27 August 2026

88 Energy Limited

Half-Year Financial Report

88 Energy Limited (ASX:88E, AIM:88E, OTC:EEENF) (88 Energy or the Company) is pleased to advise of the release of its financial results for the half-year ending 30 June 2026.

A copy of the Company's Half-Year Financial Report, extracts from which are set out below, has been lodged on the ASX and is also available on the Company's website at www.88energy.com .

Media and Investor Relations:

Operating Results and Financial Position

During the period, the Group continued its principal exploration and appraisal activities in Alaska. The Group also has a 20% non-operated working interest in Petroleum Exploration Licence (PEL 93), Onshore Namibia.

As an exploration and appraisal Company, 88 Energy does not currently have any producing oil and gas assets and therefore does not generate operating revenue from production. The Group’s income during the period primarily comprised of interest income and consideration received in connection with fees for the amended Participation Agreement with its Joint Venture partner, Burgundy Xploration LLC.

The Group recorded a consolidated net loss after income tax for the 6 months ended 30 June 2026 of $1,776,554, (30 June 2025: $20,473,936).

During the half year, the Group received income of $191,853 (30 June 2025: $306,146) comprising of interest in bank of $49,391 (30 June 2025: $55,644), income associated with the Burgundy Second Amendment Participation agreement of $142,328 and other sundry income of $133.

As at 30 June 2026, the Group had no interest-bearing debt. The Group’s principal assets comprised of cash and cash equivalents of $8,223,725 (31 December 2025: $6,821,858) and capitalised exploration and evaluation expenditure of $79,144,119 (31 December 2025: $76,846,962).

The net assets of the Company as at 30 June 2026 were $88,548,232 (31 December 2025: $87,618,381). For further details refer to the accompanying financial statements and the accompanying notes to the accounts.

First Half Highlights

Significant activities that occurred during the first half of 2026 are summarised below:

ALASKA

Detailed Data-Driven Approach to Enhance Alaskan Exploration Success

• 88 Energy’s experience on the North Slope reinforces its belief that modern 3D seismic imaging and interpretation are critical to delivering exploration success and ensuring disciplined capital allocation. 3D seismic provides an order-of-magnitude improvement in subsurface resolution, when compared with 2D data.
• The integration of multiple 3D seismic surveys across the Company’s North Slope portfolio, combined with a refreshed and experienced, discovery-focused technical team, represents a key competitive advantage. This approach enhances confidence in prospect definition, ranking and maturation toward drilling.
• Advanced interpretation techniques, including industry leading AI-based tools, have enabled the Company to perform more insightful interpretation work enabling the precise targeting of potential prospects. The capabilities 88 Energy’s team possess are particularly valuable in Alaska, where subtle stratigraphic traps and complex depositional systems require high-resolution imaging to delineate them effectively.
• 88 Energy currently has access to six 3D seismic surveys across its North Slope portfolio, forming an extensive, portfolio of data across the basin that enables the team to integrate regional trends, legacy discoveries and newly acquired acreage, thereby materially reducing pre-drill uncertainty.
• Access to 3D data represents a significant step change in the Company’s exploration strategy and de-risks future drilling. Importantly, these datasets have been acquired at substantially reduced cost through the State of Alaska’s seismic incentive programmes, enabling a disciplined and capital-efficient approach to exploration.

South Prudhoe | 100% working interest

South Prudhoe is the Company’s highest-priority project within the portfolio because it represents a material, relatively low-risk and near-term value creation opportunity and well location and planning is supported by well-defined structural traps and seismic amplitude anomalies consistent with nearby proven reservoirs.

South Prudhoe and importantly the North-West Hub where Augusta-1 will be located, is immediately South of the prolific Prudhoe Bay and Kuparuk River producing fields on Alaska's North Slope.

Figure 2 below, shows the South Prudhoe leases, covered by 3D data and located immediately South of the Prudhoe Bay Unit and Kuparuk River Unit. Since 1990 there has been a steady stream of satellite oil fields (as shown in Figure 2), which more recently have been developed within two to three years from discovery / sanction to first oil and benefiting from tie-in to existing North Slope infrastructure.

During the first half of 2026, the Company delivered an internal Prospective Resource estimate at South Prudhoe of 768.9 MMbbls (gross unrisked 2U), equivalent to 640.7 MMbbls net to 88 Energy[1] [2] from multiple stacked reservoirs within the consolidated South Prudhoe lease position. The initial prospective resource was estimated at 507 MMbbl (2U, gross unrisked) in February 2026 and the estimate was upgraded in May 2026 to incorporate a maiden Brookian Prospective Resource for the North-West Hub and an upgraded Ivishak Prospective Resource, further defining South Prudhoe as a material, multi-reservoir exploration opportunity.

Augusta-1

The Augusta-1 well is designed to test up to 133.7 MMbbls of gross unrisked 2U Prospective Resources, equivalent to 111.4 MMbbls net to 88 Energy, across the stacked Ivishak, Kuparuk and Upper Schrader Bluff reservoir intervals.1

Operational preparations for the Augusta-1 well commenced in Q1 2026 and were materially advanced during Q2 2026, including well planning, permitting, vendor engagement including rig and camp contracting as well as road and facility access to the well site.

Augusta-1 has a clear path to market supported by ~6-mile tie-in to the Kuparuk Pipeline to the North. The Kuparuk pipeline network is a regulated common carrier, so third- party producers are assured the right to tie-in and move barrels to market.

The Augusta-1 planned Q1 2027 spud[3] remains subject to funding and completion of the required permitting, contracting and operational preparations.

2026 Half Year Highlights

• The Schrader Bluff 3D (SB3D) seismic survey data, acquired in January 2026 from the Alaska Department of Natural Resources, Oil & Gas Division, provided high-resolution subsurface imaging that captured material prospectivity across the South Prudhoe Project. The dataset enhanced the Company’s ability to:
  • Refine structural and stratigraphic interpretation across the South Prudhoe leases, while improving correlation of key horizons and reservoir intervals with regional fields and discoveries to 88E prospects, strengthening confidence in both existing and emerging prospectivity.
  • Advance prospect definition within the focussed Ivishak and Kuparuk reservoirs, plus the additional Brookian reservoirs, which combined, represent stacked high-potential reservoirs.
  • De-risk multiple low-to-moderate risk structures identified on 3D datasets already held by 88 Energy and supported by offset well data, including the historical Hemi Springs State-1.
• The Schrader Bluff 3D data was incorporated into the Company’s internal exploration database and was followed by detailed interpretation of the SB3D in conjunction with the existing Storms 3D dataset and other licenced data sets to produce an updated internal combined Prospective Resource estimate for the South Prudhoe acreage position.
• South Prudhoe total gross unrisked 2U Prospective Resource estimate of 768.9 MMbbls (640.7 MMbbls net to 88E)4, comprising:
  • North-West Hub: 301.3 MMbbls (gross unrisked, 2U), 251.1 MMbbls net to 88E[4]
  • South-East Hub: 467.6 MMbbls (gross unrisked, 2U), 389.7 MMbbls net to 88E4
  • The Company’s immediate strategic focus on the North-West Hub, merited an upgrade to the Prospective Resource in May 2026, following further geophysical analysis of the Schrader Bluff 3D seismic velocity data, resulting in:
    • Ivishak Prospective Resource increasing ~44% to 69.9 MMbbls (gross unrisked 2U), 58.2 MMbbls net to 88E4; and
    • A maiden Brookian Prospective Resource of 181.5 MMbbls (gross unrisked 2U), 151.2 MMbbls net to 88E4 was defined across the West Sak and Upper Schrader Bluff intervals.

• Augusta-1 is designed to test up to 133.7MMbbls (gross unrisked, 2U), 111.4 MMbbls net to 88E4:
  • Primary targets:
    • Ivishak: 57.5 MMbbls (gross unrisked, 2U), 47.9 MMbbls net to 88E4.
    • Kuparuk: 23.5 MMbbls (gross unrisked, 2U), 19.6 MMbbls net to 88E4.
  • Secondary target Upper Schrader Bluff: 52.7 MMbbls (gross unrisked, 2U), 43.9 MMbbls net to 88E4.

• Augusta-1 Advancements:
  • Drilling location finalised.
  • Permitting, road and facility access, logistics and execution planning advanced.
  • Nordic Rig-3 contracted for the Augusta-1 exploration well. The fully winterised Arctic drilling rig was previously used during 88 Energy's 2019 and 2020 North Slope drilling programmes.
  • A dedicated Nabors Arctic-rated camp, with capacity for 58 personnel, secured for the drilling programme.
  • Long-lead procurement and service contracting continued to progress.
  • Farm-out discussions progressed, with multiple parties actively engaged in the data room.

H2 2026 Planned Activities

• Progress the South Prudhoe farm-out process and associated funding discussions.
• Advance permitting, contracting, procurement and logistics for Augusta-1.
• Finalise road, facility and operational-access arrangements.
• Continue preparations for the targeted Q1 2027 winter drilling campaign, subject to funding and other customary conditions.

Kad River East | 100% working interest

Kad River East represents a longer-term exploration opportunity within 88 Energy's Alaska portfolio and complements the Company's more advanced South Prudhoe and Project Phoenix projects.

During 1H 2026, 88 Energy secured access to the recently released Kad River 3D seismic dataset, which covers the Company's entire ~17,794-acre Kad River East lease position. Interpretation of the dataset is underway and is expected to support prospect identification, maturation and ranking ahead of a targeted maiden internal Prospective Resource estimate.

2026 Half Year Highlights

• Secured access to the Kad River 3D seismic dataset, covering 100% of the Kad River East lease position.
• Interpretation and integration of the 3D seismic data commenced:
  • The technical programme is incorporating modern seismic analysis, historical well information and regional geological data.
  • Regional mapping identified potential multi-reservoir prospectivity, including interpreted turbidite fairways with analogues to productive North Slope oilfields to the east.
  • Historical wells within and adjacent to the acreage recorded hydrocarbon shows across multiple reservoir intervals, including the Ivishak, Seabee, Canning, Kuparuk-equivalent and Lisburne intervals.
• The nearby Sockeye‑2 well (refer to Figure 4 for location on eastern edge of map) provides a compelling analogue supporting the resource potential of the broader Kad River East area. Sockeye-2 was drilled to approximately 10,500 ft, encountering a high‑quality Palaeocene‑aged clastic reservoir with an average porosity of 20%. The vertical well was completed over a single 25 ft interval at approximately 9,200 ft TVD and delivered exceptional performance during a 12‑day flow test, averaging approximately 2,700 BOPD without stimulation or artificial lift.

This result demonstrates the productivity of distal turbidite systems and provides strong evidence for a laterally extensive, high‑quality reservoir framework across this region of the North Slope.

H2 2026 Planned Activities

• Complete interpretation of the Kad River 3D seismic dataset.
• Refine geological and geophysical mapping across the lease position.
• Identify, mature and rank exploration prospects.
• Progress a maiden internal Prospective Resource estimate during H2 CY2026.

Project Phoenix | ~75% working interest

Project Phoenix is 88 Energy's advanced conventional oil appraisal project on Alaska's North Slope. The project is underpinned by 378 MMBOE of gross best-estimate 2C Contingent Resources (239 MMBOE net to 88E)[5] [6] across the SMD, SFS and BFF reservoir intervals.

During the first half of 2026, the Company and its farm-in partner, Burgundy Xploration LLC (Burgundy), continued planning for the Franklin Bluffs-1H (FB-1H) horizontal well and production test. The Joint Venture also amended the Participation Agreement to align Burgundy's funding milestone with its proposed United States initial public offering (IPO).

The amended terms provide 88 Energy with significant advantages including additional near-term cash payments, enhanced security protections and an accelerated payment structure for the outstanding Icewine 3D data consideration. Burgundy's obligation to fund 100% of Project Phoenix expenditure under the agreed US$29 million Phase 1 carry was maintained.

2026 Half Year Highlights

• The Phase 1 funding longstop date was extended to 30 September 2026 and the target spud date for Franklin Bluffs-1H was revised to 30 March 2027 to align with Burgundy’s funding timelines. FB-1H spud remains subject to Burgundy completing its funding.
• The payment structure for the outstanding Icewine 3D data consideration was accelerated and enhanced enforcement mechanisms were agreed. A payment of US$100,000 was received as a 2nd amendment fee. In November 2025 as part of the 2nd amendment participation agreement, Burgundy contractually committed to pay US$2.4 million (~A$3.33 million) for access to the historical 3D seismic dataset, which was acquired solely by 88 Energy in 2018. Payments of US$300,000 were received up to 30 June 2026, resulting in US$2.1 million receivable as 30 June 2026, approximately A$3.1 million. (Refer to note 5). Subsequent to period end a further instalment of US$150,000 was received on 31 July 2026 reducing the outstanding balance to US$1.95 million which is due within 15 days of a funding event, defined as an initial public offering or other bona fide funding event.
• Additional security arrangements were established over Burgundy's Fall 2025 North Slope leases.
• 88 Energy's exclusive option to acquire up to a 25% working interest in Burgundy's Fall 2025 North Slope leases at cost was extended to 1 April 2027.
• Burgundy continued to progress its proposed United States listing, having submitted a draft Form S-1 and completed two rounds of comments with the United States Securities and Exchange Commission in April 2026.
• Burgundy has funded 100% of Project Phoenix expenditure incurred under the agreed carry. Payments made by Burgundy since execution of the Participation Agreement in February 2025 have provided approximately A$2.0 million of net cashflow benefits to 88 Energy.

H2 2026 Planned Activities

• Continue supporting Burgundy's funding and listing process.
• Progress the remaining milestones under the amended Participation Agreement.
• Advance detailed well design, engineering, contracting and operational planning for Franklin Bluffs-1H.
• Evaluate potential operational and contracting synergies with the South Prudhoe drilling programme.

NAMIBIA

PEL 93 | 20% working interest

Petroleum Exploration Licence (PEL) 93 provides 88 Energy with exposure to the underexplored Owambo Basin in onshore Namibia. The licence covers approximately 18,500km2 and is operated by Monitor Exploration Limited (Monitor).

During the half year, 88 Energy amended its Farm-In Agreement with Monitor, securing its 20% working interest on a fully earned and unconditional basis and removed the Stage 2 and Stage 3 farm-in obligations, substantially reducing the Company's future capital exposure by approximately US$15 million, while preserving its participation in PEL 93. The revised structure retained capital-efficient exposure to a potentially basin-opening exploration opportunity while enabling the Company to maintain its focus on its priority Alaska portfolio.

Monitor also completed an integrated interpretation of aerogravity, magnetic and radiometric data, together with historical seismic, passive seismic and legacy datasets. This work improved structural definition across the licence and confirmed Lead 9 as a priority future drilling candidate.

The Joint Venture (JV) has fulfilled all its commitments associated with the first renewal exploration period for PEL 93 which ends on 2 October 2026. On the 29 June 2026, the (JV) applied to the Namibian Ministry of Industries, Mines and Energy (MIME) to enter the second renewal exploration period for a period 2-years from 3 October 2026. The proposed 2-year work programme includes preparations for and the drilling of at least one exploration well. As part of the second renewal exploration period, the JV proposed relinquishing 50% of the existing licence area which exceeds the statutory minimum requirement of 25%. The proposed relinquishment is based on the results of the integrated technical interpretation and will enable the JV to focus future exploration activities on the highest-ranked opportunities within the licence area, including all 13 identified prospects and leads. The reduced licence area will also deliver minor cost savings, and no further relinquishment obligations will apply.

Entry into the second renewal exploration period including a well commitment remains subject to JV and NAMCOR approval.

Subsequent to period end, ReconAfrica also announced the successful flow of hydrocarbons from both the Elandshoek and Huttenberg formations, supporting the basin’s hydrocarbon potential. (Refer to ReconAfrica’ s news releases dated 16 July 2026 and 17 August 2026).

2026 Half Year Highlights

• 20% working interest is fully earned and unconditional, with no remaining earn-in funding or reassignment conditions.
• Stage 2 and 3 farm-in obligations were cancelled, reducing minimum forward financial exposure by ~US$15 million.
• Potential future funding pathways include third-party participation or the possible formation of a Namibia-focused listed entity.
• 88 Energy retained an option to increase its interest in PEL 93.
• Integrated aerogravity, magnetic and radiometric interpretation improved subsurface and structural definition across the licence.
• Lead 9 was confirmed as a priority future drilling candidate.

H2 2026 Planned Activities

• Continue integrating the new technical datasets into basin-scale and prospect-level evaluations.
• Advance the maturation and ranking of Lead 9 and other priority exploration leads.
• Evaluate funding and commercialisation pathways for future exploration.
• Assess the implications of regional exploration and testing activity for PEL 93.
• Work with Monitor to progress the report, proposal and associated submissions required for the joint venture and the Namibian Government to consider entry into the Second Renewal Exploration Period commencing October 2026.

CORPORATE

At 30 June 2026, the Company had a cash balance of A$8.2 million.

The Company held its Annual General Meeting (AGM) on 26 May 2026. All resolutions were carried by way of a poll.

On 27 March 2026, the Company announced a placement to raise approximately A$5.0 million, or approximately £2.6 million, before costs through the issue of 173,602,563 new ordinary shares at an issue price of A$0.0290 ((£0.01508) per share (Placement). In addition, the Company issued a 1:2 free attaching option (exercisable at A$0.0435; 3-year term) to ASX investors participating in the Placement, and a 1:2 free attaching warrant (exercisable at £0.02262; 3-year term) to UK investors who participated in the Placement. The Placement settled during April 2026 and delivered approximately A$4.6 million in net proceeds.

The proceeds raised continue to support permitting, planning and pre-drilling activities associated with the Augusta-1 exploration well, currently targeted to spud in Q1 CY2027, together with general working capital requirements.

Following completion of the Placement the Company had 1,330,952,980 ordinary shares on issue, each carrying one vote per share.

Events after the period end

The following events were noted after reporting date:

Formal Award of 2025 Fall North Slope leases

On 15 July 2026, the Company via its U.S. subsidiary Captivate Energy Alaska, Inc received formal award notice from the State of Alaska, Department of Natural Resources for the fourteen (14) leases covering approximately 34,301 gross acres. The Company holds a 100% working interest in the leases:

• Seven (7) leases covering 16,507 gross acres at South Prudhoe
• Seven (7) leases covering 17,794 gross acres at Kad River East

Payment of US$1,077,736 (inclusive of final bid bonus and first year lease rentals) for the awarded leases was made on 30th July 2026.

Other than as disclosed above, there were no significant events occurring after balance date requiring disclosure. 

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE HALF YEAR ENDED 30 JUNE 2026

The consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2026

The consolidated statement of financial position should be read in conjunction with the accompanying notes.

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

 AS AT 30 JUNE 2026

The consolidated statement of changes in equity should be read in conjunction with the accompanying notes.

CONSOLIDATED STATEMENT OF CASH FLOWS FOR

THE HALF YEAR ENDED 30 JUNE 2026

The consolidated statement of cash flows should be read in conjunction with the accompanying notes.