AXP Energy Charlie #1 Well Delivers 55 BOE/Day in Controlled Flow Test
Key Takeaways
- Charlie #1 delivered approximately 55 BOE/day (40 barrels of oil and 95 Mcf of gas) during a 10-day controlled flow test operating at just 12 hours per day — meaning the well has untested capacity at longer daily run times.
- The installation of a 320 kW natural gas-powered genset removed the key historical production constraint by giving produced gas an on-site application, directly enabling the improved flow rates.
- AXP holds a 100% Working Interest and 81.25% Net Revenue Interest in the Edwards Lease, meaning it retains 81.25 cents of every revenue dollar generated before other costs.
- Water handling — specifically the need to optimise and co-locate the saltwater disposal well — is the next operational bottleneck standing between the current test and permanent production.
- Management has flagged several field development opportunities requiring minimal capital outlay, signalling intent to scale beyond Charlie #1 without heavy additional spending.
Charlie #1 well delivers 55 BOE/day in controlled flow test
AXP Energy (ASX: AXP) has reported encouraging preliminary results from a 10-day production flow test at its Charlie #1 well on the 100%-owned Edwards Lease in Noble County, Oklahoma. The well delivered an operating rate equivalent to approximately 55 BOE/day (barrels of oil equivalent per day), comprising 40 barrels of oil and 95 Mcf of gas per day, based on a 12-hour per day controlled flow.
These figures represent preliminary field results. The company has explicitly noted they should not yet be regarded as an estimate of long-term stabilised production, and remain subject to ongoing measurement, reconciliation and further testing.
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What drove the improved flow rates
The key operational change was the installation of a 320 kW natural gas-powered genset on site. Previously, produced gas had no commercial use at the wellhead, which constrained how hard the well could be pushed. With the genset now in place, that gas has an on-site application, removing what the company describes as a key historical production constraint and allowing gas flow to increase.
The earlier Charlie #1 well update documented the flowback phase and equipment upgrade milestones that preceded the genset installation, providing useful context for how the well’s configuration evolved toward the current 55 BOE/day test result.
During the test period, overnight operations ran from production tubing only, with annulus flow shut in. This configuration allowed Gas to Power operations to run 24 hours a day throughout the flow test.
Water handling is the next operational bottleneck. The current saltwater disposal well servicing Charlie #1 needs to be optimised and co-located to the well site before the well can enter permanent production. AXP is also continuing to evaluate choke settings, annulus pressure and daily operating hours to determine the most effective long-term production configuration.
Daniel Lanskey, Managing Director and CEO
“First and foremost, what is very encouraging about this flow test is the increased oil production which is consistent with other wells in the area. By enhancing some settings, liberating more gas and improving water handling capacity, we are confident that we can deliver sustainable production rates and capitalise on higher oil prices and a lower cost operating environment in Oklahoma. Whilst the performance of gas-to-power operations on site is encouraging and starting to deliver steady revenue, AXP is intent on scaling oil production from this first well and other opportunities across the leases and nearby. We see several compelling opportunities that can accelerate field development with minimal capital outlay.”
Understanding BOE and why it matters for small-cap energy investors
BOE stands for Barrel of Oil Equivalent. It is a standardised unit that allows companies to combine oil and gas output into a single comparable figure, since gas is measured in Mcf (thousand cubic feet) rather than barrels. Converting everything to BOE gives investors a cleaner picture of total energy production from a well.
For a small-cap producer like AXP, a single well producing around 55 BOE/day is a meaningful data point. Junior oil and gas companies build production incrementally, well by well, so each successful result has a proportionate impact on the overall portfolio.
AXP holds a 100% Working Interest and an 81.25% Net Revenue Interest (NRI) in the Edwards Lease. Working Interest means the company bears all development and operating costs. NRI is the share of production revenue the company retains after royalties are paid to landowners — so AXP keeps 81.25 cents of every dollar generated at this lease before other costs.
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Next steps toward permanent production
These are the operational priorities AXP is now pursuing to move Charlie #1 toward sustained production:
- Continue optimising the annulus choke and production configuration
- Evaluate longer daily operating periods while maintaining appropriate wellhead pressure
- Monitor oil, gas and water volumes under stabilised conditions
- Monitor genset reliability, gas consumption and third-party digital mining performance
- Evaluate opportunities to increase on-site generation and third-party computing capacity as additional gas becomes available
- Assess new opportunities to enhance oil production across the leases and third-party sites
Management has pointed to “several compelling opportunities that can accelerate field development with minimal capital outlay,” signalling the company intends to build on the Charlie #1 results without heavy additional spending.
The summary metrics from the flow test are outlined below for quick reference:
| Metric | Detail |
|---|---|
| Test Duration | 10 days |
| Daily Operating Hours | ~12 hours/day |
| Oil Rate | ~40 barrels/day |
| Gas Rate | ~95 Mcf/day |
| Total BOE/Day | ~55 BOE/day |
| Working Interest | 100% |
| Net Revenue Interest | 81.25% |
The preliminary nature of these figures is worth keeping front of mind. Short-duration flow tests do not guarantee what a well will sustain over months or years, and actual future production may vary due to reservoir performance, equipment availability and other technical factors. That said, the consistency of Charlie #1’s oil production with nearby wells gives the company confidence that the underlying reservoir is performing as expected.
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