AXP DELIVERS SIGNIFICANT INCREASE IN RESERVES AXP Energy Limited...

AXP DELIVERS SIGNIFICANT INCREASE IN RESERVES
AXP Energy Limited (ASX: AXP, OTC US: AUNXF), (‘AXP’, ‘Company’ is pleased to provide an
updated estimate of its Reserves and Contingent Resources as at 1 July 2022 (the ‘Evaluation
Date’. The Reserves and Contingent Resources (‘R&R’ below are net to AXP and its subsidiaries.
The Company last reported on its R&R estimate for evaluation date 1 October 2021 in an
announcement dated 26 November 2021.
Refer to Appendix 1 for a glossary of terms, the conversion rates used for gas and NGLs to oil
equivalent and other important information related to this update.
 The increase in the Company’s 2P Reserves was 14% over only 9 months;
 2P Reserves are comprised of 29.7 billion cubic feet of natural gas, 1.14 million barrels of oil
and 1.18 million barrels of NGLs;
 Importantly, the vast majority of AXP’s Proved reserves are in the Producing and
Developed category;
 The maturation of AXP’s Field Development Plan (‘FDP’ since the last evaluation date has
contributed significantly to the increase in 2P Reserves;
 Ongoing work to further enhance and refine the FDP, aimed at optimising its significant well
inventory and gas behind pipe remains a key focus for the Company;
 The 2C Contingent Resources of 211.95 million barrels of oil equivalent (MMboe) remains
unchanged;
 AXP is pleased to note a 3C Contingent Resource of 237 Bcf of gas in the Appalachian
Basin where its main gas producing leases are situated.
Reserves
Proved reserves (1P) have increased by 2% which is attributable to multiple workover and
pipeline projects, primarily focussed on oil production, completed throughout the year; as well
as extended economic life due to increases in base product pricing. Further enhancements to
the Company’s FDP have resulted in an 89% increase in Probable Reserves, resulting in an
aggregate 2P Reserves increase of 14% since 1 October 2021.
AXP’s Chief Executive Officer Tim Hart commented: “This update in our Reserves & Resources
estimate clearly demonstrates that our leases hold considerable value and also possess
outstanding upside. The value is reflected in the vast majority of Reserves being in the Proven
and Developed category, giving us production certainty for many years to come, and the
upside is evident from the large contingent gas resource that sits within our extensive
Appalachian Basin leases. This clearly illustrates AXP’s considerable unlocked value.