BROOKSIDE ENERGY LIMITED — Capital/Financing Update 2012

Nov 6, 2012

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ASX Announcement
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November 7, 2012
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Mississippian Operations Progress Report

Red Fork Energy Limited ACN 108 787 720

Level 2, 79 Hay Street Subiaco Western Australia 6008 PO Box 1424 West Perth WA 6872

Oklahoma based (Australian Securities Exchange and OTCQX listed) oil and gas exploration and production company, Red Fork Energy Limited (“Red Fork” or the “Company”) is pleased to provide the following update on operations. The Company currently has three rigs active in the Mississippian play with 14 wells across four development areas at various stages from producing, completing, awaiting completion and drilling. A fourth rig is scheduled to commence operations in the first quarter of 2013.

Telephone +61 8 9200 4470 Facsimile +61 8 9200 4471

Contact

David Prentice Managing Director david.prentice@redforkenergy.com.au

Website

Highlights

www.redforkenergy.com.au

Directors

Michael Fry (Chairman) David Prentice (Managing Director) Perry Gilstrap (Director Operations) Bruce Miller (Director Resources) Steve Miller (Non-Executive Director)

Listings

RFE.AX (Fully Paid Ordinary Shares) RDFEY.OTCQX (1 ADR = 10 FPO’s)

• Four horizontal wells now successfully producing to sales through permanent production facilities

• Last three wells have achieved 30-day average production rates at or above the LKA type well

• Three new horizontal wells successfully completed for production and stimulated during October

• Two more horizontal wells expected to be completed for production and stimulated during November

• Three rigs operating with two new horizontal wells drilling ahead and a third well set to spud

• 3D Seismic coverage reaches 99 square miles

Development Area 2

Bunch #1-19H

Production testing has begun on this well and early results are encouraging. There have been good shows of both oil and gas with over 3,600 feet of fluid still above the pump. Sales will begin immediately.

Jardine #1-26H

This well is currently drilling ahead in the curve at a measured depth of 5,155 feet and is expected to reach a target depth of 10,019 feet. We are using the same bottom-hole assembly that was used to obtain our fastest well to date; taking that into consideration and the type of geology we are expecting to encounter during drilling we anticipate another spud to landing of around 25 days.

Continues…

McMurtry #1-22H

The reservoir stimulation has been completed and the isolation plugs have been drilled out. All completion work was performed on schedule with no operational issues. The submersible pump has now been installed and the well is testing into permanent production facilities. There were a total of 14 sets of perforations with the first being set at a measured depth of 9,198 feet and the top perforation set at 5,452 feet.

State #1-16H

Reservoir stimulation has been completed with good results. This well is currently flowing to test facilities. This is the third well to undergo reservoir stimulation in the month of October. Equipment is currently moving to location to drill out the isolation plugs. The well is expected to be on production in approximately 7 days.

State #1-13H

Reservoir stimulation operations are scheduled to commence this week.

Tasman #1-15H

This well is producing to sales via the Companies permanent production facilities. As outlined in previous updates this is the first well where Red Fork has applied a more conservative flow back profile utilizing a smaller submersible pump to flatten the initial decline and produce a higher Estimated Ultimate Recovery. Results have been encouraging with the well achieving a peak rate of 250 barrels of oil equivalent (“Boe”) and the well is on track to achieve a 30-day average rate of 180 Boe/day.

Warburton #1-23H

Drilling operations have been completed with the well successfully reaching a total vertical depth of 4,704 feet and a target depth of 9,568 feet. Continuous oil and gas shows were experienced throughout the lateral section. Reservoir stimulation is expected to commence in late November.

Development Area 3

Hartog #1-10H

Drilling operations have begun and this well is currently drilling ahead in the curve at a measured depth of 4,818 feet, expected target depth is 9,377 feet. This is the second well drilled on this pad site and only the second to be drilled in this development area.

Mawson #1-3H

This well has reached target depth of 9,581 feet. Reservoir stimulation is scheduled to begin in December. The Company is excited about the productive potential of this new area given the extensive oil shows throughout the lateral section and the fact that the well flowed oil and gas during casing operations.

www.redforkenergy.com.au

Development Area 4

EastOK-Holland #1-21 SWD

We are currently drilling ahead in the Arbuckle formation at 5,865 feet. Target depth is expected to be reached in the next 12 hours. Once drilling operations are complete the rig will skid and begin drilling the first horizontal producer in this development area, the Forrest #1-21H.

Seismic Update

Last week seismic crews completed recording Red Fork’s 48 square mile Big River 3D Phase 5 seismic shoot. Processing and interpretation are expected to be complete by midNovember. When combined with the 51 square miles already completed, Red Fork will have seismic coverage over 99 square miles. Permitting is under way on an additional three smaller shoots with a combined coverage of an additional 18 square miles, some of which will be completed by year’s end.

Yours faithfully,

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David Prentice Managing Director

www.redforkenergy.com.au

The following table details the status of wells across the Company’s Big River Mississippian development areas to date.

Well Name	RFE WI 1	Status	Peak Rate (Boe/d) 2	30-Day (Boe/d)	Development Area
Tahara #1-28H	100.0%	Producing	283	139	1
Abunda #1-21H	100.0%	Testing3	N/A	N/A	1
McMurtry#1-21H	62.2%	Producing	712	445	2
Blair #1-24H	92.7%	Producing	400	2734	2
Tasman #1-15H	92.0%	Producing	250	180	2
Bunch #1-19H	94.9%	Unloading			2
McMurtry#1-22H	59.2%	Unloading			2
State #1-16H	62.0%	Cleaningup			2
State #1-13H	50.0%	Awaitingcompletion			2
Warburton #1-23H	61.5%	Awaitingcompletion			2
Mawson #1-3H	100.0%	Awaitingcompletion			3
Jardine #1-26H	40.9%	Drilling			2
Hartog#1-10H	93.7%	Drilling			3
Forrest #1-21H		Set to spud			4
Rio Grande #1-28H					4

Notes:

1. Red Forks Working Interest

2. The equivalent barrels production rate has been calculated on a simple 6:1 ratio

3. Well is still testing

4. 21-day average rate

www.redforkenergy.com.au

Forward Looking Statements

This announcement contains “forward-looking statements”. Such forward-looking statements include, without limitation: estimates of future earnings, the sensitivity of earnings to oil & gas prices and foreign exchange rate movements; estimates of future oil & gas production and sales; estimates of future cash flows, the sensitivity of cash flows to oil & gas prices and foreign exchange rate movements; statements regarding future debt repayments; estimates of future capital expenditures; estimates of reserves and statements regarding future exploration results and the replacement of reserves; and where the Company expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. However, forward looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by such forward-looking statements. Such risks include, but are not limited to oil and gas price volatility, currency fluctuations, increased production costs and variances in reserves or recovery rates from those assumed in the company’s plans, as well as political and operational risks in the countries and states in which we operate or sell product to, and governmental regulation and judicial outcomes. For a more detailed discussion of such risks and other factors, see the Company’s Annual Reports, as well as the Company’s other filings. The Company does not undertake any obligation to release publicly any revisions to any “forward looking statement” to reflect events or circumstances after the date of this release, or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws.

www.redforkenergy.com.au