the extent of a combined 1.125 percent equity. Of this, Samson would have a 2/3rds interest or 0.75 percent.The interest derives from leases that FPEC and Samson owns at the northern extent of Continental Resources' spacing unit.

The surface location is 4 miles south of the Gretel II surface location and the bottom hole location is approximately 1 mile south of the Gretel II bottom hole location. Therefore, this will be an important data point in the evaluation of the western part of the Roosevelt Project area. The well is being drilled as a 10,000 ft. middle Bakken horizontal and it spudded on February 19th.


Defender US33 #2-29H, (SSN 37.5% working interest)

The Defender well has experienced a pump failure and therefore a work over rig is currently over the well undertaking a pump replacement. The replacement pump being run is expected to be suited to the amount of gas that is contained in the oil, which has resulted in low pump efficiency.

Samson's farminee has advised that it will make a decision on drilling the second of its farmin wells by March 31st, 2012. Samson is currently permitting a well in the sections immediately west of the Defender location where the seismic coherency data suggests an intense level of fracturing. This location and two others would be available for the farminee to drill.