HIGHLIGHTS  KayJay pipeline repair project 90% complete and...

HIGHLIGHTS

 KayJay pipeline repair project 90% complete and delivering ~500 Mcf/day of gas
production;
 Daily production rate to grow with four remaining wells to be are tied in by month end;
 Workovers ongoing with more wells identified to deliver further oil & gas production gains;
 Reserves & Resources to be reported next week.

AXP Energy Limited (ASX: AXP, OTC US: AUNXF), (‘AXP’, ‘Company’ is pleased to report on
production gains from the KayJay pipeline repair project first reported on 1 July 2021.

KayJay pipeline repair project performing above forecast
As reported on 1 July 2021, a low-cost (~US$25,000) pipeline repair project commenced to
connects 31 wells offline since 2016. The project, which involves laying ~7km of new 4-inch
pipeline, is 90% complete and production over the past five days averaged 500 Mcf/day with
some associated oil production. The four remaining wells will be tied into production by the end
of November which are expected to add another ~50 Mcf/day.


Forecast production from this project was 450 Mcf/day and the Company is pleased to deliver
production at ~22% above this guidance which excludes any associated oil. Prior to beginning
this project, this portion of the field had average production of only ~185 Mcf/day.

AXP’s Chief Executive Officer Tim Hart said: “Our low-cost workovers and infrastructure repair
work is yielding excellent production gains. The KayJay pipeline infrastructure repair project has
taken us a little longer to complete but we are pleased with the gains it is generating and we
are selling this gas into a high margin sales channel.

“With a portfolio of wells that are still under-producing, we see further production upside as our
team identifies more priority targets. AXP’s growing cash flows and solid cash position means we
now have greater flexibility to realise production gains quicker from expanded workover
programs which are underway.”

Further updates pending:
As advised in late October, the Company is now finalising and expects to publish its reserves &
resources in respect of the MHP and Trey acquisitions. This is scheduled for release next week.