AXP Energy Finds More Oil Flow at Charlie #1
AXP Energy says its Charlie #1 well delivered an operating-rate equivalent of approximately 55 barrels of oil equivalent per day during a controlled 10-day test. The result is encouraging, but water-handling upgrades and longer-duration data are still needed before the well can move into permanent production.
- Approximately 40 barrels of oil and 95 Mcf of gas per day
- Controlled test operated for about 12 hours daily
- 320 kW gas-powered genset removed a key gas-flow constraint
- Water-handling and saltwater disposal upgrades remain outstanding
- Results are preliminary and not a stabilised production estimate
Charlie #1 Oil Rate Lifts During Controlled Test
AXP Energy Limited (ASX:AXP) has reported an operating-rate equivalent of approximately 55 barrels of oil equivalent per day from the Charlie #1 well in Oklahoma, including about 40 barrels of oil and 95 Mcf of gas per day. The figures come from an initial 10-day production test on the company’s 100%-owned Edwards Lease.
The well flowed for approximately 12 hours per day under a controlled configuration. That distinction matters: AXP is reporting an operating-rate equivalent rather than claiming the well produced at that rate continuously or has reached a stable long-term output. The company says the measurements remain subject to reconciliation and further testing.
Gas-to-Power System Removes Production Constraint
The test followed installation of a 320 kW natural gas-powered genset and improvements to produced-water handling. AXP said using produced gas on site increased gas flow and removed a historical constraint by creating a commercial use for that gas. Overnight, the well produced through the tubing with annulus flow shut in, allowing the gas-to-power operation to run continuously during the testing period.
AXP is still balancing several competing operating requirements: oil production, gas supply for the genset and fuel for the pump-jack engine. The company plans to continue adjusting the annulus choke, wellhead pressure and daily operating hours to find a longer-term configuration. It also said gas-to-power operations are beginning to deliver steady revenue, although the announcement provided no revenue, cost or cash-flow figures.
Water Handling Stands Between Test and Permanent Production
The immediate operational hurdle is water. AXP is pursuing additional handling capacity and said the saltwater disposal well servicing Charlie #1 needs to be optimised and co-located with the well site. Until that work and further monitoring are complete, the company has not presented the 55 BOE-per-day equivalent as a permanent production rate.
Next steps include testing longer daily operating periods, monitoring oil, gas and water volumes under stabilised conditions, and checking genset reliability and gas consumption. AXP also intends to assess whether additional gas generation and third-party computing capacity can be added as more gas becomes available. The company holds a 100% working interest and an 81.25% net revenue interest in the Edwards Lease, giving the outcome direct importance to its Oklahoma production plans, but the size of any eventual contribution will depend on sustained rates and the capital required to support them.
Bottom Line?
Charlie #1 has produced a promising early signal, but the investment case now turns on whether AXP can convert a 12-hour controlled test into reliable production after water-handling upgrades.
Questions in the middle?
- Can Charlie #1 sustain the reported oil and gas rates over longer daily operating periods?
- How much additional spending will be required to optimise water handling and move the well into permanent production?
- Will surplus gas support meaningful expansion of on-site generation and third-party computing capacity?
