Exhibit 99.1


FOR IMMEDIATE RELEASE                           NEWS
NOVEMBER 29, 2004                                                     OTCBB-KEST

                   KESTREL ENERGY ANNOUNCES ITS NEUTRALITY ON
            SAMSON EXCHANGE OFFERS TO NON-U.S. KESTREL SHAREHOLDERS.


Kestrel Energy Inc. (OTCBB:  KEST.OB), an oil and gas exploration and production
company,  today  announced  that it  intends to remain  neutral on the  recently
announced  exchange  offer by  Samson  Exploration  N.L.,  an  affiliate  of the
Company, expected to be made to certain non-U.S. holders of the Company's common
stock.

By an  announcement  dated  November  22,  2004,  Samson  Exploration  N.L.,  an
investment  corporation  registered  in Australia  and traded on the  Australian
Stock Exchange Limited ("Samson"), indicated it will be making offers to certain
non-U.S.  holders of the Company's  common stock to exchange their Company stock
for Samson common  stock.  Samson's  announcement  did not disclose any specific
exchange  ratio for its offers  but it did  announce  that it would  issue up to
37,500,000  shares of its stock at a stated  value of  AUS$.259.  The  Company's
Board  of  Directors  has  determined   that  it  will  remain  neutral  on  the
advisability  or  merits  of any such  exchange  offers  made by  Samson  to the
Company's non-U.S. shareholders. To the Company's knowledge, no offers are being
made to any U.S.  persons or to any non-U.S.  persons residing or located in the
United States.

Samson currently  beneficially  owns  approximately  24% of the Company's common
stock.  In addition,  Golden Prospect Plc owns 29.95% of Samson and is therefore
deemed  to be a  beneficial  owner of the  shares  held by  Samson,  making  its
aggregate  beneficial  ownership  approximately  32% of the Company.  Samson has
indicated that it will also offer to purchase the shares of the Company owned by
Golden,  which is a non-US.  person.  One company  director  of Samson,  Neil T.
MacLachlan,  is also a director of the  Company.  In  addition,  Samson holds an
outstanding  promissory note of the Company in the principal  amount of $200,000
which is due May 4, 2006.

Headquartered in Denver, Kestrel has producing properties in Wyoming,  Oklahoma,
New Mexico and Texas.

Statements  made in this  press  release  that are not  historical  facts may be
forward  looking  statements.  Actual  events 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.  In addition, while
the Company  currently  understands  that Samson will make an exchange  offer to
non-U.S. shareholders of the Company, Samson's plans may change or other factors
may limit or preclude any such offer.  The Samson  exchange  offer could also be
affected by the  Company's  results,  which are  dependent  on various  factors,
including but not limited to exploration  or development  successes or failures,
equipment  availability  or breakage,  limited  financial  resources,  and other
factors.  A  description  of the risks  and  uncertainties  which are  generally
attendant  to Kestrel  Energy and its  industry as well as other  factors  which
could  affect the  Company's  financial  results are  included in the  Company's
report to the Securities and Exchange Commission on Form 10-KSB.


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                                    CONTACTS:
                                 Kestrel Energy
                                  303/295-0344
                        E-mail: mtemple@kestrelenergy.com