RED FORK ENERGY LIMITED - ASX: RFE

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Description

Red Fork Energy Limited is an Oklahoma based shale gas and oil exploration and production company that is listed on the Australian Stock Exchange (ASX). The company was founded in 2004 and trades on the ASX under the code ‘RFE’. Red Fork is creating value for shareholders by securing acreage in lower risk proven oil and gas provinces, with a focus on low finding, development and operating costs together with shallow rates of decline.

The Company is unlocking value in large resource type plays as well as overlooked conventional plays by utilizing its significant operational experience. Red Fork has a large landholding in Oklahoma (currently in excess of 130,000 acres), owning both proven producing oil and gas fields as well as highly prospective development acreage. The company’s projects are all 100% owned and operated under very favorable terms, including Net Revenue interests ranging from 80% to as high as 87.5% on long-term leases. Red Fork Energy’s holdings are divided into three project areas Eastern Oklahoma (110,000 acres), West Tulsa (15,000 acres) and Osage (5,000 acres).

West Tulsa Project

Red Fork Energy’s 100% owned West Tulsa Project covers about ~15,000 acres of land west of Tulsa in Oklahoma. The company has long lease terms for this acreage and is targeting conventional oil and gas horizons as well as shallow coal bed methane horizons. Red Fork’s Net Revenue Interest from lease holdings is 81.25+%. The West Tulsa Project has certified reserves as at 30 June 2009 of 38.8Bcfe (2P) which includes 1.84 Mmbbls of oil. Initial development is primarily focused on the Pawnee Prospect within the West Tulsa Project. Phase 1 development at the Pawnee Prospect has seen the Company drill seven production wells and a water disposal well. The Company has also established extensive production facilities, including tank batteries, separation equipment and gathering infrastructure. Development at West Tulsa is on-going, with production and reserve increases likely as the project is further developed.

Osage Project

Red Fork Energy’s Osage project, acquired in 2005, is also located near the city of Tulsa in Oklahoma. The project is 100% owned and covers ~5,000 acres with Red Fork having a Net Revenue Interest across its lease holding of 80+%. Red Fork’s Osage acreage has several prospective coal bed methane zones, as well as deeper conventional oil targets in the Arbuckle and Wilcox sands. In 2008, Red Fork began an extensive drill program to substantially boost existing oil and gas sales. This program is ongoing, with production and reserve increases likely as the project is further developed.

East Oklahoma Project

Red Fork’s East Oklahoma project is located east of Tulsa in Oklahoma. The project covers a landholding of ~110,000 acres with long lease terms and Red Fork’s Net Revenue Interest across its leases is 81.25% or better. The company is developing shale gas, with shallow wells between 500ft and 1,000ft targeting approximately 35-70 feet thick productive zone. Reserves (independently certified) are estimated to be 0.3 Bcf per well (2p). Development at East Oklahoma is ongoing, with production established from the Wagoner A Station and surrounding acreage in the southern part of Red Fork's total holding and the Phase 1 development underway in the central region of the Red Fork holding. The Company has established a large inventory of drillable locations at the East Oklahoma Project which is likely to approach 1,400 wells.

Mine For

oil, gas

Location of operation(s)

USA

Address

Level 2, 79 Hay Street
SUBIACO, WA, AUSTRALIA

Phone

(61 8) 9200 4470

Email

Website

http://www.redforkenergy.com.au

Last Updated

10/02/2011