88 Energy Limited (ASX:88E, AIM:88E, OTC:EEENF) (88 Energy or the Company) is pleased to announce that the Merlin-2 well location has now been selected, from three initially permitted locations. The Merlin -2 well location, scheduled for drilling in February 2022 using the recently contracted Arctic Fox rig, is located east and downdip of the successful Merlin-1 well. This location is expected to encounter thicker reservoir sections and higher permeability / porosity sands.

The Merlin-2 appraisal well is planned for a Total Depth of 8,000 feet, and is targeting 652 million barrels of oil1,2 in the highly prospective N18, N19 and N20 targets that were encountered in the successful Merlin -1 well (drilled in March 2021 to a depth of 5,267 feet), which demonstrated the presence of oil in these multiple stacked sequences in the Brookian Nanushuk Formation.

The remaining two locations permitted, together with the permitted Harrier-1 location, can be drilled in future years as part of an extended drilling program to assess the full potential of the Project Peregrine acreage.

A production testing program for the Merlin -2 well has been designed and will be on standby during initial wellsite operations. The production test is contingent upon the wireline program results, in particular the MDT results, as well as government approvals. The program and length of the test will be subject to operational, funding and weather window considerations.

Permitting and planning for the Merlin-2 well remains on track for scheduled spud in February 2022.