How Will AXP Energy Unlock Value from 1,400 Acres in Oklahoma?

• 1,400 acres secured in Kay County with over 30 potential drilling sites
• Targeting multiple stacked pay zones including Mississippian Lime and Pennsylvanian formations
• Drilling permits for first two wells expected within 30 days, with operations to start in 60-90 days
• Strategic focus on integrating gas-to-power-bitcoin mining alongside oil and gas production
• Plans to expand leasing to 6,400 acres to scale operations rapidly

Strategic Land Acquisition in a Proven Oil Region

AXP Energy Limited has made a significant move into Oklahoma’s oil and gas sector by securing 1,400 acres across two leases in Kay County. This region is well-known for its productive oil fields along the Nemaha Ridge, featuring multiple stacked pay zones that offer promising drilling opportunities. The leases provide access to over 30 potential vertical well locations, targeting formations such as the Mississippian Lime and shallower Pennsylvanian layers.

What sets this acquisition apart is the company’s confidence, rooted in Managing Director Dan Lanskey’s extensive experience. Having previously overseen the development of adjoining leases with a 95% drilling success rate, Lanskey is poised to replicate this performance. The proximity to established infrastructure, including a nearby refinery in Ponca City, further enhances the attractiveness of these leases.

Accelerated Drilling and Operational Plans

AXP is moving swiftly to capitalize on this opportunity. Permit applications for drilling the first two wells are underway, with approvals expected within a month. The company plans to commence drilling within 60 to 90 days, deploying funds raised to execute back-to-back well completions. This rapid timeline reflects both the favorable regulatory environment in Oklahoma and the operational efficiencies of vertical well drilling compared to AXP’s existing Colorado operations.

These wells will not only bolster AXP’s oil production but also support its innovative gas-to-power-bitcoin mining strategy. The company’s joint venture with Blackhart Technologies aims to repurpose stranded gas for off-grid power generation, supplying energy to bitcoin mining and high-performance computing data centers. Oklahoma’s regulatory framework and infrastructure are seen as key enablers for scaling these operations more rapidly than in Colorado.

Growth Pipeline and Strategic Partnerships

Beyond the initial 1,400 acres, AXP has earmarked plans to expand its leasehold to 6,400 acres, unlocking a substantial pipeline of drilling locations spaced at 40-acre intervals. This expansion is integral to the company’s broader strategy to integrate oil and gas production with emerging energy applications, particularly in the burgeoning gas-to-power-bitcoin mining sector.

AXP’s approach highlights a dual focus – traditional hydrocarbon production combined with innovative energy solutions that could differentiate the company in a competitive market. The ability to rapidly secure additional leases and leverage a strong contractor network positions AXP well for accelerated growth in Oklahoma.

Looking Ahead

With a webinar scheduled for 14 August to provide further details, AXP is signaling confidence in its Oklahoma strategy. Investors and industry watchers will be keen to see how quickly drilling permits are granted and the initial wells perform. Success here could validate AXP’s model of combining conventional oil and gas development with cutting-edge energy applications, potentially reshaping its growth trajectory.

Bottom Line?

AXP’s Oklahoma leases mark a pivotal step toward scaling production and pioneering gas-to-power-bitcoin mining integration.

Questions in the middle?

• Will AXP secure permits and complete drilling within the projected 60-90 day timeframe?
• How will initial well production compare to historical success rates in Kay County?
• What impact will scaling gas-to-power-bitcoin mining have on AXP’s revenue and operational focus?