After having gone through a fair degree of volatility, the oil and gas company 88 Energy (OTCMKTS:EEENF) saw its stock make a strong move over the course of the past month.
The stock has come into the radars of many traders in a big way and over the course of the past month, it managed to clock gains of as much as 35%. The fresh momentum in the stock is something that investors need to look into closely before they make any decision one way or another. There are two main factors that drove the rally in the stock. Last month 88 Energy had announced that it had sold off its oil and gas credits from its Alaskan interests for a total of $18.7.
While that was a nice chunk of change for 88 Energy, the company decided to pay off the entirety of its debts amounting to $16.1 million. The company added at the time that the rest of the money from the sale was going to be used for working capital needs and also for strengthening its balance sheet.
The company’s operations are very small when compared to some of the other oil and gas companies, which is why it was such a major development and led to such excitement among investors. The other important development was 88 Energy’s decision to issue as many as 204 million fully paid-up shares in the company at $0.026 a share. The proceeds for the same was used to pick up a 50% stake in Project Peregrine.