Samson Oil & Gas Completes Initial Multi-Stage Acid Stimulation

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

Maris 1-16H Stimulation

The Maris 1-16H multi-stage acid stimulation was completed Friday, June
24^th. This well is a horizontal open hole completion in the
Ratcliffe Member of the Mississippian Madison Formation, which is
predominantly a limestone reservoir. The well has produced 177,000
barrels of oil after being initially drilled in 2004. The well was
acquired as part of a package of wells in an acquisition that closed on
April 1^st, 2016. Samson became Operator of this well on June 5^th.
The well had a shut in proved category (PDNP) as at the acquisition date.

A leading oil service provider designed and delivered a state of the
art, multi-stage hydrochloric acid (HCl)/diversion product that was
designed to treat the entire open hole well bore. The diversion of the
acid to multiple permeability zones is the key component in the
application such that acid can be delivered to open pore throats along
the entire 4,500 feet horizontal length. Acid stimulation is an industry
generally accepted, permeability enhancement technique that relies on a
simple chemical reaction between calcium carbonate (which is the
composition of limestone) and hydrochloric acid which effectively
dissolves the calcium carbonate and thereby enhancing the permeability
of the oil saturated reservoir.

The stimulation job placed 4,600 bbls of HCl acid and included in
addition to other water based fluids, the injection of 4,200 barrels of
diversion agent, spacers and pads necessary to complete the placement of
acid in 19 stages across 5 zones.

The stimulation job took a day longer than expected but the entire
planned fluid injection was achieved. An initial review of the pressure
data observed during the stimulation job would suggest that the
diversion agent (degradable fibers) worked as predicted, however the
evidence of that and the economic benefit of the stimulation will only
be determined after the well is pumped for a period of time to remove
the injected fluid. This is expected to take 14 days or so until we can
determine the effectiveness of the stimulation.

Foreman Butte Project Operations Program

As previously advised Samson had a three pronged approach to increase
the production from the Foreman Butte project:

1) Workover shut-in wells with mechanical problems
2) Workover
shut-in horizontal wells with advanced stimulation potential
3)
Proved undeveloped drilling

Of these three initiatives the first one has essentially been completed,
with 4 workover rigs recently active in both Montana and North Dakota.
This program will be complete this week with 19 wells being bought back
into production over the last 6 weeks.

This activity has increased Samson’s net production from 834 BOPD at the
end April to 1,322 BOPD at the current date. The detail associated with
this increase is set out in the following table.

The above estimate does not include the final 3 PDNP wells (Evans,
Yellowstone and Carter) that are due to be on stream by June 30^th.
Due to the non-receipt of current non operated production this estimate
uses projected data from the most recent available. This is largely
immaterial given that our Foreman Butte production is operated and the
data is current.

The second initiative has been partially met with the Maris 1-16H
stimulation and pending that assessment is expected that an additional
15 wells will be candidates for this treatment once the economic benefit
of the stimulation can be measured. Our previous estimate of the cost of
these stimulations has increased to around $400,000 largely due to the
cost to pump a state of the art diversion agent. No production has been
assigned in the above estimate from the Maris well which went on stream
today.

The third initiative is the proved undeveloped drilling program and this
is expected to commence in the first quarter of 2017.

Reserves

Samson determined for various corporate purposes, an internal reserve
estimate as at June 1^st, 2016.

This assessment was completed in response to the recent advance in the
forward curve for WTI since the acquisition of the Foreman Butte project.

Product prices adjusted for local differentials were based on the
following WTI and Henry Hub prices as follows:

The reserve report is unaudited.

The reserves are based on the definitions and disclosures guidelines
contained in the Society of Petroleum Engineers, World Petroleum
Council, Association of Petroleum Geologists and Society of Petroleum
Evaluation Engineers Petroleum Resources Management Systems.

Information in this announcement relating to hydrocarbon reserves is the
responsibility of the CEO of Samson Oil and gas Ltd., Mr. T.M. Barr, a
petroleum geologist who holds an Associateship in Applied Geology and
who has 40 years of relevant experience in the oil and gas industry.

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 3,215 million ordinary shares issued and
outstanding (including 230 million options exercisable at AUD 3.8
cents), which would be the equivalent of 16.08 million ADSs.
Accordingly, based on the NYSE MKT closing price of US$0.65 per ADS on
June 28th, 2016, the Company has a current market capitalization of
approximately US$10.4 million (the options have been valued at an
exchange rate of 0.7398). Correspondingly, based on the ASX closing
price of A$0.005 for ordinary shares and a closing price of A$0.001 for
the 2017 options, on June 28th, 2016, the Company has a current market
capitalization of approximately A$16.3 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.

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