Ann: Reserves & Contingent Resources Update, page-2

RESERVES & CONTINGENT RESOURCES UPDATE
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 2024 (the ‘Evaluation
Date’. The Reserves and Contingent Resources (‘R&R’ are net to AXP and its subsidiaries. The
Company last reported on its R&R estimate for evaluation as at 1 July 2023 in an announcement
dated 29 September 2023. 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.
Reserves
Consistent with the sale of the Appalachian and Illinois Basins to Mountain V Oil & Gas, Inc, Proved
Reserves (1P) and Proved + Probable Reserves (2P) relate to the remaining 100%-owned oil and
gas assets located in the Colorado DJ Basin.
Proved Developed oil reserves in the DJ Basin have increased to 64 thousand barrels of oil, up
from 48 thousand barrels of oil in 2023, due to the combination of improved well performance,
with slightly higher forecast oil prices and lower operating costs resulting in delayed economic
limit and extended producing life.
Proved Developed gas reserves in the DJ Basin have technically decreased to zero (2023: 105
MMCF) because the gas market is currently interpreted to be uncertain whilst under
development, therefore it is not possible to quantify these gas quantities as reserves at this time.
Notwithstanding, all gas volumes are now included in Contingent Resources (2C) of ~744 BCF
Together with ~78 million barrels of oil (MMBBL), with total Contingent Resources (2C) equating to
202 million barrels of oil equivalent (MMboe).
The differences in both gas and oil 2C Resources are due to the technical variation in
interpretation of average expected production within undeveloped locations, as well as the sale
of non-Colorado oil and gas assets. The following table summarises AXP’s reserve and contingent
resources (‘R&R’ estimate as at 1 July 2024. The percentage changes noted in the first table have
been calculated from 1 July 2023 (following table).
RESERVE & RESOURCE CATEGORY
AS AT 1 JULY 2024
OIL
[MBBL]
GAS
[MMCF]
NGL
[MBBL]
TOTAL
[MBOE]
% CHANGE
Proved Developed (PDP & PDNP) 64 - - 64 - 99%
Proved Undeveloped (PUD) - - - - -
Proved Reserves (1P) 64 - - 64 - 99%
Probable Reserves - - - - - 100%
Proved + Probable Reserves (2P) 64 - - 64 - 99%
Contingent Resource (2C) 78,018 743,764 - 201,937 -5%
The above totals represent an aggregation of the assessed Reserves for the Company’s producing area.
A N NO U N CE ME N T
AXP Energy Limited | ABN 98 114 198 471
Australian Office: Level 4, 8 Spring Street, Sydney NSW 2000 | P: +61 2 9290 9580
www.axpenergy.com
Contingent Resources
The following table provides a further breakdown of the Company’s Contingent Resources,
assessed at 1 July 2024, and categorised by risk (refer Section entitled ‘Notes on Calculation of
Reserves & Contingent Resources’, below).
CONTINGENT RESOURCE CATEGORY OIL
[MMBBL]
GAS
[Bcf]
NGL
[MMbbl]
TOTAL
[MMboe]
Low Estimate (1C) 57.56 591.63 - 156.16
Mid Estimate (2C) 78.02 743.76 - 201.94
High Estimate (3C) 106.12 883.18 - 253.32
Comment
Chairman Sam Jarvis said: “The Contingent Resources of our Colorado gas assets are significant
at almost 744 BCF, and they underpin our current works program to establish a scalable gas-to-
power operation which is now advancing. Securing a sustainable gas sales channel is our
immediate priority and our team is making good progress here. Growing oil production is also a
priority which will occur as gas sales materialise. I look forward to reporting on progress with our
gas-to-power operations very soon.”
AXP’s total reserves and contingent resources as at 1 July 2023, including the disposed
Appalachian and Illinois Basins and the retention of the DJ Basin, were as follows:
RESERVE & RESOURCE CATEGORY
AS AT 1 JULY 2023
OIL
[MBBL]
GAS
[MMCF]
NGL
[MBBL]
TOTAL
[MBOE]
Proved Developed (PDP & PDNP) 821 18,181 1,230 5,082
Proved Undeveloped (PUD) - - - -
Proved Reserves (1P) 821 18,181 1,230 5,082
Probable Reserves 148 7,504 62 1,460
Proved + Probable Reserves (2P) 969 25,685 1,292 6,542
Contingent Resource (2C) 68,373 714,382 3,699 212,066
Qualified Petroleum Reserves and Resources Evaluator Statement
Pursuant to the requirements of the ASX Listing Rules Chapter 5, the above R&R assessment is
based on and fairly represents information and supporting documentation prepared by Ms. Letha
Lencioni, Consulting Engineer at Double L Engineering, LLC