88 Energy Regulatory News (88E)

20 May 2015 General Manager Alaskan Operations Appointed * High calibre in house drilling / project management capability secured for 88 Energy's world class exploration asset in Alaska The Board of 88 Energy Limited ("88 Energy" or the "Company") provide thefollowing update regarding the appointment of Mr Erik Opstad as General Managerof Alaskan Operations. In House Drilling Capability Attained 88 Energy is delighted to announce the appointment of Mr Erik Opstad as GeneralManager of Alaskan Operations. Mr Opstad has managed successful drillingcampaigns on the North Slope in recent times, similar to that planned by theProject Icewine Joint Venture. This is a key step for the Company, with MrOpstad's skillset complementing the significant geological, geophysical,reservoir engineering and commercial expertise already in house. Mr Opstad is a 35 year veteran of the oil and gas industry with a broad rangeof experience throughout the value chain, making him an ideal candidate for asmall company where many hats must be worn. Mr Opstad brings drillingengineering experience combined with a geological background and has ademonstrated focus on project execution and cost control. His most recent experience was as Principal and General Manager / Drilling &Wells Manager for Savant Alaska LLC, a successful private organisation foundedin 2006. Mr Opstad negotiated the acquisition of the Badami field from BP aswell as managing subsequent operations (including managing the productionfacility, permitting, drilling, HSE, compliance, AFE generation andcontracting) to bring the field back into production in 2010. This included thedrilling of two appraisal wells and two exploration wells, with a strong trackrecord of remaining within Budget. Other relevant experience includes the design and build of a high techautomated drilling rig for deployment on the North Slope in Joint Venture witha large Japanese multinational, under contract to BP. Managing Director of 88 Energy Ltd, Dave Wall commented: "Erik's appointment isone of several key milestones expected to be announced over the coming weeksand is a crucial step forward for the Company. Local experience cannot beunderestimated, particularly when operating in a unique environment such asAlaska. Erik brings a wealth of knowledge and experience plus a deep localnetwork, which has already resulted in the identification of cost savings inthe order of several million dollars. 88 Energy and its shareholders areextremely fortunate to have secured the services of an individual of Erik'scalibre." Employment Package Designed for Alignment with Shareholders As part of the employment contract, Mr Opstad has been incentivised to delivera safe and efficient drilling program on time through the issue of milestoneoptions as follows: Milestone Payment Completion of permitting for the 5m 88EO listed optionsIcewine #1 well by 15th October 2015 Spud of Icewine #1 well by 15th 5m 88EO listed optionsOctober 2015 Safe execution of the Icewine #1 well 5m 88EO listed optionswith no major HSE events Plug and abandonment of the Icewine # 5m 88EO listed options1 well without major incident The issue of the above 88EO listed options will, if required, be subject to theCompany obtaining prior shareholder approval in general meeting as necessaryunder the ASX Listing Rules. Yours faithfully Dave Wall Managing Director 88 Energy Ltd Project Icewine Highlights In November 2014, the Company entered into a binding agreement with BurgundyXploration (BEX) to acquire a significant working interest (87.5%, reducing to78% on spud of the first well on the project) in a large acreage position on amultiple objective, liquids rich exploration opportunity onshore Alaska, NorthAmerica, referred to as Project Icewine. 88 Energy, (through BEX their co-venture partner), was announced highest bidderon 90,720 acres in the November State lease sale for the North Slope of Alaskaon 20 November 2014. Post award of the acreage in Q2 2015 88 Energy will securea 99,360 gross contiguous acre position with 77,500 acres net to the Company.The primary term for the State leases is 10 years with no mandatoryrelinquishment and a low 16.5% royalty. Figure 1: Project Icewine Location (please refer to the pdf version of thisannouncement available from the Company's website) Generous exploration incentives are provided by the State of Alaska with up to85% of exploration expenditure in 2015 cash refundable, dropping to 75% mid2016 and thereafter 35%. The primary objective is an untested, unconventional liquids-rich shale play ina prolific source rock, the HRZ shale,(Brookian Sequence), that co-sourced thelargest oil field in North America; the giant Prudhoe Bay Oil Field Complex.Internal modelling and analysis indicates that Project Icewine is located in ahigh liquids vapour phase sweetspot analogous to those encountered in otherTier 1 shale plays e.g. the Eagle Ford, Texas. Conventional play potential can be found at Project Icewine within the sameBrookian petroleum system and shallow to the HRZ shale and includes highporosity channel and deep water turbiditic sands. The Brookian conventionalplay is proven on the North Slope; the USGS (2013) estimate the remaining oilpotential to be 2.1 billion barrels just within the Brookian sequence.Additional conventional potential exists in the deeper Kuparuk sands and theIvashuk Formation. Drilling, (2012), in the adjacent acreage to the north confirmed that the HRZshales, along with the underlying Kingak & Shublik shales, were all within theoil window which is extremely encouraging for the unconventional potential atProject Icewine. In addition a conventional oil discovery was reported in theKuparuk sandstones. A Prospective Resources Report by DeGolyer and MacNaughton, was commissioned by88 Energy to evaluate the unconventional resource potential of Project Icewinein early December 2014 and was released to the market on 19 January 2015. About 88 Energy: 88 Energy recently acquired an initial 87.5% working interestand operatorship in 99,360 acres onshore the prolific North Slope of Alaska("Project Icewine"). The North Slope is the host for the 15 billion barrelPrudhoe Bay oilfield complex, the largest in North America. The Company, withits Joint Venture partner Burgundy Xploration, has identified two highlyprospective play types that are likely to exist on the Project Icewine acreage- one conventional and one unconventional. The large resource potential of theIcewine Project was recently independently verified by leading internationalpetroleum resource consultant DeGolyer and MacNaughton. In addition to theinterpreted high prospectivity, the project is strategically located on ayear-round operational access road and only 35 miles south of Pump Station 1where Prudhoe Bay feeds into the TransAlaska Pipeline System. The Company plansto progress drilling and seismic in the near term to take advantage of theglobally unique fiscal system in Alaska, which allows for up to 85% of CY2015exploration expenditure to be rebated in cash. Media and Investor Relations: Australia 88 Energy Ltdadmin@88energy.com+61 8 9485 0990 Hartleys Ltd As Corporate AdvisorMr Dale Bryan+61 8 9268 2829 United Kingdom RFC Ambrian Limited As Nominated AdviserMr Oliver Morse+61 8 9480 2500