Excellent Drill Results Reported Nearby

4 June 2015

         Excellent Drilling Results Reported by North Slope Explorers          

Repsol / Armstrong Provide Details on Recent Success

88 Energy ("Company") is pleased to provide an update related to recent
exploration success by the Repsol / Armstrong Joint Venture on nearby acreage
in conventional play fairways that may extend and be prospective at the
Company's Project Icewine.

Managing Director of 88 Energy Ltd, Dave Wall commented: "The results reported
by Repsol and Armstrong are outstanding and well above expectation. They
clearly vindicate Repsol's US$768m deal with Armstrong in 2011 as well as
highlight the success that can be achieved through utilisation of modern 3D
seismic on the North Slope. The flow rates, large areal extent, reservoir
quality and oil gravity all point towards what are likely to be large to very
large commercial discoveries, located only 50 miles from the boundary of our
Project. Whilst the Icewine #1 exploration well is initially targeting the
world class unconventional oil potential at Project Icewine, the results by
Repsol / Armstrong provide an example of the scale of additional potential that
may be unlocked in conventional plays once we acquire 3D seismic."

The following excerpt was sourced from prnewswire.com/news-releases/
armstrong-announces-significant-discoveries-on-the-north-slope-of-alaska-300092293.htm
l.

"DENVER, June 2, 2015 /PRNewswire/ -- 70 & 148, LLC (Armstrong) announced today
the successful completion of the 2014/2015 winter campaign. 

Two Nanushuk wells were tested this year, including the Qugruk 8 (Q-8) vertical
well, which tested a small portion of the net pay zone and flowed 30 degree API
gravity crude at rates of up to 2,160 barrels of oil per day (BOPD).  The
Qugruk 301 (Q-301), two miles north of Q-8, tested a 2,000 foot horizontal
lateral.  The well flowed at tubing constrained rates as high as 4,600 BOPD
with minimal bottom hole pressure drawdown.

In the East Alpine field, two new penetrations were completed in the Alpine
Formation, adding to the previous two penetrations. Three of these wells have
encountered oil productive Alpine sand in excess of 95 feet thick at a depth of
6500 feet with porosities ranging from 15% to 25%.  Well control and seismic
data indicates the oil pool covers an area in excess of 15,000 acres.

The successful drilling program is the result of a joint exploration effort
underway since 2012. Repsol operates the consortium and holds a 70% interest,
Armstrong holds a 22.5% stake and GMT Exploration Company has 7.5%.

The activity to date since the beginning of exploration has resulted in the
discovery of several oil fields on the North Slope of Alaska. All 16 wells
(including sidetracks) drilled by the consortium have found hydrocarbons, most
with multiple pay zones. In the Nanushuk reservoir, the consortium has drilled
seven appraisal wells to date and has proven an oil pool that covers more than
25,000 acres, at a depth of 4,100 feet, with an oil column of 650+ feet, and up
to 150 feet of net pay with an average porosity of 22%.  

Although additional drilling is needed to confirm the ultimate size of some
discoveries, this season's results justify moving forward with development, and
two of the fields are in the process of being permitted for development -- one
in the Nanushuk and another in the Alpine Fm.

"These new discoveries show the immense potential that still exists on the
North Slope of Alaska," said Bill Armstrong, President of Armstrong Oil & Gas.
 "We strongly believe that there are many great conventional oil projects yet
to be found and developed in Alaska, and with the passage of the More Alaska
Production Act (SB 21), the state has encouraged new drilling and future
developments."

SOURCE 70 & 148, LLC (Armstrong)"

Yours faithfully

Dave Wall

Managing Director

88 Energy Ltd

Project Icewine Highlights

In November 2014, the Company entered into a binding agreement with Burgundy
Xploration (BEX) to acquire a significant working interest (87.5%, reducing to
78% on spud of the first well on the project) in a large acreage position on a
multiple objective, liquids rich exploration opportunity onshore Alaska, North
America, referred to as Project Icewine.

88 Energy, (through BEX their co-venture partner), was announced highest bidder
on 90,720 acres (revised to 89,542 post survey) in the November State lease
sale for the North Slope of Alaska on 20 November 2014. Post award of the
acreage in Q2 2015 88 Energy will secure a 98,182 gross contiguous acre
position with 85,900 acres net to the Company (76,582 net acres post spud). The
primary term for the State leases is 10 years with no mandatory relinquishment
and a low 16.5% royalty.

Figure 1: Project Icewine Location (please refer to the pdf version of this
announcement available from the Company's website)

Generous exploration incentives are provided by the State of Alaska with up to
85% of exploration expenditure in 2015 cash refundable, dropping to 75% mid
2016 and thereafter 35%.

The  primary objective is an untested, unconventional liquids-rich shale play
in a prolific source rock, the HRZ shale,(Brookian Sequence), that co-sourced
the largest oil field in North America; the giant Prudhoe Bay Oil Field
Complex. Internal modelling and analysis indicates that Project Icewine is
located in a high liquids vapour phase sweetspot analogous to those encountered
in other Tier 1 shale plays e.g. the Eagle Ford, Texas.

Conventional play potential can be found at Project Icewine within the same
Brookian petroleum system and shallow to the HRZ shale and includes high
porosity channel and deep water turbiditic sands. The Brookian conventional
play is proven on the North Slope; the USGS (2013) estimate the remaining oil
potential to be 2.1 billion barrels just within the Brookian sequence.
Additional conventional potential exists in the deeper Kuparuk sands and the
Ivashuk Formation.

Drilling, (2012), in the adjacent acreage to the north confirmed that the HRZ
shales, along with the underlying Kingak & Shublik shales, were all within the
oil window which is extremely encouraging for the unconventional potential at
Project Icewine. In addition a conventional oil discovery was reported in the
Kuparuk sandstones.

A Prospective Resources Report by DeGolyer and MacNaughton, was commissioned by
88 Energy to evaluate the unconventional resource potential of Project Icewine
in 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 interest
and operatorship in 98,182 acres onshore the prolific North Slope of Alaska
("Project Icewine"). The North Slope is the host for the 15 billion barrel
Prudhoe Bay oilfield complex, the largest in North America. The Company, with
its Joint Venture partner Burgundy Xploration, has identified two highly
prospective play types that are likely to exist on the Project Icewine acreage
- one conventional and one unconventional. The large resource potential of the
Icewine Project was recently independently verified by leading international
petroleum resource consultant DeGolyer and MacNaughton. In addition to the
interpreted high prospectivity, the project is strategically located on a
year-round operational access road and only 35 miles south of Pump Station 1
where Prudhoe Bay feeds into the TransAlaska Pipeline System. The Company plans
to progress drilling and seismic in the near term to take advantage of the
globally unique fiscal system in Alaska, which allows for up to 85% of CY2015
exploration expenditure to be rebated in cash.

Media and Investor Relations:

Australia                             
                                      
88 Energy Ltd                         
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Hartleys Ltd                          
As Corporate Advisor                  
Mr Dale Bryan                         
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United Kingdom                        
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As Nominated Adviser                  
Mr Oliver Morse                       
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