How Will AXP Energy’s New Oklahoma Well Transform Its Gas-to-Power Ambitions?
AXP Energy has completed and commissioned its first vertical well in Oklahoma, initiating gas sales while raising over A$1 million to fund further development. The company is pivoting its gas-to-power strategy towards Oklahoma after a limited trial in Colorado.
- Charlie #1 well completed and producing in Oklahoma
- Gas production down 51% quarter-on-quarter
- Raised A$1.03 million through share placement
- Focus shifts from Colorado to Oklahoma for gas-to-power operations
- Cash reserves at $102,890 with no debt
Oklahoma Well Commissioned Amid Operational Challenges
AXP Energy Limited has marked a significant milestone with the completion and commissioning of its first vertical well, Charlie #1, on the Edwards Lease in Noble County, Oklahoma. The well, drilled to a depth of approximately 4,725 feet and stimulated via a multi-stage hydraulic fracture program, has commenced initial gas sales following the installation of permanent production facilities.
Early production has been cautious, with conservative pumping rates employed to stabilise output. The company has since upgraded pumping equipment to increase fluid handling capacity, aiming to improve reservoir inflow and production stability. However, production volumes for the quarter showed a slight 1% decline in oil and a more pronounced 51% drop in gas compared to the previous quarter, partly attributed to seasonally unusual snowstorms impacting operations.
Strategic Shift in Gas-to-Power Focus
AXP Energy’s gas-to-power initiative, which previously included a trial at the Pathfinder lease in Colorado, is now concentrating efforts on Oklahoma assets. The Colorado trial demonstrated the technical viability of converting gas to electricity sufficient to power Bitcoin mining operations, but production levels fell short of sustaining full operations. Regulatory challenges in Colorado have also led to a temporary shut-in of Pathfinder wells.
In contrast, Oklahoma’s gas production is expected to scale more effectively, supporting the company’s vision of supplying power to high-performance computing centres, including those focused on AI and Bitcoin mining. The company holds an 81.25% net revenue interest in the Charlie #1 well and surrounding acreage, with plans for further development contingent on production performance and regulatory approvals.
Financial Position and Funding Initiatives
During the quarter, AXP Energy raised A$1,028,930 through a placement approved by shareholders, aimed at funding exploration and development activities. Despite this capital injection, cash and cash equivalents declined to $102,890 by quarter-end, reflecting ongoing operating and investing cash outflows. The company reported an operating cash outflow of $275,182 and a net investing cash outflow of $377,515.
AXP Energy is actively pursuing multiple funding avenues, including potential equity raisings, debt arrangements, asset sales, and joint ventures, to sustain operations and capitalise on growth opportunities. The company emphasises its track record of accessing capital markets but acknowledges uncertainties regarding timing and outcomes.
Operational and Safety Highlights
AXP Energy reported no recordable injuries or environmental incidents during the quarter, underscoring its commitment to health, safety, and environmental standards. The installation of upgraded pumping equipment post-quarter-end and the resumption of production following adverse weather conditions are expected to enhance operational stability in the near term.
Looking ahead, the company plans to provide further updates once production rates from the Charlie #1 well stabilise. Meanwhile, strategic evaluations continue for the Colorado assets, focusing on scalable growth and capital efficiency.
Bottom Line?
AXP Energy’s Oklahoma operations and funding efforts set the stage for a critical phase of production stabilisation and strategic growth.
Questions in the middle?
- How quickly will production from the Charlie #1 well stabilise following equipment upgrades?
- What are the prospects and timelines for securing additional funding to support ongoing operations?
- Will the shift away from Colorado to Oklahoma gas-to-power operations deliver the expected scalability?
