Oil and gas company 88 Energy Limited (OTCMKTS:EEENF) had seen its stock collapse last month following an announcement with regards to an outage. However, it did recover following another operational update.
At this point in time, the stock has been trading within a range and that has been the case for the past few weeks. Such a state of affairs can also lead to a breakout eventually and hence, it might be a good move from investors to perhaps take a closer look at 88 Energy.
The stock tanked as much as 90% at one point last month after the company announced that there was an equipment failure induced power outing. More importantly, the outage affected the company’s operations at two of its highest prospect zones. The announcement triggered a major selloff in the stock.
The zones in question are part of the Alaskan Peregrine project that the company is pursuing at this point. While it is true that the update about the outage had led to the selloff, another update made some days later about the positive operational results from its drilling activities in Alaska helped in a strong rebound.
The company announced that it started testing for sidewell cores, cutting and mud gas at the high prospect zones. The announcement had been made by the company back on April 27 and at the time, 88 Energy noted that the complete results were going to be announced at any time between two to ten weeks.
Investors are almost certainly looking forward to the test results before making up their minds about the prospects of the company. That might be another reason why the 88 Energy stock is currently trading within a range. On the other hand, uncertainty and anticipation can also lead to considerable volatility, according to experts. At this point, it might be a good idea for investors to keep a close eye on the stock and any announcements from 88 Energy.