AXP Energy Limited provide this update on material production gains resulting from a low-cost well re-completion of a single well, as per the highlights above. The flow rates being reported follow production testing over a number of weeks while the well has flowed back 4,261 gallons of frack fluid. High downhole pressures (relative to the area) necessitated that the team choke the well back to its current flow rate in order to produce the well through production tubing.

This allows the well to flow within a significantly more controlled and safe environment while the team makes appropriate adjustments to maximize the final production rate. While the well is now on a steady pump of ~50 barrels of oil per day, well engineering is ongoing to establish the optimal balance between maximizing daily production whilst protecting the producing formation and the wellbore for long term hydrocarbon recovery. Whilst natural gas production was not anticipated in this well, AXP has identified and is establishing a sales contract with a local municipality with the pipeline tie in within 1.6KM.

The cost of the gas pipeline is estimated to be less than USD 100,000. Once the tie-in is complete, natural gas production from the DPI-2605 will deliver more gas sales in leases that are located near to reliable pipeline and processing infrastructure. On 3 February 2022, AXP first reported its intention to pursue low-cost re-completions on a number of historical drilled & uncompleted wells (`DUCs') located in the Illinois Basin.

The DPI-2605 is the first of these opportunities to be realised with the lease now identified as a priority target. Additional adjacent leases are in the process of being secured over the area that overlays the Salem-Warsaw and Upper Fort Payne formations. These are common targets for oil production in the region.