Samson Oil & Gas : Operational Update

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

NORTH STOCKYARD PROJECT, WILLIAMS COUNTY, NORTH DAKOTA

COMMENTARY

The Ironbank 4-14-13TFH is presently drilling the lateral portion of the wellbore at 15,640 feet in the Three Forks Formation.

The Bootleg 4 & 5 wells are now flowing. The Bootleg 4 has averaged 568 BOPD and the Bootleg 5 has averaged 468 BOPD over the course of the last week.

FRACTURE STIMULATION PROGRAM

Four north Stockyard wells are scheduled to be fracked in the near term and these are set out in the following table:

RAINBOW PROJECT, WILLIAMS COUNTY, NORTH DAKOTA

Gladys 1-20H (SSN 23%)

The Gladys 1-20 H well has been drilled by Continental Resources to a total depth of 19,994 feet. The well is a 1,280 acre lateral (approximately 10,000 feet) in the middle member of the Bakken Formation.

The flow back continues to be dominated by frack fluid, with last week’s total fluid rate averaging 2,200 BFPD with an 80% water cut. Water cuts in the middle Bakken are typically 25 to 30% and therefore we are expecting to see this ratio to decrease as the frack fluid is recovered. Importantly the stimulation has delivered a well that has ample fluid capacity. Flowing pressure remains robust at over 1,000 psi.

SOUTH PRAIRIE PROJECT, WARD COUNTY, NORTH DAKOTA

York #3-9 well (SSN 25%)

Drilling has been completed on the York #3-9 well located in T156N R82W S3 on the eastern flank of the Williston Basin. Stephens Production Company drilled the well to a total depth of 5,100’. The top of the Glenburn target zone of the Mississippian Mission Canyon Formation was found as expected at a depth of 4,944’ MD or 4,893’ TVD. The Glenburn was intersected 50’ high to the two show wells originally thought to be near an oil-water contact, though the Glenburn was found to be wet, and thus the well is currently being plugged. One can conclude the reasoning for the wet Glenburn zone is that the 4-way structural trap did not completely close on the eastern edge of the trap which coincides with edge of the 3-D seismic. The low-fold data along the edges of 3-D seismic surveys are not always reliable and was one of the risks accounted for in the original assessment of the Pubco prospect. Samson’s total cost for its 25% working interest in the York well is estimated to be approximately $175,000. Since this was the first test of three different Glenburn structural closures mapped along the Devonian Prairie Salt dissolution edge, the remaining two prospects will be highly scrutinized by the Joint Venture to determine if they should still be drilled.

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$0.33 per ADS on Sept 22nd, 2014, the Company has a current market capitalization of approximately US$49.26 million (the options have been valued at an exchange rate of 0.8910). Correspondingly, based on the ASX closing price of A$0.020 for ordinary shares and a closing price of A$0.012 for the 2017 options, on Sept 22nd, 2014, the Company has a current market capitalization of approximately A$56.74 million.

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.