Repayment of debts can often prove to be a big boost for a company’s stock and hence, it is understandable that the 88 Energy Ltd (OTCMKTS:EEENF) stock soared by 15% this morning. Today it emerged that the oil and gas company made a deal by way of which it sold its accumulated tax credits for $18.7 million.
However, more importantly, it has also emerged that 88 Energy is going to use the proceeds from the sale to pay off its debts. The company, which is based out of Alaska, stated that it is going to pay off its debts of $16.1 million and keep the rest of the money to boost its cash reserves.
Although the identity of the entity with which made the deal has not been revealed, it has been reported that the entity is an oil and gas firm based out of the United States. Earlier on in the month, the company received another boost after it successfully bought out its partner Alaska Peregrine Development Company in its Project Peregrine.
88 Energy bought out the 50% interest that was owned by Alaska Peregrine Development Company in the project. The company completed the transaction in a deal worth $14 million and it was conducted entirely in 88 Energy stock.
Market Reaction:
As of 12:08, EEENF stock soared 29% to $0.0206 with more than 250.01 million shares, compared to its average volume of 228.53 million shares. The stock has moved within a range of $0.0166 – 0.0212 after opening the trade at $0.0177. Over the past 52-week, the stock has been trading within a range of $0.0001 – 0.2000.
Moving Averages
| +/- EMA(20) | 0.0176 (+18.75%) |
| +/- SMA(50) | 0.0183 (+14.21%) |
| +/- SMA(200) | 0.0131 (+59.54%) |
 Stock Moves Up Big: Is it a Buy Now?){kind=link}