AXP Energy Initiates Production Boost Program at Oklahoma's Charlie #1 Well on Edwards Lease

Overview and Current Status of Charlie #1 Well at Edwards Lease

The Charlie #1 well, fully owned by AXP Energy, is located on the Edwards Lease in Noble County, Oklahoma. According to the latest company update, the well has been producing commercially, confirming the existence of a productive hydrocarbon system within the lease. The most recent production report was shared with shareholders on 23 April 2026, and the new program builds upon technical findings gathered since then.

Despite commercial production, AXP's technical team believes the well's output does not fully reflect the reservoir's potential. The decision to proceed with a recompletion program follows an extensive review of the original wireline logs, resistivity data, micro logs, and mud logs obtained during the initial drilling of Charlie #1. This review uncovered several additional hydrocarbon-bearing intervals within the Mississippi Lime formation that had not been previously perforated or tested.

Technical Assessment Highlights New Mississippi Lime Intervals for Perforation

AXP's technical evaluation identified further intervals within the Mississippi Lime formation exhibiting promising reservoir characteristics, including favourable porosity, hydrocarbon shows, fluorescence, and oil staining. These indicators suggest these zones could contribute incremental production to the well. These prospective intervals offer an opportunity to assess the multi-zone potential of the Edwards Lease further.

The production enhancement program will involve perforating and testing these newly identified intervals. The technical team’s conclusions are based on detailed analysis of original well data such as wireline logs and resistivity measurements. AXP has also released a Mississippi Lime interval log from Charlie #1 as part of this update, providing investors and analysts with a visual of the targeted zones.

Cost-Effective Recompletion Utilises Existing Wellbore and Infrastructure

The program’s design focuses on cost efficiency by leveraging the existing Charlie #1 wellbore and surface infrastructure. This approach aims to minimise capital expenditure while maximising production gains from zones already accessed by the wellbore.

While the company did not disclose the exact recompletion costs, it described the initiative as a "low-cost operational program," indicating a modest capital outlay relative to the potential production improvements. Depending on operational outcomes, AXP plans to consider additional staged recompletions and optimisation measures to enhance recovery from the well over time.

Managing Director Daniel Lanskey on Program Objectives and Potential

Daniel Lanskey, Managing Director and CEO, explained the program’s rationale and expectations: "The Charlie #1 well has successfully confirmed a productive hydrocarbon system within the Edwards Lease. Although it has produced commercially, we believe it has not yet realised its full production potential." He highlighted that the technical review identified several additional hydrocarbon-bearing intervals that remain untested, presenting an attractive opportunity to boost production through a relatively low-cost recompletion.

Lanskey also emphasized the broader strategic importance: "If successful, this program could enhance the economics of Charlie #1 and establish a repeatable development model across our wider Oklahoma acreage, where stacked reservoir intervals offer multiple future production opportunities." He reaffirmed AXP’s commitment to its 1,400-acre Oklahoma position, noting the leases hold significant value and development will continue.

Stacked-Pay Potential in Mississippi Lime Formation Across Oklahoma Holdings

A key implication of the program’s success would be its impact on AXP’s broader Oklahoma portfolio. The company holds 1,400 acres in Oklahoma, where the Mississippi Lime formation—also known as the Mississippian reservoir—is recognized for stacked-pay characteristics, meaning multiple productive intervals exist at varying depths within the same formation. This geological setting is precisely what AXP’s technical team aims to validate at Charlie #1.

If the newly identified intervals prove productive, the recompletion model could be replicated across other wells and leases within AXP’s Oklahoma acreage. This would enable the company to unlock additional production without drilling new wells each time, enhancing portfolio economics. The announcement indicates scalability is a core element of AXP’s near-term development strategy in Oklahoma.

Field Operations Timeline and Expected Outcomes at Charlie #1

AXP expects field operations at Charlie #1 to begin before mid-July 2026, consistent with the "within 21 days" timeframe noted in the company update highlights. This provides the market with a clear near-term catalyst, with physical work anticipated imminently following the 2 July 2026 announcement.

After completing recompletion and starting production testing, AXP plans to issue a further market update. Although no exact date was given, results are expected "shortly" after operations commence. Investors and analysts will likely focus on this upcoming update as the next major information event.

Simultaneous Progress on Syria Block 9 Farm-In Alongside Oklahoma Development

While the Charlie #1 program is the immediate focus, the update confirms AXP is pursuing two strategic initiatives in parallel. Alongside Oklahoma development, the company is advancing a recently announced farm-in to Block 9 onshore Syria. Lanskey described this Middle East opportunity as "a compelling opportunity" and indicated further updates are forthcoming.

This dual-track strategy—developing established Oklahoma assets while exploring a new international venture—expands AXP’s operational footprint. The company did not provide additional details on the Syria farm-in in this update, referring investors to the earlier announcement. Combining a low-risk, low-cost domestic recompletion with a higher-exploration-upside international project highlights AXP’s strategic positioning at this stage.

Role of Edwards Lease Within AXP Energy’s US Asset Portfolio

AXP Energy positions itself as an oil and gas production and development company focused on growing production and unlocking value from its US energy assets. The Edwards Lease in Noble County, Oklahoma, where Charlie #1 is located, is a key component of this US-centric strategy. The company holds 100% working interest in both the well and lease, granting full operational control and enabling rapid development decisions without partner approvals.

Noble County lies within a well-established hydrocarbon-producing region, with the Mississippi Lime formation being a proven target for operators. AXP’s 1,400-acre Oklahoma position represents a significant landholding in this context. The Charlie #1 production enhancement program is a focused effort to extract greater value from an asset already de-risked by initial drilling and production history.

Investor Considerations as Recompletion Program Advances

The immediate milestone for investors is the start of field operations, expected before mid-July 2026. Subsequently, the critical event will be production testing outcomes from the newly perforated zones. Demonstrated increases in oil and gas flow rates at Charlie #1 would validate both the technical premise and the stacked-pay development strategy for Oklahoma. AXP has committed to providing a market update at that time.

Looking ahead, investors will watch whether successful recompletion at Charlie #1 leads to similar programs across AXP’s other Oklahoma assets. The company’s reference to a "repeatable development model" indicates this is a deliberate strategic goal rather than a one-off project. Additionally, updates on the Syria Block 9 farm-in will offer further catalysts. The immediate share price impact of this announcement was not evident from publicly available information.