On April 10, 2019, Samson Oil and Gas USA, Inc. (“Samson USA”), a wholly-owned subsidiary of Samson Oil & Gas Limited (the “Company”), entered into a Credit Agreement (the “Credit Agreement”) dated as of April 9, 2019, by and among Samson USA, certain lenders from time to time party thereto (the “ Participating Lenders”), and AEP I Finco LLC (the “Lead Lender”). Under the Credit Agreement, the Participating Lenders agreed to establish a $33.5 million term loan facility in favor of Samson USA secured by mortgages on all of its oil and gas properties (the “Loan”). The Company also entered into a Guaranty dated April 9, 2019, for the benefit of the Participating Lenders pursuant to which the Company guaranteed the Loan and all obligations of Samson USA under the Credit Agreement and pledged its assets, including its shares of Samson USA common stock, as security for that guarantee. The Company, Samson USA, and Samson USA’s wholly owned subsidiary, Samson Oil and Gas Montana, Inc., also entered into a Security Agreement dated April 9, 2019, pursuant to which the Participating Lenders received a security interest in all of their assets to secure the Loan.

Interest on the Loan is payable monthly at a rate equal to (i) a calculated average of the annual LIBOR rate, which may not be less than 1.75%, plus (ii) between 9.5% and 10.5%, for a minimum interest rate of 11.25% per annum. Commencing with the fiscal month ending September 30, 2020, the Company will be required to make monthly principal payments on the loans in an amount determined by a monthly straight-line amortization formula. Repayment of all principal and interest is due on April 9, 2024.

As required by the Credit Agreement, Samson USA entered into commodity hedge swap arrangements for 770,000 barrels of oil, essentially fixing its sales price for approximately 85% of its currently expected Proved Developed Producing (PDP) reserves at a weighted average of $55.45 per barrel. While Samson USA’s proved undeveloped (PUD) reserves have not yet been hedged, it is required to maintain an 85% swapped volume all PDP reserves on a go forward basis.

The foregoing description of the Credit Agreement, Guaranty and Security Agreement is not complete and is qualified by the full text those agreements, which are attached hereto as Exhibits 10.1, 10.2 and 10.3 and incorporated by reference herein.