Samson Oil & Gas Refinancing

DENVER & PERTH, Australia–(BUSINESS WIRE)–As previously advised, Samson Oil and Gas USA, Inc, a wholly-owned
subsidiary of Samson Oil and Gas Limited (ASX:SSN and OTCQB:SSNYY), has
entered into a Purchase and Sale Agreement (PSA) with Eagle Energy
Partners, I, LLC (Eagle or Buyer) for the sale of Samson’s Foreman Butte
Project located in the Williston Basin in North Dakota and Montana for
cash consideration of US$40 million (subject to normal post completion
adjustments).

The transaction includes Samson retaining a non-operated 15% working
interest in the Home Run Field which contains the bulk of the identified
upside of the project.

At the request of the Buyer the PSA has been amended and now provides
for a Closing date of October 15th. As condition of Samson extending the
Closing date the Buyer has released the escrowed deposit.

The Buyer did not determine any title and environmental defects.

A shareholder meeting to seek approval for the transaction received a
positive outcome and accordingly the transaction has been able to
proceed.

The transaction will allow Samson to retire all of its debt, and meet
all of its other liabilities and should leave it with a cash balance of
approximately US$7 million. The transaction has been designed, through
the retention of a 15% working interest in the Home Run Field, to allow
Samson shareholders to participate in development of the Proved
Undeveloped reserves within the Ratcliffe Formation associated with the
Home Run Field along with the Probable reserve within the Nesson
Formation in the same field. Samson has identified 26 well locations
with the Ratcliffe Formation which are planned to be drilled out of the
existing well bores. The Nesson Formation opportunity includes 10
vertical wells in a well-defined structure which was proven to be
productive from the Nesson Formation when penetrated in the Banks well,
but for mechanical reasons has remained undrained.

Samson has been advised by Eagle that it intends to develop these
opportunities and intends to drill the initial wells in the balance of
2018 and another 9 wells in 2019. Samson for its part expects to have
sufficient funding to participate in this drilling program and will be
able, if it determines to, to propose and drill these wells for its own
account under the provisions of a Joint Operating Agreement to be
entered into with Eagle at completion.

The Samson Board met recently to consider what strategic direction it
would take after this transaction completes and the conclusion reached
in general terms was to maintain Samson as a US based oil and gas entity
and it would examine other US basin plays which will be assessed for
potential entry, in addition to the non-operated Home Run Field equity.

Statements made in this press 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 the risks
that the anticipated sales transaction will not close or that the
purchase price will be materially reduced on account of potential
liabilities uncovered during due diligence as well as 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
prospectus and prospectus supplement for its recent Rights Offering as
well as the Company’s report to the U.S. Securities and Exchange
Commission on Form 10-K, which are available at www.sec.gov/edgar/searchedgar/webusers.htm.

Contacts

Samson Oil and Gas Limited
Terry Barr, CEO
303 296 3994 (US
office)