AXP Energy's Charlie #1 well in Oklahoma has reached an initial production rate of 45 barrels of oil equivalent per day, with first oil sales completed, marking a key transition to revenue generation.
- Charlie #1 well delivers 45 BOEPD initial production
- First tanker load of 160 barrels sold to Ponca City refinery
- AXP holds 100% working interest and 81.25% net revenue interest
- Pumps run on formation gas, keeping lifting costs negligible
- Well in clean-up and stabilization phase with production expected to rise
Charlie #1 Well Achieves Early Production Milestone
AXP Energy (ASX:AXP) has announced that its Charlie #1 well on the Edwards Lease in Oklahoma is now fully operational, delivering an initial production rate of approximately 45 barrels of oil equivalent per day (BOEPD). This figure combines about 35 barrels of oil per day (BOPD) with 60 Mcf of natural gas, a promising start as the well continues its clean-up and stabilization phase.
The well currently produces around 700 barrels of fluid daily, with annulus pressure holding steady at approximately 300 psi and no oil cut observed yet in the tubing. These indicators suggest that the fluid column is still being drawn down, and oil output is expected to increase as the reservoir stabilizes.
First Oil Sales Mark Transition to Revenue
Significantly, AXP Energy has completed its first oil sales, with a tanker load of 160 barrels delivered to a nearby refinery in Ponca City. At the current West Texas Intermediate (WTI) price of around US$90 per barrel, AXP’s 81.25% net revenue interest (NRI) translates to roughly US$73 net per barrel, generating about US$14,500 from this initial lift. The company benefits from negligible lifting costs due to its use of formation gas to power the pumps, a detail that supports operational efficiency and margins.
This development follows a string of operational advances, including the installation of a tubing pump to boost output. The company holds a 100% working interest (WI) in the Edwards Lease, underscoring the strategic importance of this asset in its portfolio.
Operational Progress Backed by Recent Capital Raises
AXP Energy’s progress at Charlie #1 builds on recent capital injections that have underpinned development activities. Earlier this year, the company secured A$800,000 through a share placement aimed at advancing its Oklahoma oil ambitions. This capital raise has provided the financial muscle to accelerate drilling and production efforts, as detailed in the company’s $800K capital raise announcement.
The company’s operational update today signals a tangible step from exploration to commercial production, a transition that will be closely watched as AXP seeks to sustain and grow output from Edwards Lease.
Bottom Line?
AXP Energy’s initial production and first oil sales from Charlie #1 mark a critical inflection point, but ongoing stabilization and output growth will be key to translating this milestone into meaningful revenue.
Questions in the middle?
- Will production rates from Charlie #1 sustain or improve beyond the stabilization phase?
- How will AXP leverage its 100% working interest to expand production across the Edwards Lease?
- What impact will fluctuating oil prices have on the profitability of early production volumes?