Red Fork said it now holds about 50,000 acres in East Oklahoma, in an area that has demonstrated production potential and is the subject of intense leasing and drilling activity.

According to Red Fork, the company is acquiring acreage on favourable terms, securing 100% interests with net revenue interests ranging from 80% to as high as 87.5% with long lease terms.

The company is also actively negotiating with several interested parties to form a strategic partnership to further expedite leasing in strategic areas outside its core land holdings.

Red Fork's total land holdings in Oklahoma now stand at 70,000 acres.

In other company news, Red Fork has begun construction and installation of gas gathering, compression and sales infrastructure at East Oklahoma.

The facilities will allow gas production to be sold directly into the spot market and is expected to be operational by the end of July, in time to accommodate gas production from the first round of drilling at East Oklahoma.

Red Fork said the first drilling campaign would be underway before the end of the month.