AXP Energy Limited (ASX:AXP) is an ASX-listed oil and gas company with an Australian office in Sydney and operations in Oklahoma, United States. Its Oklahoma holdings include the Edwards Lease, where it has producing wells such as Charlie #1, and it operates a gas-to-power operation. The release states the company has an on-the-ground presence in Oklahoma.

The Acquisition announced on 9 October 2026

AXP entered a conditional agreement to acquire seven previously producing wells and associated infrastructure on about 400 acres adjoining the Edwards Lease in Noble County, with a 100% working interest and an approximate 80% net Revenue interest, from Vertical Petroleum Industries LLC. The price is US$225,000, plus assumption of plugging, abandonment and restoration obligations, subject to adjustments, Due Diligence and completion conditions. A US$22,500 deposit has been paid.

The Assets include pump jacks, rods and tubing on each well, a saltwater disposal (SWD) well facility, a tank battery, a gathering system and a gas sales point. After completion, AXP’s Oklahoma lease holdings would be about 1,800 acres with more than 30 potential new drilling locations.

Recompletion plan and Economics described

The wells were completed in lower formations, and AXP proposes Mississippian Lime recompletions at an estimated US$150,000 per well (US$1.05 million total), compared with about US$650,000 to drill a new well. The company said this implies Capital savings of US$500,000 per well, or US$3.5 million across seven wells, before acquisition, connection, infrastructure and remediation costs.

AXP also plans to connect Charlie #1 to the acquired SWD Facility to support water management, and said gas from successful recompletions could support expansion of its gas-to-power operations.

Sector backdrop

Small oil and gas companies in Oklahoma often grow through acquisitions of existing wells and leases, which can be lower in cost than drilling new wells. Recompleting wells in a shallower or different formation depends on reservoir quality and wellbore condition, and water handling is a feature of Mississippian Lime production.

Plugging and abandonment obligations are liabilities that transfer with well acquisitions.

Risks shareholders should weigh

The acquisition is conditional on due diligence and completion conditions. AXP assumes plugging, abandonment and restoration obligations, which could be material.

The recompletion results are unknown, and the cost estimate of US$150,000 per well is an estimate. The release does not provide production forecasts or revenue, and any Cash Flow depends on recompletion results, production, Commodity prices and operating costs.

The company needs capital for the US$1.05 million recompletion program and further drilling in 2027, and its infrastructure is subject to operational checks.

What’s next

AXP is expected to complete due diligence and satisfy conditions before closing, then undertake recompletions and connect Charlie #1 to the SWD facility. Shareholders may wish to watch for completion, recompletion results and production rates.