Indonesia Energy Commences Drilling of Second of Three Back-to-Back Wells

Rhea-AI Summary

Indonesia Energy Corporation Limited (NYSE American: INDO) has initiated drilling for the second of three new wells at its Kruh Block, located in Sumatra.

This well, named Kruh-26, began on August 22 and aims for a total depth of 3,400 feet, with completion expected in about 60 days.

Estimated drilling costs are $1.5 million, with projected initial net revenue of $3.3 million in the first year, highlighting significant potential for cash flow growth.

Positive

• Commencement of drilling for Kruh-26 indicates ongoing development in the Kruh Block.
• Projected revenue from Kruh-26 is expected to exceed drilling costs by over 100%.
• The company has a clear plan to drill a total of 18 new wells over the next three years, which could enhance production and cash flow.

Negative

• None.

New drilling paves way for commencement of additional production at Kruh Block

JAKARTA, INDONESIA and DANVILLE, CA / ACCESSWIRE / August 25, 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 the second 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 18 new wells on the Kruh Block over the next 3 years.

This second well (named "Kruh-26") commenced drilling on Sunday, August 22 at 1:00 p.m. on Sumatra Island. The well has a target total depth of 3,400 feet, and it is expected to take approximately 60 days to complete all drilling operations.

IEC anticipates this 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, this well is expected to generate approximately $3.3 million in net revenue in its first year, which is more than double the cost to drill such 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 drilling our second new well on the Kruh Block. This new well, which we have the cash to drill, has the potential to additionally grow production and cash flow for our company, especially when coupled with our recent discovery well "Kruh-25". 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 exploration and production activities and the impact of such activities on IEC's results of operations as descried herein) 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, 2020 filed on May 18, 2021 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/661235/Indonesia-Energy-Commences-Drilling-of-Second-of-Three-Back-to-Back-Wells

FAQ

What is the significance of the new well Kruh-26 for Indonesia Energy (INDO)?

The Kruh-26 well is expected to significantly increase production and generate approximately $3.3 million in net revenue in its first year, more than doubling the drilling cost.

When did Indonesia Energy start drilling the Kruh-26 well?

Drilling for the Kruh-26 well commenced on August 22, 2021.

How many new wells are planned by Indonesia Energy at Kruh Block?

Indonesia Energy plans to drill a total of 18 new wells at Kruh Block over the next three years.

What are the estimated costs for drilling the Kruh-26 well?

The estimated cost for drilling and completing the Kruh-26 well is approximately $1.5 million.

Where is the Kruh Block located?

The Kruh Block is located on Sumatra Island, Indonesia.