AXP Energy has launched gas-to-power operations at its Oklahoma site with a 320 kW natural gas generator, enabling a promising initial oil flow test at the Charlie #1 well. A 10-day extended test aims to optimise production while balancing gas-powered electricity generation.
- 320 kW gas generator operational with 99% uptime
- Charlie #1 well flowed 11 barrels of oil per hour in initial test
- Wellhead pressure recovered quickly post-test, indicating reservoir strength
- 10-day oil flow test underway to optimise production and gas use
- Gas-to-power setup creates new revenue stream and scalable platform
Gas-to-Power Infrastructure Enables New Revenue Stream
AXP Energy Limited (ASX:AXP) has commissioned a 320 kW natural gas-powered generator at its Oklahoma Edwards Lease operations, marking a significant operational milestone. The installation, completed on 31 August 2026, converts natural gas produced on-site into electricity, powering third-party data mining equipment connected via Starlink satellite internet. This setup not only utilises gas that was previously constrained by limited gas sales-line capacity but also establishes a new potential revenue stream for the company.
The initial genset has demonstrated a strong operational performance with 99% uptime since commissioning. The scalable platform can potentially be expanded as more gas becomes available, subject to operating and commercial considerations, positioning AXP to leverage its natural gas resources more effectively.
Encouraging Initial Oil Flow from Charlie #1 Well
The gas-to-power infrastructure has facilitated the removal of prior constraints on flow testing at the Charlie #1 well, including produced water handling and gas sales line restrictions. In an initial one-hour test, the well flowed 11 barrels of oil per hour while maintaining approximately 100 psi wellhead pressure. Notably, wellhead pressure rebounded to around 200 psi within five minutes after shutting in the casing, suggesting strong reservoir characteristics.
While these results are from a short-duration test and not indicative of sustained production rates, the initial flow and pressure resemble those observed in comparable nearby wells. AXP’s Managing Director Daniel Lanskey highlighted the similarity to wells he managed at Austex Oil Limited, underscoring the potential of the Edwards Lease to support further development once stable production is established.
Extended Testing to Optimise Production Balance
AXP has launched a 10-day extended flow test aimed at optimising oil production while ensuring sufficient natural gas supply to operate both the 320 kW generator and the pump jack engine. The test will help determine the optimal balance between oil output and on-site gas-powered electricity generation, a critical factor for operational efficiency and commercial viability.
The company’s approach reflects a strategic pivot to integrate gas-to-power operations with oil production, leveraging existing resources to enhance overall asset value. The scalable nature of the gas-to-power installation offers flexibility to expand as production scales, potentially unlocking further value from Oklahoma operations.
Bottom Line?
AXP’s integration of gas-to-power with oil production at Charlie #1 signals a strategic step toward operational efficiency and new revenue channels, pending results of the extended flow test.
Questions in the middle?
- Will the 10-day extended test confirm sustained oil production rates above initial flow levels?
- How scalable is the gas-to-power platform given potential fluctuations in gas availability?
- What impact will balancing gas use for power versus sales have on overall project economics?