Indonesia Energy Commences Drilling of First of Three Back-To-Back Wells

Rhea-AI Summary

Indonesia Energy Corporation Limited (NYSE American:INDO) has commenced drilling three new back-to-back wells at its Kruh Block in Sumatra, Indonesia. This initiative is part of a larger plan to drill 18 wells by 2023. The first well, Kruh-25, began on April 21, 2021, at a target depth of 3,400 feet. Each well is expected to cost $1.5 million to drill and could generate approximately $3.33 million in net revenue during the first year at an assumed oil price of $63.50/barrel, effectively doubling the initial investment.

Positive

• Commencement of drilling three new wells at Kruh Block, targeting a production increase.
• Projected average production of 170 barrels of oil per day per well in the first year.
• Each well expected to generate $3.33 million in net revenue, over double the drilling costs.

Negative

• None.

Paves way for commencement of new production at Kruh Block

JAKARTA, INDONESIA and DANVILLE, CA / ACCESSWIRE / April 22, 2021 / Indonesia Energy Corporation Limited (NYSE American:INDO) (IEC), an oil and gas exploration and production company focused on Indonesia, today announced that the company has commenced the drilling of three new back-to-back wells on its 63,000-acre Kruh Block.

This commencement of drilling is part of IEC's overall previously announced plan to drill a total of 5 wells in 2021, 6 wells in 2022 and 7 wells in 2023, for a total of 18 new wells on Kruh Block.

This first well named "Kruh-25" commenced drilling on Wednesday, April 21 at 9:30 a.m. on Sumatra Island. The well has a target total depth of 3,400 feet, and it is expected to take approximately 30 days to complete all drilling operations.

Each of the 3 new wells are expected to average production of approximately 170 barrels of oil per day over the first year of production. IEC anticipates that each well will cost approximately $1.5 million to drill and complete. Based on the terms of IEC's contract with the Indonesian government and an assumed oil price of $63.50/barrel, each well is expected to generate $3.33 million in net revenue in its first year, which is more than double the cost to drill each well.

The Kruh Block is located on Sumatra Island. IEC is already producing oil from 4 existing wells at Kruh Block.

Mr. Frank Ingriselli, IEC's President, commented "We are excited to commence our production drilling operations on the Kruh Block. These 3 new wells, which we have the cash to drill, have the potential to grow production and cash flow for our company by over 200%. We believe the Kruh Block is a great asset that should significantly grow our cash flow as we continue to seek to maximize returns on our investments and grow shareholder value."

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 (1,000,000 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 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 "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 results of IEC's 2021 exploration and production activities and the impact of such 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, 2019 filed on June 16, 2020 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. Ingriselli
President, Indonesia Energy Corporation Limited
Frank.Ingriselli@Indo-Energy.com

SOURCE: Indonesia Energy Corporation Limited

View source version on accesswire.com:
https://www.accesswire.com/641748/Indonesia-Energy-Commences-Drilling-of-First-of-Three-Back-To-Back-Wells

FAQ

What is the significance of Indonesia Energy starting drilling at Kruh Block?

The commencement of drilling at Kruh Block is significant as it paves the way for increased oil production and potential revenue growth for Indonesia Energy Corporation (INDO).

How many wells does Indonesia Energy plan to drill on the Kruh Block?

Indonesia Energy plans to drill a total of 18 new wells on the Kruh Block by 2023, with three already started in 2021.

What are the expected production rates for the new wells at Kruh Block?

The three new wells at Kruh Block are expected to average approximately 170 barrels of oil per day each over the first year.

What is the estimated cost and revenue for each well drilled at Kruh Block?

Each well drilled at Kruh Block is estimated to cost $1.5 million, with anticipated net revenue of approximately $3.33 million in the first year.

When did Indonesia Energy commence drilling the Kruh-25 well?

Indonesia Energy commenced drilling the Kruh-25 well on April 21, 2021.