The oil and gas company 88 Energy (OTCMKTS:EEENF) has seen its stock have a big of a rollercoaster ride in recent months and the trend seems to have spilled into July.
Not too long ago, the stock had experienced a considerable rally and recorded handsome gains, however, over the course of the past week it has corrected sharply. The 88 Energy stock has declined by 25% during that period. However, at the same time, it is also necessary for investors to keep in mind that there has been no news about the company that could have led to such a rapid decline in a short span of time.
The stock had actually rallied after it emerged that the company had sold its oil and gas tax credits from its Alaskan operations in a deal worth $18.7 million. However, that was not the only reason why the stock soared. 88 Energy also paid off the entirety of its debts worth $16.1 million from the proceeds of the tax credit sale. The rest of the money was help by the company with the intention of boosting its cash reserves. In light of the recent decline, it is going to be interesting to see if the stock can manage to stage a recovery.
Market Reaction:
On Tuesday, EEENF stock fell 7.34% at $0.0240 with more than 189.38 million shares, compared to its average volume of 172.15 million shares. The stock had moved within a range of $0.0231 – 0.0270 after opening the trade at $0.0270. Over the past 52-week, the stock has been trading within a range of $0.0001 – 0.2000.
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