PERMIT SECURED FOR IN-SITU WELL SITE POWER GENERATION OPERATIONS...

PERMIT SECURED FOR IN-SITU WELL SITE POWER
GENERATION OPERATIONS WITH ELITE MINING IN COLORADO
AXP Energy Limited (ASX: AXP, OTC US: AUNXF),(‘AXP’, ‘Company’ is pleased to report that
it has received the necessary permits from the Colorado Oil & Gas Conservation Commission
(‘COGCC’ and the Colorado Department of Public Health and Environment (CDPHE) for
AXP and US-based Elite Mining Inc (‘EMI’, ‘Elite’ to jointly deliver in-situ power generation,
using stranded natural gas from AXP’s Colorado leases, for use in EMI’s cryptocurrency mining
operations.
In September 2021, AXP announced that it had executed a binding Heads of Agreement
(‘HOA’ with EMI where AXP would provide EMI with natural gas so that EMI can operate a
cryptocurrency mining operation on site (see ASX release 15 September 2021). This is a
pleasing development for AXP as it represents the first monetisation of natural gas from the
Pathfinder field.
With the permit secured, Elite and AXP will now finalise the installation of associated
infrastructure to commence operations. Work will commence this week on the installation of
the first of three Elite Mobile Unit (EMUs) and the gas-fired power generation. The permits have
been granted for the installation of the first three EMUs. Updates will be provided as
operations progress through to the first unit going live.
To power the first three EMUs, AXP will source gas from the Pathfinder #2 well and will also run
a gathering line from the Amerigo Vespucci well to ensure sufficient volumes of gas are
supplied. These wells have been selected as they will also contribute to increasing oil
production from this lease. Volumes will be reported when the wells are tied in and producing
gas and oil at a steady state.
COMMENTARY
Chief Executive Officer Tim Hart commented: “We have been working cooperatively with the
COGCC and are pleased to have secured theses permit so we can get operations underway
and deliver a maiden sales channel for our gas in Colorado. This will also see us bring greater
volumes of valuable oil production on stream given that the chosen wells produce both.
While initial gas sales volumes are modest, delivering reliable supply to EMI in the first instance
is the key catalyst to then scaling up operations and thus production and we look forward to
updating shareholders on progress.
“Elsewhere, we are pleased to report that our well development and drilling activities to grow
oil production in Kentucky are advancing well with the first two completions on track. A fuller
update will be provided shortly once we can measure flow rates from the first of these wells.”