development area 2 mississippian operations

Development Area 2
Mississippian Operations
Progress Report

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 very pleased to provide the following update on operations from Development Area 2 in Noble and Payne
Counties, Oklahoma.

Activity within Development Area 2 is ramping up quickly with two rigs operating and a number of horizontal wells being completed for production and testing. The Company is very excited by the initial results coming from this area, both in terms of initial production results and results from logging and
sample analysis of wells being drilled and those that have
been drilled and are shut-in awaiting completion.

This area (Development Area 2), with existing and expanded
infrastructure could support in excess of 50 horizontal wells (in a full field development scenario).

This is just one of eleven Development Areas that the
Company is currently working to establish across its holdings in the Mississippian play.

Blair #1-24H Well

This well is currently testing and the Company is very pleased to report that during day three of this initial testing program production rates have increased significantly with 331 barrels of oil equivalent (253 barrels of 40 plus API crude and 470,000 cubic feet of 1,350 BTU gas) produced to sales in the last 24 hours.

The well is still cleaning up with a very high fluid level in the well bore. Casing pressure is building and only a small fraction of load (reservoir stimulation water) has been recovered to date.

Red Fork will continue testing the well with oil and gas going to sales during testing operations. A 30-day peak and
average rate for the well will be released when testing
operations are completed.



McMurtry #1-21H Well
Reservoir stimulation operations have been completed on this well with thirteen stages over the length of the lateral successfully completed. Following completion of the stimulation operations the well began flowing back load water at the rate of approximately 2,000 barrels per day. Operations to drill out the isolation plugs are now underway in preparation for production testing.


McMurtry #1-22H Well
This well is shut-in awaiting completion operations.


Bunch #1-19H Well
This well is currently drilling ahead in the lateral at approximately 6,300 feet. Mud logs and sample analysis has shown extensive shows of oil and gas across the lateral with several areas that have delivered very strong shows with free live oil and gas evident.


Tasman #1-15H Well
This well is currently drilling ahead in the lateral at approximately 7,200 feet. Again, mud logs and sample analysis has shown extensive shows of oil and gas across the lateral with several areas that have delivered excellent shows with free live oil and gas evident. Further updates will be provided as operations continue.

Yours faithfully,
David Prentice
Managing Director

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