88 Energy Share Price Forecast July 2021 – Time to Buy 88E?
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Alaska-focused oil exploration company 88 Energy Ltd (LSE: 88E) has grabbed the headlines after completing the sale of credits in Alaskan Oil and Gas tax. According to the company, it will allocate $1 6.1 million from the total proceeds of $18.7 million towards repaying outstanding debt, making the company debt-free. As volatility picks up, investors are wondering whether this is a good time to pick up 88 Energy shares.
88 Energy – Technical Analysis
From 88 Energy’s financial statement, we see that the company has a market cap of £188.375 million with total assets of £48.186 million. In recent weeks, the shares have settled down to the 1p level after hitting a high of 4.70p earlier in 2021. 88E shares closed on July 1st at £2.050 with an uptrend of +36.85%.
The technical analysis for 88 Energy reveals that oscillators like Commodity Channel Index (20)(359.764), Average Directional Index (14)(22.845), Stochastic RSI Fast (3, 3, 14, 14)(83.003) and Williams Percent Range (14)(−13.043) points towards neutral. Volume Weighted Moving Average (20)(1.569), Hull Moving Average (9)(1.699) and Simple Moving Average (200)(0.805) point towards buying.
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Recent Developments
As mentioned before, 88 Energy grabbed the spotlight earlier this week after it made its intentions clear to sell its Alaskan oil and gas credits. This move has certainly got investors interested in 88 Energy as it improves the outlook for its balance sheet. Apart from repaying its remaining outstanding debt of £16.1 million. It will also use the cash from the deal to provide more flexibility to its existing dilling programs. The outlook for 88 Energy’s balance sheet has significantly improved as a result of this move. The deal is also bullish for investors as the company will reportedly reduce its annual finance-related costs by almost $1 million per year. Socialsuite, which is an Impact monitoring technology company is set to measure 21 core ESG metrics and disclosures for 88 Energy’s performance.
Should You Buy 88E Shares?
Investors who are betting on the long-term viability of 88 Energy have many reasons to get excited. However, their shares have experienced their share of headwinds as well. A significant sell-off has been caused by the company not being able to sample two prospective zones in its Alaskan Peregrine project due to power outages. Investors have thus started moving towards other energy players even though 88 Energy’s operational update provided a positive outlook. 88 Energy received a 1-time balance sheet boost after it announced its tax credit sale, which makes these shares hard to ignore.
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