Back in April the stock of the oil and natural gas company 88 Energy Limited (OTCMKTS:EEENF) had displayed considerable volatility owing to certain developments. However, over the course of the past few weeks the stock has been in the middle of a phase of consolidation.
When that happens, then there is a possibility of the stock breaking out and hence, it might be a good idea for investors to take a closer look at the 88 Energy stock. The 88 Energy came into focus in March this year, when it soared to 20 cents a share, however, an update from the company back in April rocked and sent the shares tumbling.
In April, the company announced that equipment failure had led to a power outage at two of its highest prospect zone. It disrupted the sampling work at those two properties that are part of 88 Energy’s Alaskan Peregrine project.
That proved to be a major blow for the stock as a major selloff ensured amidst panic from customers and the stock crashed. However, the stock recovered some days later on April 27 after the company provided another operational update in relation to its drilling activities in Alaska.
88 Energy announced that it started the testing on the sidewell cores, fluid samples, mud gas and cuttings at the property in question. At the time, the company revealed that the results from the testing are going to be revealed in 10 weeks.
It goes without saying that many investors are going to be eagerly waiting for the results from the tests and it remains to be seen if the publication leads to any rally or not. That might actually be one of the major reasons why the stock is currently trading flat. Once the results are declared, there might be considerable movement in the stock either way depending on the nature of the findings.