Samson Oil and Gas finalized a new credit facility with Mutual of Omaha Bank for up to $25 million, with an initial borrowing base of US$8 million. The facility has a three year term with an interest rate of LIBOR plus 3.75% (approximately 3.908% for January 2013)

Samson has drawn down $4 million from the facility , with the remaining $4 million to be drawn down after the implementation of a hedging program. The hedging program is expected to be in place within the next two weeks. The loan proceeds will be used to fund Samson's current continuous drilling program in the North Stockyard project in North Dakota. The loan agreement for the new facility provides for periodic re-determinations of the borrowing base based on Samson's estimated proved reserves.

Samson presently expects that its Proved reserves and, consequently, its borrowing base, will grow as drilling continues on its North Stockyard infill development program and as the initial drilling program in the Rainbow project is commenced. In particular, as the Three Forks bench 1 is developed in North Stockyard, there are 8 wells currently classified as Probable that would be changed to Proved Developed Producing when these wells are completed. Drilling of these Three Forks wells is currently expected to commence in late 2014 following the completion of the 4 "corner" wells targeting the middle Bakken formation. The first two of these middle Bakken wells (Rennerfeldt 1 and 2) are currently being batch drilled.