BROOKSIDE ENERGY LIMITED — Capital/Financing Update 2014

Feb 20, 2014

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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

2013 Year End Reserves Report

Red Fork Energy Limited (ASX: RFE, OTCQX: RDFEY, Red Fork or the Company) is pleased to provide a summary of its independent reserve estimates, effective as at December 31, 2013. The reserve estimates were evaluated by the Company’s petroleum consultants in the United States, Lee Keeling & Associates, Inc.

Highlights:

• 1P Reserves: Group net Proved reserves have increased by 130% year-on-year to 18.6 mmboe.

• 3P Reserves: Group net Proved plus Probable plus Possible reserves have increased by 86% year-on-year to a Company record 33.5 mmboe.

Directors

Michael Fry (Chairman) David Prentice (Managing Director) Bill Warnock (Non Exec. Director) Larry Edwards (Non Exec. Director) David Colwell (Non Exec. Director)

Executive Management

Chris Girouard (President & COO) Kevin Humphrey (Chief Financial Officer) Lee Francis (Exec. VP Operations) Suzie Foreman (Company Secretary)

Listings

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

• Net Present Value (NPV10): Group 1P NPV10 has increased by US$188 million in 12 months to US$277 million. Group 3P NPV10 has increased by $274 million to US$491 million.

• Big River development drives reserve increases: Big River continues to be the driver of growth in group reserves with 1P reserves increasing by 465% year-on-year to 14.7 mmboe, and 3P reserves increasing by 196% year-on-year to 28.4 mmboe.

• Forward Program: Review of the 2014 forward program for Big River with the goal of delivering a plan to continue the development of the leasehold without the need for additional debt or equity.

All Group Reserve Categories Upgraded

About Red Fork Energy

Red Fork Energy is an Australian domiciled publicly traded oil and gas producer and explorer, with assets and operations in Oklahoma.

The Company has positioned itself in one of the premier on-shore United States horizontal oil resource plays, with a large and prospective acreage position in the heart of the Mississippi Lime oil and liquids rich gas play.

Group net reserve estimates are summarized in table 1 below. Estimates for all reserve categories increased significantly in the 12month period ended December 31, 2013. The majority of the increase was in the proved category.

Group net 1P reserves increased by 33.4% to 18.6 mmboe in the six months since 30 June 2013, driving a 32.2% increase in Group 2P reserves to 24.6 mmboe and an 18.0% increase in Group 3P reserves to 33.5 mmboe. This represented an additional 15.4 mmboe in Group 3P reserves in the 12 month period, and 5.1 mmboe in the six months since Red Fork’s mid year reserves update.

The net present value of Group 1P reserves more than tripled to US$277 million (up 210%) in the 12 months to December 31, 2013, and increased by 41% since Red Fork’s mid year update in June. The net present value of Group 3P reserves increased by US$274 million to US$491 million in the 12-month period.

Continued….

Table 1.

GroupEstimated Net Reserves(post royalties)As at December 31, 2013	Oil (mmbl)	Gas (bcf)	mmboe2	NPV103(US$m)
Proved 1P	10.0	51.6	18.6	277
Proved plus Probable 2P	13.9	63.9	24.6	346
Proved plus Probable plus Possible 3P	19.9	81.3	33.5	491

Big River Project

Big River net reserve estimates are summarized in table 2 below. Big River was the focus of the Company’s activities during calendar 2013 with drilling and development activity adding significant reserves across all categories. The largest increase in net present value in the twelve months to December 31, 2013 was in the proved category with Big River 1P NPV10 up 332% on the previous period to US$238 million. In terms of volumes Big River net 1P reserves increased by 465% to 14.7mmboe, with Big River net 2P reserves up 469% to 19.9 mmboe and Big River net 3P reserves up 196% to 28.4 mmboe.

Table 2.

					3
Big River
Estimated Net Reserves(post royalties)	Oil (mmbl)	Gas (bcf)	mmboe2		NPV10(US$m)	Net Wells
As at December 31, 2013
Proved 1P	9.0	34.4	14.7		238	80
Proved plus Probable 2P	12.4	44.7	19.	9	295	115
Proved plus Probable plus Possible 3P	18.1	61.6	28.
					433	164
				014 forward program for

Forward Program

The Board and executive management team are currently reviewing the 2014 forward program for the Big River Project with the goal of continuing with the development of the leasehold without the need for additional debt or equity. This will require an adjustment to the current rig line and drilling schedule. The review of the 2014 forward program is being undertaken in the context of the Group Estimated Net Reserves (and the attendant Group NPV10 value) as at December 31, 2013; the HBP drilling schedule; and the current market capitalization of the Company. The Company will update the market with further details as soon as the review is completed and a revised development plan is finalized and approved by the Board.

Reserve Methodology and Assumptions

The economic model used to establish the net present value for these reserves uses SEC pricing method, based on a constant price of US$96.76 per barrel for oil and a constant price of US$3.65 per mcf for gas. Differentials were used to adjust the gas price for the liquids yield contained in high BTU gas. Drilling and completion costs per horizontal Big River well were estimated at US$2.96 million.

Lease operating expense assumptions for horizontal Big River wells in this reserve report were increased from the prior report to reflect changes in production methods, which have resulted in better recovery of reserves. The reserve report assumes recurring expenses of US$5,500 per month for the first twenty-four months of production, US$3,500 per month for the next 24 months and US$2,000 per month thereafter for the life of the well. The severance tax expense for horizontal wells in Oklahoma is calculated at 1% for the first 48 months of production and then reverts to the statutory rate of 7% thereafter.

www.redforkenergy.com.au

Reserve Certification

The information contained in this report, which relates to oil and gas reserve estimates is based on, and fairly represents the independent certification of Company’s oil and gas reserve information and supporting documentation (Reserve Report) prepared by Phil Grice of Lee Keeling & Associates, Inc. (LKA). 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 in the form and context to which the estimated petroleum reserves and the supporting information are presented.

-ENDS-

For Enquiries: Investors David Prentice Managing Director Red Fork Energy Limited +61 8 9200 4470

Steve Suleski FTI Consulting Tel: +61 8 9485 8888 Mob: +61 419 912 534 steve.suleski@fticonsulting.com

www.redforkenergy.com.au

Notes:

1. Million (“mm”) barrels of liquids and billion (b) cubic feet of gas.

2. The equivalent barrels (“boe”) have been calculated on a simple 6:1 ratio (oil to gas ratios vary across the Mississippian play however Red Fork’s results to date indicate that they are typically in the range of 70% to 80% oil with the balance made up of liquids rich gas). Boe may be misleading, particularly if used in isolation. A boe conversion ratio of 6 mscf: 1 bbl is based on an energy equivalency conversion method. It should be noted that the value ratio based on the price of crude oil compared to the price of natural gas can and currently does vary significantly from the energy equivalency of 6 mscf: 1 bbl.

3. NPV10 is defined as the future Net Revenues of the Company’s Proved, Probable and Possible reserves, discounted at 10% per annum. The estimated future net revenue values do not necessarily represent the fair market value of the Company’s reserves.

4. Net Revenue is calculated net of royalties, production taxes, lease operating expenses and future capital expenditures, before Federal Income Taxes.

5. HBP Program means the “Held by Production” drilling program.

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