Internal interpretation by 88 Energy of 3D seismic over the Western Blocks has confirmed the original interpretation by Otto's technical team, who identified the 400 million barrel prospect (144 million barrels net to 88E). A location to optimally test the prospect has been selected and permitting is underway, ahead of scheduled drilling in 1Q2019.

Project Icewine: Farm-out Dataroom Formally Opened

The dataroom related to farm-out of both the conventional and unconventional prospectivity at Project Icewine has now been formally opened. 88 Energy and its Joint Venture Partner, Burgundy Xploration LLC (“BEX”), are aiming to complete a farm-out prior to year-end that will result in significant expenditure over Project Icewine to continue evaluation of the large conventional and unconventional potential identified over the past three years by the Joint Venture.

A conventional portfolio update based on interpretation and mapping of the preliminary Icewine 3D dataset is being finalised and will be released to the market in due course.

Yukon Gold – 3D Seismic Processing

Seismic processing of the Yukon 3D is progressing well, and the Company remains on schedule to deliver an evaluation of the acreage following mapping and interpretation of the 3D dataset in 4Q2018.

Project Icewine – HRZ Evaluation Process

The evaluation process for the HRZ shale, post the recent suspension of the Icewine#2 well, is ongoing and is expected to take several months. Results from this process will be reported as appropriate during this period.

Additional Credit Certificates Granted

On the 24th July, the Company was informed by the Alaska Department of Revenue that it had issued a Credit Certificate to Accumulate Energy Alaska Inc, (100% owned subsidiary of 88 Energy Ltd), for US$5.66m related to CY2017 expenditure. An amount of US$2.83m is available to be cashed out at such time that cash payments are made by the State. The total expected cashable credits owed by the State to 88E is US$20.7m versus debt of US$16.5m. Timing of complete payment by the State remains uncertain but is estimated to be prior to 2019 calendar end.

88 Energy Ltd Managing Director, Dave Wall, commented: “The closing of the Western Blocks transaction is a significant milestone for the Company and its shareholders.

Encouraging progress continues to be made across the expanded portfolio of assets in Alaska and we look forward to providing additional news on these in the near term.”