BROOKSIDE ENERGY LIMITED — Capital/Financing Update 2012

Jul 9, 2012

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ASX Announcement
July 10, 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

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.

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

Contact

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

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

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)

Blair #1-24H Well

(Red Fork WI 92.7%)

Production testing is continuing and the Company is very pleased to report that the well has been producing uninterrupted since testing commenced with rates between 350 and 400 barrels of oil equivalent per day recorded. 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.

Listings

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

McMurtry #1-21H Well

(Red Fork WI 62.2%)

Reservoir stimulation operations have been completed successfully. The well is testing with the electric submersible pump installed and operating. Load water is currently being recovered and the well is already showing oil and gas with casing pressures building. This is consistent with the results achieved at this stage of testing on the Blair #1-24H well .

McMurtry #1-22H Well

(Red Fork WI 59.2%)

This well is awaiting completion. Completion operations are set to commence within the next 10 days.

Bunch #1-19H Well

(Red Fork WI 94.9%)

This well is currently drilling ahead in the lateral at approximately 8,900 feet. Mud logs and sample analysis continue to produce extensive shows of oil and gas across the lateral. Whilst some difficult drilling conditions where experienced in the section immediately above the Mississippian section, the well has progressed through the lateral section without incident. These unusual drilling conditions did impact on the drilling time for this well.

Tasman #1-15H Well

(Red Fork WI 92%[i] )

This well is currently drilling ahead in the lateral at approximately 10,000 feet. Again, mud logs and sample analysis continue to produce extensive shows of oil and gas across the lateral. This well should reach its target depth in the next few days. Forward operations will include open hole logging and running and cementing production casing.

State #1-13H Well

(Red Fork WI 50%)

This well is set to spud, with equipment currently being moved on location and the well expected to spud within a few days. This well (a direct off-set to the Blair #1-24H Well ) is the first well to be drilled using a Unit Drilling Company rig.

State #1-16H Well

(Red Fork WI 56%[1] )

This well (a direct off-set to the McMurtry #1-21H Well ) will spud immediately following the conclusion of drilling operations on the Tasman # 1-15H Well .

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.

www.redforkenergy.com.au