88 Energy Ltd (EEENF)

[Ailan]

• All three Nanushuk targets (N20, N19 and N18) were penetrated during drilling, with Logging While Drilling (LWD) “data” and “physical cuttings” collected throughout the Merlin-2 program. (Oil shows come from “physical cuttings”)

• All three (3) target reservoirs in the Merlin-2 well were penetrated with elevated gas readings.

• Observations of cuttings samples have revealed oil shows (under both white and ultraviolet light) over all target intervals.

Initial observations of LWD logs and drill cuttings collected throughout the drilling operations revealed target intervals are thicker than those encountered in Merlin-1 as anticipated pre-drill, with oil shows noted under white light in the three target Nanushuk reservoirs. Fluorescence has also been observed in numerous samples when placed under an ultraviolet light, an indication of oil presence. Additionally, when solvent was applied to the fluorescing samples, “moderately fast” to “immediate and blooming” “cuts” were noted, the speed of which is often a proxy for sample permeability.

Finally, significant mud gas peaks were detected across all target sequences in the Nanushuk, with marked increases in the heavier carbon compounds (C2-C5) observed in each. Further and more detailed analysis will be conducted on the mud gas samples upon the mud gas isotube delivery to 88 Energy’s preferred lab.

Figure 1. Merlin-2 Oil Shows: Fluorescence and cut observed in N20, N19 and N18