Today, investors in 88 Energy (OTCMKTS:EEENF) and EEENF stock are seeing another positive day. Shares of EEENF stock are up more than 15% at the time of writing, continuing a series of strong moves in recent days. Indeed, this strong momentum has been met with high investor enthusiasm. Currently, nearly 500 million shares have traded hands relative to average daily volume of less than 200 million.
Today, there are two key news items that are driving 88 Energy shares higher. Let’s dive into what this news is, and why investors are getting so excited about this energy player today.
Key News Driving EEENF Stock Higher
The first key announcement that’s taking shares of EEENF stock higher is a big one. 88 Energy just announced full repayment of its debt. This debt repayment was made possible via the proceeds it received from the sale of its Alaskan oil and gas tax credits. Indeed, the company was able to pay off the entirety of its debt obligations, which stood at $16.1 million. Additionally, the remainder of the $18.7 million raised by the sale of these credits will go toward working capital and boosting the company’s cash position.
For a small energy player like 88 Energy, this news is very bullish. These companies don’t tend to have a lot of liquidity. However, the newfound debt-free status 88 Energy is enjoying provides for enhanced opportunities down the road.
Secondly, 88 Energy also announced the issuance of 204 million fully paid ordinary shares at a price of $0.026 per share. This issuance was related to the company’s agreement to acquire a 50% working interest in the Project Peregrine. Given the positive drilling results 88 Energy has seen in the company’s Alaskan Peregrine project, investors seem to like the upside this share issuance provides.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.