Shares in 88 Energy Ltd (ASX: 88E) are soaring for the second day in a row despite the company not releasing any price-sensitive news to the market. At the time of writing, the 88 Energy share price is trading at 3.8 cents – 22.58% higher than its previous close. It also gained 11.5% yesterday.
The latest gains seem to be a reaction to 88 Energy completely repaying all its outstanding debt yesterday. However, yesterday’s news was simply following up on an announcement 88 Energy made on 21 June.
To get a feel for today’s mystery movement, let’s take a look at what 88 Energy has been up to lately.
The month that’s been for 88 Energy
Over the past 30 days, the 88 Energy share price has gained a whopping 76%. Here’s all we’ve heard from the company last month.
More working interest
The first news we heard from 88 Energy last month came on 7 June, when the company announced it had decided to purchase the 50% of Project Peregrine’s working interest it didn’t already hold from its joint venture partner.
Project Peregrine is an oil field in Alaska.
The purchase cost 88 Energy $18 million, which it can pay in shares.
While the news seemed positive, it drove the 88 Energy share price to close 9% lower.
Then, on 21 June, 88 Energy announced it was about to pay off its US$16.1 million of outstanding debt.
A subsidiary of the company held Alaskan oil and gas tax credits, valued at US$18.7 million.
The sale also boosted 88 Energy’s coffers by US$2.6 million.
Additionally, the financier holding the company’s debt waived all early repayment penalties.
Yesterday, 88 Energy confirmed the debt repayment was complete.
Positive test results
On 24 June, 88 Energy announced it had received encouraging results from preliminary tests at the Merlin-1 Well, located in Project Peregrine.
The tests showed oil within the well had no signs of biodegradation. They help to build on the company’s knowledge of the quantity and mobility of the well’s hydrocarbons, as well as the project’s commercial potential.
New ESG measures
Finally, on 30 June, 88 Energy adopted the environmental, social, and governance (ESG) framework designed by the World Economic Forum to be the global standard.
88 Energy share price snapshot
The 88 Energy share price has been performing exceptionally well lately, gaining around 362% year to date.
It is also 640% higher than it was this time last year, when its shares were worth 0.5 cents.
The company has a market capitalisation of around $493 million, with approximately 13 billion shares outstanding.