The company said it has agreed to the terms with a regional gas transmission company to construct a tap that would connect its 100%-owned Osage project to a gas transmission line.

Just last month, the company signed a similar agreement for its Eastern Oklahoma gas project, and said this new agreement would continue to bolster its infrastructure in Oklahoma.

Red Fork's current production, cash flow and 2P reserves come from the Osage project.

Gas produced from Osage is currently being sold through a third party gathering contract, where Red Fork receives a percentage of the spot price.

The company expects the tap and related infrastructure to be installed and operating

by the end of the September quarter.

Before this arrangement, the company had previously intended to sell gas produced from Osage in the spot market through the acquisition of a gathering and pipeline system providing a route to link with the West Tulsa project.

Red Fork wholly owns three project areas in Oklahoma - Osage, West Tulsa and Eastern Oklahoma.