Indonesia Energy Completes Recording Of New 3D Seismic Operations at its Kruh Block and Expects to Drill New Production Wells By End of Year
16 July 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 it has completed the recording of 29 square
kilometers of new 3D seismic at its 63,000 acre Kruh Block. IEC
will now commence processing and detailed interpretation of the
seismic data to optimize the selection of drilling locations in its
Kruh, North Kruh and West Kruh fields. Importantly, IEC anticipates
that the results of this seismic work may allow IEC to drill new
production wells at Kruh Block by the end of 2024.
Additionally, IEC announced that it expects to
commence operations before the end of the year at its 650,000 acre
Citarum Block where reserves could potentially exceed a billion
barrels of oil equivalent.
As the operator of the Kruh block, IEC’s 3-D
seismic program is strategically focused on existing proved
reservoirs in 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 in 2022.
The newly-acquired 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 recent receipt of
government environmental permits paves the way to expeditiously
commence seismic operations, with plans to commence drilling next
year. 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 completion of the acquisition and
commencement of interpretation of the new seismic data on our Kruh
which 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 which has been enhanced by the significant
improvements in our economics from the 2023 contract extension with
the Indonesian government. These operations 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 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
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