AXP Energy Ltd. will install the first of its commercial gas-to-power digital infrastructure project at the Edwards Lease in Noble County, Oklahoma.
Scheduled for setup in August, the project will deploy a 320kW natural gas generator powered by production from the Charlie #1 well.
The generated electricity will power Application-Specific Integrated Circuit (ASIC) digital asset mining equipment provided and operated by high-performance computing partner Pathfinder Partners.
The Oklahoma deployment builds on a successful proof-of-concept trial in Colorado, where AXP and Pathfinder demonstrated the technical and commercial viability of converting stranded or low-margin natural gas into on-site power.
Under the commercial agreement, AXP will supply natural gas to Pathfinder’s equipment, securing an immediate sales channel while retaining full ownership and revenue from the well’s oil production.
AXP also holds a 90-day option following installation to acquire the generator, which would grant the company additional revenue from power generation and system uptime.
Charlie #1 is currently producing 80 to 90 thousand cubic feet (mcf) of gas per day, with production intentionally choked back to manage pressure, offering potential operational upside once power generation commences.
AXP CEO Daniel Lanskey said: “Following the successful trial in Colorado with Pathfinder Partners, the Edwards Lease installation is the next step in demonstrating how AXP can create additional value from its natural gas production.
“Demand from digital infrastructure groups like Pathfinder Partners for reliable energy sources remains strong and AXP is well placed in Oklahoma to capitalise accordingly.”
The company is evaluating options to source third-party gas near the lease to scale power generation while assessing broader data centre and digital infrastructure opportunities across its portfolio. Equipment is currently on the way, with site operations slated to commence in early September.
“The company will monitor whether increased gas offtake and associated optimisation can further improve liquids production,” Lanskey said.
“Accordingly, utilisation of Charlie #1 gas for on-site power generation has the potential to provide a dual benefit: direct revenue from gas sales and potentially increased oil production from the well.”