Samson Oil & Gas Agrees to Acquire Williston Basin Properties

Samson Oil and Gas USA Inc (a wholly owned subsidiary of Samson Oil and
Gas Limited (ASX: SSN; NYSE MKT: SSN)) (Samson) has entered into a
contract to acquire a parcel of oil and gas leases, producing oil and
gas wells, currently shut-in wells and associated facilities in North
Dakota and Montana for a cash price of $16.5 million.

The properties to be acquired produce approximately 720 BOPD from 41 net
producing wells.

Netherland Sewell & Associates have estimated that the properties
contain Proved Reserves of 8.5 million barrels with a Net Present Value
of $84.9 million, as at October 1^st 2015, the effective date
of the transaction.

Oil pricing used in this estimate represents NYMEX WTI prices as at
October 1^st, adjusted for quality, transportation fees, and
market differentials. Gas pricing is based on NYMEX Henry Hub prices as
at October 1^st, adjusted for energy content, transportation
fees, and market differentials. Prices, before adjustments, are as
follows:

As is customary for transactions of this nature, the reserve report was
completed as at the effective date of the transaction, and therefore
follows the future prices of oil and gas determined as at that date.
However, the oil price continues to be volatile and has depreciated
since the effective date. Samson has run a more current price strip
which drops the WTI oil price by between $6 and $10 per barrel compared
to the reserve report. This reduces the PDP to $15.5 million, the PDNP
to $1 million, the PUD to $35 million and the total proved reserve to
$51 million. It is important to note that these estimates are internal
and do not constitute a formal reserve report.

To be able to designate a PUD reserve, Samson has tested whether it will
have the capacity to fund the drilling of these wells. Samson’s internal
cash flow analysis determines that the PUD value can be funded and the
wells drilled in a 5 year time frame, as required by the US regulatory
regime.

The 51,305 net acres of petroleum leases being acquired include the
right to exploit hydrocarbons down to the top of the Bakken Formation.
For a portion of the leases, Samson is also acquiring the rights to the
deeper geologic section below the Bakken pool.

The transaction is conditional, amongst other things, on Samson being
able to use its existing $50 million debt facility which has a current
borrowing base of $19 million. Closing is expected February 1^st,
subject to the completion of due diligence and financing approval.

The properties have been in production for several years and represent
production from various geologic horizons above the Bakken Formation,
including the Ratcliffe and Mission Canyon intervals of the
Mississippian Madison Formation which provide conventional oil and gas
accumulations in this region. The properties have largely been developed
using 640 acre horizontal wells or 40 acre vertical wells. With the
current lower oil service costs, Samson envisages development of the
acquired PUD Reserves by using longer laterals, infilling the historical
640 acre wells or developing 40 acre infills adjacent to existing or
known production.

Samson’s immediate focus, however, will be on the 17 wells in the PDNP
category, since the Company expects that these wells can be bought back
on line with minimal capital expenditure. Samson also sees additional
upside using an acid-based stimulation of the existing PDP and PDNP
wells in light of the reservoir’s calcium carbonate-based architecture.
No stimulation of these reservoirs has ever been undertaken but this
style of stimulation treatment has resulted in a 3 to 4-fold uplift in
production rates in other wells in the region.

Samson believes that the larger upside in the acquired properties
resides in the PUD category, which will be realized through infill
drilling development.

The transaction also includes the acquisition of two saltwater disposal
facilities and the right to use existing disposal facilities at a
prescribed rate per barrel. Certainty on that significant operating cost
has thus been achieved as part of the transaction.

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 200 fully paid Ordinary Shares of Samson.
Samson has a total of 2,837 million Ordinary Shares outstanding
(including 230 million options exercisable at AUD 3.8 cents), which
would be the equivalent of 14.185 million ADSs. Accordingly, based on
the NYSE MKT closing price of US$0.39 per ADS on December 31st, 2015,
the Company has a current market capitalization of approximately US$5.6
million (the options have been valued at an exchange rate of 0.7306).
Correspondingly, based on the ASX closing price of A$0.003 for ordinary
shares and a closing price of A$0.001 for the 2017 options, on December
31^st, 2015, the Company has a current market capitalization
of approximately A$7.3 million.

SAMSON OIL & GAS LIMITED

TERRY BARR
Managing Director

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.

Competent Person’s Statement

The reserves quoted in this announcement were estimated by Netherland
Sewell & Associates, an independent petroleum reserves engineering
consulting firm based on the definitions and disclosures guidelines
contained in the Society of Petroleum Engineers, World Petroleum
Council, American Association of Petroleum Geologists and Society of
Petroleum Evaluation Engineers Petroleum Resources Management Systems.

Information contained in this announcement relating to hydrocarbon
reserves was compiled by the Managing Director of Samson Oil & Gas Ltd.,
T M Barr a geologist who holds an Associateship in Applied Geology and
is a fellow of the Australian Institute of Mining and Metallurgy who has
35 years’ relevant experience in the oil & gas industry.

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