Watch for shares of 88 Energy Limited (OTCMKTS:EEENF) to tank this morning, as they follow the more-than-65% drops of the London and Sydney-listed shares of the Australian oil explorer. What’s behind the expectations for EEENF stock today?
It wasn’t the “good news” part of its earlier update on its Peregrine project in Alaska’s National Petroleum Reserve. Last week the company announced it had detected potential hydrocarbon-bearing zones while conducting drilling operations for Peregrine.
Instead, it’s likely the “bad news” of this morning’s update from 88 Energy managing director Dave Wall that revealed a power outage due to equipment failure and other issues prevented the company from sampling its two highest-prospect zones. As well, further drilling may be required to confirm a discovery.
“We appreciate that these early results may be difficult to interpret. That is because we do not yet have all the data required to allow interpretation,” Wall said in a statement. “This means some uncertainty remains; however, it is already clear that Merlin-1 has delivered by far the best outcome of any of the five wells drilled by 88 Energy in Alaska over the last six years.”
EEENF Stock Explores the Reddit Zone
Popular with penny stock investors, EEENF stock has also been “discovered” in the Reddit zone.
88 Energy has been one of the most buzzworthy Reddit penny stocks. Recent posts on the eponymous subreddit include claims that shares are “lottery tickets” and takeover rumors. Other posters focused on the March 22 news that the company had successfully drilled a surface hole at the Merlin-1 location of its Project Peregrine zone.
That buzz seems to be back, but less positive this morning as $EEENF is trending as a top stocks-related term and ticker in Tuesday’s pre-market chatter.
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On the date of publication, Robert Lakin did not have (either directly or indirectly) any positions in the securities mentioned in this article.
InvestorPlace contributor Robert Lakin is a veteran financial writer and editor, following fintech, agtech and property tech startups.