88 Energy has provided an update on Project Icewine, located onshore North Slope of Alaska.

Highlights

2D Seismic Acquisition Complete

• 662 line kilometres completed of planned 750 line kilometres 2D vibroseis
• Agreement reached to purchase the remainder of the planned acquisition from Alaska Seismic Ventures (“ASV”)
  • Agreement to purchase inline data from 3D acquisition completed by ASV in 2015
  • Expected to result in better coverage, resolution and fold at depth over the proposed Icewine#2H location
• Total acquisition cost to 88 Energy, including purchase of ASV data, within budget of ~US$3m (net of Bank of America credit facility)

Official Notice of Award Documents Received

• Official notice of award documents received for 172,937 gross acres successfully bid on in November 2015
• Signing of the notices and payment will occur in the near term, prior to final award
• Net payment required by 88 Energy US$4.25m

Upcoming Events

Evaluation and integration of the core from Icewine#1 is now focused on fine tuning of the ongoing Phase II Appraisal Program , with results expected on key variables over the coming period, including:

• Proppant Embedment – to determine the optimal size and type of proppant
• Fluid Sensitivity – determines the best fluid type for carrying proppant and minimising chemical interaction with the rock
• Borehole Stability – confirmation of stress direction for optimisation of orientation of lateral section
• Results from Processing and Interpretation of 2D Seismic
• Finalisation of Icewine#2H Well Design
• Integration of Evaluation Parameters from Icewine#1 Core into Well Performance Simulation
• Processing of Formal Award of Additional ~173,000 Acres Successfully Bid on in November 2015

Managing Director of 88 Energy Limited, Dave Wall commented:

‘Finalisation of the 2D seismic, with the added benefits gained via purchase of the ASV data, will allow the Joint Venture to gain valuable insights into the conventional potential at Project Icewine, whilst also mitigating drilling risk of the horizontal section for the planned Icewine#2H well. Special thanks go to the seismic contractor, SAExploration, who executed the acquisition in a safe, efficient manner and to spec.

The team remains extremely busy and we continue to execute as planned on the next phase of the project, which is to prove up the production potential of the HRZ liquids rich resource play.

Thanks once again to existing shareholders and incoming investors who, through their support for the recent placement, have allowed us to push forward at a time of low oil prices so that we will be well positioned for any recovery.’

For more information, please visit : http://88energy.com

For additional information on this project, please visit our Projects OGP database