2011-07-05-2011-06-24

To buy up to 90,000 net lease acres in Fort Peck Indian Reservation in Roosevelt County, MT.

Samson Oil & Gas Ltd., Perth, WA, (NYSE: SSN) plans to buy up to 90,000 net acres of oil and gas leases in the Fort Peck Indian Reservation in Roosevelt County, Montana, from Fort Peck Energy Co. LLC, a co-partnered energy company between the Assiniboine and Sioux tribes in Montana and Utah-based Native American Resource Partners, for an undisclosed price.

The Roosevelt project is being acquired in three tranches. Tranche 1 is a 20,000-acre block at closing that includes a two well drilling obligation. Tranche 2 is an option to acquire an additional 20,000 acres following completion of the initial two wells in Tranche 1. Tranche 3 is a 50,000-acre area covered by an area of mutual interest where Samson and Fort Peck Energy have agreed to jointly acquire additional leases.

Samson plans to fund its acquisition costs and the drilling of the initial two appraisal wells from its existing cash resources. While Samson's ultimate ownership interest in the three tranches will vary, depending on FPEC's future decisions whether to back in to an interest in the acquired acreage, Samson will hold at least a 66.66% working interest (53.34% net revenue interest) in all of the acquired acreage.

The Roosevelt project is in a largely undrilled part of the Williston Basin. The initial two-well drilling program will be initiated as soon as practicable, with a target spud date of Sept. 1 for the first well. Drilling of the second well would be expected immediately following the completion of the first well. Both wells are planned to target the Middle Bakken formation and then fracture stimulated using a multi stage, external casing packer completion technique.