Is 88 Energy (88E.L) Shares Drop By 3.44% Caused By Overreaction?

On July 16, 88 Energy shares plummet £0.069 with a 3.44% loss. The price is fixed at  £1.936. The previous closes ended at £ 2.005 and opened at £ 1.9. The company was in a deadlock before the share prices began to rise in early March and reached historical momentum of  £4.05. Unfortunately, the sudden jump ended as abruptly as it started. Although the prices tripled from the 2020’s results, the value has room for improvement.88 Energy has seen a significant downgrade in share prices after it announced that it will postpone the “Icewine-2” project for six weeks to proceed with all the testing. The investors had a severe panic when the news went tin public. The geological issue with Icewine-2 is caused a lot of fuss among the shareholders.

The company thought that it was addressing two individual shale reservoirs, but it turned out that both of them were connected. 88 Energy proceeded with the extraction of fracking fluid, but there were no hydrocarbons discovered. Until now, the problem rings red flags to investors but everything is going to clear out in autumn.

Paul Meyer

Part-Time Reporter. Paul could do better in his engineering profession where he became a real pro. However, he chose the finance field to find a tranquil environment in his career. Today he creates a good number of great content for our team.

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