Samson Restructures Hedging Arrangements

http://www.businesswire.com/news/home/20091116006817/en

DENVER & PERTH, Australia--(Business Wire)--
Samson (ASX: SSN) (NYSE AMEX: SSN) previously entered into derivative positions
with respect to its oil and natural gas production. Oil and natural gas prices
have risen significantly since these hedges were entered into and thus the Board
of Samson have determined that, following the recently completed rights offering
in the United States and Australia capital raising, it was prudent to use some
of the funds raised to close out all of these outstanding hedge positions. On
November 13, Samson closed out these positions with a payment of US$406,248 to
Macquarie Bank Limited, the counter party to the hedge positions.

On November 13, Samson entered into the following derivative positions, which
represents approximately 50% of current production:

Oil - Ratio Collar priced at West Texas Intermediate

Date Call/Put Volume - barrels Price per Barrel - USD
December 2009 - December Put 21,431 60.00
2011
December 2009 - December Call 21,431 102.90
2011

Natural Gas - Ratio Collar priced at Henry Hub

Date Call/Put Volume - mmbtu Price per MCF - USD
December 2009 - December Put 125,149 4.75
2011
December 2009 - December Call 125,149 6.15
2011

Natural Gas - Ratio Collar priced at Colorado Interstate Gas

Date Call/Put Volume - mmbtu Price per MCF - USD
December 2009 - December Put 440,884 4.25
2011
December 2009 - December Call 440,884 5.80
2011

By using a combination of a put and a call, Samson is fixing a floor for the
commodity prices while still allowing participation in upward movements in the
commodity prices.

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, 303-296-3994
Cell: 970-389-5047
CEO

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