Ann: Field development program underway to increase Oil Productio, page-2

HIGHLIGHTS
 Work underway on first two drilled & uncompleted wells (‘DUCs’ at primary targets in the
Illinois Basin – The wells have now been perforated and are flowing naturally with fracture
stimulations to be performed next week;
 The DUCs were prioritised due to the low cost for completion and favourable project
economics. Further seven DUCs have also been identified;
 First high impact vertical infill well to be drilled on AXP’s100%-owned Dacy Lease; drill pad
completed with drilling to commence in March, weather permitting;
 The internal drilling team is maturing a field development program concurrently with
ongoing workover programs – which will continue uninterrupted.
AXP Energy Limited (ASX: AXP, OTC US: AUNXF),(‘AXP’, ‘Company’ is pleased to confirm field
development and well completion operations have commenced with work underway on the
completion of the first of two Illinois Basin oil wells. In addition, the drill pad has been prepared
for the first of the new vertical infill wells to be drilled next month.
As reported on 4 November 2021, AXP formed a new drilling division to pursue cost effective
increases in oil and gas production through field development activities, including drilling infill
wells in existing productive leases and also bringing online wells that were previously drilled but
not completed. AXP is deploying its own geologists, drillers and field hands for all work which can
be executed more cost effectively than through the hiring of contractors. In building its own
drilling capability, AXP has been able to reduce its reliance on contractors so that its planned
programs can be executed more cost effectively.
ILLINOIS BASIN TWO-WELL COMPLETION PROGRAM
In formulating the field development program for CY2022, AXP’s geologists have now identified
a portfolio of nine previously drilled, cased and uncompleted wells (DUCs) that were never
brought into production due to the GFC market downturn in 2007. These wells were shut-in and
have remained idle for the past 14 years. The first two (DPI-2604 and DPI-2605) are located in
Eastern Muhlenberg County, Kentucky (refer image 1) and sit within the Salem-Warsaw and
Upper Fort Payne formations which are common targets for oil production in the region.
This project has been prioritised ahead of drilling new wells due to their lower risk development
potential and favourable project economics as the drilling costs have already been incurred.
Both wells were perforated this week (refer image 2) and are currently flowing naturally. Despite

ASX ANNOUN CE MEN T
AXP Energy Limited | ABN 98 114 198 471
www.axpenergy.com
the natural flow, AXP plans to fracture stimulate both vertical wells next week to enhance
production. Flow rates will be reported upon completion and after flow back. This initial field
development activity aims to take advantage of the low cost, quick execution, high reward
opportunities that exist within the Company’s portfolio. A further seven DUCs which are
prospective for both gas and oil have been identified and will be considered for perforating,
fracking and completing once the results from the first two wells are evident. In addition, 10 of
our gas producing wells in the Appalachian Basin have been drilled through oil producing
formations and the Company is now assessing the feasibility of perforating these zones to
produce the oil as well as the gas.
VERTICAL WELL TO COMMENCE NEXT MONTH
Work is also well advanced on the first high impact vertical infill well which has been identified
on the Dacy Lease, located within the Poole Consolidated oil field in Webster County, Kentucky
(refer image 3) and are part of the Kentucky Exploration leases which were acquired in full late
last year (refer ASX announcement: 19 November 2021). The drill pad has been constructed
(refer image 4) and drilling is likely to commence in March, weather permitting.
The Dacy Lease was earmarked as a priority target after a thorough internal geological review.
The well is planned to be drilled vertically into the Mississippian age Ste. Genevieve formation, a
thick Mississippian carbonate. Production comes from lenticular oolitic porosity zones, overlain
and interbedded with shales and non-oolitic limestone.