AXP Energy reports promising early production from its Charlie #1 well in Oklahoma and plans to increase output by installing a larger pumpjack.
- Charlie #1 well producing up to 25 barrels of oil and 60 mcf of gas daily
- Conservative initial pumping rate of 250 barrels per day to manage reservoir
- Larger pumpjack installation planned to increase fluid recovery to 400-500 barrels daily
- Well logs and nearby wells suggest strong commercial potential in Mississippian Limestone
- AXP holds 100% working interest and aims for near-term development expansion
Early Production Signals Potential
AXP Energy Limited has provided an operational update on its Charlie #1 well, located in Noble County, Oklahoma, following approximately 30 days of production. The well has shown intermittent oil production reaching up to 25 barrels per day alongside steady gas output of around 60 thousand cubic feet daily. Collectively, this equates to about 35 barrels of oil equivalent, a promising start for a first well on a new lease.
AXP has deliberately maintained a conservative pumping rate of 250 barrels of fluid per day during this initial phase. This cautious approach aims to stabilise reservoir behaviour, manage fluid handling logistics, and minimise operational risks, especially given the absence of an on-lease saltwater disposal facility. Produced saltwater is currently trucked off-site, a common challenge in early production stages of wells in the Mississippian Limestone formation.
Pumpjack Upgrade to Unlock Higher Output
Encouraged by stable fluid levels and reservoir connectivity, AXP plans to install a larger pumpjack capable of handling 400 to 500 barrels of fluid daily. This upgrade aligns with pumping capacities of offset wells in the region, which have demonstrated production rates up to 125 barrels of oil per day and 120 mcf of gas. The new pumpjack is expected to be operational shortly, with AXP anticipating a return to production soon after installation.
Managing Director Dan Lanskey highlighted that the well logs and production characteristics closely match those of successful nearby producers. He expressed confidence that the enhanced pumping capacity will better reflect the well’s true production potential and provide valuable insights for optimising future wells on the Edwards and Hawk leases, both fully owned by AXP.
Strategic Positioning in a Proven Oil Region
The Charlie #1 well taps into the Mississippian Limestone, a well-established hydrocarbon-bearing formation in north-central Oklahoma. The formation’s extensive lateral reach and favourable porosity and permeability have supported commercial production for decades. AXP’s 100% working interest and significant net revenue interest in the lease position the company well to capitalise on further development opportunities as infrastructure, such as saltwater disposal wells, is expanded.
AXP’s broader strategy includes repurposing produced gas for power generation targeted at high-performance computing data centres, a niche market with growing demand. This operational update on Charlie #1 thus not only reflects immediate production prospects but also fits into a longer-term vision of integrated energy solutions.
Looking Ahead
While initial production rates remain conservative, the forthcoming pumpjack upgrade and ongoing reservoir evaluation set the stage for potentially significant production growth. Investors and industry watchers will be keen to see how the well performs under increased pumping rates and how AXP manages the logistical challenges of produced water disposal as development accelerates.
Bottom Line?
The Charlie #1 well’s next phase will be a critical test of AXP’s production ramp-up strategy and operational resilience.
Questions in the middle?
- How will the increased pumping rate impact the well’s long-term production sustainability?
- What timeline does AXP foresee for establishing on-lease saltwater disposal infrastructure?
- How might production improvements at Charlie #1 influence development plans for the Hawk Lease?