SAMSON OIL & GAS CASES STATE GC#2 FOR PRODUCTION
Denver 1700 hours April 9, Perth 0700 hours April 10 2008
STATE GC#2 (Working Interest SSN 37%, Net Revenue Interest 28.3%)
The State GC #2 well is preparing to run production casing having completed a logging program that has been
analyzed and that analysis suggests that the well can be expected to be oil productive at an economic rate.
The logging data has identified three hydrocarbon bearing zones within the targeted Lower Leonard Formation.
These zones total 36 feet of net pay which compares very favorably to the offsetting State GC#1 well, where the
net pay count is approximately half this intersection.
The three zones and the associated oil and gas shows that were recorded whilst drilling are as follows:
Upper Zone 11,242 to 11,302 feet
16 feet of net pay,
Drilling diagnostics; 4,200 units of gas, bright yellow fluorescence and a mud cut from 9.7 ppg to 9.5 ppg
Middle Zone 11,348 to 11,394 feet
12 feet of pay,
Drilling diagnostics; 5,300 units of gas, moderately bright yellow fluorescence, mud cut 9.7 ppg to 9.5 ppg
Lower Zone 11,456 to 11,470 feet
8 feet of pay
Drilling diagnostics; 3,700 units of gas, bright yellow fluorescence mud cut 9.7 ppg to 9.5 ppg.
The preliminary log analysis is consistent with the data that was collected whilst these zones were drilled.
Following the running of the production casing the drilling rig will be released and the well will be completed. It is
expected that the completion design will include a fracture stimulation which proved to be very effective in the
State GC#1 well
The State GC#2 well is located in the Permian Basin in Lea County in eastern New Mexico. The well is adjacent
to the State GC#1 well, which produces oil from the Lower Leonard Formation. This well has produced a gross
543,000 barrels and has a gross Expected Ultimate Recovery of 1.1 million barrels. The State GC #2 well can