BROOKSIDE ENERGY LIMITED — Capital/Financing Update 2012

Oct 3, 2012

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ASX Announcement
October 4, 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 from Development Areas 2 and 3 in Noble and Payne Counties, Oklahoma.

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

Contact

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

The Company currently has two Unit Drilling rigs operating in the Mississippian play with the third Unit Drilling rig to commence mid October and the fourth rig due to commence operations in January 2013.

Website

www.redforkenergy.com.au

Development Area 2

Directors

Blair #1-24 Well (Red Fork WI 92.7%)

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

The Electric Submersible Pump (“ESP”) on this well has been serviced and work to circulate and condition the well bore is currently underway in preparation for the resumption of production.

Listings

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

Tasman #1-15H Well

(Red Fork WI 92%)

The flow back of this well is proceeding as planned and the Company is encouraged by the early positive results. The well is already delivering oil and gas into the Company’s permanent production facilities. There is currently approximately 3,400 feet of fluid over the pump and casing pressure is building. This flow back profile compares favorably with that experienced on the McMurtry #1-21H well.

Bunch #1-19H Well

(Red Fork WI 94.9%)

A change to the reservoir stimulation schedule has seen this well moved up ahead of the McMurtry #1-22H well and reservoir stimulation operations are now underway on this well.

McMurtry #1-22H Well (Red Fork WI 59.2%)

This well is awaiting completion. Reservoir stimulation operations are expected to be conducted during October.

Continues…

State #1-16H Well

(Red Fork WI 62%)

This well is awaiting completion. Reservoir stimulation operations are expected to be conducted towards the end of October.

State #1-13H Well

(Red Fork WI 50%)

This well is awaiting completion.

Warburton #1-23H Well

(Red Fork WI 61.5%)

This well is currently at a measured depth of 5,254 feet. The curve was successfully landed approximately 80 feet below the top of the Mississippi Lime as planned and current operations include logging and casing prior to commencement of drilling of the lateral section.

Development Area 3

Mawson #1-3H Well

(Red Fork WI 100%)

This well is drilling ahead in the curve at a measured depth of approximately 5,340 feet. The top of the Mississippi Lime was intersected at 4,645' feet (total vertical depth).

The following table details the status of wells drilled 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%	Testing			2
Bunch #1-19H	94.9%	Completing			2
McMurtry 1-22H	59.2%	Awaiting completion			2
State #1-16H	62.0%	Awaiting completion			2
State #1-13H	50.0%	Awaiting completion			2
Warburton #1-23H	61.5%	Drilling			2
Mawson #1-3H	100.0%	Drilling			3

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 – this well was temporarily shut-in as drilling operations ( State #1-13 well) were underway on this dual location

www.redforkenergy.com.au

Further updates will be provided as operations continue.

Yours faithfully,

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David Prentice Managing Director

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