BROOKSIDE ENERGY LIMITED — Capital/Financing Update 2012

Oct 9, 2012

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ASX Announcement
October 10, 2012
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Maiden Mississippian Reserve Certification

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 summary of the initial reserve certification of its Mississippian oil and liquids rich gas holdings in Oklahoma. Lee Keeling and Associates, Inc. (“LKA”) carried out this independent certification. LKA have been engaged by the Company each year since 2006 to provide independent certification of the Company’s reserves.

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

Contact

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

Website

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)

The following summary outlines gross reserves for the Company’s Mississippian holdings as at June 30, 2012:

	Bbl	Bcf	Boe1.	NPV(10)2.	Net Wells
1P	1,676,000	2.4	2,071,000	24.8	6
2P	3,791,000	5.6	4,734,000	45.5	10
3P	23,013,000	36.0	29,028,000	158.0	35
1C	132,613,000	206.0	166,924,000	446.0	207
All	155,626,000	242.0	195,953,000	604.0	242

Notes:

1. The equivalent barrels (“Boe”) has been calculated on a simple 6:1 ratio with the total volume made up of 79% crude oil and 21% high BTU gas.

2. The NPV(10) or net present value at a 10% discount is net to Red Fork and includes capital and operational cost estimates as well as royalties and taxes (other than corporate taxes).

Commenting on this release, Red Fork’s Managing Director, David Prentice said; “We are very pleased with this early independent endorsement of the reserve potential of our holdings in the exciting Mississippian oil and liquids rich gas play in Oklahoma. This is a great starting point for establishing the scale of the opportunity we have in the Mississippian. We have already moved forward considerably with our initial development program from June 30, 2012 (the effective date of this certification) and the Company is now well funded to de-risk and unlock the value contained in the contingent resource and possible reserves categories. This will see significant increases in production and cash flow as the large inventory of development locations are drilled and completed for production in coming years.”

Continues…

Commentary:

The full field development plan for these reserves includes a total of 801 locations (based on three wells per 640-acre spacing unit). The economic model that generates the net present values (NPV at 10% discount) includes capital and operational cost estimates as well as royalties and taxes (other than corporate taxes).

The economic model uses SEC pricing. Using a constant price of US$95.89 per barrel for oil and a constant price of US$5.229 per MCF for gas (adjusted for the liquids yield contained in high BTU gas).

The volumes stated in this summary of reserves are based on gross amounts recoverable per 640-acre section. Red Fork’s Working Interest (“WI”) varies from section to section across its holdings, with the WI in its controlled sections averaging approximately 63% and the noncontrolled sections averaging approximately 20%. Importantly, the number of controlled sections is expected to increase as development ramps up.

LKA established an initial “type” well for their economic model based on results of Red Fork’s initial Mississippian development as at June 30, 2012 and a review of the performance of historic vertical Mississippian producers across its acreage position.

This “type” well produces the following key metrics:

Estimated Ultimate Recovery (“EUR”) Oil EUR 195Mbbl (100% Crude oil) Gas EUR 302MMcf (high BTU gas) Total EUR 245Mboe (79% Crude oil, 21% high BTU gas) NPV10 US$4.45MM

The Company believes that considerable upside exists in these estimates both from increased density (greater than three wells per 640-acre section) and improvements in well performance through well design and completion efficiency.

In addition LKA have applied a significant discount to the cash flows derived from the Contingent Resources that reflects the time taken to unlock these resources and their proximity to established production.

Yours faithfully,

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David Prentice Managing Director

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.

Reserve Certification

Lee Keeling & Associates, Inc. (LKA) undertook the independent certification of the reserves outlined in this announcement. LKA are engaged each year by the Company to review and prepare a report on the Company’s oil and gas reserves. LKA are petroleum consultants based in the United States with offices in Tulsa and Houston. LKA provide specific engineering services to the oil and gas industry and consult on all aspects of petroleum geology and engineering for both domestic and international projects and companies. LKA have consented to the release of this reserves information.

www.redforkenergy.com.au