Its Out

293% Increase in HRZ Recoverable Liquids Resource
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
 Independent Resource Estimate for HRZ Increased to 1.4 Billion Barrels Oil Equivalent*
o Probability of Geologic Chance of Success Increased from 40% to 60%
o Estimated Productive Acres 42% of Project Icewine Total (for Mean Case)
 Internal Resource Estimate for HRZ Increased to 3.6 Billion Barrels Oil Equivalent#
o Estimated Productive Acres 70% of Project Icewine Total (for Mean Case)
*Prospective unrisked mean recoverable, calculated using probabilistic methods, 100% basis, gas converted to oil equivalent on a 6:1 ratio, see attached report for full details
#Prospective unrisked mean recoverable, calculated using deterministic and probabilistic methods, 100% basis, gas converted to oil equivalent on a 6:1 ratio
Cautionary Statement: The estimated quantities of petroleum that may be potentially recovered by the application of a future development project relate to undiscovered accumulations. These estimates have both an associated risk of discovery and a risk of development. Further exploration, appraisal and evaluation are required to determine the existence of a significant quantity of potentially movable hydrocarbons.
Overview
Independent resource estimator, DeGolyer & MacNaughton (“D&M”), have updated the prospective resource estimates for the HRZ shale at Project Icewine based on the recent results from the Icewine#1 well and the additional acres won in the November 2015 bid round. The summary of the recoverable liquids from these results is included below:
Fig. 1 D&M Project Icewine Prospective Recoverable Resource from HRZ - Liquids Only
P90
P50
P10
Mean
Pg#
Gross Wet Gas / Condensate Window (mmbbl)
210.5
623.2
1,524.0
787.4
60%
Gross Volatile Oil Window (mmbbl)
45.2
149.6
401.4
197.9
60%
Gross Total Liquids (mmbbl)
985.3
Net Attributable to 88 Energy (mmbbl)
763.1
#Estimated Probability of Geologic Success
The assumptions used by D&M are largely consistent with the internal Joint Venture view, with the main difference related to how much of the total acreage position is likely to be productive, in the success case. The Joint Venture view is based on years of hands-on experience with developing the Eagle Ford shale and confirmation of the thermal maturity model by the Icewine#1 exploration well. D&M’s assumption is largely driven by statistical analysis over a larger selection of global shale plays at a similar stage of life cycle. The internal resource estimate is summarised below:
Fig. 2 Internal Project Icewine Prospective Recoverable Resource from HRZ - Liquids Only
P90
P50
P10
Mean
Pc#
Gross Volatile