SAMSON OIL & GAS LIMITED JOINT VENTURES WITH DEVON IN THE BAXTER SHALE
Denver 1700 hours April 29, Perth 0700 hours April 30, 2008
Samson Oil & Gas Limited (“Samson”) has executed an Exploration Agreement with Devon Energy Production
Company (“Devon”). The agreement covers Samson’s 6,400 acre holding in the western flank of the Vermillion
Basin in Sweetwater County, Wyoming. This area contains a 3,500 foot section of Baxter Shale which was
drilled in the 1970’s and recovered a significant flow of gas from an unstimulated Baxter Shale. Since that time
there has been significant development of the Baxter Shale in the Vermillion region 40 miles east of Samson’s
acreage, where our competitors have expended significant funds that have resulted in flows of up to 9 mmcfpd
from the Baxter Shale.
The Exploration Agreement envisages that a 3D seismic grid will be acquired in an effort to define an exploratory
program. Devon will operate the seismic acquisition and any subsequent exploratory program. Samson
anticipates that the seismic acquisition will be undertaken in the summer of 2008. Samson will hold a 50% interest
in the leasehold block unless Samson permits a third party to complete the second farm-in well in the Greens
Canyon area and earn an 18% equity stake in Samson’s leases. In that circumstance, Samson would retain a
32% equity interest in these leases.
The acquisition of 3D seismic is a necessary first step in the evaluation process such that naturally occurring
fractures systems can be identified and evaluation drilling. This appears to be one of several technical keys to the
successful flow rates seen to date in the Vermillion region.
Samson’s agreement with Devon Energy would appear to complement their existing lease holding which is shown
on the attached map. This map shows both Samson’s acreage (in yellow) and Devon’s (in green).
Samson’s Ordinary Shares are traded on the Australian Securities Exchange under the symbol "SSN". Samson's