BROOKSIDE ENERGY LIMITED — Capital/Financing Update 2012

Jul 22, 2012

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ASX Announcement
July 23, 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)

Listings

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

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.

Activity within Development Area 2 is ongoing with two rigs currently operating in this area. The Company now has seven wells within this development area at various operational stages, from drilling through completion to production testing.

Blair #1-24H Well

(Red Fork WI 92.7%)

Testing is now complete on this well and it has been transferred to the Company’s production monitoring team. The Company is very pleased to report that the well achieved a peak rate of 400 barrels of oil equivalent per day and an average rate of 273 barrels of oil equivalent per day. This average has been calculated over 21 days of continuous production. Gas to oil ratios remain consistent with those reported earlier. The shorter than normal testing period resulted from the need to temporarily shut-in the well as drilling operations ( State #1-13 well) are underway on this dual location. The well will be brought back on line as soon as drilling operations have concluded on the State #1-13 well.

McMurtry #1-21H Well

(Red Fork WI 62.2%)

Production testing is continuing on this well and the Company is very pleased to report that the well has been producing uninterrupted since testing commenced, with an average daily rate of 648 barrels of oil equivalent achieved since the initial report. Gas to oil ratios remain consistent with those reported earlier. Oil and liquids-rich gas are being produced to sales. A 30-day peak and average rate for the well will be released when testing operations are completed.

McMurtry #1-22H Well

(Red Fork WI 59.2%)

This well is awaiting completion.

Bunch #1-19H Well

(Red Fork WI 94.9%)

This well successfully reached its target depth of 9,102 feet and the well has now been logged and cased ready for completion operations. The logs for this well are currently being processed.

Tasman #1-15H Well

(Red Fork WI 92%[i] )

This well successfully reached its target depth of 10,160 feet and the well has now been logged and cased ready for completion operations. The logs for this well have shown the largest area of pay that Red Fork has seen in the horizontal wells it has drilled to date, with approximately 3,295 feet of net pay. The well is now awaiting completion.

State #1-13H Well

(Red Fork WI 50%)

This well has spudded and is drilling ahead in the vertical section at a depth of approximately 500 feet.

State #1-16H Well

(Red Fork WI 56%[1] )

This well has spudded and is drilling ahead in the vertical section at a depth of approximately 985 feet.

Further updates will be provided as operations continue.

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.

• 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