88 Energy Limited – Investing in the London Stock Exchange
The oil and gas exploration company 88 Energy Limited is listed on the London Stock Exchange. However, you may not be familiar with the company. Its past financial data is not available and there is no analyst forecast. So how do you make a decision on whether to buy it or sell it?
88 Energy Limited is an oil and gas exploration company
The objective of 88 Energy Limited is to establish a profitable exploration and production company that can contribute to the development of a region. As such, it targets play types that are often overlooked by large industry players. Its small team is well equipped to move quickly and capitalize on opportunities before larger rivals do. Its decision-making process involves robust technical evaluations, socio-political considerations and cultural sensitivity.
It is listed on the London Stock Exchange
88 Energy Limited is a publicly listed oil and gas exploration company in the United Kingdom. The company has five highly prospective exploration projects, including Project Peregrine, which covers 195,973 acres. The company employs 10 people. Investors can invest in the company through its stock on the London Stock Exchange.
It has no analyst forecast
If you’re looking to invest in the 88 Energy stock on the London Stock Exchange (LSE), you need to know the key statistics of the company. The company has an extremely high beta – a measure of share volatility. The beta for the market is 1, and 88 Energy’s beta is 1.2825. This means that the company’s shares are very volatile compared to the market average, which means that the shares represent a higher risk than average.
It has no past financial data
88 Energy is an Australian oil and gas exploration company. It has a diversified portfolio of five highly prospective project areas. One of the most promising is Project Peregrine, which covers 195,973 acres. While this company has yet to provide past financial data, the company has enough cash to support its ongoing operations.
One thing we’d like to point out is that 88 Energy has no debt on its balance sheet, which is quite unusual for a cash-burning oil and gas company, which typically has high debt relative to its equity
It has a high PB Ratio
The Price to Book ratio (PB Ratio) of 88 energy is a measure of a company’s value relative to its book value, analyst estimates, and market price. The Price to Book ratio is calculated by dividing the current market cap of 88E by its current book value. It shows how much money 88E is expected to make and how well it will grow over time.
According to some industry analysts covering 88 Energy, breakeven is near. They expect the company to post a final loss in 2021, before turning a profit of AU$2.9m in 2022. So, the company is predicted to breakeven approximately 12 months from now or less. At what rate will the company have to grow in order to realise the consensus estimates forecasting breakeven in under 12 months?
It has highly prospective project areas
88 Energy, which is traded on the London Stock Exchange, has discovered oil in several highly prospective project areas. Two of its projects, the Willow and the Pikka, represent the largest conventional oil discoveries in over 40 years. Both are located in the Brookian Sequence, a geological formation where massive amounts of oil can be found.
However, if you’re willing to take that risk, you could potentially make a market beating investment. The key thing to remember is that investing is a long-term strategy, and past performance is no guarantee of future results. To make sure that you’re making the right decisions, you may want to consult with a financial adviser.
