RFE Investor Presentation - Euroz Rottnest Conference March 2012 ...

www.redforkenergy.com.au 1

Investor Presentation Euroz Securities Institutional Conference

Rottnest Island, March 2012

The Mississippi Lime A Premier On-shore US Liquids Play


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


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$) $1.01 As at March 5, 2012 Market cap (A$) $313.0 Debt (A$) Nil Cash (A$) $37.0 As at December 31, 2011 Enterprise value (A$) $276.1

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 was a founding shareholder and he is currently a director of ASX-‐listed companies Liberty Resources Ltd. 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 a non-‐execu@ve director of Challenger Energy Limited and 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

Board of Directors


Mississippi Lime

The Mississippi Lime

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  Covering in excess of 17mm acres in northern Oklahoma and southern Kansas

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 480 horizontal wells drilled in the play to date

-  c. 60 rigs operating in the play at present drilling horizontals wells


A Premier On-shore US Liquids Play ü  Vast Resource Potential

ü  Proven, commercial trend which has produced from thousands of vertical wells for more than 50 years

ü  Very well understood due to the large amount of 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

www.SandRidgeEnergy.com 16

Mississippian Play Thickness Map

��

Thickness (Feet) �

17 Million Acres � SandRidge Focus Area

Red Fork


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


Industry Activity

ü  In excess of 480 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  ~60 rigs currently 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


Mississippi Lime - Eastern Limb ~73,000 (net) high-grade acres within the highlighted townships

Note: Leasing information obtained from County records.

www.redforkenergy.com.au0 10

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:


Red Fork Strategically Positioned Large contiguous land position with a large amount of controlled acreage

Kasper 341 boepd

Gilbert 607 boepd

Ripley 312 boepd

Mela 413 boepd

Toews 378 boepd

Spirit Creek 210boepd

Sebranek 1,253 boepd

Tahara 283boepd

Bostian 300boepd

State 340boepd

Matthews 960boepd

Bruce 280boepd

Spider 350boepd

Bowling ~500boepd


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


Results Support the Model

Well Path- Cross Section View McMurtry 1-21H

Well Path- Cross Section View Tahara 1-28H


Red Fork Mississippi Lime Activity

ü  Ongoing leasing activity delivers 73,000 net (high-grade) acres

ü  Presently 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 and logged (preparing for completion)

ü  McMurtry #1-12H well (Noble County) successfully drilled and logged (preparing for completion)

ü  Blair #1-24H well (Noble County) set to spud 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)


2012 Mississippi Lime Development


Value Creation in the Mississippi Lime

X ~10X ~40X ~100X ~200X

Valu

e Pe

r Acr

e

16 www.redforkenergy.com.au

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

RFE Investor Presentation - Euroz Rottnest Conference March 2012 ...

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