Ann: Operations Update, page-3

Highlights • Flowback commenced at Icewine#2

Project Icewine – Icewine#2 Production Testing Flowback commenced, on schedule, at 22:30 11th June (AK time) to clean-up stimulation fluids from the Icewine#2 borehole with a well head pressure of 3,000 psi and flowback rate of 253 barrels of water per day. As at 1230 12th June (AK time), wellhead pressure was 816 psi with a flowback rate of 160 barrels of water per day. Based on the pressures and flow rates, there is no indication of any impediment to flow through the perforations at this stage. A production log has been run to confirm this, and the results will be disclosed to the market once the report has been finalised. At this early stage of flowback, the fluid has not been run through the separator, so the hydrocarbon rate has not been measured. Flowback through the separator and gas chromatograph is expected to commence today. The velocity string, comprised of 1.75” coiled tubing, is ready to be installed and connected to nitrogen lift utilising a membrane unit, currently set-up on location. The Icewine#2 well is located on the North Slope of Alaska (ADL 392301). 88 Energy Ltd (via its wholly owned subsidiary, Accumulate Energy Alaska, Inc) has a 77.55% working interest in the well. The well was stimulated in two stages over a gross 128 foot vertical interval in the HRZ shale formation, from 10,957-11,085ft TVD, using a slickwater treatment comprising 27,837 barrels of fluid and 1,034,838 pounds of proppant.

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