Quarterly Report - 31 March 2015

24 April 2015

                               88 ENERGY LIMITED                               

Quarterly Report for Period Ending 31 March 2015

The Directors of 88 Energy Limited ("88 Energy" or the "Company") provide the
following report for the quarter ended 31 March 2015.

Highlights

  * The Company completed an oversubscribed placement raising $6.9m through the
    issue of 691m shares at $0.01 with a 1 for 2 listed attaching option (ASX
    Code: 88EO, expiry 2 March 2018, strike $0.02)
   
  * The name of the Company was officially changed to 88 Energy Ltd (ASX Code:
    88E), punctuating the beginning of a fresh chapter for new and existing
    shareholders
   
  * Permitting commenced for the drilling of an exploration well at Project
    Icewine, located on the North Slope of Alaska. The Icewine #1 exploration
    well is scheduled for spud before end CY2015
   
Overview

Key operational activities during the quarter included:

  * A General Meeting was held on 12 February 2015 to approve both the
    acquisition of Project Icewine and the placement required to complete the
    acquisition
   
The key corporate activities for the quarter were:

  * Finalisation of a placement for $6.9 million at $0.01 per share (with 1 for
    2 free attaching listed options exercisable at $0.02 on or before 2 March
    2018)
   
  * Release of the Annual Report for 2014 on March 30 2015
   
Key Events Subsequent to the Quarter

  * A notice of the Annual General Meeting was announced on 26 March 2015 by
    the Company to be held on 24 April 2015. Full details of the Agenda and
    Business of the Meeting can be accessed on the Company website http://
    88energy.com/investor-centre/announcements/
   
  * A services agreement was executed with Fairweather Science to fast track
    permitting of the drilling of the Icewine #1 exploration well prior to year
    end. This will provide access to the 85% cash rebate offered by the State
    of Alaska for expenditure related to the drilling of the well.
   
  * An existing gravel pad was identified on Icewine acreage, from which the
    Icewine #1 exploration well is proposed to be drilled. This should provide
    significant benefits in relation to permitting, cost and timing of drilling
    for the Joint Venture (see Figure 1 below).
   
  * Further cost reductions achieved through restructuring of certain contracts
    as well as downsizing of the West Perth office
   
Figure1: Existing Gravel Pad (please refer to the pdf version of this
announcement available from the Company's website)

                                   Financial                                   

The capital raising announced on 16 February 2015 was approved by shareholders
on 12 February 2015. This included the issue of 691 million fully paid ordinary
shares at $0.01 per share with 1 for 2 free attaching listed options
exercisable at $0.02 on or before 2 March 2018. Funds were raised to finalise
acquisition of Project Icewine and to progress permitting and planning of the
Icewine #1 exploration well as well as for working capital purposes.

The Prospectus associated with the capital raise was released to the market on
16 February 2015. There are now 1,139,306,023 fully paid ordinary shares quoted
on ASX and admitted to trading on AIM. Finalisation of the placement resulted
in a capital raise of $6.9 million (before costs).

The ASX Appendix 5B attached to this report contains the Company's cash flow
statement for the quarter. The significant elements for the period were:

  * exploration and evaluation expenditure of A$0.576m (December 2014
    A$0.138m);
   
  * administration and other operating costs A$0.493m (December 2014 of
    A$0.753m);
   
  * capital inflow from equity issue of A$6.223m (after costs); and
   
  * a net cash inflow of A$5.158m recorded by the Company.
   
At the end of the quarter, the Company had net cash reserves of A$6.235
million.

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%) 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 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 99,360 gross contiguous acre position with 86,940 acres net to the Company.
The primary term for the State leases is 10 years with no mandatory
relinquishment and a low 16.5% royalty.

Figure 2: Project Icewine LocationMap(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 40%.

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.

Capital Management

During the quarter the Company completed a placement for A$6.9 million at $0.01
per share (with 1 for 2 free attaching listed options with a strike of $0.02)
to sophisticated investors in order to finalise the completion of the
acquisition of Project Icewine. The placement was managed by Hartleys Ltd with
Co-Management by BBY Ltd and DJ Carmichaels. It was approved by shareholders on
the 12th February 2015.

              Additional Information required under ASX LR 5.4.3               

List of petroleum tenements held by 88 Energy at quarter ending 31 March 2015:

Reference   Project Name       Location Company  Acquired       Disposed of    
                                        Interest during the     during the     
                                                 Quarter        Quarter        
                                                                               
Tarfaya     Tarfaya Offshore   Morocco    25%          -               -       
            Block                                                              
                                                                               
Onshore     Project Icewine    Alaska    87.5%*    Subject to          -       
Alaska,                                          final award by                
                                                  the State of                 
North Slope                                         Alaska *                   

* 88 Energy, through their co-venture partner BEX, were announced high bidder
in the November 2014 State of Alaska Bid Round which entitles the co-venture to
secure the leases on award by State of Alaska (anticipated in Q2 2015)

Unless stated elsewhere in this report, there were no beneficial interests held
in farm-in or farm-out agreements at the end of the quarter and no beneficial
interest in farm-in or farm-out agreements acquired or disposed of during the
quarter, and there have been no activities relating to oil and gas production
or development during the quarter.

David Wall
Managing Director

88 Energy Limited
Level 2, 5 Ord Street
West Perth WA 6005, Australia
Ph: + 61 8 9485 0990 
www.88energy.com


Contacts

RFC Ambrian Limited
As Nominated Adviser

Mr Oliver Morse
[phone]

As Corporate Broker

Mr Charlie Cryer
[phone]