Sampson Oil and Gas Limited Announces Rights Offering

Samson Oil and Gas Limited (NYSE Amex: SSN) today announced that it is

commencing a right offering to holders of its American Depositary Shares as of

the record date, September 16, 2009. The rights offering is being conducted

concurrently with a substantially similar rights offering being made to ordinary

shareholders in Australia and New Zealand. 

Each ADS owned of record at the close of business in New York City on September

16, 2009, entitles its holder to purchase six ADSs for the U.S. dollar

equivalent of A$0.24 per ADS, and two warrants will be included at no charge

with each ADS purchased. Each warrant will entitle its holder to purchase 0.05

of an ADS (so that 20 warrants will be required to purchase one ADS) at a cash

exercise price of A$0.30 per ADS, subject to adjustment. Warrants will be

nontransferable and nonvoting, and may be exercised until December 31, 2012.

Rights will be nontransferable. Each ADS represents 20 ordinary shares (or a

right to receive 20 ordinary shares) deposited with The Bank of New York Mellon,

the depositary. 

Samson intends to use the net proceeds of the combined U.S. and Australian

offerings to reduce amounts outstanding under its loan facility and carry out

its drilling programs for the fiscal years ending June 30, 2010 and June 30,

2011. 

The drilling programs involve the expected drilling of eight wells within

Samson`s prospect portfolio; these wells include oil development wells in

Samson`s Bakken Formation oilfield in North Dakota and in its New Mexico State

GC oil field. In addition, Samson plans to use the proceeds from the combined

U.S. and Australian rights offerings to support the drilling of several 3D

seismic data supported prospects such as Diamondback and Screech Owl located in

the Texas Gulf Coast Basin and is also expected to include gas developments

wells in the Jonah Field in Wyoming. The combined contingent recoverable

reserves associated with wells included in the programs amount to 0.5 mmstb of

oil and 2.3 Bcf net to Samson. 

The rights subscription period is scheduled to expire at the close of business

in New York City on September 29, 2009. Holders should timely contact the

financial intermediary through which they hold ADSs and rights. Please see the

complete subscription procedure instructions included in the prospectus

supplement filed with the SEC. 

This announcement does not constitute an offer to sell or the solicitation of an

offer to buy any securities in any jurisdiction. The rights offering is being

made only by means of a written prospectus which may be accessed on the U.S. SEC

website: www.sec.gov or our website: www.samsonoilandgas.com. 

For questions, please call BNY Mellon Shareowner Services, the information

agent, at 866-283-4694 or the Company at 303-524-3368.

About Samson

Our principal business is the exploration and development of oil and natural gas

properties in the United States, primarily focused on the Rocky Mountain region.

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

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                  

Forward-Looking Statements

Forward-looking statements in this announcement are made pursuant to the safe

harbor provisions of the Private Securities Litigation Reform Act of 1995. Such

forward-looking statements include, without limitation, Samson`s expectations

and estimates about future events, and the intended use of the proceeds of the

offering. These statements are based on management`s current expectations and

are subject to uncertainty and changes in circumstances. Actual events or

results may differ materially from those contained in the forward-looking

statements due to a variety of factors, including without limitation, changes in

the price of oil and natural gas and uncertainties inherent in estimating the

timing and results of exploration activities.Other risk factors are discussed in

the registration statement, prospectus supplement and Samson`s other filings

with the Securities and Exchange Commission ("SEC")(which may be viewed on the

SEC`s website at http://www.sec.gov). These documents contain and identify

important factors that could cause the actual results for Samson to differ

materially from those contained in Samson`s forward-looking statements. Although

Samson believes that the expectations reflected in the forward-looking

statements are reasonable, Samson cannot guarantee future results, levels of

activity, performance or achievements. Samson is under no obligation (and

expressly disclaims any obligation) to update or alter its forward-looking

statements, whether as a result of new information, future events or otherwise.

 Samson Oil & Gas Limited

Terry Barr, CEO, 303-296-3994

Cell: 970-389-5047