AXP Energy Limited (ASX: AXP), an oil and gas production and development company with operations in Colorado and Oklahoma, today announced encouraging results from a 10-day controlled production flow test at its Charlie #1 well. Located on the company’s 100%-owned Edwards Lease in Oklahoma, the well delivered a production rate equivalent to approximately 55 Barrels of Oil Equivalent (BOE) per day. This figure comprises 40 barrels of oil and 95 Mcf of gas per day, based on a 12-hour daily controlled flow test.
The initial 10-day production flow test followed the installation of a 320 kW natural gas-powered genset onsite, alongside improvements to produced water handling capacity. The installation of the gas-powered generator was critical in increasing gas flow and removing a historical production constraint by creating an on-site commercial use for the produced gas. While the well operated for approximately 12 hours per day during the test, AXP Energy intends to further evaluate choke settings, annulus pressure, and daily operating hours to determine the most effective long-term production configuration.
A key focus for the company now is enhancing existing water handling infrastructure, particularly optimising and co-locating the current saltwater disposal well servicing Charlie #1 to enable permanent production. AXP Energy Managing Director and CEO, Daniel Lanskey, commented that the increased oil production is very encouraging and consistent with other wells in the area. He expressed confidence that by enhancing settings, liberating more gas, and improving water handling capacity, sustainable production rates can be achieved to capitalise on higher oil prices and a lower cost operating environment in Oklahoma. AXP is focused on scaling oil production from this well and other opportunities across its leases. The reported figures are preliminary field results and are subject to ongoing measurement and further testing, not yet an estimate of long-term stabilised production.
