Key Highlights

  • The one-for-one rights issue received applications for 52.4 million shares worth $262,214 before costs, against a minimum of $1.2 million.
  • A shortfall offer at $0.005 per share remains open until 3 February 2027, with one free option for every two shares.
  • Its Charlie #1 well produced preliminary flow-test rates of about 40 barrels of oil and 95 Mcf of gas a day.
  • Cash was US$260,000 at 30 September, with short-term loans repayable within 60 days and an estimated 1.53 quarters of funding.

The one-for-one rights issue by AXP Energy (ASX:AXP) closed on 3 November 2026 without reaching its minimum subscription. The company said on 5 November that it received applications for 52.4 million shares at $0.005 each, worth $262,214 before costs, against a minimum of $1.2 million.

Because the minimum was not met, AXP says it will deal with the application money as the Corporations Act requires. The announcement does not say whether that means refunds. A separate shortfall offer at the same price, with one free option for every two shares, remains open until 5pm (Sydney time) on 3 February 2027. The result matters because AXP had relied on the raising, which it described in its 5B as seeking up to $2.2 million, to fund its plans.

What AXP does

AXP holds onshore oil and gas interests in the United States. Its main focus is the Edwards Lease in Noble County, Oklahoma, where it has a 100% working interest and one producing well, Charlie #1, drilled in the December 2025 quarter. It also produces about 22 barrels of oil a day from leases near Florence, Colorado.

According to its September quarter activities report, released on 30 October 2026, AXP commissioned its first gas-to-power installation at the Edwards Lease on 31 August. A 320 kW generator burns gas from Charlie #1 to power third-party Data Mining equipment owned by Pathfinder Partners, creating an outlet for gas previously limited by sales-line capacity. A 10-day controlled flow test at Charlie #1 recorded operating-rate equivalents of about 40 barrels of oil and 95 Mcf of gas a day. The company stresses these are preliminary results that need further testing and are not estimates of sustainable production.

AXP also mutually terminated its farm-in to Syria's Block IX on 31 August. Its partner kept the initial US$100,000 payment.

Acquisition plans and funding

On 9 October, AXP announced a conditional agreement to buy seven previously producing wells, a saltwater disposal Facility and about 400 acres adjoining the Edwards Lease from Vertical Petroleum Industries, for US$225,000 plus plugging and restoration obligations. It paid a US$22,500 deposit. AXP plans to recomplete the wells in the Mississippian Lime at an estimated US$150,000 each, or about US$1.05 million in total. The deal remains subject to Due Diligence and completion conditions.

The September quarter Appendix 5B, reported in US dollars, showed cash of US$260,000 at 30 September, up from US$61,000, after US$380,000 of borrowings. The company noted short-term loans of A$537,500 during the quarter, repayable within 60 days at 10% interest and convertible into shares at $0.005. Net operating outflow was US$169,000, giving an estimated 1.53 quarters of funding, and there were no unused facilities.

Risks and upcoming dates

The immediate risk is funding. The rights issue fell well short, the short-term loans fall due within 60 days of being advanced, and the Acquisition and recompletion programme will require more Capital than the company currently holds. Any shortfall Placement or Loan conversion at $0.005 would dilute existing holders. Operationally, AXP relies on a single producing well in Oklahoma, and its flow-test rates are unproven over the longer term.

AXP's Annual General Meeting is scheduled for 10am (Sydney time) on Monday 30 November 2026 in Sydney. The shortfall offer closes on 3 February 2027, unless the directors close it earlier.