BROOKSIDE ENERGY LIMITED — Capital/Financing Update 2012

Sep 3, 2012

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ASX Announcement
September 4, 2012
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Development Area 2 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

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)

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 Area 2 in Noble and Payne Counties, Oklahoma.

State #1-13H Well

(Red Fork WI 50%)

This well is drilling ahead at a measured depth of approximately 8,705 feet. The well is expected to reach target depth next week.

State #1-16H Well

(Red Fork WI 56%)

Listings

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

This well successfully reached its target depth of 9,231 feet and the well has now been logged and cased ready for completion operations. Logs and sample analysis indicate extensive shows of oil and gas across the lateral with several areas that have delivered very strong shows with free live oil and gas evident. The well is now awaiting completion.

Tasman #1-15H Well

(Red Fork WI 92%)

Reservoir stimulation operations have been successfully completed on this well, with a total of 15 stages completed over the length of the lateral. The isolation plugs have been removed and the well is flowing back load water at a rate of approximately 1,700 barrels per day with a cut of oil and a show of gas already evident. Forward operations will include running in the Electric Submersible Pump (“ESP”) for the commencement of production testing.

McMurtry #1-22H Well

(Red Fork WI 59.2%)

This well is awaiting completion.

Continues…

Bunch #1-19H Well

(Red Fork WI 94.9%)

This well is awaiting completion.

Warburton #1-23H Well

(Red Fork WI 100%)

This well is expected to spud in September 2012.

Mawson #1-3H Well

(Red Fork WI 75%)

This well is expected to spud in September 2012.

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)	Dev. 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%	Testing	712	4704	2
Blair #1-24H	92.7%	Producing	400	2735	2
McMurtry #1-22H	59.2%	Awaiting completion			2
Bunch #1-19H	94.9%	Awaiting completion			2
Tasman #1-15H	92.0%	Testing			2
State #1-16H	56.0%	Drilling			2
State #1-13H	50.0%	Drilling			2
Warburton #1-23H	100.0%	Set to spud			2
Mawson #1-3H	75.0%	Set to Spud			2

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. 23-day average rate

5. 21-day average rate – this well is temporarily shut-in as drilling operations ( State #1-13 well) are underway on this dual location.

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.

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• 1 Red Fork’s Working Interest (“WI”) is an estimate where final numbers are not available.

2 Barrels of oil equivalent is calculated on a simple 6:1 conversion of gas to oil.

• 3 Liquids rich gas produced from Red Fork’s Mississippian wells is typically 1,300 BTU or better.

www.redforkenergy.com.au