What AXP Energy's (ASX:AXP) Controlled Flow Test at Charlie #1 Reveals About Oklahoma Operations

Sonal Goyal

05 October 2026 02:39 PM AEDT

What AXP Energy's (ASX:AXP) Controlled Flow Test at Charlie #1 Reveals About Oklahoma Operations

Image Source: Shutterstock

You are reading a free article with opinions that may differ from the recommendation given by Kalkine in its paid research reports. Become a Kalkine member today to get access to our research reports, in-depth technical and fundamental research. Learn more

Start Your Free Trial Now!

AXP Energy Limited (ASX:AXP) announced on 16 September 2026 the results of a 10-day controlled production flow test at the Charlie #1 well on the Company's 100%-owned Edwards Lease in Oklahoma, USA.

Business Model and Operational Footprint

AXP Energy Limited is an oil and gas production and development company with operations in Colorado and Oklahoma, USA. The Company holds a 100% Working Interest and an 81.25% Net Revenue Interest in the Edwards Lease, located in Noble County, Oklahoma. AXP is pursuing a gas-to-power model at the Charlie #1 site, using produced Natural Gas to power on-site generation equipment as both a revenue source and a solution to the historical constraint of having no commercial use for produced associated gas. The Company is also evaluating opportunities to expand on-site generation capacity and third-party computing applications.

Commodity Dynamics

The Economics of oil and gas wells on the Edwards Lease are influenced by Crude Oil prices, natural gas prices, and the cost of water handling and disposal. The Company's focus on gas-to-power operations leverages produced gas that would otherwise face disposal or flaring constraints, creating an additional revenue stream. High oil prices are cited as a positive Factor for the Company's free Cash Flow generation from the well.

Charlie #1 Flow Test Results

Charlie #1 was operated over an initial 10-day period under a controlled production configuration. During this period, the well flowed for approximately 12 hours per day and maintained an operating rate equivalent to approximately 40 barrels of oil and 95 thousand cubic feet of gas per day, representing approximately 55 barrels of oil equivalent per day. Overnight, the well produced from production tubing only with annulus flow shut in, allowing gas-to-power operations to run for 24 hours a day.

The installation of a 320 kilowatt natural gas-powered generator on site increased gas flow and removed a key historical production constraint by creating on-site commercial use for produced gas. Enhancements to existing water handling infrastructure are being pursued to enable the well to enter permanent production. AXP will continue evaluating choke settings, annulus pressure, and daily operating hours to determine the most effective long-term production configuration. The Company noted that the reported production figures are based on preliminary field measurements and should not be regarded as an estimate of long-term stabilised production.

Growth Catalysts and Critical Operating Risks

Catalysts include the optimisation of production configurations at Charlie #1, improvements to water handling and saltwater disposal infrastructure, and the potential to increase on-site generation and third-party computing capacity as additional gas becomes available.

Key risks include the uncertainty inherent in early-stage flow test results. Water handling and saltwater disposal constraints are a near-term operational challenge. Reservoir performance and depletion rates over time will determine the long-term production profile of the well.

FAQs

Q: What production rate was achieved at Charlie #1 during the 10-day flow test?

A: The Charlie #1 well delivered a production rate equivalent to approximately 55 barrels of oil equivalent per day, comprising approximately 40 barrels of oil and 95 thousand cubic feet of gas per day, based on a 12-hour per day controlled flow test.

Q: What was the key historical production constraint addressed at Charlie #1?

A: The installation of a 320 kilowatt natural gas-powered generator on site removed the historical constraint of having no commercial use for produced associated gas, by creating on-site demand through power generation operations.

Q: Should the flow test results be regarded as indicative of long-term production?

A: No. The Company stated that the reported production figures are based on preliminary field measurements from controlled testing and initial operations, and are not necessarily indicative of sustainable long-term production.

Download Free Report – Explore 3 Stock Ideas & Industry Insights

Unlock 3 stock ideas and key industry insights in our free report. This information is general in nature and does not consider your personal objectives, financial situation, or needs. It is not financial advice.

All investments involve risk—consider independent advice before making any investment decisions.

View 3 Research Reports

Disclaimer:

This article (“Article”) has been prepared by Kalkine Pty Limited (ABN 34 154 808 312) (Australian financial services licence number 425376) (“Kalkine”) and its related bodies corporate who are authorised to provide general financial product advice. Kalkine.com.au and its associated pages are published by Kalkine.

Any information/advice provided in this article is general in nature and does not take into account your objectives, financial situation or needs. You should therefore consider whether the information is appropriate for your objectives, financial situation and needs before acting upon it.

There may be a Product Disclosure Statement, Information Memorandum or other offer document (“Offer Document”) for the securities or other financial products referred to in Kalkine articles. You should obtain a copy of the Offer Document and consider it before making any decision about whether to acquire the security or financial product.

Kalkine strongly recommends that you seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) before acting on any advice/information in this Article or on the Kalkine website. Not all investments are appropriate for all people.

The information in this Article and on Kalkine website has been prepared from a wide variety of sources, which Kalkine, to the best of its knowledge and belief, considers accurate. Kalkine has made every effort to ensure the reliability of the information contained in its articles (including this Article), newsletters and websites. All information represents our views at the date of publication and may change without notice.

The information in this Article does not constitute an offer to sell securities or other financial products or a solicitation of an offer to buy securities or other financial products.

Kalkine does not issue, sell or deal in any financial products.

This Article may contain information on past performance of particular investments. Please note past performance is neither an indicator nor a guarantee of future performance.

To the extent permitted by law, and excluding any dishonesty or gross negligence by Kalkine, Kalkine disclaims and excludes all liability for any direct, indirect, implied, punitive, special, incidental or other consequential loss or damage arising from the use of or reliance on this Article, the Kalkine website and any information published on the Kalkine website without any warranties or representations by Kalkine to you. To the extent the law prohibits or limits this exclusion, Kalkine limits its liability to the resupply of services.

Please also read our Terms & Conditions and Financial Services Guide for further information.

Employees and/or associates of Kalkine and its related entities may hold interests in the securities or other financial products covered in this Article or on the Kalkine website. Any such employees and associates are required to comply with certain safeguards, procedures and disclosures as required by law.

Some of the images/music that may be used in the Article are copyright to their respective owner(s). Kalkine does not claim ownership of any of the pictures displayed/music used in the Article unless stated otherwise. The images/music that may be used in the Article are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated or was found to be necessary.

Kalkine Media Pty Ltd, an affiliate of Kalkine Pty Ltd, may have received, or be entitled to receive, financial consideration in connection with providing information about certain entity(s) covered on its website.