Charlie #1 Well Hits 1,400 psi Pressure, Prepares for Natural Gas Sales
AXP Energy reports sustained strong flowback at its Charlie #1 well in Oklahoma, moving swiftly to install infrastructure for natural gas sales and early revenue generation.
- Charlie #1 well maintains ~1,400 psi casing pressure over six days
- Oil cut of approximately 10% with strong natural gas presence observed
- Installation of separator and tank battery underway to enable gas sales
- Early-stage revenue expected from natural gas via adjacent sales line
- Integration plan with energy-intensive computing, including crypto mining
Strong Flowback Signals Operational Momentum
AXP Energy Limited has announced encouraging progress at its Charlie #1 well in Noble County, Oklahoma. After six days of continuous flowback, the well is exhibiting a robust and consistent casing pressure of around 1,400 psi. This sustained pressure, coupled with an oil cut near 10% and a strong natural gas presence, suggests promising hydrocarbon recovery from the Mississippi Lime formation.
Infrastructure Upgrades to Unlock Early Revenue
To capitalise on this positive flowback, AXP is installing a separator and tank battery at the well site. These upgrades are designed to improve well control, enhance measurement and separation of produced fluids and gas, and crucially, enable the immediate sale of natural gas through an existing sales line adjacent to the wellhead. This marks a significant operational milestone, positioning the company to generate early-stage revenue from natural gas production.
Strategic Integration with Energy-Intensive Computing
AXP’s Managing Director, Dan Lanskey, highlighted the strategic importance of this development. The company is pursuing a unique business model that integrates hydrocarbon production with high-efficiency, energy-intensive computing infrastructure, including crypto mining operations. The onsite presence of Lanskey underscores the company’s commitment to closely managing operations as they transition into this next phase.
Regulatory Compliance and Safety
All activities at the Charlie #1 well are conducted in compliance with Oklahoma Corporation Commission regulations and AXP’s health, safety, and environmental management systems. Notably, no lost-time incidents or environmental events have been reported, reflecting the company’s disciplined operational approach.
Looking Ahead
AXP plans to report initial production rates for oil and gas once sufficient fracturing fluid has been recovered, likely within the coming week. These forthcoming figures will be critical for investors assessing the well’s commercial viability and the broader potential of AXP’s Oklahoma leases.
Bottom Line?
As AXP moves from flowback to production and gas sales, the market will watch closely for initial output figures and revenue impact.
Questions in the middle?
- Will the initial production rates sustain beyond early flowback?
- How will integration with crypto mining affect operational costs and revenues?
- What are the long-term plans for expanding production at the Oklahoma leases?
