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AXP Energy Limited (ASX:AXP)(OTC PINK:AUNXF), (‘AXP', ‘Company') is pleased to confirm that following the receipt of permits from the State of Colorado, the first two modular data centres at the Pathfinder #2 well site are online with bitcoin mining operations underway under the Joint Development Agreement (‘JDA') with US-based Blackhart Technologies Limited (‘Blackhart'). The two MDCs are powered by AXP's natural gas from the Pathfinder #2 well and are co-located with two gas-fired generators that AXP has secured with a lease-to-purchase arrangement.
The establishment of this first site in ~10 months is an excellent achievement for AXP and acts as a valuable blueprint for the set-up of future sites in the coming months. Our focus at this time is to deliver reliable gas-to-power generation over a set number of days from this first site. Next steps will be to build out of future sites with Blackhart and to secure additional counterparties under the JDA.
(1) ‘Tcf' means Trillion Cubic Feet. This information is extracted from AXP's Annual Report to Shareholders 2024, ASX announcement dated 20 September 2024, available at www.axpenergy.com.au or www.asx.com.au
Comment
Non-Executive Director Dan Lanskey, who is currently onsite in Colorado, said:
"Our technical team in Colorado is to be congratulated for their efforts in getting the first site up and running. Operations are performing well; the bitcoin miners have now been online for over 72 hours and our co-sited generators and gas processing infrastructure are meeting expectations and the well is also producing oil to the tank battery.
Now that we have a live, working model at Pathfinder we have a great opportunity to showcase the field to much larger potential customers, which we are doing in collaboration with Blackhart. Demand for off-grid power from data centre owner/operators including bitcoin miners in the USA is considerable and the Federal US Government is now actively supporting the industry growth.
AXP's 2C gas resource of .75 Tcf can deliver the necessary volumes to support very large data centres and pursuing these opportunities is a key focus for us right now. The gas being used by the generators will allow us to grow our oil revenue in addition to the revenue stream from the Gas to Power output.
We are monitoring oil production daily and a further update is expected early next week once we have 7 days of the site being online."
AXP will report on oil production activities next week and will also keep shareholders updated on the progress of the Pathfinder #2 gas-to-power-data centre operation.