Highlights

  • AXP Energy commenced gas-to-power operations after installing a 320 kW natural gas-powered genset at its Oklahoma operations.
  • Charlie #1 well delivered an initial flow rate of 11 barrels of oil an hour during a short-duration test.
  • The company has commenced a 10-day oil flow testing program to optimise production conditions.
  • The gas-to-power installation provides an additional use for gas previously constrained by sales-line capacity.
  • AXP Energy was trading at AUD 0.0050, unchanged at 0.00%, during the morning Trading session on 2 September 2026.

AXP Energy Limited (ASX:AXP) has commenced gas-to-power operations at its Oklahoma assets, enabling the company to conduct an initial oil flow test at the Charlie #1 well after previously identified operating constraints were addressed.

AXP Energy (ASX:AXP) was trading at AUD 0.0050, unchanged at 0.00%, during the morning trading session on 2 September 2026. The company remains down 83.33% over the past year, declining by AUD 0.02 during the period.

Gas-to-Power Operations

AXP Energy confirmed that installation of an initial 320 kW natural gas-powered generator and associated digital Mining infrastructure at its Oklahoma operations was completed on 31 August 2026.

Following commissioning of the equipment and establishment of a Starlink satellite internet connection, Data Mining operations have commenced.

The installation allows Natural Gas produced from the company’s Oklahoma operations to be converted into electricity at the well site, creating an additional use for gas that had previously been constrained by gas sales-line capacity.

AXP said the initial 320 kW installation provides a scalable platform that may be expanded as additional gas becomes available, subject to operating performance, equipment availability and commercial considerations.

The company recorded uptime of 99% from the initial installation.

Charlie #1 Well Test

The new gas utilisation capability, combined with increased produced-water handling capacity, allowed AXP to undertake flow testing of the Charlie #1 well under controlled operating conditions.

The company said previous constraints had limited the well’s ability to flow under sustained operating conditions following completion. These included restrictions related to produced-water management and the Volume of gas that could be delivered through the existing gas sales line.

During an initial one-hour test, Charlie #1 flowed 11 barrels of oil an hour while being choked back to maintain approximately 100 psi pressure at the wellhead and within the gas line.

Following completion of the test and closure of the casing, wellhead pressure recovered to approximately 200 psi within five minutes.

AXP noted that the initial test was conducted over a short duration and should not be interpreted as an indication of a stabilised or sustained daily production rate.

Extended Testing Program

AXP has commenced a 10-day oil flow testing program designed to optimise oil flow while maintaining sufficient gas production to operate both the 320 kW genset and the pump jack engine.

The extended testing period will help the company assess the appropriate operating balance between oil production and on-site natural gas utilisation.

AXP said the testing program is expected to provide further information on the performance of the Charlie #1 well under ongoing operating conditions.

The company will provide shareholders with an update following completion and assessment of the testing program.

Oklahoma Strategy

AXP Energy holds a 100% Working Interest and an 81.25% Net Revenue Interest in the Edwards Lease, located in Noble County, Oklahoma.

The company said the gas-to-power installation provides a foundation that can potentially be scaled as additional gas becomes available across its Oklahoma operations.

AXP also highlighted that the Edwards Lease contains multiple additional well development sites that may be considered once Charlie #1 delivers stable production.

The company is also reviewing other lower-cost opportunities that could support additional oil production opportunities.

Management Commentary

AXP Energy Managing Director and CEO Daniel Lanskey said the commencement of gas-to-power operations represented an important milestone for the company’s Oklahoma activities.

Mr Lanskey said the company is now using gas produced at the well site to power the genset and operate third-party ASIC miners, with connectivity provided through Starlink.

He said the installation provides an additional outlet for gas that had previously been restricted by Downstream damage to the existing sales line.

Mr Lanskey added that the initial one-hour Charlie #1 test showed encouraging flow and pressure characteristics, while noting that the company will continue working through the 10-day testing program to optimise production.

Investor Takeaway

AXP Energy’s latest update outlines progress at its Oklahoma operations through the commissioning of gas-to-power infrastructure and the commencement of extended testing at Charlie #1. Investors may continue watching the results of the 10-day flow testing program, future production performance and the company’s plans to utilise additional gas capacity across its operations.

The company’s focus remains on improving operational flexibility at its Oklahoma Assets while assessing opportunities to expand production activities.