Up until last week, 88 Energy (OTC: EEENF) was one of the popular penny stocks that emerged as one of the biggest gainers in the market. However, things have changed quite dramatically for the oil and gas stock this week.
Earlier this week on Tuesday, the stock gave up all of its gains after the company made an announcement. The bloodbath in the stock continued on Thursday as it plunged by another 80%.
On Tuesday, the managing director of the company, Dave Wall, announced that an equipment failure had led to a power outage and disrupted its operations in two of its highest prospect zones. Such a piece of news can often result in stock declines but the 88 Energy stock tanked dramatically once the news emerged. It should be noted that the company still needs to drill those zones further in order to confirm any kind of discovery. It now remains to be seen if the 88 Energy stock can mount a recovery or not.
Finance and Entertainment Reporter
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