88 Energy Limited provided an update in relation to the Hickory-1 flow testing program at Project Phoenix on the North Slope, Alaska. The Hickory-1 discovery well, which was drilled in February 2023, is currently cased and suspended ahead of the upcoming flow testing program, with testing scheduled to commence in mid-February 2024. Flow Test planning has been finalised, with all relevant permits submitted and all final approvals expected to be received in January 2024.

Testing operations will focus on the two primary targets, the SFS and the SMD reservoirs, which will be testing a mean, unrisked, multi-hundred-million-barrel oil resource. Of the SFS series of reservoirs, the Upper SFS reservoir is targeted to be flow tested as it has not been previously flowed, whereas the Lower SFS has previously been flowed and producibility of that reservoir confirmed on adjacent acreage. This will be followed by a targeted testing of the SMD-B reservoir.

Each zone will be independently isolated, stimulated and flowed to surface using nitrogen lift to assist in an efficient clean-up of the well. Perforation, completion-running and stimulation is expected to take approximately four days, followed by a clean-up and flow period of up to four days and a pressure build-up of up to two days. Downhole and surface fluid samples are to be captured to reduce fluid characterisation uncertainties.

Downhole pressure and temperature data, surface pressure and temperature data, and flow rates of oil, gas and water will be recorded. Water salinity data will be acquired to enable distinction between stimulation and formation water production. This data is essential in maturing development plans by accurately constraining reservoir models used to progress the next phases of the Project.

Any future development plan for Project Phoenix will almost certainly include horizontal wells with unconventional completion technology to maximise oil rates. As is evidenced in many Lower 48 analogues, horizontal well production rates typically produce at rates that are 6-12 times higher than vertical wells once lessons from field development are captured in the appraisal phase. Off exploration vertical well tests, similar to the Hickory- 1 discovery well, have all flowed in the 50-100 BOPD range per test.

Water to oil ratios, gas to oil ratios and the evolution of rates and pressures over time are critical datasets that assist in development planning and forecasting. It is not uncommon for formation water to be produced sustainably in conjunction with hydrocarbons in these types of reservoirs, as is often observed in producing analogues in the Lower 48. vertical wells provide cost effective access to test multiple reservoirs in a single wellbore and are therefore the crucial first steps on the path to development of Project Phoenix resources.

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.

Mean unrisked resource - Net Entitlement to 88 Energy. Refer announcement dated 23 August 2022 for pre-Hickory-1 estimates. Refer announcement dated 6 November 2023 for post Hickory-1 drilling resource estimates.

Flow testing program to target two of the four pay zones intersected in the Hickory-1 discovery well. Previously announced Prospective Resource assessment conducted prior to the drilling of Hickory-1 discovery well; Prospective Resource assessment conducted prior To the drilling of Hickory- 1,000,000,000,000-000,000,000-barrel oil resource.