Ann: HRZ Play Further Derisked, page-4

Icewine #1 Core Evaluation Update – HRZ Play Further De-risked

88 Energy Limited (“88 Energy”, “the Company”, “Operator”) (ASX, AIM: 88E) is pleased to provide the following update on the evaluation of the core over the HRZ interval from the recently drilled Icewine#1 exploration well.

Highlights

•   Matrix permeability within the cored HRZ shale exceeds expectations, several times
  
  greater than effective cutoff in all 18 core samples measuredo 2 samples displayed permeability too high to be measured using standard
  
  technique (indicating possible presence of “permeability super highways”)
  
  
•   Porosity confirmed at upper end of expectations as per prognosis
  
  Overview
  
  Matrix permeability and porosity of the HRZ shale were measured using the Gas Research Institute (GRI) method, which involves crushing the core sample to fine grained particles thereby eliminating coring and sampling induced fractures to ensure more accurate results.
  
  Both the permeability and porosity results are at the upper end of expectations and significantly in excess of the cutoff limits required for the HRZ shale play to be successful.
  
  Additional corrections will be made to the porosity data integrating nano-scale porosity within the kerogen and other mineral components. It is anticipated that these corrections will increase the already high porosity values.
  
  As previously reported, light oil and condensate was observed leaching from core material, confirming the presence of liquid hydrocarbons at the Icewine#1 location (see graphic below). This further supports the core and geochemical analysis that the thermal maturity window at Icewine#1 is consistent with pre-drill modelling. Final thermal maturity data is expected within 7 days.