The Icewine 3D seismic survey, approximately 450 km2 in area and covering several large leads indentified identified on 2D seismic, was completed on the 28th March (AK time) – on schedule and within budget. Infield quality control, overseen by head office, has ensured that the data acquired is as clean as possible to enable fast track processing. Processing of shipments of data from the initial areas of the acquisition commenced in the quarter and early products, namely post stack migration, will be available in June 2018. This will allow confirmatory mapping of the stratigraphic / structural elements of the leads already identified in the conventional prospectivity portfolio.

Velocity analysis and regularization will occur subsequent to the above, which will provide the isotropic Kirchoff pre stack time migration product. This product will be used to further analyse and confirm the highly encouraging amplitude vs offset (AVO) anomalies identified on the 2D seismic. These AVO responses are often associated with the presence of hydrocarbons and, significantly, have already been identified at horizons where both oil shows and good quality reservoir is observed in regional well data.

Project Icewine – Icewine#2 Flow Test

Planning for the re-opening of the Icewine#2 well continued during the quarter, with the optimised completion and artificial lift solution being finalised ahead of the recommencement of flow testing which remains on schedule for April / May 2018, with the exact timing dependent on warmer temperature.

Yukon Gold 3D

During the quarter, in house evaluation continued in relation to the recently acquired (subject to formal award) Yukon Gold leases, which contain an historic oil discovery.

In March 2018, the Company awarded a seismic contract to SAExploration to acquire ~96km2 of 3D seismic, predominantly over the Yukon Gold leases. Acquisition commenced on the 24th March and was completed subsequent to quarter end on the 1st April. The seismic data will allow for assessment of the volumetric potential of the discovery as well as to identify any additional prospectivity over the broader lease position.

The 3D survey was fast tracked to opportunistically benefit from an available seismic crew in the latter part of the 2018 acquisition season. Final processed products are anticipated in Q4 2018.

Debt Refinancing

On 23 March 2018, the Company refinanced the outstanding US$16.5 million loan with Bank of America, on substantively similar terms to the original agreement with the maturity date extended from 30 June 2018 to 30 December 2022. The exact terms of the agreement remain confidential for commercial reasons.

Concurrently, 88 Energy has agreed to assign the loan, from Bank of America to FCS Advisors, LLC (d/b/a Brevet Capital Advisors).

Option Conversions

A total of A$8.7 million gross in proceeds from option converstions was received in the quarter, with A$8.0 million in proceeds coming from the converstion of the $0.02 listed options (88EO) by holders as well as the remaining options taken up under the Option Underwriting Agreement with Hartleys Limited (refer to announcement on 12 February 2018).

In addition, A$0.7 million in proceeds was received from the conversion of listed and unlisted options by Directors.

Corporate

The ASX Appendix 5B attached to this report contains the Company's cash flow statement for the quarter. The significant cash flows for the period were:

• $8.4m net of underwriting costs was received in the quarter from option conversions;

• Exploration and evaluation expenditure totalled A$7.2m, primarily relating to expenditure associated with the Icewine 3D seismic acquisition as well as the Yukon Gold 3D, lease rental payments to the State of Alaska and also expenditure relating to Icewine#2 operations;

• Payments in relation to the debt facility interest totalled A$0.5m (US$0.4m) and costs associated with the refinancing totalled A$0.5m (US$0.4m); and

• Administration and other operating costs A$0.9m (Dec'17 Quarter A$0.8m.

At the end of the quarter, the Company had cash reserves of A$13.4m, including cash balances held in Joint Venture bank accounts.

Pursuant to the requirements of the ASX Listing Rules Chapter 5 and the AIM Rules for Companies, the technical information and resource reporting contained in this announcement was prepared by, or under the supervision of, Mr Brent Villemarette, who is a Non Executive Director of the Company. Mr Villemarette has more than 35 years' experience in the petroleum industry, is a member of the Society of Petroleum Engineers, and a qualified Reservoir Engineer who has sufficient experience that is relevant to the style and nature of the oil prospects under consideration and to the activities discussed in this document. Mr Villemarette has reviewed the information and supporting documentation referred to in this announcement and considers the prospective resource estimates to be fairly represented and consents to its release in the form and context in which it appears. His academic qualifications and industry memberships appear on the Company's website and both comply with the criteria for "Competence" under clause 3.1 of the Valmin Code 2015. Terminology and standards adopted by the Society of Petroleum Engineers "Petroleum Resources Management System" have been applied in producing this document.