AXP Energy Limited provided update on its various field development activities aimed at increasing oil production. Small low-cost workovers across the Company's leases in the Appalachian and Illinois Basins has resulted in oil production consistently averaging over 300 barrels per day. This is prior to any production being realised from the DPI-2604 and DPI-2605 DUCs wells and before the Pathfinder horizontal well in Colorado is brought back on line to supply gas to Elite Mining's operations (the Pathfinder well produces oil and gas).

The company reported on 3 February 2022 that it had commenced work on the first two DUCs and that fracture stimulation operations were to be undertaken. The Company confirms that these fracks have been successfully completed and first hydrocarbon shows (both oil & gas) are present in the first well, the DPI-2604. This is encouraging and an initial production (IP) rate will likely be recorded within weeks when all frack fluid has been recovered.

Flowback of the DPI-2605 will likelycommence soon when weather conditions improve, and production will be reported thereafter. A further seven DUCs have been identified for completion at various stages. AXP's multi-pronged field development program, which includes drilling new wells, bringing the DUCs online and undertaking ongoing low-cost workovers, are all aimed at collectively growing oil production and adding to the natural gas and natural gas liquids sales channels.

By increasing its production, AXP should be well placed to take advantage of the recent spike in oil and gas prices in the US should they be sustained in the short to medium term. Flow rates from the DUCs will be reported as results come to hand and other meaningful operational developments will be communicated.