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Samson Oil & Gas Operational Advisory

Spirit of America US34 #1-29H, Goshen County, Wyoming, Samson 100% working interest

The Spirit of America US34 #1-29H well has been drilled to a depth of 9,076 feet, which is in the formation above the Permian target zone. Based on adjacent well data, Samson had recognized that this section might be difficult to drill because of the expected salt within the section. This has proven to be the case, as the drill pipe became stuck at this depth. With the use of a specialized drilling fluid, the drill pipe was released but, in doing so, the drill bit was left in the hole. A cement plug has now been set in order to deviate around the drill bit. The rig is currently undertaking a minor repair.

The forward plan, which is subject to change based on drilling conditions, is to drill through the Permian target, at which point a logging run will be undertaken and in order to put the salt section behind pipe, 7 inch casing will be run. This will enable the balance of the well can be drilled to the planned total depth of 11,000 feet.

The Spirit of America well is appraising the multiple conventional targets identified in the North Platte 3D seismic data set. These targets consist of a Permian age stratigraphic trap and a Pennsylvanian age structural trap.

Competitor Activity

Samson has noted that Chesapeake Energy has appointed a broker to market their considerable land position in the area adjacent to Samson's Goshen County holding. Subsequent informal discussions with Chesapeake has established that they do not intend in the short term to drill the two wells, State 24-63 #10-1H and State 24-63 314-1H that they had previously proposed and which Samson had elected to participate in. They have further advised that these elections are now invalid because neither party entered into a joint operating agreement.

Samson intends to evaluate this land offering.

ROOSEVELT PROJECT

AUSTRALIA II 12KA 6 #1-29, GRETEL II 12KA 3 #1-30H, Roosevelt County, Montana, Samson 100% working interest; subject to a 33.34% back in right by Fort Peck Energy

Drilling permits have been received for Australia II and Gretel II wells and civil construction has commenced on the drill pad for Australia II. Samson is in the process of contracting DHS Drilling to supply their Rig 1, which is rated at 1,500 hp, and is equipped with a top drive. This rig has concluded its current well and has been released. The rig will undergo maintenance activities and is expected to be mobilized to the Australia II well site on November 1. The availability of this rig has advanced the Roosevelt drilling program by a month. Both Australia II and Gretel II will be drilled initially as vertical pilot holes, and cores of the Bakken Formation will be taken, after which a 4,500 foot lateral will be drilled in the Middle Bakken Formation. These laterals will be fracture stimulated. Samson committed to drill these two wells as part of its acquisition of a 20,000 acre land position with a 20,000 acre option. Samson's land position is subject to a 33.34% back in right by Fort Peck Energy Company.

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 AMEX under the symbol "SSN". Each ADS represents 20 fully paid Ordinary Shares of Samson. Samson has a total of 1,996 million ordinary shares issued and outstanding (including 250 million options exercisable at AUD 1.5 cents), which would be the equivalent of 99.8 million ADSs. Accordingly, based on the NYSE AMEX closing price of US$2.47 per ADS on October 21, 2011 the Company has a current market capitalization of approximately US$239.42 million. Correspondingly, based on the ASX closing price of A$0.115 on October 21, 2011, the Company has a current market capitalization of A$224.56 million. The options have been valued at their closing price of A$0.100 on October 21, 2011 and translated to US$ at the current exchange of 1.0216 for purposes of inclusion in the US$ market capitalization calculation.

For and on behalf of the board of
SAMSON OIL & GAS LIMITED

TERRY BARR
Managing Director

Statements made in this 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 Company's report to the U.S. Securities and Exchange Commission on Form 10-K, which is available at www.sec.gov/edgar/searchedgar/webusers.htm.

Samson Oil & Gas Limited
Terry Barr, CEO, 303-296-3994
Cell: 970-389-5047