Ann: Icewine 1 Core Evaluation Update, page-2

Looks positive, gluck to holders


20 January 2016
Icewine #1 Core Evaluation Update
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
 Oil / condensate observed leaching from HRZ core
 Mass spectrometry analysis of mud gas confirms liquids rich gas throughout the HRZ
shale interval
 HRZ core samples analysed for Total Organic Carbon (TOC) all yielded values in the
range of 2.3% to 4.9% (avg 3.5% - by weight)
 Initial results support HRZ thermal maturity as per pre-drill modelling at Icewine #1
Overview
The leaching process (using toluene) is ongoing; however, the initial observations of oil /
condensate leaching from the core indicate the presence of liquid hydrocarbons in the HRZ shale
at the Icewine #1 location.
Consistent with the results seen from mud gas analysis whilst drilling, the final mass spectrometry
analysis has confirmed the presence of liquids rich gas throughout the HRZ interval. These
results will be integrated with data from the core to provide an estimate of the gas to oil ratio in
the coming weeks.
Total Organic Carbon (“TOC”) content of 3.5% average (by weight) has been confirmed and is
favourable by comparison to other successful North American Shale plays. TOC by volume is
likely to be significantly higher and will be confirmed post X-ray diffraction (“XRD”) analysis.
Geochemical results to date are supportive of the favourable thermal maturity window predicted
within the HRZ shale at the Icewine #1 location. Additional analysis of the core is ongoing to
provide a definitive thermal maturity value.
Forward Plan
Evaluation of the core is ongoing, with results expected on key variables over the coming weeks,
including:
 Permeability and porosity
 Final thermal maturity
 Rock mechanics and stress regime
Seismic planning continues with acquisition planned to commence in March 2016, subject to final
negotiations with vendors and approval of the proposed program by Bank of America.
Managing Director of 88 Energy Limited, Dave Wall commented: “The early observations and
tests are directionally very positive for the HRZ play at Project Icewine and consistent with predrill
modelling. At this stage of the process, we are highly encouraged by these results; however,
substantial additional work is ongoing to de-risk our key ‘Achilles heels’ and we look forward to
sharing these results as and when they become available.
www. 88energy.com
Level 1, 83 Havelock Street, West Perth WA 6005 PO Box 1674, West Perth WA 6872 Australia Phone +61 8 9485 0990
ABN 80 072 964 179
In addition, given that the intersection of high quality reservoir in Icewine#1 boosted our view of
the conventional potential at Project Icewine, we are concurrently progressing our seismic
program with the aim of complementing the HRZ shale play by quantifying the conventional
prospectivity at Project Icewine.”