Red Fork Energy to re-commence drilling

Drilling at Red Fork Energy Ltd’s 100% owned Osage Project in Oklahoma is....

  Drilling at Red Fork Energy Ltd’s 100% owned Osage Project in Oklahoma is set to re-commence.The company has drilling contracts in hand for two drilling rigs, an air rig suitable for shallower Coal Bed Methane drilling and a larger rig capable of penetrating all potential pay zones within the Osage Project, including the Wilcox and Tyner Sand oil zones.The company has permits in hand to drill a total of five wells and has commenced building locations in preparation for spudding of the first well in the first week of December.The company expects to have these wells completed and tied-in to sales in the first quarter of 2008.In addition, the company is now well advanced with its acquisition of the additional gas gathering and pipeline infrastructure announced in September of this year. This gathering system and infrastructure is designed to accommodate flow rates in excess of 10MMcfd.The company has commenced planning and permitting for the construction of the tie line that will be used to connect this new system to the company’s existing infrastructure.The current schedule will see the new system connected, commissioned and operating in the first half of 2008, enabling the company to sell its product into the spot market at 100% of the Henry Hub1 spot price (less standard federal regulated transportation costs).