BROOKSIDE ENERGY LIMITED — Interim / Quarterly Report 2013

Jun 12, 2013

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ASX Announcement
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June 13, 2013
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Monthly Operations 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 in Oklahoma.

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) Bruce Miller (Director Resources) Bill Warnock (Non Exec. Director) Larry Edwards (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)

Highlights

• Production growth continues with the month of May delivering average gross production capacity[1] of 2,357 Boe per day a 30% increase on the previous month (net production[2] for the month averaged ~1,800 Boe per day)

• Strong initial production results (24-hour IP’s) achieved during the month include 302Boe/day (Jardine #1-26H), 438Boe/day (Flinders #1-25H), 183Boe/day (Phil #1-19H) and 221Boe/day (Santana #1-30H)

• Three rigs operating across Red Fork’s Mississippian Development Areas drilling horizontal oil wells

• Four new wells completed in May for 39 (gross) horizontal wells across 8 (of 10) Development Areas now at various stages from drilling to producing

• Productivity improvements across all areas of operations – record spud to rig release of 17 days and consistent delivery of spud to sales days below 50 days (two wells recording spud to sales of 39 days)

Continues…

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During the month of May, Oklahoma experienced several severe storms affecting broad areas across the State. These storms impacted Red Fork’s operations with flooding and power outages. Over half of our Big River wells suffered some down production days. Thus gross average daily production for the month of May of approximately 1,800 Boe per day does not accurately reflect the additional production capacity Red Fork has achieved with the addition of new wells, and some improvements made on some of the more mature wells. Notwithstanding this, the very strong performance of our team in Oklahoma has delivered continued production growth across our Mississippian development areas.

The Company remains focused on our strategy to develop our acreage position within the term of our leases via our “held by production” drilling schedule. Importantly, increased drilling and completion activity and productivity improvements in cycle times (spud to spud and spud to sales) are delivering reserve growth and increased cash flow.

With this increased activity we are refining our reporting to focus on operational performance. This will include reporting of key performance indicators, operational cycle times, gross and net production (average daily Boe) across the Company, any individual well out-performance 24-hour IP’s and longer term production performance referenced to the Company’s type well as production stabilizes in the future.

The following table details the gross well status across the Development Areas.

	Development Area	Development Area	Development Area	Development Area	Development Area	Development Area	Development Area	Development Area	Development Area	Development Area	Development Area
	1	2	3	4	5	6	7	8	9	10	Total
Producing/Testing	2	14	2	5		2	2				27
Stimulating			1	1							2
Awaiting Stimulation		3	1	1				1		1	7
Drilling	1	1	1								3
Total	3	18	5	7		2	2	1		1	39

www.redforkenergy.com.au

Productivity improvements across all areas of operations are delivering results with a recent record spud to rig release of 17 days and consistent delivery of spud to sales days below 50 days (two wells recording spud to sales of 39 days during May).

Initiatives directed toward post completion production optimization are also delivering positive results with the introduction of jet pumps in the initial phase (first 30-days) of production testing of new wells and in some cases to improve productivity on more mature wells. The use of jet pumps is allowing wells to more effectively clean up prior to the installation of the electric submersible pumps. In some cases this will impact on timing for reaching stable peak production and therefore IP 30 rates.

A number of strong initial production results (24-hour IP’s) were achieved during the month including 302Boe/day (Jardine #1-26H), 438Boe/day (Flinders #1-25H), 183Boe/day (Phil #1-19H) and 221Boe/day (Santana #1-30H). In addition the State #1-13H achieved an IP30 rate of 118Boe/day. The Forrest #1-21H, Hammer Head #1-22H, Mako #1-27H, McMurtry #1-27H, Whitney#1-30H, Bull #1-16H and Carnegie #1-36H wells are all producing hydrocarbons to sales via Jet Pumps however it is too early to declare either peak or IP30 rates.

-ENDS-

For Enquiries:

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

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• 1 For the month of May the Company has calculated daily production capacity by averaging the actual producing days on those wells that suffered down time

• 2 Net production for the month of May 2013 is shown as production capacity attributable to Red Fork’s Working Interest

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.

www.redforkenergy.com.au