22 July 2025

QUARTERLY ACTIVITIES REPORT

For the quarter ended 30 June 2025

88 Energy Limited (ASX:88E, AIM:88E, OTC:EEENF) (88 Energy, 88E or the Company) provides the following summary of activities for the quarter ended 30 June 2025. 

Highlights

Project Leonis Alaska (100% WI)

A Multi-Reservoir Opportunity of Scale:

_Ø  Combined internal gross mean Prospective Resource estimate across the Canning and USB Prospects of 798 MMbbls (664 MMbbls net mean to 88E)[1] [2]

_Ø  Combined net unrisked Resource range:

_·          1U (low) of 303 MMbbls^1,2

_·          2U (best) of 597 MMbbls^1,2

_·          3U (high) of 1,140 MMbbls^1,2

Future Potential Tiri-1 Exploration Well:

Ø Planning and permitting progressed for the proposed Tiri-1 exploration well, targeting both the Canning and USB Prospects, with potential deeper reservoir upside. 

Ø Key vendors submitted operational proposals, contributing to updated well AFE.   

Ø 88 Energy's 100% working interest positions the Company favourably to secure a material carry through its active farm-out process. Third party evaluation remains ongoing.

Ø Formal award of the four (4) additional leases totalling ~10k acres was received.

Ø Acquisition of the low-cost Great Bear 3D seismic survey (2014) completed, significantly expanding the regional 3D dataset. The new data overlaps the both the existing Leonis acerage and the Storms and Franklin Bluffs 3D data sets, enhancing prospect evaluation.

Project Phoenix Alaska (~75% WI)

Farm-Out Activity and Work Program Progress:

Ø Joint venture partner Burgundy Xploration LLC (Burgundy) advanced it's funding strategy to finance Phase 1 of the farmout, targeting US$29M (A$45M) to drill a horizontal well and conduct a long term production test[3].

Ø Burgundy reaffirmed its commitment by meeting its 2025 financial obligations, including 100% of lease cost payments in accordance with the farm-out agreement.  

Ø Ongoing optimisation of the planned stimulation and extended horizontal flow test at the Franklin Bluffs gravel pad, with spud currently targeted for Q2/Q3 CY2026[4].

PEL93 Namibia (20% WI)

Licence Extension and Pre-Drill De-Risking Underway

Ø License extension secured: The Namibian Ministry of Mines and Energy granted a 12-month extension to the PEL 93 First Renewal Exploration Period, now expiring on 2 October 2026.

Ø Stage 1 Work Program approved: A new work program has been introduced under a revised Farmout Agreement with Operator Monitor Exploration Limited, designed to support pre-drill de-risking ahead of a potential Stage 2 drilling campaign.

Ø Airborne gravity survey set for H2 CY25: A high-resolution gravity survey will cover the southern area of PEL 93, where multiple structural leads have been identified.

Ø Lead 9 Prioritised as a key target: A ~100km² anticlinal structure, Lead 9, was mapped from  2024 2D seismic data, with closure at all potential reservoir and source rock levels. Additional leads also emerged within the gravity survey area.

Ø Regional catalysts building: ReconAfrica is preparing to spud the Kavango West 1X exploration well in July 2025, which has striking similarities to Lead 9 located in the southern area of PEL 93.

·                           

Project Longhorn Texas (~65% WI)

Strategic Divestment Progressing:

Ø Q2 CY25 production averaged 309 BOE/day gross (~76% oil), down from 342 BOE per day in Q1 CY25, due to 30 days of third party gas facility downtime requiring gas venting and additional subsequent days of high line pressure as well as unscheduled maintenance on various wells.

Ø The Company has progressed negotiations with a third party regarding a sale of the asset. The divestment remains subject to final legal documentation and requisite internal and external approvals.

Corporate

·     Cash balance of A$8.05 million at 30 June 2025.

·     Strong treasury position supports planning for the Tiri-1 and new venture opportunities.

·      Capital (Share) consolidation completed on a 1-for-25 basis, as approved by shareholders on 6 May 2025.

·      Small Holding Share Sale Facility launched for share holders with parcels valued under A$500, to streamline registry management and reduce overheads.

Project Leonis (100% WI)

Multi-reservoir opportunity further enhanced with four new lease blocks awarded and the Canning Formation added as a new reservoir target.  

Canning Formation (Canning):

·      Prospective Resource target of 283 MMbbls of oil (net mean); unrisked net 3U (high) 469 MMbbls, 2U (best) 259 MMbbls, and 1U (low) 136 MMbbls ^{1 2}.

·      Identifed following reprocessed and interpreted Storms 3D seismic data, and a quantitative interpretation study (rock physics, AVO and seismic inversion).

Upper Schrader Bluff (USB):

·      Prospective Resource target of 381 MMbbls of oil (net mean); unrisked net 3U (high) 671 MMbbls, 2U (best) 338 MMbbls, and 1U (low) 167 MMbbls[5].

·      The USB formation is the same proven producing zone as found in nearby Polaris, Orion and West Sak oil fields to the north-west

Project Leonis: Forward Program

Planning and permitting for the Tiri-1 exploration well continued during the quarter, with key Alaska North Slope vendors submitting operational proposals refining the authorisation for expenditure (AFE). The optimal Tiri-1 well location is designed to intersect the Canning and USB reservoirs and to test deeper potential upside. The final well location will be subject to agreement with potential farminees. 

88 Energy's 100% working interest provides a strong position from which to secure a large, proportionate carry upon completion of the active farm-out process, ahead of any drilling event. Third party assessment of the opportunity was ongoing at quarter end. Drilling the Tiri-1 well is subject to the completion of a farm-out, with the Company not intending to conduct a capital raising to finance the well.

88E recently acquired the low-cost Great Bear Survey 3D survey, completed in 2014, which extends the Company's regional 3D seismic database. The dataset overlaps the Storms 3D and Franklin Bluffs 3D datasets, providing an enhanced regional seismic framework from which to assess new opportunities.  The new 3D dataset also overlaps the existing Leonis acreage position.

Project Phoenix (~75% WI)

Joint Venture Partner Farm-Out Review

On 17 February 2025, 88 Energy announced it had entered binding terms for a Farmout Participation Agreement (PA) with Burgundy Xploration LLC (Burgundy) in relation to Project Phoenix. Under the agreement, 88 Energy's wholly owned subsidiary, Accumulate Energy Alaska, Inc. (Accumulate), will be fully carried for all costs associated with the planned horizontal well program, including an extended flow test currently scheduled for mid-2026.

Transaction highlights:

·      Burgundy to fully fund up to US$39 million (approx. A$60 million) of Project Phoenix's total gross future work program costs in exchange for up to an additional 50% Working Interest (WI) in Project Phoenix from 88 Energy.

·      Provides a clear funding avenue to advance Project Phoenix towards a final development decision via a two-phase farm-in arrangement:

Ø Phase 1: Burgundy to fund US$29 million (approx. A$45 million) for CY25/26 work program, including drilling of a horizontal well and production testing scheduled for H1 CY26 (88E fully carried, Accumulate WI post Phase 1 farmout 35%)

Ø Phase 2: Upon Phase 1 Success; Burgundy to fund up to US$10 million (approx. A$15 million) for an additional well or other CAPEX program (88E carry up to US$7.5 million, based on the current 75%, with Accumulate WI post Phase 2 farmout to 25%). 

88 Energy continued to work with Burgundy to advance planning and permitting for the horizontal test well and flowback operation scheduled for mid-CY26 and Burgundy is progressing well towards its North American public listing. Burgundy continued to reaffirm its project commitment by paying 2025 cash calls during the quarter, including 100% of lease payments, which form part of its carried expenditure under the farm-out agreement.

Project Phoenix: Forward Program

Namibia PEL 93 (20% WI)

License Extension Secured from Namibian Government

The Ministry of Mines and Energy of the Republic of Namibia formally approved a 12-month extension to the First Renewal Exploration Period for PEL 93 during the quarter. The extension moves the current expiry date from 2nd October 2025 to 2nd October 2026 and the following work commitments are to be completed during the extension period:

·      Acquisition of an airborne gravity and magnetic survey;

·      Integration of datasets to support drilling location selection;

·      Completion of an Environmental Impact Assessment (EIA) for drilling; and

·      A minimum gross spend of US$800,000.

New Stage 1A Work Program Approved

In conjunction with the license extension, 88 Energy and Monitor have executed a variation to the existing Farmout Agreement. The amendment introduces a Stage 1A Work Program, comprising:

·      A high-resolution airborne gravity, magnetic, and radiometric survey;

·      Preparation of a certified prospective resource report;

·      Identification of potential drilling locations; and

·      Creation of an Authority for Expenditure (AFE) for any proposed future well.

Stage 1A will be jointly funded on a 50:50 basis by 88 Energy and Monitor, subject to a cost threshold of US$1 million, unless otherwise agreed.

PEL 93 Forward Work Program

The joint venture is preparing to commence the airborne gravity survey in H2 2025, focusing on the southern portion of the license area in the heart of the Owambo Basin. This follows identification of Lead 9, a very large anticlinal structure, during the H2 2024 2D seismic program. Lead 9 is analogous to the structure to be drilled by ReconAfrica's imminent Kavango West 1X well. Both both structures exhibit large, robust structural closures incorporating shallow clastic reservoirs, the deeper Otavi carbonate reservoir (seen in Naingopo-1) and the deeper source rocks. According to the Operator, Monitor, the regional structural model suggests the presence of a series of similar features extending across the southern Owambo Basin. Early gravity and radiometric data suggest even larger structural leads may be present in southeast of the block.

Regional Catalysts Building: ReconAfrica's Kavango West 1X Well

88 Energy notes the upcoming drilling of the Kavango West 1X exploration well by ReconAfrica in the adjacent Damara Fold Belt. This well will target a large fold structure approximately 20 km long and 5 km wide, anticipated to penetrate a thick Otavi carbonate reservoir with mature source rocks within the same closure. Rig mobilisation is scheduled for mid-2025, with drilling expected to commence shortly thereafter. This regional activity highlights growing industry interest in the broader Owambo Basin.

Project Longhorn (~65% WI)

Q2 CY25 production averaged 309 BOE/day gross (~76% oil), down from 342 BOE per day in Q1 CY25, due to 30 days of third party gas facility downtime requiring gas venting and additional subsequent days of high line pressure as well as unscheduled maintenance on various wells.

As noted in Q1 2025, following an internal review of Project Longhorn's alignment with the Company's long-term strategy and asset mix, a decision was taken to explore the potential divestment of interests in the asset. The review considered capital expenditure requirements to offset production declines and increasing cost profile associated with the ageing existing wells.

The Company advanced discussions with interested parties during the quarter, and following due diligence reviews, offers were submitted to the Company for the full working interest in Project Longhorn. The divestment of the asset remains subject to completion of customary legal documentation, as well as relevant internal and external approvals. 

Corporate

At 30 June 2025, the Company's cash balance was A$8.05 million. The attached ASX Appendix 5B sets out the Company's cash flow for the quarter.

Material cash flows for the period include:

·      Exploration and Evaluation Expenditure: A$0.7 million (March 2025 quarter A$0.9 million) related to Leonis Tiri-1 permitting and planning and PEL 93 2025 work program costs.  

·       Staff and Administration Costs: A$1.3 million (March 2025 quarter A$0.9 million) reflecting one-off annual insurance renewal, year-end audit and tax and market compliance including AGM and share consolidation, and includes fees paid to Directors and consulting fees paid to Directors of A$0.35 million.

The Company held its AGM on 6 May 2025 with four (4) of five (5) resolutions being carried. The approval of Resolution 3 - Approval of 7.1A Mandate was not carried.

The Company completed the consolidation of capital on a one (1) share for every twenty-five (25) shares held basis as approved by shareholders on 6 May 2025.

Subsequently, on 16 June 2025, the Company announced the establishment of a Small Holding Share Sale Facility for holders of "less then marketable parcels (

Information required by ASX Listing Rule 5.4.3

Pursuant to the requirements of the ASX Listing Rules Chapter 5 and the AIM Rules for Companies, the technical information and resource reporting contained in this announcement was prepared by, or under the supervision of, Dr Stephen Staley, who is a Non-Executive Director of the Company. Dr Staley has more than 40 years' experience in the petroleum industry, is a Fellow of the Geological Society of London, and a qualified Geologist / Geophysicist who has sufficient experience that is relevant to the style and nature of the oil prospects under consideration and to the activities discussed in this document. Dr Staley has reviewed the information and supporting documentation referred to in this announcement and considers the prospective resource estimates to be fairly represented and consents to its release in the form and context in which it appears. His academic qualifications and industry memberships appear on the Company's website, and both comply with the criteria for "Competence" under clause 3.1 of the Valmin Code 2015. Terminology and standards adopted by the Society of Petroleum Engineers "Petroleum Resources Management System" have been applied in producing this document.

This announcement has been authorised by the Board.

Media and Investor Relations:

Information required by ASX Listing Rule 5.4.3 - Lease Schedules as at 30 June 2025

Appendix 5B

Mining exploration entity or oil and gas exploration entity
quarterly cash flow report

6.1       Payments relate to Director and consulting fees paid to Directors. All transactions involving directors and associates were on normal commercial terms.

Compliance statement

1.   This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.

2.   This statement gives a true and fair view of the matters disclosed.

Date:      24 July 2025

Authorised by:      By the Board

(Name of body or officer authorising release - see note 4)

Notes

1.   This quarterly cash flow report and the accompanying activity report provide a basis for informing the market about the entity's activities for the past quarter, how they have been financed and the effect this has had on its cash position. An entity that wishes to disclose additional information over and above the minimum required under the Listing Rules is encouraged to do so.

2.   If this quarterly cash flow report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. If this quarterly cash flow report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report.

3.   Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.

4.   If this report has been authorised for release to the market by your board of directors, you can insert here: "By the board". If it has been authorised for release to the market by a committee of your board of directors, you can insert here: "By the [name of board committee - eg Audit and Risk Committee]". If it has been authorised for release to the market by a disclosure committee, you can insert here: "By the Disclosure Committee".

5.   If this report has been authorised for release to the market by your board of directors and you wish to hold yourself out as complying with recommendation 4.2 of the ASX Corporate Governance Council's Corporate Governance Principles and Recommendations, the board should have received a declaration from its CEO and CFO that, in their opinion, the financial records of the entity have been properly maintained, that this report complies with the appropriate accounting standards and gives a true and fair view of the cash flows of the entity, and that their opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively.