AXP Energy is installing a 320kW natural gas generator at its Edwards Lease in Oklahoma to power digital mining equipment, marking its first commercial gas-to-power project following a successful Colorado trial.
- 320kW gas generator to power ASIC mining
- Gas supplied from Charlie #1 well production
- Revenue from gas sales and oil production retained
- Potential to scale gas supply with third-party sources
- Project builds on Colorado proof-of-concept success
First Commercial Gas-to-Power Project Underway in Oklahoma
AXP Energy Limited (ASX:AXP) is set to commission its inaugural gas-to-power digital infrastructure project this month at the Edwards Lease in Noble County, Oklahoma. The installation will feature a 320kW natural gas generator powered by gas from the Charlie #1 well, designed to supply electricity to ASIC mining equipment operated by Pathfinder Partners, formerly Blackhart Technologies.
This marks a significant step beyond the successful proof-of-concept trial in Colorado, where AXP and Pathfinder demonstrated the technical feasibility of converting produced natural gas into on-site power for high-performance computing. The Oklahoma project aims to leverage those learnings to deliver a more efficient and cost-effective operation.
Revenue Model and Operational Details
Under the initial commercial arrangement, AXP will supply natural gas from Charlie #1 to Pathfinder’s mining equipment, earning revenue from gas sales while retaining all income from oil production. The company holds the option to acquire the generator within 90 days post-installation, which would open additional revenue streams from power generation and uptime performance.
Charlie #1 is currently producing approximately 80 to 90 mcf of natural gas daily, with production deliberately choked back, suggesting potential for increased output. The 320kW generator provides an immediate consumer for this gas, creating an alternative revenue channel that reduces reliance on volatile Henry Hub natural gas prices in the US.
Scaling Opportunities and Strategic Implications
AXP is actively exploring opportunities to source third-party gas near the Edwards Lease to scale up operations with Pathfinder Partners. The company also sees potential dual benefits from this initiative: direct revenue from gas sales and possible enhanced oil production through gas utilisation optimisation at Charlie #1.
Managing Director Daniel Lanskey emphasised the strategic value of this project, highlighting strong demand from digital infrastructure customers for reliable energy and AXP’s advantageous positioning in Oklahoma to capitalise on this trend. The company continues to evaluate broader gas-to-power and data centre opportunities across its portfolio, signalling a shift towards innovative energy applications to improve asset economics.
Installation and commissioning are expected to be completed promptly, with equipment en route and permitting described as straightforward. The site is anticipated to be operational early next month, marking a new chapter in AXP’s commercialisation of natural gas assets.
Bottom Line?
AXP’s Oklahoma gas-to-power project could diversify revenue and unlock operational efficiencies, but scaling depends on securing additional gas supply and optimising well performance.
Questions in the middle?
- Will AXP secure third-party gas to expand gas-to-power capacity beyond Charlie #1?
- How will on-site power generation impact oil production rates at Edwards Lease?
- Can AXP replicate this model across other assets to build a broader digital infrastructure footprint?