Operations Update - Project Icewine

16 April 2015

                 Project Icewine, North Slope, Alaska - Update                 

      Services Agreement Executed to Facilitate Fast Tracking of Drilling      

  * Permitting process for drilling at Project Icewine is underway
   
  * Utilisation of existing gravel pad at Project Icewine may provide
    substantial benefits in preparation for drilling in terms of both timing
    and cost
   
  * 88 Energy progressing discussions with multiple parties for Project Icewine
    funding / farmout
   
  * Commencement of exploration activities targeted in 2015 to access
    favourable 85% tax credit rebates
   
88 Energy Ltd ("88 Energy", "Company") is pleased to announce that it has
signed a Services Agreement with US-based Fairweather Science ("FWS") to
facilitate fast tracking of permitting for the drilling of a well at its
Project Icewine acreage, located on the North Slope of Alaska.

FWS is an experienced service provider in Alaska and has a team of permitters
that have extensive experience in state (of Alaska) and federal permitting,
developing plan of operations, regulatory compliance, and negotiating
mitigation measures. The FWS team is comprised of Anchorage-based staff that
are available to meet regularly with agency representatives to monitor permit
approval status.

The team at FWS has identified the presence of an existing gravel pad on the
Project Icewine leases that may provide substantial benefits to the Project
Icewine Joint Venture. Specifically, the use of the existing gravel pad will
minimize adverse effects on vegetation, habitat, impacted wildlife and cultural
resources thus possibly fast tracking permitting for a well to be drilled at
the site prior to the end of CY2015, subject to regulatory approvals.

Figure 1: LIDAR Data Showing Existing Pad and Potential Well Location (please
refer to the pdf version of this announcement available from the Company's
website)

Already several permits that have the longest regulatory review period have had
documentation drafted for submission to the relevant agencies in Alaska. This
includes the development of a draft Plan of Operations for the drilling of the
Icewine #1 exploration well. A cultural resource clearance has been obtained
for the site and several water withdrawal locations are being researched to
support drilling and camp operations. Substantial research and planning is
underway to obtain additional permit approvals. A pre-application meeting with
regulatory agencies is being planned before the end of the month to officially
start the permitting process. The goal of these meetings is to facilitate an
open, round-table discussion, to answer questions, relieve concern and provide
all the information possible for the agencies to receive and process permit
applications quickly.

Background - Existing Pad at Project Icewine

The Franklin Bluffs #1 well was designed as a shallow coal bed methane test
(Bureau of Land Management, 2005) which encountered mechanical issues and was
plugged and abandoned at 1818 feet prior to reaching its objective at
approximately 2500 feet. The large pad from which it was drilled has
subsequently been used as a general staging area for various regional
activities and is considered suitable as a potential location for the drilling
of the first well at Project Icewine.

Potential benefits associated with the use of the existing pad, which is
located on an easement between the Dalton Highway and the TransAlaska Pipeline
System, include:

  * Likely faster processing time for permits related to drilling, subject to
    regulatory approvals
   
  * Cost savings associated with lower construction costs for the well pad
   
  * Possible cost reductions via use of an existing all purpose camp, subject
    to availability and negotiations
   
By taking advantage of these benefits, the Project Icewine Joint Venture will
be able to access the full 85% in cash rebates offered by the State of Alaska
in relation to exploration activity undertaken in CY2015 (prior to a reduction
in the rebate to 75% in 1H 2016).

Forward Plan

The Joint Venture is progressing permitting activity and well planning to
firm-up the schedule for the drilling of the Icewine #1 exploration well and
will provide further updates to shareholders as appropriate.

The Company is also making headway in relation to funding / farm-out of its
share of exploration costs (net of the generous rebate) and, despite the low
oil price environment, remains confident of achieving an accretive outcome for
shareholders. Having access to the higher (85%) rebate in CY2015, as well as
the other advantages likely to be afforded through use of the existing pad,
will facilitate these discussions.

Yours faithfully

Dave Wall
Managing Director
88 Energy Ltd

About 88 Energy: 88 Energy recently acquired an initial 87.5% working interest
and operatorship in 99,360 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
Project Icewine 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 activities 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                 
[e-mail]              
[phone]                 
                                
Hartleys Ltd                    
As Corporate Advisor            
Mr Dale Bryan                   
[phone]                 
                                
United Kingdom                  
                                
RFC Ambrian Limited             
As Nominated Adviser            
Mr Oliver Morse                 
[phone]