88 Energy Ltd.’s (OTCMKTS:EEENF) stock is on an upward trajectory and has risen 15%, with over 71 million shares traded within one hour of trading. After a bumpy ride in March, 88 Energy’s stock went up from $0.0210 to almost $0.0919 in two weeks by April 5, 2021. Unfortunately, on April 6, the stock dipped 80% within a day following a power outage because of equipment failure, which prevented 88 Energy Ltd from sampling two highest-prospect zones.
88 Energy commences Merlin-1 well drilling
In recent weeks the stock has traded in a narrow range on low volume because of the lack of any trigger. However, the company gave an update about its business operations. It indicated that it has commenced drilling the Merlin-1 extracting the required samples to test sidewall cores, mud gas, and fluid samples. Initially, the company was to drill the well to 1,500 feet before installing surface casing and testing the Blow Out Preventer System. 88 Energy will deepen the well in the Nanushuk Formation to 6,000 feet deep at the target horizons. Merlin-1 targets 645 million barrels.
Similarly, the company will commence Harrier-1 drilling after completing Merlin-1 well. Harrier-1 targets 417 million barrels, and both wells are on a trend in an existing discovery in the Nanushuk topsets. The company has $13 million in cash it will use to fund Merlin-1 drilling.
88 Energy acquired XCD Energy
Recently the company acquired XCD Energy which gave its access to 400,000 acres of the North Slope of Alaska, which is estimated to hold around 50 billion barrels of oils and natural gas with 227 trillion cubic feet of gas. The XCD Energy and 88 Energy mergers created an Alaska-focused energy company that is already making big moves. All three projects sit on a combined space of 410,312 acres in northern Alaska, which has massive potential for growth and discoveries.