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Wednesday, September 21, 2011

Red Fork Energy Limited (ASX: RFE) News; Independent Reserve Certification Year Ended June 30, 2011

September 21, 2011 ( Newswire) Oklahoma based (Australian Securities Exchange listed) oil and gas exploration and production company, Red Fork Energy Limited (ASX: RFE) ("Red Fork" or the "Company") is pleased to present its reserve position as at June 30, 2011 following independent certification by petroleum engineers, Lee Keeling & Associates, Inc ("Lee Keeling").
The table below outlines the oil and gas reserves attributable to the Company's projects in Oklahoma as well as the Net Present Values attributable to these reserves. Importantly, this does not include any reserves attributable to Red Fork's recently acquired Mississippian acreage. Newswire Commenting on this announcement, Red Fork Managing Director, David Prentice, said, "We are pleased to have been able to maintain our independently certified reserves at stable levels for the year ended June 30, 2011 despite lower prices and forward curve assumptions for natural gas."
"We see significant value to be unlocked in our East Oklahoma shale gas project under an improved pricing environment for natural gas and we are also particularly pleased with the momentum we are gaining in our mid-stream business."
"Development of our large Mississippian oil holdings is also progressing very well and we expect to be in a position to update the market on reserves for that project following the completion of our 2011 horizontal drilling program."
Yours faithfully
David Prentice
Managing Director
Reserve Certification Statement:
The independent certification of these reserves was undertaken by Lee Keeling. Lee Keeling are engaged by the Company each year to review and prepare a report on the Company's oil and gas reserves. Lee Keeling are petroleum consultants based in the United States with offices in Tulsa and Houston. Lee Keeling provide specific engineering services to the oil and gas industry, and consults on all aspects of petroleum geology and engineering for both domestic and international projects and companies. Lee Keeling have consented to the release of this reserves information.
Notes & Assumptions:
  1. All of these reserves are from shale gas, conventional oil and gas and coal bed methane accumulations, at depths ranging from 400 to 5,000 feet. The producing zones range in age from Pennsylvanian to Cambrian and are located in the Cherokee basin of Oklahoma in the US.
  2. NPV10 (Net Present Value at a10% discount) values are in US dollars and are for Red Fork's Net Revenue Interest.
  3. The reserves are based on an oil price of US$85.00 per barrel flat and a starting gas price of US$4.58 per Mmbtu escalated to a maximum of US$7.00 per Mmbtu for the life of each well.
  4. Volumes presented are for Red Fork's 100% Working Interest in each of its projects.
  5. Barrel of Oil Equivalent (boe) is calculated on a 6:1 conversion of gas to oil.
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.
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