AXP Energy acquires Oklahoma wells for US$225,000

• AXP Energy agreed to buy seven Oklahoma oil wells and 400 acres for US$225,000.
• The deal increases total local landholdings to 1,800 acres, and share prices were unchanged after the release.
• The company plans low-cost recompletions to boost cash flow and fund future drilling.

AXP Energy (ASX:AXP) signed an agreement to acquire seven oil wells and 400 acres in Oklahoma for US$225,000.

The transaction offers a lower entry cost compared to drilling new wells, which carry an estimated expense of US$650,000 each.

The low-cost acquisition reflects the company's established presence on the ground in Oklahoma.

AXP Energy stated that recompleting each existing well will cost approximately $150,000, bringing total planned recompletion expenses across all seven wells to US$1.1 million.

AXP Energy Managing Director and CEO, Daniel Lanskey, said, "These wells have never produced from the Mississippian Lime formation, and that is our opportunity."

The company stated that cash flow from the recompletions will help fund future drilling, and following the announcement, the AXP Energy share price was unchanged at $0.004.

The newly acquired infrastructure includes a saltwater disposal facility, tank batteries, and gathering pipelines that will directly support adjoining operations.

This acquisition expands overall holdings in Noble County to approximately 1,800 acres, with more than 30 potential drilling locations identified for future field development.