www.redforkenergy.com.au 1
The Mississippi Lime A Premier On-shore US Liquids Play
Investor Presentation April 2012
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This presentation contains forward-looking statements that are subject to risk factors associated with the oil and gas business. It is believed that the expectations reflected in these statements are reasonable but they may be affected by a variety of variables and changes in underlying assumptions that could cause actual results or trends to differ materially, including but not limited to exploration and appraisal drilling, operating and production results, estimates of resources and reserves, competition, environmental risks, legislative risks, access to capital, project delay or advancement, approvals, cost estimates, price fluctuations and demand. Investors should undertake their own analysis and seek advice from their professional advisor before deciding to invest in Red Fork Energy Limited. Reserve Certification The independent certification of the reserves outlined in this presentation was undertaken by Lee Keeling & Associates, Inc. (Lee Keeling). Lee Keeling are engaged each year by the Company 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 consult 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.
Forward-looking statements F
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Corporate Overview
ü An Oklahoma based oil and gas exploration and production company listed on the Australian Stock Exchange
Capitalization
One-year performance
Previous financings
Top shareholders
Reserves Oil & liquids
(mmb) Gas (Bcf)
Equivalents (mmboe)
Proved 1.8 37.4 8.0
Proved + Probable 2.3 88.7 17.5
Proved + Probable + Possible 2.6 136.5 25.4
Shares on issue 310 mm Unlisted options & Perf. Rights 14.6 mm Share price (A$) $1.00 As at April 13, 2012 Market cap (A$) $310.0 Debt (A$) Nil Cash (A$) $37.0 As at December 31, 2011 Enterprise value (A$) $273.0
Quantum Partners 46.9 15.1% National Nominees 22.5 7.3% Robert Healy 21.4 6.9% Citicorp Nominees 21.2 6.8% Prospect Custodians 21.0 6.8% Luigi Ghirardello 20.1 6.5% JP Morgan Nominees 15.8 5.1% HSBC Custody Nominees 11.8 3.8% Brispot Nominees 6.3 2.0% LQ Super 6.1 2.0% Total 193.3 62.3% Board and Management 14.6 5.4%
Date Raised (A$mm) Purpose Share Price (A$) Dec - 11 $28.0 Mississippi development $0.69 Mar -11 $33.5 Mississippi development $0.32 Dec-10 $5.0 Mississippi leasing $0.27 Oct-09 $24.0 Acquisition $1.20 May-09 $5.0 Working capital $0.50 Dec-07 $10.2 Drilling/Infrastructure $0.55 1. Calculated on a fully diluted basis assuming all options and rights vest.
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Michael Fry holds a Bachelor of Commerce degree from the University of Western Australia and is a Fellow of the Financial Services Ins@tute of Australasia and a past member of the ASX. He has extensive experience in capital markets and corporate treasury management specializing in the iden@fica@on of commodity, currency and interest rate risk and the implementa@on of risk management strategies. Michael is also currently a director of ASX-‐listed companies Killara Resources Limited, Norwest Energy Limited and Challenger Energy Limited.
Michael Fry Non Execu@ve Chairman
David holds a Graduate Diploma of Business Administra@on from the University of Western Australia and an MBA from Deakin University. His career includes more than 20 years experience in commercial management and business development within the natural resources sector working for some of Australia’s leading resource companies. This has included high-‐level commercial and opera@onal roles with a number of listed and unlisted resource companies. David is currently also a non-‐execu@ve director of ASX-‐listed company Jameson Resources Limited.
David Pren@ce Managing Director
Perry Gilstrap has 38 years’ experience in the oil and gas industry in various posi@ons of opera@ons and engineering. His educa@on and training has been in engineering with petroleum companies in Oklahoma and Alaska. Perry’s experience includes management of oil and gas drilling opera@ons, design and construc@on of pipelines and gas gathering opera@ons. He has been involved in management of drilling programs and comple@ons in both offshore for seven years in Texas and Alaska and 15 years in onshore in Texas, Oklahoma and Kansas. Perry has also served as CEO for an Oklahoma engineering and petroleum corpora@on and a drilling company based in Oklahoma.
Perry Gilstrap Exec. Director Opera@ons
Bruce Miller has 25 years of geological experience, including well site supervision of over 400 wells in Oklahoma and Kansas and design and implementa@on of drilling programs and comple@ons. His experience includes evalua@on of both conven@onal and unconven@onal oil and gas prospects in Kansas, Oklahoma, Ohio and Texas. Bruce has also been involved in large CBM evalua@on and development projects in Kansas and Oklahoma.
Bruce Miller Exec. Director Resources
Steve Miller is President of Orion Explora@on LLC, a privately held, independent oil and gas company headquartered in Tulsa Oklahoma, specializing in direc@onal and horizontal drilling. Steve has extensive experience in corporate management of oil and gas explora@on and produc@on companies, and he has served on the board of a number of Oklahoma corpora@ons. His experience includes responsibility for overseeing areas of finance, reserve repor@ng, gas marke@ng and stock holder rela@ons. Project genera@on and joint venture nego@a@ons are also a strong areas of experience.
Steve Miller Non Exec. Director
Suzie Foreman has 11 year’s combined experience with KPMG and a bou@que accoun@ng firm specializing in the provision of audit, advisory and corporate services. She also has extensive skills in the areas of financial and management repor@ng, due diligence and ASX and ASIC corporate and regulatory compliance. Suzie has been involved in the lis@ng of eleven explora@on companies on the ASX and AIM markets in the last five years with capital raising exceeding $65 million.
Suzie Foreman Company Secretary
ü Highly regarded Oklahoma-based technical team with more than 60 years’ operational experience in the US oil and gas industry (including ten years of specialized horizontal drilling experience) set to deliver continued growth and company-making results from the horizontal Mississippi Lime oil and liquids rich gas project
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Mississippi Lime
The Mississippi Lime ü The Mississippian limestone oil and
liquids rich gas bearing system (“Mississippi Lime”) is found in northern Oklahoma and southern Kansas
ü Exploitation not exploration – application of contemporary horizontal drilling and completion techniques to a conventional carbonate reservoir
ü Chesapeake kicks off activity in the play in 2007 with the Howell and Serenity wells in Woods County, Oklahoma
ü Play continues to expand, with more than 500 horizontal wells drilled in the play to date
ü Currently c. 60 rigs drilling in the play
www.SandRidgeEnergy.com 16
Mississippian Play Thickness Map
��������������������������� ������
Thickness (Feet) �
17 Million Acres � SandRidge Focus Area
Red Fork
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A Premier On-shore US Liquids Play ü Vast resource potential – covering in excess of
17mm acres
ü Proven, commercial trend which has produced from thousands of vertical wells for more than 50 years
ü Stacked play potential
ü Very well understood due to the large amount of vertical well data
- provides for extensive reservoir control through area correlation and facies distribution and continuity
ü Shallow depths c. 4,500 to 7,000 ft.
ü Gross thickness of up to 700 ft., with productive interval typically 50 to 200 ft. thick
- very good porosity and permeability has been confirmed from existing vertical production
- naturally fractured, and horizontal drilling increases the probability of encountering more fractures
ü High liquids content c. 70% (Eastern Limb) - Produces light sweet crude and high BTU gas
ü Abundant industry equipment and extensive infrastructure to service the play
NYSE: DVN www.devonenergy.com Slide 51
MississippianStratigraphic Section
� Multiple prolific lithologies
¾ High porosity chert
¾ Siliceous limestone with medium porosity
¾ Fractured limestone with lower porosity
� Significant open fractures
� Woodford TOC up to 10% is a great source rock
Permian
Pennsylvanian
Mississippian
Devonian
Silurian
Ordovician
Cambrian
Precambrian
Hunt
on
VirgilianMissourian
DesmoinesianAtokan
MorrowanChesterianMeramecian
OsageanKinderhookian
Woodford
SylvanViola
Arbuckle
Productive Zones Primary Objective Secondary Objective
Source: Devon Energy Corporation
Mississippian Stratigraphic Section
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Mississippi Play Economics
Note: based on NYMEX strip as at 03/01/2012 Horizontal Mississippian Performance Above Type Curve
62
0
5
10
15
20
25
30
35
40
45
0
50
100
150
200
250
300
350
400
1 31 61 91 121
151
181
211
241
271
301
331
361
391
421
451
481
511
541
571
Well.Co
unt
BOE
Average.Well.Performance.vs.Type.Curve.Production
NORMALIZED.DAILY.BOE TYPE.CURVE.BOE Well.Count
Boep
d
Average PDP EUR: 470 MboeNSAI PUD EUR: 409 Mboe
$"
$5,000&
$10,000&
$15,000&
$20,000&
$25,000&
1 31 61 91 121
151
181
211
241
271
301
331
361
391
421
451
481
511
541
571
Average.Well.Performance.vs.Type.Curve.Revenue
NORMALIZED&DAILY&TOTAL&REV TYPE&CURVE&TOTAL&REV
$"
$1,000,000&
$2,000,000&
$3,000,000&
$4,000,000&
$5,000,000&
$6,000,000&
1 31 61 91 121
151
181
211
241
271
301
331
361
391
421
451
481
511
541
571
Average.Well.Performance.vs.Type.Curve.Revenue.Cumulative
CUM&NORMALIZED&DAILY&TOTAL&REV CUM&TYPE&CURVE&TOTAL&REV
www.SandRidgeEnergy.com
Drill & Complete LOE Initial Decline EUR NPV IRR US$3.0mm US$8.0/boe 60% 400Mboe US$6.0mm ~100%
Source: SandRidge Energy and NSAI
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Industry Activity
ü In excess of 500 horizontal wells drilled across the play so far
ü SandRidge (NYSE:SD) and Chesapeake (NYSE:CHK) lead the way
ü Several other large NYSE listed companies enter the play
ü Currently c. 60 rigs operating across the play
ü 30 Day Peak Rates increase with more wells
ü First signs of increased density emerge
ü Initial M&A activity
NYSE: DVN www.devonenergy.com Slide 52
Mississippian
Type Log
� Widespread shelf setting with minimal
relief
� Gross thickness: 100’ - 300’
� Oil window with 39 - 42 degree gravity
and 4,000 GOR average
� Microdarcy permeability system
� Healed fractures reopened by frac job
Mississippi
Woodford
Sylvan
Gamma Ray Resistivity Porosity
Source: Devon Energy Corporation
Mississippian Type Log
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Mississippi Lime - Eastern Limb Red Fork Energy holds c. 73,000 (net) high-grade acres within the highlighted townships
Note: Leasing information obtained from County records.
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Red Fork Strategically Positioned ~73,000 (net) high-grade acres within the highlighted townships
(a)
(b)
Nem
aha
Oklahoma
Kansas
160 miles Note: Leasing information obtained from County records.
C O W L E Y
C O - M A N C H E
B A R B E R H A R P E R S U M N E R
C H A U T - Q U A
M O N T - G O M E R Y
L A - B E T T E C H E R -
O K E E
P R A T T C R A W - F O R D K I O W A K I N G M A N
S E D G W I C K B U T L E R
E L K W I L S O N
Devon Energy Corp. (NYSE:DVN)
Marathon Oil Corp. (NYSE:MRO)
Chesapeake Energy Corp. (NYSE:CHK)
Range Resources Corp. (NYSE:RRC)
SandRidge Energy Inc. (NYSE:SD)
US listed operators with acreage positions in the highlighted townships:
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Players in the Eastern Limb ü Devon Energy Corp. (NYSE:DVN)
- 230,000 acres east of the Nemaha Ridge - Matthews #1-33H (Logan County) IP 960boe/day, first 30 day
average 590boe/day (80% crude oil) - plans 50 wells into the Mississippian in 2012
ü Range Resources Corp. (NYSE:RRC) - 125,000 acres east of the Nemaha Ridge - ranks Mississippian #2 (IRR) in its asset portfolio - IRR’s range from 105% (500Mboe EUR, $100 oil) to 60%
(400Mboe EUR, $80 oil) - focussed on Counties that have >90% vertical wells classified
as oil
ü Highmount Exploration & Production - 70,000 acres east of the Nemaha Ridge - over 600 drillable locations - plans to operate 4 rigs in 2012
ü Halcon Resources Corp. (NASDAQ:HK) - 45,000 acres east of the Nemaha Ridge - targeting 100,000 acres - IRR’s range from 105% (500Mboe EUR, $100 oil) to 60%
(400Mboe EUR, $80 oil) - focussed on Counties that have >90% vertical wells classified
as oil
ü PetroQuest Energy. (NYSE:PQ) - 31,000 acres east of the Nemaha Ridge - drilling initial well in Pawnee County
ü Other players include: Spyglass, Chapparal, Crow Creek, and Vitruvian
Red Fork Energy (ASX:RFE) - 73,000 acres east of the Nemaha Ridge - Tahara #1-28H (Pawnee County) IP
283boe/day (80% crude oil) - Abunda #1-21H (Pawnee County)
production testing - McMurtry #1-21H (Noble County) drilled,
logged and cased, awaiting completion - Blair #1-24H (Noble County) drilling - Drilling a further 10 wells in the
Mississippian in 2012
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Red Fork Strategically Positioned Large contiguous land position with a large amount of controlled acreage
Kasper 341 boepd
Mela 413 boepd
Toews 378 boepd
Spirit Creek 210boepd
Sebranek 1,253 boepd
Bostian 300boepd
State 340boepd
Spider 350boepd
Bowling ~500boepd
Gilbert 607 boepd
Ripley 312 boepd
Tahara 283boepd
Matthews 960boepd
Bruce 280boepd
Adkisson (Drilling)
Winney (Drilling)
Elinore (Completing)
Winney (Completing)
Bend South 490Boepd
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Acreage Selection Model
ü Acreage leased for drilling locations
ü Focused in counties where >90% of the historical vertical producers were classified as oil wells
ü Targeted specific (640 acre) sections offsetting areas of good historical vertical production and low GOR
ü Contiguous blocks with control to facilitate development
T20N-R1E
3,2472,260
0
433433
0
13,889
0
4,001
0
1,602
0 6,487
0
4,850
0
14,317
0
14,317
0
55,6731,940
0
28,1882,9350
9,1302,950
0
8,9053,233170,801
22,718
589589
0
5,4551,914
0
8,4664,715
20,42410,632
11,2286,608
26,0387,959
10,2525,971
7,6583,407
18,1429,913
127,36337,590
5,7732,83024,988
5,815
6,4793,493
0
3,5602,397
69,24313,838
7,1903,754231,382
58,462
54,14720,101
76,90334,900
18,0203,623
0
3,4342,619
242,13017,084
1,3011,301
0
13,0504,877
8,8762,478
17,9358,071
97,11416,255
5,1842,025
15,6091,664
11,2286,608
26,0387,959
21,6426,045
9,4684,714
763763
0
39,72310,720
203,50162,637
7,2283,758
22,1676,825
8,0813,516
488,591107,188
4,6661,854
20,7984,021
8,1737,013
2,1162,116
2,4022,402
0
42,656955
294,88723,126
26,28417,460 0
1,6421,6422,7262,687
113,7912,294
28,962135
113,7912,294
28,962135
4,8802,908
123,33144,228
2,0482,048
0
9,2553,405
190,97059,662
1,7781,778
0
1,4721,472
0
62,39915,834
28,62212,061
20,8186,668
8,8725,288
975975
0
12,0065,775
27,71511,434
2,8902,485
2,0551,823
9,5044,644
17,07010,259
844844
0
4,5082,970
9,6645,067
16,9142,880
129,95424,048
4,3582,800
1,8751,875
2,8322,832
4,9074,234
4,4443,364
14,8848,497
7,5452,649
79,63329,141
4,0753,661
5,5762,744
8,7754,239
19,12210,000
537537
0
17,2123,793
40,1965,197
5,2874,348
8,0492,634
17,6077,433
97,35326,423
444444
0
19,0693,241
60,70312,933
2,4322,275
0
2,3551,978
0
897897
017,2123,793
40,1965,197
17,6077,433
97,35326,423
42,3988,289
125,51752,93017,2123,793
40,1965,197
369369
0
37,99113,181
037,99113,181
01,7871,787
0
24,7284,069
213,62735,021
7,9365,255
0
3,4812,653
03,3953,0700
834834
0
3,3693,369
60,07545,015
2,8732,754
15,2007,102
23,1056,418
98,50031,438
7,4886,218
177,570112,796
8,8226,894
391,904124,780
11,8435,216
138,11247,454
7,3914,804
9,4723,129
7,3914,804
9,4723,129
32,8602,515
61,8456,538
706706
2,6072,607
665665
0
8,7205,047
151,28225,243
66
5 4 3 2 1
T20N-R1E
3135 3634333231
2 1 63456
10 11 129 787
15 1416 131718
18
23 2420 2119 22 19
28 2730 29 26 25 30
31 32 33 34 3135 36
36
1
12
13
24
25
36
1
RED FORK ENERGY
BIG RIVER PROJECT
RFE LEASE ACTIVITY
MSLM PRODUCERS
O&G CUMS & FIRST YEAR PRODUCTION
FEET
0 5,511 11,022
POSTED WELL DATA
WELL - CUMOIL (BBLS)WELL - FIRST_YEAR_OIL_PRODUCTION
WELL - CUMGAS (MCF)WELL - FIRST_YEAR_GAS_PRODUCTION
WELL SYMBOLSOil Well
Gas Well
Dry Hole
Plugged & Abandoned Oil Well
Abandoned Well
Dry Hole, With Show of Oil
Dry Hole, With Show of Oil & Gas
By: T. WITTE
March 1, 2012
PETRA 3/1/2012 9:23:07 AM
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Results Support the Model
Well Path- Cross Section View McMurtry 1-21H
Well Path- Cross Section View Tahara 1-28H
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Red Fork Mississippi Lime Activity
ü Ongoing leasing activity with c.73,000 net (high-grade) acres leased
ü Focused on the Eastern Limb of the play with an interest in more than 325 sections across 5 key counties
ü Tahara #1-28H well (Pawnee County) successfully, drilled, logged, cased and now in production
ü Abunda #1-21H well (Pawnee County) successfully, drilled, logged, cased and now testing
ü McMurtry #1-21H well (Noble County) successfully drilled and logged (preparing for completion)
ü Blair #1-24H well (Noble County) drilling ahead ü Second rig set to get underway (spud McMurtry 1-22H well) ü Large seismic and permitting program underway ü Construction of supporting production infrastructure underway ü Non-operated participation
Jerry Scott Rig #2 (Abunda 1-21H, Pawnee County)
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2012 Mississippi Lime Development
ü Existing and expanded infrastructure ü Supports 16 wells (640 acre spacing) ü HBP’s ~ 10,000 acres ü Establishes at least 32 PUD’s
Development Area 2 (Noble County)
2 Miles
McMurtry #1-21H
Blair #1-24H
Gas Gathering & Produced Water
Pipelines
Gas to Sales
Proposed Wells
PUD’s (3 Wells per Section)
Produced Water
Injection
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2012 Mississippi Lime Development
Central Delivery Point & Produced Water Disposal Facilities, Noble County
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2012 Mississippi Lime Development
Jerry Scott Rig #5 Drilling, Noble County
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2012 Mississippi Lime Development
ü Existing and expanded infrastructure ü Supports 9 wells (640 acre spacing) ü HBP’s ~ 4,500 acres ü Establishes at least 18 PUD’s
Development Area 1 (Pawnee County)
2 Miles
Abunda #1-21H
Produced Water
Injection
Gas Gathering & Produced Water
Pipelines
Gas to Sales
Proposed Wells
PUD’s (3 Wells per Section)
Tahara #1-28H
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2012 Mississippi Lime Development
Reservoir Stimulation Underway, Pawnee County
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2012 Mississippi Lime Development
Reservoir Stimulation Underway, Pawnee County
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Value Creation in the Mississippi Lime
X ~10X ~40X ~100X ~200X
Valu
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Summary
ü Red Fork Energy continues to build on its significant position in one of the premier on-shore US horizontal liquids plays
- additional high-grade acreage has been added and leasing initiatives continue
- initial development wells successful with positive initial flows confirming quality of the reservoir in the oilier part of the play
- the play has become a key focus area for several leading US independents
- competitive economics when compared against the more established horizontal plays
ü Focus on initial Mississippi development program, participate in non-operated opportunities, establish production and initial reserve position and continue to expand the current acreage position
ü Red Fork presents an early stage entry into one of the most exciting new liquids plays in the US and is underpinned by core producing assets F
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