88 Energy Stock Is Rising By 57%: What Might Cause Sudden Rise?

On June 30 the 88 Energy (EEENF) stock value was $0.0222. 3 days later, on July 2 the stock was valued at a much higher rate, which was equal to $0.035. That unexpected rise is equal to 57%. Over the last 5 days, the 88 Energy (EEENF) stock was increasing. Analysts expect 88 Energy (EEENF) stock to grow in the future. Here Is Why:

The first key announcement that drives EEENF stock up is significant. 88 Energy has just announced full debt repayment. This debt repayment was made possible by the proceeds from the sale of oil and gas tax breaks in Alaska. Indeed, the company was able to fully pay off its debt obligations, which amounted to $ 16.1 million. In addition, the remainder of the $ 18.7 million raised from the sale of these loans will go towards working capital and raising the company’s cash position.

For a small energy player like 88 Energy, this news is very optimistic. These companies usually do not have much liquidity. However, 88 Energy’s newly acquired debt-free status provides enhanced options in the future.88 Energy also announced the issuance of 204 million fully paid common shares at $ 0.026 per stock. This issue was linked to the company’s agreement to acquire a 50% stake in the Peregrine project. Given the positive drilling results that 88 Energy saw in the Alaskan Peregrine project, investors seem to like the upside potential of the stock issue.