REDFORK ENERGY - ASX ANNOUNCEMENT 7 January 2010 Gas Sales Established at West Tulsa - First gas sales established through fully operational gathering and compression facilities at West Tulsa Project - Gas production to compliment already profitable oil production 150,000 cubic feet per day of associated gas being produced from two primary oil producing wells - Gas sold via a percentage of proceeds contract on both gas and plant liquids at approximately $7.00 per Mcfe - Sales volumes set to increase as Pawnee prospect development continues US-focused oil and gas exploration and production company Red Fork Energy Limited ("Red Fork" or "the Company") is pleased to announce that gas sales have been established at the Companys Pawnee Prospect at the 100% owned and operated West Tulsa Project. Gas associated with the primary oil production at Pawnee has been directed to sales through the Companys now fully operational gathering, compression and tap facilities. Sales have been established at the rate of approximately 150,000 cubic feet per day (from two wells) and gas is being sold to an established Oklahoma based midstream company via a percentage of proceeds contract.

Red Fork will realize approximately US$7.00 Mcfe from the sale of gas and plant liquids. The permanent gas gathering, compression and sales facilities the Company has built at Pawnee are capable of handling volumes of 500,000 cubic feet (without further expansion) and Red Fork expects to build on these initial volumes as the Pawnee Prospect is further developed with immediate increases from existing wells to be tied in this quarter. Red Fork now has six production wells, one water disposal well and significant permanent oil (and now gas) production facilities established at Pawnee, and importantly the Company has already identified and tested a number of productive gas zones that will compliment the primary oil production at Pawnee. Commenting on this announcement, Red Fork Managing Director David Prentice said "The establishment of sales of associated gas from oil wells at Pawnee is another important step in the development of this exciting project. "We are looking forward to building on this initial production rate and see the investment in the gas gathering, compression and sales infrastructure at Pawnee as key to improving the economics of what is already very profitable oil production from this project. "With continued success at Pawnee it is possible that revenue produced from this associated gas could fund a large percentage of our oil production costs, making this project extremely profitable for Red Fork."
Click here to view the ASX announcement http://esp.gewru.com/download/files/12414/1045860/Gas%20Sales%20Established%20at%20West%20Tulsa.pdf About Red Fork Energy Limited Red Fork Energy Limited is an Australian publicly listed company developing oil and gas assets in Oklahoma, United States.

The Company currently owns and operates three projects, East Oklahoma (~110,000 acres), West Tulsa (~15,000 acres) and Osage (~5,000 acres).

These assets provide proven producing oil and gas fields as well as highly prospective exploration acreage for future growth.

Red Fork is well advanced in achieving its goal of becoming an independent exploration and production company through the commercialization of the coal bed methane, shale gas and conventional oil and gas resources located within its landholdings.
For further information please contact: David Prentice Managing Director +61 (08) 9200 4470 www.redforkenergy.com.au 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 www.redforkenergy.com.au
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