AXP Energy Fires Up 320kW Gas Genset and Logs 11 Barrels Per Hour at Charlie #1
Key Takeaways
- AXP Energy commissioned a 320 kW natural gas-powered genset at its Oklahoma operations on 31 August 2026, achieving 99% uptime and converting previously stranded gas into on-site electricity for third-party ASIC miners.
- The Charlie #1 well flowed 11 barrels of oil per hour during an initial one-hour test, choked back to approximately 100 psi — AXP has explicitly cautioned this is not a stabilised or sustained daily production rate.
- Wellhead pressure recovered to approximately 200 psi within five minutes of shut-in, a result management described as encouraging and a positive early indicator of reservoir energy.
- A 10-day extended flow test commenced the week of 2 September 2026, with a shareholder update committed upon completion and assessment.
- AXP holds 100% Working Interest and 81.25% Net Revenue Interest in the Edwards Lease in Noble County, Oklahoma, retaining full economic upside from both oil production and gas-to-power operations.
Gas to power goes live at Oklahoma operations
AXP Energy completed installation of a 320 kW natural gas-powered genset at its Oklahoma operations on 31 August 2026, commissioning a new gas monetisation channel while simultaneously unlocking the ability to flow test the Charlie #1 well.
Two operational constraints had been holding things back: downstream damage to the existing gas sales line restricted how much gas could be moved off-site, and limited produced-water handling capacity prevented sustained well testing. Both were resolved together. Gas that previously had no productive outlet now powers the genset on-site, and expanded water handling capacity cleared the way for Charlie #1 to flow under controlled conditions.
The genset has recorded 99% uptime since commissioning, with connectivity provided through Starlink satellite internet. Third-party ASIC miners (application-specific integrated circuit machines designed for digital mining) are operational on-site, using the electricity generated from AXP’s own wellsite gas.
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Charlie #1 delivers encouraging initial flow test results
During an initial one-hour test, the Charlie #1 well flowed 11 barrels of oil per hour, choked back to maintain approximately 100 psi pressure at the wellhead and within the gas line. AXP has been explicit that these results come from a short-duration test and must not be interpreted as an indication of a stabilised or sustained daily production rate.
The Charlie #1 well update published ahead of commissioning documented the flowback conditions and equipment upgrade context that set the stage for the current extended flow test program.
The standout data point from the test was pressure recovery. After the casing was shut in, wellhead pressure recovered to approximately 200 psi within five minutes — a result management described as encouraging.
A 10-day extended flow test commenced in the week of 2 September 2026. The purpose is to optimise oil flow while maintaining sufficient gas supply for both the 320 kW genset and the pump jack engine, helping management determine the right operating balance between the two.
What the pressure recovery signals
When a well is shut in and wellhead pressure recovers quickly, it tells you the reservoir has energy behind it. Think of it like squeezing a sponge: fast pressure bounce-back suggests the rock formation is still pressurised and capable of pushing fluids toward the wellbore. A recovery to 200 psi within five minutes of shut-in is a positive early indicator of reservoir quality. It does not confirm long-term flow rates, but it does suggest the well is not depleted and warrants the extended testing program now underway.
Understanding gas-to-power monetisation
Gas-to-power is exactly what it sounds like: converting natural gas produced at a wellsite into electricity on the spot, rather than selling it through a pipeline or, in this case, being constrained by a damaged sales line. For AXP, this model turns what was effectively stranded gas into a productive asset.
The electricity generated powers third-party ASIC miners on-site. AXP supplies it using gas it already produces. That creates a potential second revenue stream running alongside oil production, rather than relying solely on commodity prices at the wellhead.
The 320 kW installation is described as a scalable platform that may be expanded as additional gas becomes available, subject to operating performance, equipment availability, and commercial considerations.
Daniel Lanskey, Managing Director and CEO, AXP Energy
“The commencement of gas to power operations to deliver in situ power to third party data mining operations is an important milestone for AXP in Oklahoma. We are now using gas produced at the well site to power an initial 320 kW genset and operate third party ASIC miners, with connectivity provided through Starlink. The genset provides an additional outlet for gas that was previously restricted by downstream damage to the existing sales line. Together with the expanded capacity to manage produced water, this has enabled AXP to flow test the Charlie #1 well under controlled operating conditions.”
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What comes next for AXP Energy
The immediate focus is completing and assessing the 10-day flow test, after which AXP has committed to updating shareholders. Looking slightly further out, management has indicated several potential paths, though these remain contingent on Charlie #1 delivering stable production first.
- 10-day oil flow test underway — shareholder update to follow completion and assessment
- Optimising operating balance between oil production and on-site gas use for the genset and pump jack engine
- Additional well development sites on the Edwards Lease under consideration, subject to Charlie #1 achieving stable production
- 320 kW genset scalable — expansion subject to operating performance, equipment availability, and commercial considerations
- Other low-cost oil production opportunities under review that could deliver enhanced production in relatively short order
The table below summarises the key operational facts from this announcement.
| Metric | Detail | Status | Significance |
|---|---|---|---|
| Genset capacity | 320 kW | Operational (31 Aug 2026) | New gas monetisation channel |
| Genset uptime | 99% | Confirmed | Reliable baseload operation |
| Charlie #1 flow rate | 11 bbl/hour | Initial one-hour test only — not a sustained rate | Encouraging early indicator |
| Wellhead pressure recovery | ~200 psi in under 5 minutes | Post shut-in | Signals reservoir energy |
| Working / Net Revenue Interest | 100% WI / 81.25% NRI | Edwards Lease, Noble County, Oklahoma | Full economic upside retained |
AXP holds a 100% Working Interest and an 81.25% Net Revenue Interest in the Edwards Lease in Noble County, Oklahoma.
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