Ann: Project Icewine Operations Update, page-3

4 September 2017
88 Energy Limited
Project Icewine Operations Update
88 Energy Limited (“88 Energy”, “the Company”, “Operator”) (ASX, AIM: 88E) is pleased to provide
an update on Project Icewine, located onshore North Slope of Alaska.
Highlights
• Flow testing on Icewine#2 re-commenced 31st August 10:26 (AK time) post ~7 week shut-in
• Currently flowing back naturally on 4/64 choke at ~70 barrels per day frac fluid
• Minor hydrocarbon indications via formation of gas hydrates within the choke manifold
• Pressure data analysis indicates limited connection to the reservoir prior to last 24 hours
Icewine#2 Operations Update
The Icewine#2 well was shut-in on 10th July to allow for imbibition and pressure build up to occur within
the HRZ shale. Flow testing re-commenced on 31st August at 10:26 (AK time), and is ongoing. Results
since flow testing recommenced are summarised below.
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.
The well was initially flowed back on a 6/64 inch choke and was reduced to a 4/64 inch choke after 26
hours to maintain pressure. Approximately 370 barrels of frac fluid had been recovered as at 1730 on
3rd September (AK time) at an average rate of 100 barrels per day. Hydrocarbon indications have
been minor and are associated only with the formation of gas hydrates in the choke manifold. Methanol
injection has been initiated to prevent the surface manifold equipment from freezing thereby ensuring
free flow of produced fluids through the choke.
Wellhead pressure built to ~3,500psi during shut-in and has dropped to 1,130psi since flowback
commenced. Initial analysis of the pressure data from both the build-up and flowback indicates limited
connection to the reservoir prior to the last 24 hours. At 0550 on the 2nd September (AK time) a small
pressure build-up was observed, potentially indicating the first contribution to pressure from the
reservoir itself. This is the first time that this has occurred since flow testing was initiated, including
the previous testing period prior to shut-in. To date the cumulative amount of stimulation fluid produced
from both testing periods is 4,802 barrels, 17.25% of fluids injected.
The current flowback procedure is early stage and the significance of an implied pressure contribution
from the reservoir and formation of gas hydrates cannot yet be determined.