2360: 88 Energy: Is This the Breakthrough Moment?

0:00The VOX Markets Podcast Nothing in this podcast is intended as investment advice and the people in this podcast may hold positions in the stocks they talk about. Do not buy anything based solely on a tip or recommendation. Please do your own research. 88 energy is advancing a potentially high-impact elask and exploration well targeting 64 million barrels. And importantly, moving quickly from acreage of water to drilling plans. Joining me today to discuss these plans is the Managing Director Ashley Gilbert and Richardson, their exploration manager. Welcome, gentlemen. Thank you. Thank you. Now, you've moved quickly since securing the acreage to identify a guest as a priority target. What is it about this prospect that makes you so confident? Well, look, I mean, it looks like we've moved quickly, but in all honesty, this is the combination of 12 to 18 months worth of effort, which started really with bringing on a refreshed technical team. So Rick Jason, who's on the call, obviously, and another fellow by the name of Matt Fittle.

1:04So both of those two individuals have extensive industry experience and approved and tracked recorders explorers. So that was important to 88. And really, when they came on board, the mandate was for both of them to do a portfolio review, but also a base and wide review of the Null Slip. And that base, my review, that involved purchasing or licensing additional 3D, which was the Schrader Bluff 3D, and also the Great Bear 3D, as well as reviewing historical well logs and legacy data. So that really informed us in advance of the bid round in November 2025, what we picked up the new South Prudo leases. So that was an important step for us, and the other important aspect to, I guess, the new leasing and strategy to some extent was to really re-focusing on underexplored regions, a Jason to approve in producing fields, such as the Kapark River Unit and the Prudo Bay Unit, both of which produced historically billions of barrels.

2:05So within that, we picked up the leases in the North West Hub, is what we're calling it, which is Jason to both those major producing fields. Super Giants, if you want to call them that. And we're targeting conventional reservoirs. The Ivershack and Kapark reservoirs within that North West Hub. So that really focused us in on, I guess, the Augusta prospect, which also has the advantage of being within six miles of keen infrastructure. So that really elevated that prospect, given the quality of the reservoir potential, but also the proximity to the acreage or the commercialisation path. How does Augusta compare to previous opportunities you've worked on in Alaska? So I'll answer that. Martin, Augusta will be the lowest risk opportunity or prospect that's been drilled by 88 energy to date. So the targets are proven in the Jason fields, giant fields, if you like.

3:10And the results from those reservoirs will be unequivocal. With that kind of success on the doorstep of that significant infrastructure, the potential is expected to be realised rapidly or quickly. But 64 million barrels of gross and risk resources, clearly a material one. How should investors think about the potential scale of this opportunity, if the drill in is successful? Look at this material. It's material for 88 for a few reasons. Obviously we've talked about and mentioned the access to infrastructure. And so the path to commerciality is quite a well-defined one. And being so close lowers the cost to capital and development as well costs. But also, more importantly, when we look at the value that's described, because these are high quality reservoirs. So the ability to develop the number of wells required to develop and produce as far less than, say, the Brooking Opportunities of 88

4:16targeted in the past. But also, when we look at, you know, the numerous analogs in the all-slip, we call them satellite fields, which have been developed since 1990. We've referenced them in our recent investor presentation. There's been numerous examples where these have been rapidly developed in two to three years from sanction to first oil. So that demonstrates that, you know, the majors and the incumbents who are producing on the all-slip are targeting these sorts of opportunities and seek value in them. A nooner is a good example. You know, that was acquired by Conaco from a small oil and gas company in 2019. It was then sanctioned for development in 2023 with first oil in 2025. So, you know, there's not too many places in the world where you see this sort of opportunity to access infrastructure and develop on success in a rapid fashion. Rick, so tell me, what would that mean strategically? So Augusta would not only fast track South Prudo as a core development hub, but it would

5:22turbocharge the company's valuation potential. So, you know, as Ashley mentioned, it would be similar to the other satellite fields that have been developed in the area or region. Being able to access existing infrastructure and pipeline capacity. And importantly, some of these satellite fields have started at a certain size, say 40 to 60 million barrels, and they've found additional oil potential or pools as more wells have been drilled. So, you know, it could ship the company's focus from pure exploration to appraisal and like pre-development, but you know, there are clear analogues and the key is the speed in which these these successes have been developed. Now, you're talking about two to three years from the time of discovery to making money. So, it's quite a unique opportunity.

6:27And success validates the company's strategy and it gives impetus to unlocking further potential and more of the upside in our exploration acreage, which is, as Ashley mentioned, is data rich now. So, the timing's right. We're getting all this new data. Yeah. So, you know, Augusta, we'll really do risk our other prospects. Now, you're drilling Jason to an established producing asset. Can you explain to investors how important it is in terms of reducing geological risk and supporting development pathways? Sure. Look, it's fundamental to the uniqueness of this opportunity that 88 now has. So, there's a well called Hemi Springs State, which is on block on the North West Harbour or area of South Prudo, and that is a discovery well. So, it's confirmed the reservoir

7:32quality and produced ability of the Ivershack and Kapari reservoirs. So, it just improves the probability of commercialisation and its successful both in a geological context, but it's also the ability to develop quite rapidly with asset access to that existing infrastructure, which is right on our doorstep. Now, you've already got multiple parties engaged in the data. What kind of interest are you seeing? Look, we have got model parties. Process has been running for about four weeks now. Model parties large and small. Some have been engaged, actually pre-launch out. They've reached out to us to inquire us to the opportunity, and certainly that's encouraging for us. The parties themselves, look, I mean, they see this opportunity as one where, as we've spoken to, one that can be rapidly commercialised given its proximity to infrastructure,

8:39but also targeting proven reservoirs, the Ivershack and Kapari. As I've mentioned, the Prudo Bay Ivershack's main producing reservoir there, that's produced 13 billion barrels today, and then the Kapari review unit that's producing from the Kapari reservoir, mainly 3 billion barrels. So, proven producing reservoirs, that's attracting them to this opportunity, but also, we haven't really mentioned the South East Hub, where that's got significant broken potential as well as Ivershack potential. So, what these parties see is long-term running room, not just the North West Hub potential, but also the South East Hub potential, which again is close to infrastructure about six miles away from pump station one. So, model parties are interested for many different reasons. So, today it's been quite encouraging, and what would the ideal partner or party bring beyond just capital? So, credibility really, it's technical validation, and ideally, North Slope operating experience.

9:50So, the ideal company would bring development and execution capabilities and potential access to infrastructure and downstream solutions. So, it's really a long-term value and alignment, rather than the kind of short-term trading outcomes, if you like. But you've also mentioned additional Brookayne website. How meaningful could that be in terms of enhancing the overall resource potential? Yeah, look, it's not the core valuation, but it does, as I mentioned earlier, represent that additional optionality and ability for additional pools to increase the resource potential on top of the existing discovery, if you like. So, and again, it's supported by nearby discoveries and wells. There are wells within the block or right next door that have

10:52pay zones within those shallower, target, Brookayne targets. So, again, the timing is perfect. You know, we've been able to acquire this large 3D data set. It's high resolution. It's a great data set. So, it means it will be able to assess the potential with a high degree of accuracy. And, you know, it could materially enhance the overall resource exposure with little to no incremental drilling costs. It's great, you know, we're quite excited. And I think it's important to note that adjacent to North West Hub and the Augusta Opportunity, there are fields and producing fields are produced from the three zones that we're targeting here, which is the Ivishak Kaparik and the Brookayne or the Westsak. And that's Iran and Borealis fields, which is to the northeast of where we are at the Augusta prospect.

11:57And in particular, Zpad has got wells producing from those three zones. And that's only a short distance away from the Augusta Opportunity. So, you know, we've got great analogs, very close by to what we're targeting here. You know, the Ivishak really for us is the main game, which would be developed first followed by the Kaparik and then obviously the Brookayne upside would be on top of that. Alongside Augusta, then, you've also expanded your North Slope Footprint with the Cadriver East Aid Courage and secured a new 3D seismic. How does that fit into that broader strategy? Look, I mean, that that complements the other assets by Portfolio, which was obviously the South Pruda that we've been talking to today. Project Phoenix to the South, which will have a horizontal production test later this year and into next year. And what Cadriver represents is really a longer-term opportunity under-explored. Again, we're targeting areas that are under 3D. That's important to us that it's data rich. And so, we secure this acreage opportunistically. There were a few 2D lines and some adjacent

13:02wells that demonstrated prospectivity. So, we secure those leases. Recently secured the Cadriver 3D survey as well, as we announced. And really for us is to review that data determined the prospectivity in the near term and then look to put out a prospective resource estimate with a view to a farm out and ultimately looking to drill in 28-29 on that particular acreage position. So, it's a longer-term opportunity, really strategically. Well, gentlemen, it's going to be an exciting period ahead with the multiple defined pathways to drill in and multiple catalysts along the way. So, we're looking forward to following your project closely. Thank you very much for your time. Thanks, Mark. Thanks, Mark. The Vox Markets Podcast. Nothing in this podcast is intended as investment advice and the people in this podcast may hold positions in the stocks they talk about. Do not buy anything based solely on a tip or recommendation. Please do your own research.