Flaming Gorge (Samson 50% Working Interest)

In the Flaming Gorge area, which comprises 6,400 acres in the south-western portion of the Green River Basin in Wyoming, Samson has formed a joint-venture with Devon Energy and has recently completed shooting phase I of a 3-D seismic survey in this area. Once the 3-D data is received, it will be interpreted and evaluated to determine the optimum location to drill an exploration well in this area. Devon is currently drilling a 16,000' well on an adjacent lease to the joint venture area leases. Samson's agreement with Devon provides that Devon will operate both the seismic acquisition and any subsequent exploratory program. Samson will retain a 50% interest in the leasehold block unless Samson permits a third party to complete the second farm-in well in the Greens Canyon area to earn an 18% equity stake in Samson's leases. In that circumstance, Samson would then retain only a 32% equity interest in these leases. Samson's acreage is also just 20 miles west of the area which is being vigorously developed in the Baxter Shale by third parties.