Goshen County State Lease Sale

Samson Oil & Gas Limited (ASX: SSN) (NYSE AMEX: SSN) is actively pursuing the development of the Upper Cretaceous Niobrara Formation as an oil productive reservoir in Goshen County.

On May 12, 2010 the Wyoming Office of State Lands & Investments held an oral auction for state oil & gas leases in Cheyenne, WY. Competitive bidding on these lease parcels were performed in an oral manner and priced on a per acre basis. 46 parcels located in Goshen County, where Samson holds a considerable acreage position (40,420 net acres) in the northern Denver-Julesburg Basin, were sold in the auction. The 46 state parcels comprised 16,880 acres which sold for a total price of $33.4 million, or an average price of approximately $2,000 per acre. The range of prices was from $500 to $3,050 per acre. The more expensive acreage was located in the deeper portion of the basin, south and on trend with Samson’s leasehold, while the less expensive acreage was located updip on the basin’s eastern flank where the Niobrara Formation is found at shallower depths. The results of the auction confirm that the industry currently has a high level of interest in the Niobrara Formation and suggest that the value of Samson’s acreage could benefit from its location adjacent to the higher priced acreage in the Auction.

Samson is actively in negotiations with several industry partners concerning a possible sale transaction that would reduce its equity in its Goshen County acreage whilst retaining a significant stake in the project Samson’s Ordinary Shares are traded on the Australian Securities Exchange under the symbol "SSN." Samson's American Depository Shares (ADSs) are traded on the New York Stock Exchange AMEX under the symbol "SSN." Each ADS represents 20 fully paid Ordinary Shares of Samson. Samson has a total of 1,439 million ordinary shares issued and outstanding, which would be the equivalent of 71.95 million ADSs. Accordingly, based on the NYSE AMEX closing price of US$0.62 per ADS on May 13, 2010, the company has a market capitalization of approximately US$44.6 million. Correspondingly, based on the ASX closing price of A$0.033 on May 13, 2010, the company has a market capitalization of A$47.48 million.

For and on behalf of the board of
SAMSON OIL & GAS LIMITED

TERRY BARR
Managing Director

Statements made in the presentation that is available on Samson’s website 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 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 Company's registration statement and report to the U.S. Securities and Exchange Commission on Form 20-F, as amended, a copy of which is available at www.sec.gov/edgar/searchedgar/webusers.htm.