88 Energy Limited – Hickory-1 Well Flow Test – Rig Contract Executed

Highlights

·   Rig contract executed for Hickory-1 exploration well flow test at Project Phoenix

·   Multiple hydrocarbon-bearing pay zones to be flow tested, with final program design underway

·   Hickory-1 well targeting 647 million barrels of oil^1,2

·   Post-well analysis of cores, mud gas isotubes and wireline data ongoing, with encouraging initial results demonstrating good correlation to migration and thermal maturity models

·   Planning and permitting for the flow test on schedule with operations set to commence as early as possible in the upcoming Alaskan winter operational season

88 Energy Limited (ASX:88E, AIM:88E, OTC: EMF) is pleased to announce that it has executed a rig contract with All American Oilfield (AAO) for the use of Rig-111 to flow test the Hickory-1 well on the Alaskan North Slope.

Managing Director and CEO, Ashley Gilbert, commented:

“The execution of a rig contract is another important step as we advance towards the Hickory-1 well flow testing program planned for the 2023/2024 Alaskan winter operational season.

“We continue to be very encouraged by progress by our northern neighbour, Pantheon Resources, who recently announced a material, independently estimated, 2C contingent resource for the Lower Basin Floor Fan reservoir.³

“The Basin Floor Fan reservoir was the deepest of the multiple hydrocarbon-bearing pay zones intersected as part of the Hickory-1 exploration well. This reservoir, along with our primary, high-priority SMD, Upper SFS and SFS targets, is planned to be flow tested as part of the upcoming program.

“We look forward to updating shareholders as we progress to the completion of permitting and planning activities before mobilising to the well site as soon as Alaskan seasonal conditions permit.”

¹ Cautionary Statement: The estimated quantities of petroleum that may be potentially recovered by the application of a future development project relate to undiscovered accumulations. These estimates have both an associated risk of discovery and a risk of development. Further exploration, appraisal and evaluation are required to determine the existence of a significant quantity of potentially movable hydrocarbons.

² Mean unrisked resource – Net Entitlement to 88 Energy. Refer announcement released to ASX on 23 August 2022. Resources estimated pre-Hickory-1 drilling.

³ Refer Pantheon Resources plc (AIM: PANR) press release dated 29 August 2023 (https://polaris.brighterir.com/public/pantheon_resources/news/rns/story/rmvz29r) which reported 2C estimates (best estimates) of oil and natural gas liquids (“NGLs”), and  total  barrels of estimated marketable liquids. There is no guarantee that Pantheon’s results will be reflected in the results of the Company’s upcoming flow test. The proximity of Pantheon’s leases to the Hickory-1 exploration well is shown at Figure 2 of this announcement.

Hickory-1 Flow Test Program

The Hickory-1 exploration well is currently cased and suspended ahead of the planned flow test and well stimulation program scheduled for the 2023/2024 Alaskan winter operational season. Design of the flow test and stimulation program, which is targeting multiple zones, is being undertaken in consultation with industry experts, utilising available regional information in combination with a detailed evaluation of the drilling and wireline logging data from Hickory-1.

Permitting and planning is on track and will include rigorous technical and economic optimisation with our Alaskan project manager, Fairweather, LLC. Contract negotiations and ordering of long lead items are also proceeding as planned.

Figure 1: The Hickory-1 flow test is planned to assess up to 4 zones

Hickory-1 Post Well Analysis

Post-well analysis is ongoing with results from the testing programs anticipated to be fully completed and received in Q3 2023.  The graphic below provides an overview of the planned program, and status, of post-well analysis:

About All American and Rig-111

ll American Oilfield

AAO has been operating in the Alaskan oil and gas industry since 2010.  From 2015, AAO has been a wholly owned subsidiary of Chugach Alaska Corporation (Chugach).  Founded in 1971, Chugach is an Alaska Native Corporation with over 6,000 employees operating in 150 locations.

Rig-111

Rig-111 is a highly mobile and versatile carrier mounted workover and shallow drilling rig, capable of depths up to 18,000 feet. With its recently updated mast, the rig’s capabilities and mobility are well suited for the workover requirements of flow testing Hickory-1

Rig-111 was previously contracted by 88 Energy to successfully drill Merlin-1 in 2021.

This announcement has been authorised by the Board.

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