Oil Company Key Facts

Founded in 1971, Samson Investment Company is a privately-held independent exploration and production company. Based on worldwide gas production, Samson is in the top 20 of the independent exploration & production companies based in the United States.

Worldwide operations originate from the Company’s headquarters in Tulsa, Oklahoma, and include key oil and gas regions in North America, Russia, Australia and Venezuela. Additional countries under review for possible investment are located in South America.

With an energy asset base of 85% natural gas, the Company steadily continues to profit and expand. In the last four years, Samson has invested $1.5 Billion in new drilling and oil and gas property acquisitions and continue to seek new drilling and acquisition opportunities.

Finance

Samson's financial strength derives from several sources. The Company has a strong base of internal capital with significant cash flow from product sales. It also maintains lines of credit with a network of U.S. and European banks. These re sources provide Samson with the immediate ability to meet its objectives of deploying capital to acquire producing oil and natural gas properties of all sizes and to expand its development and exploration drilling activities, domestically and internationally.

U.S. Operations

U.S. operations comprise 75% of the company’s reserve value and encompass a total of 28 geologic provinces in 19 states. U.S. producing oil and gas interests are concentrated in:

• The Anadarko Basin in western Oklahoma and the Texas Panhandle
• The Arkoma Basin in eastern Oklahoma and western Arkansas
• The Permian Basin
• The Texas Upper Gulf Coast
• South Louisiana
• Gulf of Mexico
• South Texas
• East Texas
• North Louisiana
• Michigan
• California
• Several other U.S. basins

Samson Acquires Contour Energy

In August 2003, Samson Investment Company announced the acquisition of Contour Energy Co. The transaction value, including retirement of Contour’s debt, is approximately $146 million. Contour, a privately held exploration and production company, is active in North Louisiana, South Louisiana and the Gulf of Mexico.

Jack Schanck, Co-CEO of Samson said, "This acquisition is very synergistic with Samson’s existing activities in Louisiana and solidifies Samson’s position as a significant Ark-La-Tex player. Samson has used a balanced method of growth in this region through both acquisitions and the drill bit. This purchase also includes 5 fields and 6 operated platforms in the Gulf of Mexico".

Canada

Since commencing operations in 1989, Samson Canada has consistently grown oil and gas production through both exploration and acquisitions. The Western Canadian Basin is one of the company’s key targeted growth areas.

Samson Canada operates in most areas of western Canada. Currently, the core areas are:

• Central Alberta
• Ft. St. John region of Northeast British Columbia
• Rainbow Lake

Activities include the production, transportation and processing of crude oil, natural gas and associated liquids. Samson’s daily Canada production exceeds 150 million cubic feet of natural gas equivalent. The company plans to continue to develop additional core properties by acquiring established production, either on an asset or whole company basis, or exploring and exploiting areas with high reserve potential, creating value by building a land position and infrastructure, and utilizing technology to reduce finding, development, and production costs.

International Operations

Samson’s activities in eighteen states and three countries outside the U.S. include operations of more than 3,000 producing wells and interests in more than 10,000 wells. Samson’s worldwide reserves are 85% natural gas. During the last four years Samson closed more than $900 million in acquisitions and invested $650 million in exploration and development. Plans for 2003 include substantial growth in these investment levels, continuing Samson’s commitment to profitable growth.

Russia

Samson has offices in the cities of Moscow and Ukhta (Komi Republic). Since 1996 Samson and its partner Vitol have been implementing a successful plan to efficiently develop the Sotchemyu Field. This field is located within the Komi Republic 850 miles north-northeast of Moscow, and only 150 miles south of the Arctic Circle. This location has presented Samson with a challenging operating environment as winter temperatures can reach -40° C. With the assistance of its Russian work force, the company has significantly enhanced production, installed state-of-the-art communications systems, engaged in development and exploratory drilling, implemented a 3-D seismic survey and improved the infrastructure.

Samson continues to increase production and focus on minimizing operating expenses. Over the last calendar year the company has seen a 20% increase in production from 6,000 barrels of oil per day to just over 7,000 barrels of oil per day.

Samson is currently reviewing additional opportunities for investment within Russia.

Venezuela

Samson has been active in Venezuela since 1994, when they were awarded the West Falcon Unit along with several Venezuelan partners. The West Falcon Unit is situated immediately to the east of the prolific Maracaibo Basin. The 890,000- hectare unit is geographically the largest land concession in Venezuela.

Samson’s initial task was to reactivate the Tiguaje oil field. The company rebuilt oil-treating and produced-water handling facilities and also reconstructed a crude oil pipeline and performed workovers and recompletions.

In addition, Samson has successfully discovered natural gas in the abandoned Mamon oil field. Future drilling is planned to exploit this gas discovery, which will be marketed as a fuel to nearby refineries. Samson has completed and interpreted a 34 square mile 3D seismic shoot for pending exploration activities.

Australia

In 2003, Samson successfully entered Australia in the Bowen- Surat Basin in the state of Queensland, eastern Australia. Samson gained an acreage position and operatorship in six permits with Sunshine Gas Limited, an Australian gas company, which also includes a permit with Santos Limited. Samson operates these permits through its Brisbane based subsidiary, Samson-International (Australia) Pty Ltd., with technical and operational support from the Samson Houston office. The permits, approximately 5 million acres gross, are held through the Queensland Department of Natural Resources and Mines and include both conventional gas and coal seam methane opportunities.