Oil and gas company 88 Energy (OTCMKTS:EEENF) seems to have back in favour among investors and on Monday, the stock managed to clock gains of as much as 28%. The latest gains made by the stock were triggered by an announcement from the company yesterday about the sale of its tax credits for $18.7 million.
However, the real reason for the rally in the stock was due to the fact that 88 Energy seeks to pay off all of its debt from the proceeds. The company revealed that it is going to pay off its outstanding debts worth $16.1 million and keep the rest in order to further boost its cash reserves.
It is a major development for the company and the market welcomed the news wholeheartedly. The identity of the entity which bought the tax credits has not been revealed by 88 Energy but it has been indicated that the buyer is a major oil and gas company based out of the United States.
The company owns plenty of production and exploration projects. Considering the gains made by the stock yesterday, it is going to be interesting to see if the 88 Energy stock can continue to add to tis gains over the rest of the week.
Market Reaction:
On Monday, EEENF stock soared 28% to $0.205 with more than 559.80 million shares, compared to its average volume of 233.37 million shares. The stock has moved within a range of $0.0166 – 0.0230 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.
 Stock Hits 2 Cents On High Volume: Will The Rally Continue?){kind=link}