Waiver Granted in Relation to Debt Covenant Breach and Additional Hedging

DENVER & PERTH, Australia--(Business Wire)--
Samson`s semi-annual accounts, as at 31 December 2008 and published on 14 March
2009, included an acknowledgement that Samson was in breach of a covenant within
the convertible note facility with Macquarie Bank Limited ("Macquarie"). On 25
March 2009, Macquarie granted a waiver in respect of this breach. The covenant
at issue requires the company`s Proved Developed Producing reserve value to
exceed the outstanding loan amount by 20%. The forward price curve in this test
is discounted by 5%. The breach was caused by the dramatic price drop of both
oil and natural gas which occurred in the later part of 2008. Macquarie has
included a number of conditions in this waiver, including entering into
additional hedging arrangements, some of which have already been put in place,
as previously advised. Additional hedges with respect to oil production and
natural gas production have also been entered into.

Oil - Ratio Collar priced at West Texas Intermediate
Date Call/Put Volume - barrels Price per Barrel - USD
April 2009 - December 2009 Put 10,951 $46.00
April 2009 - December 2009 Call 6,352 $55.00

January 2010 - December 2010 Put 13,256 $53.00
January 2010 - December 2010 Call 9,147 $62.00

By using a combination of a put and a call, Samson is fixing a floor for the remainder of 2009 at $46.00 a barrel and for 2010 at $53.00 a barrel while still allowing participation in upward movements in the price of
oil. Samson has reduced the volumes associated with the calls in order to limit the volume of oil which will have a fixed price of $55.00 for the remainder of 2009 and $62.00 for 2010.

Natural Gas - Fixed Forward Swap priced at Henry Hub
Date Volume - mmbtu Price per mmbtu - USD
April 2009 - December 2009 52,399 $4.06
January 2010 - December 2010 59,396 $5.62

In addition, as previously advised, Macquarie has agreed to take an equity
position in Samson in exchange for its options under the credit facility which
will when fully effected amount to a 15% holding.

Samson`s Ordinary Shares are traded on the Australian Securities Exchange under
the symbol "SSN." Samson's American Depository Receipts are traded on the NYSE
Amex 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

TERRY BARR
Managing Director

Samson Oil & Gas Limited
Terry Barr, CEO, 303-296-3994 (US office)
970-389-5047 (US cell)

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