HIGHLIGHTS  A low-cost, single well re-completion, the...

HIGHLIGHTS
 A low-cost, single well re-completion, the DPI-2605, has added considerably to gross daily
production with the well now steadily flowing ~50 BOPD and 300 Mcf/day of gas;
 This represents a significant boost to AXP’s oil production which averaged 307 BOPD in
April and 351 BOPD in May (includes 517 barrels of flush production from DPI-2605);
 DPI-2605 initially flowed naturally at 310 BOPD and 1,000 Mcf/day (intermittently) and
achieved a maximum flow rate of 555 BOPD on the second day (refer Table 1 overleaf)
however the operations team has choked back the flow to manage the high formation
pressure and protect the well;
 Now that the well is on pump and flowing through the production tubing (~50 BOPD since
1 June), well engineering is ongoing to stabilise the well and maximise final production
rate;
 AXP is currently in the process of establishing a sales contract with a local government
municipality to sell the gas at a slight discount to NYMEX;
 DPI-2605 is located approximately 1.6 KM from the nearest pipeline into this municipality
and the cost of tapping into this sales channel is estimated at less than U$100K;
 A further 9 drilling locations have been identified across the lease where the DPI-2605 is
located; Additional leases are now being assessed with a view to adding more drilling
locations;
 More generally, as flagged in the Company’s last quarterly report, workovers are
continuing across leases linked to reliable midstream and downstream infrastructure with
further production gains to be realised.