A narrower focus, funded by a new offer

AXP Energy Limited (ASX:AXP) is a small oil and gas company with Assets in Colorado and Oklahoma. After a short-lived Syrian farm-in, it is concentrating on Oklahoma and has lodged a prospectus for a non-renounceable entitlement offer.

Operations

The company's flagship is the Charlie #1 well on its 100%-owned Edwards Lease in Noble County, Oklahoma. AXP said on 23 April 2026 that a pump upgrade delivered 45 barrels of oil equivalent per day (a company claim). In its June 2026 Quarterly Report the company reported first Oklahoma oil sales of 303 barrels delivered to the Ponca City refinery, plus about 22 barrels of oil per day in Colorado. Quarterly Revenue from continuing operations was $149,347.

On 18 August 2026 AXP said it would install its first gas-to-power project at the Edwards Lease. A 320 kW generator fuelled by Charlie #1 gas is intended to power digital asset Mining equipment supplied by Pathfinder Partners. AXP earns revenue from gas Supply and has an option to buy the generator within 90 days of installation. The company stopped gas-to-power activity in Colorado during the year. An announced arrangement is not recognised revenue, and no gas-to-power revenue had been reported.

The Syria episode

On 15 June 2026 AXP announced a farm-in to earn a 25% participating interest in Block IX in Syria, operated by Simpora Latakia Limited. On 16 June the Syrian Petroleum Company reportedly denied any agreement with AXP. On 31 August 2026 AXP and Simpora agreed to terminate the arrangements, citing timing that was less aligned with AXP's near-term Oklahoma priorities. Simpora kept the US$100,000 initial payment.

Cash, funding and dilution

The June 2026 quarterly report is the latest cash disclosure found. Cash fell to $60,596 from $399,969 a quarter earlier. Operating outflow was $171,715. The company's Appendix 5B calculation gave a runway of 0.17 quarters, and it listed Equity raisings, debt, asset sales, farm-outs and cost cuts as Options without certainty on timing.

In March 2026 AXP raised $800,000 through a Placement of 66,666,667 shares at $0.012, announced 9 March after a Trading halt on 5 March. The new prospectus, dated 9 October 2026, offers one new share for every one held at $0.005, with one free option for every two shares applied for, exercisable at $0.01 within two years, for up to $2,248,668. According to the prospectus, the offer is not fully underwritten, has a minimum subscription, uses Alpine Capital as lead manager and closes in early November. Non-participating shareholders face dilution.

The annual report, published around 30 September 2026, carries a material uncertainty about going concern, and the directors stated that further funding is highly likely to be needed. Director James Dack resigned on 18 August, citing cost reduction as the reason for not replacing him.

Risks and milestones

The prospectus lists unhedged Commodity price exposure, currency exposure and permitting delays among the risks. The company also depends heavily on one well. The confirmed milestone is the offer closing in early November 2026; no AGM date has been announced.