19
July
2017
QUARTERLY REPORT
Report on Act
ivities for the Quarter ended 30
June
2017
The Directors of 88 Energy Limited (“88 Energy” or the “Company”
, ASX & AIM:88E) provide the
following report for the quarter ended 30
June
201
7.
Highlights
•
Spud of Icewine#2 Production Test well occurred on 24
th
April 2017,
with
the following
key project milestones;
o
The
Arctic Fox drilling rig reached
a Total Depth of 11,450’ on 15
th
May 2017, on
schedule and without incide
nt;
o
Wireline logging successfully completed throughout the production interval
;
o
Stage 1 and Stage 2 stimulation operations completed successful
ly, with over 98% of
the intended proppant volume placed
in the HRZ rese
rvoir
;
o
Flowback commenced
on
19
th
June 2017
with
~16
% of stimulation fluid recovered
prior
to shut in on 10
th
July 2017, with trace hydrocarbons encountered
during flowback
; and
o
Drill
ing and production testing expenditure anticipated to be within
budget.
Key Events Subsequent to the Quarter End
The well was shut in on 10
th July 2017 for an anticipated period of 6 weeks to allow for pressure
build up and imbibition to occur.
Icewine#2 Operations
On
6
th
April
2017,
approval of the Permit to Drill was granted by the Al
askan Oil and Gas
Conservation Commission (‘AOGCC’) and shortly thereafter
on 24
th
April the Icewine#2 well was
spudded with the A
rctic Fox rig.
The well reached a Total Depth (‘TD’) of 11,450’ on the 15
th
of May, on schedule and without
incident. Wireline logging, cementing the 4.5” production liner and demobilisation of the Artic Fox
rig was completed by the end of May.
Log interpretation
to finalis
e the stimulation design was completed in early June, and the two stage
artificial stimula
tion of the HRZ
reservoir
was
successfully
completed on
19
th
June, with over 98%
of the intended proppant volume
placed
into the HRZ
reservoir
.
Flow back from the upper zone commenced on 19
th
June, with approximately 8% of the total
stimulation fluid recovered before it became apparent that the upper and lower zones were in
communication, which consequently
resulted in the drill out of the plug between the upper and
lower zones.
Subsequent
to period end
the well was shut in on 10
th
July 2017 for an anticipated period of 6
weeks, with ~16% of stimulation fluid recovered
prior to shut in
.