cash flow positive

ASX 09022007.DOC 9 February 2007 Manager Announcements Company Announcements Office Australian Stock Exchange Limited 4th Floor, 20 Bridge Street Sydney NSW 2000 PRODUCTION TO RAMP UP AS NEW DISCOVERIES ARE COMPLETED AND TIED-IN HIGHLIGHTS �� Completion of Redfork #1-29 Well underway. �� Gas production from CBM Wells ramping up. �� Woodford Shale completion set to commence. �� Cashflow positive with revenue to increase significantly as production rates build. The Directors of Redfork Energy Limited (“Redfork or the Company”) are pleased to announce that completion operations have commenced on the Redfork #1-29 Well. The various services have been coordinated and work to complete the Arbuckle oil zone encountered in this well has commenced. The casing adjacent to selected zones within the top 18 feet of the productive zone in this well (approximately 36 feet in total) has been perforated and the formation has been treated with acid. Swab testing is currently underway and the Company's will install pumping equipment to continue testing in the coming weeks. Results from this completion and test work will be released as they become available. Production from the Companies first two CBM wells, the Redfork #2-29 Well and the Redfork #4-29 Well is now increasing in line with expectations, with the #2-29 reaching 60MCFG/day and the much shallower (single zone completion) #4-29 Dawson coal well reaching approximately 15MCFG/day. These production rates are increasing as the formation water is drawn down and the Company expects the #2-29 well’s production rate to peak at or above the field average of 75MCFG/day within the current quarter. Recent exploration drilling by Redfork, has identified additional behind pipe reserves in several existing wells within the Company’s acreage. As previously announced, two new productive formations (the Redfork Sand and the Woodford Shale) were intersected in the Redfork #1-28 Well. The Woodford Shale (approximately 28 feet thick) produced a good show of gas and is expected to be productive. This zone is evident in several of the Company’s existing wells and could be completed quickly with the potential to produce at rates of approximately 75MCFG/day. Completion of the Woodford Shale in the CC2A well is scheduled to commence within the next 7 to 10 days.
ASX 09022007.DOC 2
The Company now expects to have a total of six (6) new wells completed and tied-in to production infrastructure during the March 2007 Quarter. This program (together with the completion of at least two Woodford Shale wells) will bring the total number of wells that have been drilled and/or completed by Redfork to twelve (12). Redfork is now cashflow positive with receipts from sales funding lease operating and corporate expenses. Production will increase to during the June 2007 Quarter, and continue to build as new wells are drilled and tied-in, with receipts from sales to increase significantly from current levels in the second half of 2007. Yours faithfully, David Prentice Executive Director For further information please contact: David Prentice, RedFork Energy Limited, Tel: (08) 9267 4220 RedFork Energy website: www.redforkenergy.com.au