Samson Oil & Gas Limited Rights Issue

• Press Release
• Source: Samson Oil and Gas Ltd
• On 8:00 am EDT, Friday October 9, 2009

DENVER & PERTH, Australia--(BUSINESS WIRE)--Samson Oil and Gas Ltd (ASX:SSN - News) (NYSE AMEX:SSN) announced today that it has successfully completed the Rights Offer extended to holders of its ordinary shares listed on the ASX and the parallel Rights Offering for American Depositary Shares traded on NYSE AMEX.

Related Quotes

Symbol	Price	Change
SSN	0.20	0.00

{"s" : "ssn,ssn.ax","k" : "c10,l10,p20,t10","o" : "","j" : ""}

Subscriptions received from both Samson’s US and Australian shareholders (using an exchange rate of A$1=US$0.9) were as follows:

Samson’s Underwriter, Paterson’s Securities Limited is proceeding to place the shortfall prior to settlement on October 13^th.

Directors are due to allot the shares on October 14^th and the allotted shares are expected to be available in shareholder accounts on October 15^th.

Given that the Rights Offering successfully concludes as expected, the Company expects reduce its current debt level by a significant amount, with the residual debt level of approximately US$13.05 million, well below the Proved Developed Producing (PDP) reserve value of US$ 18.9 million established by Ryder Scott as at June 30^th, which will cause the Company to return to full compliance with the terms of its debt facility.

In addition, the capital raised will enable Samson to proceed with its development program which will include drilling in Texas, North Dakota and in Wyoming. The drilling program is aimed at delivering shareholder value from a suite of opportunities that the Company has generated. The first of these wells is expected to be the prospect Ripsaw. Preparations for the drilling of this well are being finalized and the spud is expected late November or during December.

About Samson

Our principal business is the exploration and development of oil and natural gas properties in the United States, primarily focused on the Rocky Mountain region. Samson’s ordinary shares are traded on the Australian Securities Exchange under the symbol “SSN”. Samson’s American Depositary Receipts (ADRs) are traded on the NYSE Amex under the symbol “SSN”, and, each ADR represents 20 fully paid ordinary shares of Samson.

For and on behalf of the board of

SAMSON OIL & GAS LIMITED

TERRY BARR
Managing Director

Forward-Looking Statements

Forward-looking statements in this announcement are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, without limitation, Samson’s expectations and estimates about future events and the intended use of the proceeds of the rights offerings. These statements are based on management’s current expectations and are subject to uncertainty and changes in circumstances. Actual events or results may differ materially from those contained in the forward-looking statements due to a variety of factors, including without limitation, changes in the price of oil and natural gas and uncertainties inherent in estimating the timing and results of exploration activities. Other risk factors are discussed in the registration statement, prospectus supplement and Samson’s other filings with the Securities and Exchange Commission (“SEC”)(which may be viewed on the SEC’s website at http://www.sec.gov). These documents contain and identify important factors that could cause the actual results for Samson to differ materially from those contained in Samson’s forward-looking statements. Although Samson believes that the expectations reflected in the forward-looking statements are reasonable, Samson cannot guarantee future results, levels of activity, performance or achievements. Samson is under no obligation (and expressly disclaims any obligation) to update or alter its forward-looking statements, whether as a result of new information, future events or otherwise.

Samson Oil and Gas Ltd
Terry Barr, CEO, 303-296-3994 (US office) or 970-389-5047 (US cell)