Key Highlights

  • The genset and third party data mining equipment at the Edwards Lease delivered greater than 95% uptime over the 30 days to 19 October 2026.
  • AXP holds a 100% working interest and an 81.25% net revenue interest in the Edwards Lease.
  • A conditional agreement covers seven previously producing wells across approximately 400 acres adjoining the lease.
  • Recompletion work is expected to start in November 2026, with lease operating expenses below US$10 per barrel.

AXP Energy Limited (ASX:AXP) has reported that its gas-to-power operations at the Edwards Lease in Oklahoma, USA, achieved greater than 95% uptime over the 30 days ended 19 October 2026. The figure covers the onsite generator set and the data mining equipment owned by a third party that it supplies with electricity.

The update, dated 22 October 2026, also sets out progress on the neighbouring lease acquisition, the timing of planned recompletions and the ownership interests and cost levels that the company attaches to its Oklahoma oil position.

How the Installation Works

The installation uses gas produced at the Edwards Lease to generate electricity onsite. That power is supplied directly to data mining equipment owned and operated by Pathfinder Partners. AXP earns revenue from supplying natural gas to the arrangement, and it keeps the revenue from its oil production separately.

Managing Director and CEO Daniel Lanskey described the uptime result across the genset and data mining equipment as an encouraging outcome for the Edwards Lease. The company said the performance forms a foundation for expansion with existing partners and with new parties that have expressed interest in accessing gas from future well recompletions. AXP will continue to monitor generator performance, data mining equipment availability, maintenance requirements and operating costs to assess how the installation might be scaled commercially.

Figure references in the update show data mining equipment on location at Charlie #1, and the company noted that the sustained operating performance at Edwards provides a basis for assessing replication of the installation across the neighbouring leases as additional gas becomes available.

The Neighbouring Lease Acquisition

On 9 October 2026, AXP announced a conditional agreement to acquire seven previously producing wells and associated infrastructure across approximately 400 acres adjoining the Edwards Lease. After completion, a proposed Mississippian Lime recompletion program has the potential to deliver additional gas for onsite power generation.

Proceeds from the company's rights issue are intended to fund completion of the acquisition. Planning and design of the recompletions are underway, and work on the acquisition wells is expected to begin during November 2026. The company attached conditions to that timing, namely completion of the acquisition, receipt of sufficient funds, contractor and equipment availability and applicable approvals.

AXP also said that any replication of the genset and data mining installation across the neighbouring leases would depend on successful recompletions, sufficient gas volumes, suitable gas quality and pressure, funding, equipment availability and approvals. Gas from the Charlie #1 well was named alongside the seven acquisition wells as a possible additional source.

Interests, Costs and Oil Prices

AXP holds a 100% working interest and an 81.25% net revenue interest in the Edwards Lease. Once the neighbouring acquisition completes, it will hold a 100% working interest and approximately 80% net revenue interest in those leases. Lease operating expenses are below US$10 per barrel. The Edwards Lease and the adjoining acreage are both in Oklahoma, where the company's gas-to-power activity is currently located.

The company noted that WTI oil prices have remained above US$80 per barrel. Mr Lanskey said that, with those prices, high working and net revenue interests and the low operating expense level, AXP sees an opportunity to grow production while maintaining a disciplined approach to capital expenditure.

On gas, the company stated an objective of scaling up to a much larger revenue stream from gas sales above the prevailing Henry Hub price, in addition to oil sales revenue. If recompletions deliver additional gas, it said it could assess deploying further gensets and data mining equipment.

Where the Numbers Leave AXP

The reported position can be summarised in a few measurable points. The Edwards Lease installation sustained greater than 95% uptime over 30 days to 19 October 2026, AXP retains full working interest in the lease, and lease operating expenses sit below US$10 per barrel. Management's stated aim is to build on the operating experience gained at Edwards across all future drilling locations.

Alongside the operating result, a conditional acquisition of seven wells over about 400 acres is awaiting completion, with the rights issue designated as its funding source and recompletions targeted to begin in November 2026. AXP said it will provide further updates as additional operating and commercial results become available.