BROOKSIDE ENERGY LIMITED — Capital/Financing Update 2007

Nov 15, 2007

16 November 2007

Manager Announcements Company Announcements Offices Australian Stock Exchange Limited 4th Floor, 20 Bridge St Sydney NSW 2000

==> picture [99 x 108] intentionally omitted <==

Osage Project Drilling & Development

Red Fork Energy Limited (Red Fork or the Company) (ASX:RFE) is pleased to announce that drilling at the Company’s 100% owned Osage Project is set to re-commence.

The Company has drilling contracts in hand for two drilling rigs, an air rig suitable for shallower Coal Bed Methane drilling and a larger rig capable of penetrating all potential pay zones within the Osage Project, including the Wilcox and Tyner Sand oil zones.

The Company has permits in hand to drill a total of five wells and we have commenced building locations in preparation for spudding of the first well in the first week of December. The Company is expects to have these wells completed and tied-in to sales in the first quarter of 2008.

In addition, the Company is now well advanced with its acquisition of the additional gas gathering and pipeline infrastructure announced in September of this year. This gathering system and infrastructure is designed to accommodate flow rates in excess of 10MMcfd.

The Company has commenced planning and permitting for the construction of the tie-line that will be used to connect this new system to the Company’s existing infrastructure. The current schedule will see the new system connected, commissioned and operating in the first half of 2008, enabling the Company to sell its product into the spot market at 100% of the Henry Hub[1] spot price (less standard federal regulated transportation costs).

Red Fork Energy Ltd is an Australian publicly listed company engaging in oil and gas exploration and production in Oklahoma, United States. It is here that the company is exploring and developing coal bed methane, unconventional gas, and conventional oil and gas targets on its 34,000 acre holdings. The company is listed on the Australian Stock Exchange (ASX) under the code "RFE".

Yours faithfully,

David Prentice Managing Director

For further information please contact: David Prentice, RedFork Energy Limited, Tel: (08) 9223 9883

RedFork Energy website: www.redforkenergy.com.au

1 A natural gas pipeline hub in Louisiana that serves as the delivery point for New York Mercantile Exchange natural gas futures contracts and often serves as a benchmark for wholesale natural gas prices across the U.S