AXP Energy reports encouraging oil and gas shows in its first Oklahoma well, Charlie #1, signaling potential for expanded production and gas-to-power operations.
- Oil and gas shows detected in Oswego Lime and Mississippi Chat formations
- Drilling progressing toward target depth of approximately 4,720 feet
- AXP holds 100% working interest and 81.25% net revenue interest in Edward Lease
- Further evaluation including electronic logging and fluid sampling planned
- Potential to replicate Colorado gas-to-power model in Oklahoma
Encouraging Early Signs in Oklahoma
AXP Energy Limited has announced promising oil and gas shows from its Charlie #1 vertical well in Oklahoma, marking a significant milestone as the company’s first drilling venture in the state. The well, located on the Edward Lease straddling Kay and Noble Counties, has revealed active hydrocarbon indicators in two key formations – the Oswego Lime and the Mississippi Chat.
The Oswego Lime formation, encountered between 3,776 and 3,806 feet, showed signs of oil and gas within a 10-foot interval characterized by marine shelf limestone with fossil or algal content. Meanwhile, the Mississippi Chat formation, between 4,293 and 4,317 feet, exhibited oil and gas shows over a thicker 24-foot interval, with lithology suggesting potential porosity due to chert nodules and breccia zones.
Drilling Progress and Next Steps
Drilling is ongoing, with the well currently at approximately 4,375 feet and targeting a total depth near 4,720 feet. Upon reaching this depth, AXP plans to conduct a comprehensive suite of electronic logs and fluid sampling to better understand the commercial viability of the well. Depending on these results, flow testing and casing installation will follow.
Managing Director Dan Lanskey expressed optimism about the early results, highlighting strong gas shows and good oil cuts confirmed by mud logs. He also noted additional zones of interest, including the Mississippi Lime and Wilcox formations, which may offer further hydrocarbon potential.
Strategic Expansion Beyond Colorado
This well is a critical component of AXP’s broader strategy to expand its gas-to-power operations beyond its established Colorado Pathfinder Field. The company aims to replicate its model of converting stranded gas into power for high-performance computing and data centre customers, such as Blackhart Technologies LLC. Holding 100% working interest and an 81.25% net revenue interest in the Edward Lease, AXP is well positioned to develop the acreage further, with plans for additional wells spaced at 40-acre intervals if initial results justify it.
While the early hydrocarbon shows are encouraging, AXP cautions that these do not guarantee commercial quantities. The company remains focused on detailed evaluation and testing to confirm the well’s potential.
Bottom Line?
AXP’s Oklahoma debut well shows promise, but the path to commercial production hinges on upcoming evaluations.
Questions in the middle?
- Will the upcoming electronic logs and fluid tests confirm commercial viability?
- How might the results influence AXP’s plans for further drilling on the Edward Lease?
- What timeline is AXP targeting for potential flow testing and production startup?