SAMSON OIL & GAS LIMITED TO PRESENT AT DAHLMAN ROSE CONFERENCE

Transcription

1 SAMSON OIL & GAS LIMITED TO PRESENT AT DAHLMAN ROSE CONFERENCE Denver 1600 hours March 11, Perth 0700 hours March Mr. Terry Barr, Samson Oil & Gas CEO has been invited to present at the Dahlman Rose & Co s conferences being held in New York on March 12 and in Boston on March 13. Samson s presentation is available on the company s website The conference will deal with the Energy Supply Chain and include presentations from all sectors of this industry. 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 American Stock Exchange 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 For further information please contact, Terry Barr, CEO on (US office) or (US cell) TERRY BARR Managing Director

2 SAMSON OIL & GAS LIMITED Integrated Exploration and Production Company Acquiring Domestic Oil & Gas Production in the Rocky Mountain Region MANAGEMENT PRESENTATION March, 2008

3 SAFE HARBOR This presentation contains forward-looking information within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), including statements regarding potential sales, the success of the company's business, as well as statements that include the words "believe, expect anticipate" or similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Samson Oil & Gas Limited to differ materially from those implied or expressed by such forward-looking statements. This presentation speaks as of the date first set forth above and Samson Oil & Gas Limited assumes no responsibility to update the information included herein for events occurring after the date hereof. Various risks and uncertainties are discussed in the Company s Annual Report on Form 20-F, as amended for its most recent fiscal year and in other reports the Company files with the U.S. Securities & Exchange Commission. 2

4 ABOUT SAMSON OIL & GAS LTD Emerging oil and gas company holding extensive production and exploration acreage in the U.S. - Primary focus in the Rocky Mountain states - 42,000 acres in the Greater Green River Basin, Wyoming - Producer - One of the first developers of the Baxter Shale USA Operations- December 2004 Listed on ASX - SSN ADRs listed on AMEX- SSN 209 Million Shares Outstanding 3

5 SAMSON OIL & GAS U.S. BASED MANAGEMENT Terry Barr, Chief Executive Officer and President - Petroleum Geologist, career spanning 35 years - Cooper Basin Exploration Manager for Santos - Discovered and developed significant volumes of tight gas and oil - Experienced in start ups Bob Gardner, Vice President- Engineering - Reservoir engineer - Acquisition specialist - 20 Years experience Robyn Lamont, Chief Financial Officer - Chartered Accountant - Arthur Anderson trained - Competent across Australian and US GAAP 4

6 BUSINESS STRATEGY Samson s business strategy is to create value by focusing exclusively on the U.S. energy sector, specifically in the exploration and production of natural gas. - Entry into the U.S. in late 2004 through acquisition of Kestrel Energy - Rocky Mountain focus (Denver Julesburg & Greater Green River Basins) - Footprint also includes production from New Mexico and Oklahoma (Anadarko Basin) Balanced Strategy - Existing production of 3.2 mmcfe per day - Inventory of proved undeveloped reserves - Large exploration potential from significant acreage holdings in the Rockies 42,000 net acres in the Greater Green River Basin - Disciplined acquisitions enhancing production profile Cash Flow currently US$0.9 Million per month. 5

7 SHARE PRICE PERFORMANCE SSN Share Price AUD CIG Gas price USD Feb Aug-05 8-Mar Sep Apr Oct-07 6

8 SHARE PRICE PERFORMANCE Gas is traded around the US at various marker points, these are reported daily and most of Samson s gas is sold a a month forward basis. Lookout Wash at CIG, Jonah at Opal and Amber at Oneoak. Gas price in the Rockies this summer have been at historic lows. Rocky Mountain Express being constructed from the Rockies to the east coast. Partially completed, and has built a surplus at Cheyenne. This gas bubble should move to Chicago once Phase Three is complete Cheyenne to Chicago in early

9 ADR PRICE PERFORMANCE SSN Share Price USD 6 6 SSN ADR USD Jan Jan Jan-08 7-Feb Feb Feb-08 8

10 MAJOR SHAREHOLDERS Harbinger Capital 17.4% Persistency 11.5% Golden Prospect PLC 7.6% Madison Street Partners 7.4% Roaring Fork LLC 5.4% Victoria Petroleum N.L. 4.9% 9

11 U.S. LISTING American Stock Exchange, ADR 20 to 1 ratio SSN ticker The first operating Australian company on the AMEX The first Bank of New York ADR on the AMEX 10

12 DENVER- JULESBURG: Hawksprings SAMSON S HOLDINGS ARE EXTENSIVE OKLAHOMA: Anadarko Basin SE Amber Gas Field WYOMING: Greater Green River Basin Look Out Wash Field Jonah Field Baxter Shale NORTH DAKOTA: North Stockyard NEW MEXICO: State GC Oil Field 11

13 GREATER GREEN RIVER BASIN, WYOMING (Baxter Shale): Opportunity for Major Growth Baxter Shale: Major gas producing located in the Green River Basin, Wyoming U.S. Baxter / Frontier / Muddy / Dakota formations represent emerging gas play with large potential. Samson has several prospects from a large land position of 41,800 net acres: - Recent technical development has determined that fracture sets can be detected seismically. - Next well will be located using this technique and will be a horizontal. Acreage is located near existing, known production. Recent frac establishes productive capacity. 12

14 RECENT ACTIVITY INDICATES GREAT POTENTIAL OF BAXTER SHALE Questar ( STR ) has 20 wells producing from Baxter Shale and deeper zones. Recent technical break through due to use of 3D seismic data to determine natural fracture systems. Three wells indicate repeatability all exceed 6 mmcfpd initial production. Has lodged an EIS to develop 4000 wells In excess of $100 million invested. STR is a $9.4 Billion market cap company. Kodiak has drilled three wells all without the use of 3D seismic. Market Cap $190 Million. Mostly attributed to Baxter land position. Devon enters Baxter play Largest shale gas player in North American 3 well farmin 13

15 WHY BAXTER IS IMPORTANT TO QUESTAR In February 2007 the Trail 13C-15J well is announced by STR as initial production rate of 9 mmcfpd post fracture stimulation. This well is the first indication that the Baxter Shale is a significant resource. Conventional gas targets are overlain by a thick silty shale unit, the Baxter Shale. Baxter Shale returns gas shows as conventional wells are drilled. Exploitation commenced in Early wells are vertical and have extensive fracture stimulation over the entire Baxter Frontier interval. 14

16 WHY BAXTER IS IMPORTANT TO QUESTAR (cont d) Questar has a 146,000 acreage holding in the southern part of the Green River Basin. Questar has a long conventional producing history from this region. Then followed by two horizontal wells the first of which flows at around 5 mmcfpd but is compromised by cementing the horizontal section. Questar s quarterly earnings webcast in June 2007 exposed for the first time a technical breakthrough with STR saying that they are able to identify naturally occurring fracture systems from 3D seismic. The second horizontal was reported in September 2007with an initial rate of 7 mmcfpd without fracture stimulation. Horizontal completions are being made in the Airport Sandstone a stratigraphic unit within the Baxter Shale 15

17 WHY BAXTER IS IMPORTANT TO QUESTAR (cont d) Conclusions - The Baxter is a viable resource - The Baxter has a multi TCF potential - Technical keys are Over pressuring Natural fracture systems Use of 3D seismic to define fracture systems Horizontal wells Airport Sandstone has sufficient quartz content to provide porosity for a storage system 16

18 WHY THE BAXTER SHALE IS STRATEGIC TO SAMSON Huge benefit from $100 million plus that has been expended by Questar. Baxter Shale is geologically the same in the Vermillion and the area held by Samson west of Rock Springs. Greens Canyon 3D seismic grid has been analyzed for fracture systems. Data suggests that there are fracture systems within the Baxter Shale. Planning to fracture stimulate the Airport Sandstone in the 29-2 well in the summer 2008 Planning to drill its first horizontal into a natural fracture system in late

19 GREENS CANYON 3D Seismic data shows fracture location (darker shades) Wells drilled with naturally occurring fractures zones proven to be productive Airport Sandstone is the storage facies 18

20 LOOKOUT WASH FIELD, WYOMING Washakie Basin 2,200 net acres / 18.2% working interest (Stanley acquisition). 20 wells produce principally from the Almond Bar located in the Washakie Basin, which is part of the Greater Green River Basin. Installation of field compression equipment in September 2006 yielded a 26% increase in gross production. Additional development well to be drilled targeting thicker reservoir. 19

21 JONAH FIELD, WYOMING Northern Green River Basin - field has produced over 1.5 Tcf of gas since 1992 from the Mesaverde and Lance formations. 21% working interest in 250 acres, or 51 net acres (Stanley acquisition). Infill development approval granted for 10 acre spacing. 2 development wells to be drilled this summer. Operator: Forest Oil. 20

22 SE AMBER GAS FIELD, OKLAHOMA Anadarko Basin, Oklahoma 451 net acres; 37.5% & 32.5% working interests. Long-lived; field was originally discovered in 1970 with continuous production. Successful infill development program; low risk reserve additions; Samson has an interest in 9 wells producing 3,700 mcf per day (884 mcf per day net to Samson). Additional well proposed by Chesapeake to offset Section 23 production 21

23 STATE GC OIL FIELD & EXTENSION, NEW MEXICO State GC#1 exceptional well 900k bbls recoverable Porosity is developed in debris flow Can be identified with 3D seismic State GC#2 spudded currently drilling ahead Two further extensions available 22

24 STATE GC OIL FIELD & EXTENSION, NEW MEXICO State GC#2 S 6 Reentry State GC#1 Exxon farmin 23

25 EXISTING PRODUCER NORTH STOCKYARD OIL FIELD NORTH STOCKYARD OIL FIELD, NORTH DAKOTA WELL TRACK PROPOSED EXTENSION WELL North Dakota 3,314 net acres, 34.5% working interest Extension of an existing oil field Typical wells have EURs of 500,000 barrels 5 Locations available Gross potential recoverable of 5.4 mmstb SSN net is 1.7 mmstb Post frac rate 380 BOPD Next well summer

26 SABRETOOTH PROSPECT Strong 3D Seismic Drilling Prospect Amplitude response characteristic of hydrocarbon bearing sand reservoirs Offsets a 10 BCF Discovery in the Same Interval Aspect Energy Griffith #1 Gross Completed Well Costs = US$7.5MM 14,000 ft Vicksburg Test Potential Reserves = 25 BCFE Samson WI = 12.5% NPV = US$10MM Net Reserves = 2.25 BCFE Expected Spud Date April,

27 SABRETOOTH AMPLITUDE MAP Local Amplitude map Analogous to the Griffith #1 10 BCF Discovery Aspect Energy Griffith #1 Discovery Sabretooth Prospect 26

28 SABRETOOTH SEISMIC LINE FAR TRACE STACK 3D Seismic Line is Analogous to the Griffith #1 10 BCFE Discovery Aspect Energy Discovery Griffith #1 Discovery Sabretooth Prospect 27

29 RECENT RESERVES REPORT Reserve report: 21.4 bcfe in proved reserves as of June 30, 2007 NPV10 of US$51 Million Oil Gas Gas eqvivalent NPV 10 MBBLS MMCF MMCFE US$ Proved Developed Producing $ 33,801 Proved Un-developed $ 16,700 Total Proved $ 50,502 Source MHA 28

30 COMPARATIVE ANALYSIS Current valuation multiples for Samson s Rocky Mountain peer group imply a Samson stock price of US $0.32 using a proved reserve metric US $0.40 using an NPV 10 metric Reserves NPV 10 (Bcfe) ($ Million) Samson 21.5 $51.00 Peer Group Multiple $ x Implied Value (Millions) $62.18 $77.47 Implied Value Per Share $0.32 $0.40 Implied Discount to Current Price 41% 53% 29

31 DRILLING & DEVELOPMENT PROGRAM Winter 2007/08 January: 29-2 Baxter Frac February: Stimulation of Harstad well March State GC # 2 extension April Sabretooth May Jonah development (2 wells) 30

32 REASONS TO CONSIDER The Baxter Shale is emerging as the next important fracture shale gas play in continental USA and has been demonstrated as a viable gas producer. Adding to oil production profile North Harstad 300 BOPD State GC #2 drilling The Company s recent PV-10 report of proved reserves as of June 30, 2007 represents $51 million. The value is derived from a Proved Reserve estimate of 21.4 Bcfe. Utilizing the best technology enabling a cost-effective exploration. Highly seasoned management team with over 50 years of compound geology experience. Substantially undervalued compared to its peers. American Stock Exchange listing. 31