A substract of latest activities statement: The Company expects...

A substract of latest activities statement: The Company expects to be able to produce from several intervals within the zone by utilizing a
staged stimulation approach, with wells capable of achieving stabilized flow rates in excess of
300,000 cubic feet of gas per day based on a three interval completion.
Red Fork expects to be able to drill in excess of 600 wells at East Oklahoma. The wells are
quick and inexpensive to drill and complete. In addition, results from initial test work indicates
that the gas produced from this shale is very high quality and the Company has already
established direct market access to several interstate gas markets as well as local power plants
through its 100% owned tap.
This combination of low capital and operating costs, high flow rates, high quality gas and direct
market access deliver very compelling economics and significant growth opportunities for the
East Oklahoma project.
The phase one development plan for the East Oklahoma project is now well underway, with four
production wells drilled, cased and cemented. The tap into the sales line has been completed
and is ready to be commissioned, a water disposal well has been drilled and permitted and the
construction of the compression facilities is set to commence.
The Company expects that a combination of existing funds, cash flow from sales and the
proceeds of the fully underwritten April 2009 options will provide sufficient working capital to
complete the phase one development plan at East Oklahoma. It is anticipated that revenue
from production will fund further project development beyond phase one.
West Tulsa Project (RFE 100% owned)
During the quarter, the Company continued development of its conventional oil and gas project
at West Tulsa with production testing from initial completions on wells at the Pawnee prospect.
The Company has drilled and completed three production wells (the Fuss #1-33, Fuss #1-34
and Rosier #1-27 wells) and a water disposal well (the Fuss #2-33) at the Pawnee prospect and
established extensive production facilities, including tank batteries, separation equipment and
gathering infrastructure.
Production testing on initial single zone completions in the Red Fork and Skinner conventional
oil zones has been successful, with an initial 160 barrels of oil sold from the Fuss #1-34 well.
Testing continued during the quarter with the well being produced via a submersible pump. This
delivered stabilized daily production of approximately 40 barrels of oil and 35,000 cubic feet of
gas per day, with approximately 550 barrels of water produced per day, with 2,500 feet of fluid
above the perforations. The submersible pump is capable of producing at a rate of
approximately 800 barrels of fluid per day, and the Company will continue to test the well with a
view to increasing total fluid movement and oil production.
In addition, the Company successfully tested a gas discovery in the Fuss #1-33 well. Gas was
discovered in the Lower Skinner sandstone formation, a proven productive interval in the area.
The well tested on varying choke diameters at between 150 MCF and 350 MCF gas per day,
with no measurable water production. Open flow potential was calculated to be approximately
900 MCF per day. Third party testing over a 24 hour period, subsequently achieved stabilized
flows of approximately 160,000 cubic feet of gas per day, with 3 barrels of oil and 2 barrels of
load water. Total stabilized gas production potential from this well and the Fuss #1-34 well
combined is currently approximately 200,000 cubic feet per day.