After having made notable gains for many days, the oil and gas company 88 Energy Ltd (OTC: EEENF) saw its stock suffer a considerable decline last week. After having experienced the bloodbath in the stock last week, the stock has continued to remain flat.
In this regard, it might be a good idea for investors to take a look at the reason behind the dramatic slump in the 88 Energy stock. Last week, the managing director of the company Dave Wall made an announcement that triggered the collapse in the stock.
Wall announced that operations at two of its highest prospect zones were disrupted due to a power outage brought about by equipment failure. The news resulted in panic among investors and soon enough the 88 Energy stock suffered from a significant selloff. The company would need to continue to drill in those zones in order to confirm the discovery. It now remains to be seen if the 88 Energy stock can mount a recovery.
Finance and Entertainment Reporter
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