- AXP Energy’s (AXP) KayJay pipeline’s new production is above the previous forecast
- Earlier this year, the company commenced a pipeline repair project, connecting 31 wells that have been offline since 2016
- At that point, AXP was expecting the repair to add 400 million cubic feet, however, now the project is 90 per cent complete it is delivering around 500 million cubic feet
- The four remaining wells will be tied into production by the end of the month, which is expected to add another 50 million cubic feet per day
- On the market this afternoon, AXP is in the grey and trading at 1.1 cents per share
AXP Energy’s (AXP) KayJay pipeline’s new production is above the previous forecast.
Earlier this year, the company commenced a pipeline repair project, connecting 31 wells that have been offline since 2016.
At that point, AXP was expecting the repair to add 400 million cubic feet. However, now the project is 90 per cent complete, it is delivering around 500 million cubic feet.
Notably, the four remaining wells will be tied into production by the end of November, which is expected to add another 50 million cubic feet per day.
CEO Tim Hart said the low cost workovers and infrastructure repairs are “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,” Mr Hart said.
“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.”
On the market this afternoon, AXP was in the grey and trading at 1.1 cents per share at 1:49 pm AEDT.