Indonesia Energy Commences New 3D Seismic Operations at its Kruh Block and Expects to Drill New Production Wells By End of Year
24 June 2024 - 9:30PM
Indonesia
Energy Corporation (NYSE American: INDO)
("IEC"), an oil and gas exploration and production company based in
Indonesia, today provided an operational update and announced that
new 3D seismic exploratory operations at its 63,000 acre Kruh Block
have commenced. Importantly, IEC anticipates that the results of
this seismic work will allow IEC to drill new production wells at
Kruh Block the by the end of 2024.
Additionally, IEC announced that key
environmental permits have been granted at IEC’s 650,000 acre
Citarum Block where reserves could potentially exceed a billion
barrels of oil equivalent. IEC’s receipt of these permits
represents an important milestone for IEC as the permits will allow
for meaningful exploratory work by IEC at Citarum for the first
time.
As the operator of the Kruh block, IEC’s 3-D
seismic program will cover the Kruh, North Kruh and West Kruh
Fields. This 29 square km high-quality seismic program is
strategically focused on existing proved reservoirs of the
Talangakar and Lemat formations, as well as the very large and
promising shallow oil/gas zones in the K-28 well discovered by
IEC’s work in 2022.
The new, high quality three-dimensional seismic
data will enable the identification of additional locations of
proved undeveloped reserves and resources. This in turn will pave
the way to prioritize the sequence of upcoming drilling locations
as IEC recommences drilling operations at Kruh Block. Preparations
for the new drilling operation are underway, with plans to drill
the first well in the fourth quarter of 2024 after the evaluation
of the new three-dimensional seismic data is completed.
IEC announced in September 2023 that its joint
operation contract with Pertamina, the Indonesian state-owned oil
and gas company, covering the Kruh Block was extended by 5 years
from May 2030 to September 2035. Kruh Block covers approximately
63,000 acres and is located onshore on the Island of South Sumatra
in Indonesia.
The amended joint
operation contract has the following key terms:
- The amended
contract increases IEC’s after-tax profit split from
the current 15% to 35%, for an increase of more than
100%.
- In addition, given the 5-year
extended term of the contract, the amended contract is
expected to increase IEC’s proved reserves at Kruh Block by
over 40%.
- Furthermore, given the increased
profit split, IEC’s anticipated net cash flow
calculations based on its Kruh Block development plan are
expected to increase by over 200% versus IEC’s anticipations under
the prior contract.
At Citarum Block, IEC’s receipt of government
environmental permits to commence seismic operations which are
planned for late this year or early next year, with plans to also
commence drilling next year. As required by government regulations,
IEC relinquished approximately 35% of its original Citarum acreage
but has retained approximately 97% of the original prospective
resources and now has approximately 650,000 acres on which
drilling could take place. As previously reported, IEC’s estimates
are that the Citarum Block has prospective oil-equivalent resources
of over one (1) billion barrels of oil.
Mr. Frank Ingriselli, IEC's President, commented
"We are very excited about the commencement of new seismic
operations on our Kruh Block enhanced by the significant
improvements in our economics from the 2023 contract extension with
the Indonesian government. All of this bodes well for our company
as we look to recommence drilling at Kruh Block in late 2024. We
continue to believe that Kruh Block is a world class asset and, in
order to maximize future production capability, the seismic
operations planned across the entire Kruh Block should positively
leverage what we have learned from our previous discoveries,
including our 2022 gas discovery, and determine the best locations
to re-start our continuous drilling campaign.”
“Additionally, we have now also moved forward
with activities at our potential billion-barrel equivalent natural
gas 650,000-acre Citarum Block, where the previous operator drilled
several gas discoveries. In short, we’ve never been more excited
about IEC’s potential, and we look forward to continuing our
efforts as we seek to drive positive shareholder value," concluded
Mr. Ingriselli
About Indonesia Energy Corporation
Limited
Indonesia Energy Corporation Limited (NYSE
American: INDO) is a publicly traded energy company engaged in the
acquisition and development of strategic, high growth energy
projects in Indonesia. IEC’s principal assets are its Kruh Block
(63,000 acres) located onshore on the Island of Sumatra in
Indonesia and its Citarum Block (650,000 acres) located onshore on
the Island of Java in Indonesia. IEC is headquartered in Jakarta,
Indonesia and has a representative office in Danville, California.
For more information on IEC, please
visit www.indo-energy.com.
Cautionary Statement Regarding
Forward-Looking Statements
All statements in this press release and related
statements of of Indonesia Energy Corporation Limited (“IEC”) and
its representatives and partners that are not based on historical
fact are "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995 and the provisions
of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended (the
“Acts”). In particular, when used in the preceding discussion, the
words “could,” "estimates," "believes," "hopes," "expects,"
"intends," “on-track”, "plans," "anticipates," or "may," and
similar conditional expressions are intended to identify
forward-looking statements within the meaning of the Acts and are
subject to the safe harbor created by the Acts. Any statements made
in this news release other than those of historical fact, about an
action, event or development, are forward-looking statements. While
management has based any forward-looking statements contained
herein on its current expectations, the information on which such
expectations were based may change. These forward-looking
statements rely on a number of assumptions concerning future events
and are subject to a number of risks, uncertainties, and other
factors, many of which are outside of the IEC's control, that could
cause actual results (including, without limitation, the
anticipated benefits of the amended Kruh Block contract as well as
the results of IEC’s exploration, drilling and production
activities and the impact of such contract and activities on IEC’s
results of operations) to materially and adversely differ from such
statements. Such risks, uncertainties, and other factors include,
but are not necessarily limited to, those set forth in the Risk
Factors section of the Company’s annual report on Form 20-F for the
fiscal year ended December 31, 2023, filed on April 26, 2024 and
other SEC filings, with the Securities and Exchange Commission
(SEC). Copies are of such documents are available on the SEC's
website, www.sec.gov. IEC undertakes no obligation to update
these statements for revisions or changes after the date of this
release, except as required by law.
Company
Contact:
Frank C. IngriselliPresident, Indonesia Energy
Corporation LimitedFrank.Ingriselli@Indo-Energy.com
Indonesia Energy (AMEX:INDO)
Historical Stock Chart
From Sep 2024 to Oct 2024
Indonesia Energy (AMEX:INDO)
Historical Stock Chart
From Oct 2023 to Oct 2024