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- AXP Energy (AXP) is undertaking a field development program in the Illinois Basin to increase oil and gas production
- The company’s initial focus is on drilling two of nine uncompleted wells that were never brought into production and have remained idle for 14 years
- Both wells were perforated this week and are flowing naturally, however AXP plans to enhance production by fracture stimulating the wells next week
- AXP is also assessing the feasibility of producing oil and gas in its Appalachian Basin and is preparing to drill the first high impact vertical infill well at its Dacy Lease in Kentucky
- Company shares have ended the day up 14.3 per cent to trade at 0.8 cents
AXP Energy (AXP) has begun a field development program in the Illinois Basin, which is primarily located in the state of Illinois but extends into Kentucky and Indiana.
As part of the field development activities, the company is working on completing the first of two oil wells that sit within the Salem-Warsaw and Upper Fort Payne formations, which are common targets for oil production in the region.
CEO Tim Hart said the company is focused on growing oil and gas production by drilling new, low-cost vertical wells.
“With the WTI oil price continuing its strong upward trend, our primary focus from this field development program is oil targets whilst at the same time bringing more gas online that can be sold into sales channels that are not impacted by downstream outages,” he said.
The DPI-2604 and DPI-2605 wells are two of nine previously drilled, cased and uncompleted wells (DUCs) that were never brought into production and have remained idle for the last 14 years.
AXP has chosen to prioritise these wells instead of drilling new wells due to their lower risk development potential and favourable economics.
Both wells were perforated this week and are currently flowing naturally, however AXP plans to fracture stimulate both vertical wells next week to enhance production.
The other seven DUCs are considered prospective for both oil and gas and will be considered for perforating, fracking and completing once AXP Energy receives results from the first two wells.
Additionally, 10 of AXP’s gas-producing wells in the Appalachian Basin have been drilled through oil-producing formations. The company is now assessing the feasibility of perforating the zones to produce oil as well as gas.
Furthermore, AXP Energy is advancing preparations to drill the first high impact vertical infill well at its Dacy Lease, within the Poole Consolidated oil field in Webster County, Kentucky.
The drill pad has been constructed and the company expects to begin drilling in March.
Company shares ended the day up 14.3 per cent to trade at 0.8 cents.
