ASX ANNOUNCEMENT26 October 202188 Energy LimitedMERLIN-2...

ASX ANNOUNCEMENT
26 October 2021

88 Energy Limited
MERLIN-2 APPRAISAL WELL – RIG CONTRACT EXECUTED
Highlights

• Rig contract executed for drilling of the Merlin-2 appraisal well at Project Peregrine
• Permitting and planning remain on track for scheduled spud in February 2022
• Merlin-2 is targeting 652 million barrels of oil1,2 with geological chance of success of 56%

88 Energy Limited (ASX:88E, AIM:88E, OTC:EEENF) (88 Energy or the Company) is pleased to
announce that it has executed a rig contract with Doyon Drilling Inc (Doyon) for the use of the Arctic
Fox rig to drill the Merlin-2 appraisal well at its Project Peregrine in the NPR-A region of the North Slope
of Alaska.

The Merlin-2 appraisal well is planned for drilling in February 2022 to a permitted Total Depth of 8,000
feet. Merlin-2 is targeting 652 million barrels of oil1,2 in the highly prospective N18, N19 and N20 targets
that were encountered in the successful Merlin-1 well (drilled in March 2021 to a depth of 5,267 feet),
which demonstrated the presence of oil in these multiple stacked sequences in the Brookian Nanushuk
Formation.

88 Energy has identified several appraisal drilling locations to the east of the Merlin-1 well, closer to the
shelf break where enhanced reservoir thickness and quality are expected. The Merlin-2 well is
independently assessed to have a geological chance of success of 56%. The Company plans to
announce the final drilling location and further details of the Merlin-2 appraisal well in the coming
months.

88 Energy Managing Director, Ashley Gilbert, commented:

“We are delighted to be working with Doyon for the upcoming drilling of the Merlin-2 appraisal well in
early 2022. The Artic Fox is one of the premier rigs on the North Slope and a rig which 88 Energy
knows well, having utilised it in previous drilling operations.
“Permitting and planning is already underway and we look forward to providing additional details in
relation to the Merlin-2 appraisal well in the coming months.”

About Doyon

Doyon Drilling Inc. (DDI) operates on the North Slope of Alaska with eight of the most unique oil and
gas land drilling rigs specially designed to drill oil wells in extreme conditions. DDI was formed in 1982
as a joint venture between Doyon, Limited, an Alaska Native regional corporation, and Nugget Alaska,
Inc. In 1993, DDI became a wholly-owned subsidiary of Doyon Limited.

About the Arctic Fox

The Arctic Fox rig is a fully integrated, multi-module unit, configured in highway transportable loads for
early ice road mobilization. This lightweight rig design is crucial to early drill site access, allowing for
maximum over-the-hole drilling, extending the winter exploratory season by as much as 50%. The mast
hoisting capacity is 400,000 lbs. With an eight-line hookup, the substructure is capable of a
simultaneous load of 281,000 lbs (for pipe set back) and 337,000 lbs (rotary table).