Indonesia Energy Discovers Oil in the First New Well at Kruh Block
Indonesia Energy Corporation (NYSE American: INDO) announced the successful discovery of oil in its Kruh 25 well and has moved its drilling rig to commence work on the Kruh 26 well shortly. The Kruh 25 well's oil-bearing interval was larger than expected, having been drilled to 3,368 feet. This drilling activity is part of a broader plan to drill three new wells this year. Delays were experienced due to government Covid-19 restrictions, but the company remains optimistic about increased production and cash flow post-stimulation.
- Discovery of oil in Kruh 25 well, exceeding size expectations.
- Planned drilling of additional wells (Kruh 26) to boost production.
- Positive outlook on increased cash flow and shareholder value from future operations.
- Delays in drilling due to government restrictions related to Covid-19.
Drilling Rig Has Moved to New Location to Drill Second New Well
JAKARTA, INDONESIA and DANVILLE, CA / ACCESSWIRE / July 20, 2021 / IndonesiaEnergy Corporation (NYSE American:INDO) ("IEC"), an oil and gas exploration and production company focused on Indonesia, today announced that it has discovered oil in its "Kruh 25" well and the drilling rig has now moved to the second well location and will commence the drilling of its second new well (called "Kruh 26") in the next few weeks. This activity is a continuation of IEC's previously announced plan to drill three new wells at Kruh Block this year, with more wells anticipated to follow over the next several years.
The Kruh 25 well is still in the stage of a "cleaning up" process where the well is flowing crude oil with decreasing amount of drilling fluids daily. IEC also plans to conduct its planned stimulation operations on all three new wells and will announce production rates after such stimulation is completed on all three wells.
IEC also announced that the oil-bearing interval (meaning the top of the oil zone to the bottom of the oil zone) in the Kruh 25 well was thicker and therefore larger than anticipated.
The Kruh 25 well was drilled to a depth of 3,368 feet. Completion of the well took longer than anticipated because of new restrictions that were initiated by the Government of Indonesia because of the significant increase in cases of Covid-19 which delayed operations.
Mr. Frank Ingriselli, IEC's President, commented "This is a significant milestone for IEC as we begin to deliver on the potential for new production at Kruh Block per our announced plans. We are very excited that our first of our three anticipated back-to-back wells at the Kruh Block has discovered oil and the producing zone was bigger than anticipated. We accomplished this notwithstanding delays we had to overcome, first because of permitting and then because of new government Covid restrictions that affected logistical operations. We look forward to drilling the final two wells in this three well campaign for 2021 and then maximizing new production with a planned stimulation program that we expect will significantly grow our cash flow and will 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 the results of IEC's drilling activities at Kruh Block as described 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 17, 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
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FAQ
What is the significance of the Kruh 25 oil discovery for INDO?
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