- AXP Energy (AXP) undertakes field development program in the Illinois Basin to increase oil and gas production
- The company’s initial goal is to drill two of nine uncompleted wells that never came on stream and sat idle for 14 years.
- Both wells were perforated this week and are flowing naturally, however AXP plans to increase production by fracturing well stimulation next week
- AXP is also evaluating the feasibility of producing oil and gas in its Appalachian Basin and preparing to drill the first high-impact vertical infill well on its Dacy lease in Kentucky.
- Shares of the company ended the day up 14.3% to trade at 0.8 cents
AXP Energy (AXP) has initiated 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 field development activities, the company is working to complete the first of two oil wells that are in 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 in this field development program is oil targets while bringing more gas online that can be sold into sales channels that are not unaffected by downstream outages,” he said. .
the The DPI-2604 and DPI-2605 wells are two of nine drilled, cased, and uncompleted (DUC) wells that have never been put on production and have been idle for the past 14 years.
AXP has chosen to prioritize these wells over drilling new wells due to their lower risk development potential and favorable economics.
Both wells were perforated this week and are currently flowing naturally, but AXP plans to stimulate the fracture of the two vertical wells next week to improve production.
The remaining seven DUCs are considered oil and gas potential and will be considered for drilling, fracturing and completion 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 currently evaluating the feasibility of drilling the zones to produce oil as well as gas.
Additionally, AXP Energy is advancing preparations to drill the first high-impact vertical infill well on its Dacy lease at the Poole Consolidated oilfield in Webster County, Kentucky.
The drilling rig has been constructed and the company expects to begin drilling in March.
Shares of the company ended the day up 14.3% to trade at 0.8 cents.