Samson O&G to Rework Permian Basin Well

Samson Oil & Gas advised that preparations are underway to work over the State GC #2 well. This well is located in the Permian Basin in New Mexico. When this well was drilled in early 2008 its primary target was the Wolfcamp Formation. Electric well logs were recorded as part of the evaluation and identified pay in the Wolfcamp Formation as well as numerous pay zones within the secondary target, the Bone Spring Formation, which remained behind pipe above the primary objective.

The Wolfcamp Formation was completed with oil production averaging around 3 BOPD over the past 12 months. Given this low rate, the Operator is in the process of moving in a work over rig and intends to perforate a series of intervals within the Bone Spring Formation. The rig is expected to arrive Friday, March 5th.

Four zones are planned to be perforated accessing approximately 110 feet of log derived net pay. Each of the four zones will be fracture stimulated and tested sequentially. It is intended that the four zones will be comingled.