Indonesia Energy to Present at The Microcap Conference in Atlantic City on January 31 and again on February 1, 2024
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Insights
The extension of Indonesia Energy Corporation's (IEC) contract with Pertamina for the Kruh Block represents a substantial alteration in the company's financial outlook. The amended contract terms, notably the increase in after-tax profit split from 15% to 35%, are likely to have a significant impact on IEC's revenue stream. This equates to more than a doubling of the company's share of profits after taxes, which could lead to a revaluation of the company's stock by the market.
Furthermore, the projection of over 40% increase in proved reserves at Kruh Block can potentially enhance the company's asset valuation. Reserves are a critical metric in the energy sector, as they are indicative of the future production potential and hence, the future revenue stream. An increase in net cash flow calculations by over 200% suggests a strong improvement in the company's earnings potential, which could be a catalyst for stock price appreciation. Investors will be interested in how these projections compare to industry benchmarks for reserve additions and profit splits in similar contracts.
The strategic implications of IEC's contract extension with Pertamina extend beyond immediate financial metrics. It is important to consider the competitive landscape within the Indonesian oil and gas sector and how IEC's enhanced position might influence its market share and bargaining power. With a more favorable profit split and extended contract term, IEC may be better positioned to attract investment and pursue further development projects.
Investors should also consider the potential risks associated with the geographical and regulatory environment in Indonesia. While the contract extension is positive, it is also essential to understand the operational risks and the stability of the regulatory framework in Indonesia, which could affect the actual realization of the projected financial benefits.
IEC's focus on early commercialization of the Citarum Block, which is projected to be a billion-barrel equivalent structure, is another critical aspect for stakeholders. The size of the Citarum Block suggests significant potential, but the path to commercialization will require substantial capital investment and operational expertise. The timeline and success of these efforts will be an important factor in assessing IEC's long-term growth trajectory.
The impact of the contract extension on IEC's operational plans for both the Kruh Block and the Citarum Block should be evaluated in the context of the global energy market dynamics, including oil prices, demand forecasts and the shift towards renewable energy sources. These factors will influence the economic viability of IEC's projects and their potential contribution to the company's growth.
President Frank Ingriselli Will Present an Update on IEC’s Development Plans and
the Positive Impact of the Recent Kruh Contract Extension
JAKARTA, INDONESIA AND DANVILLE, CA, Jan. 23, 2024 (GLOBE NEWSWIRE) -- Indonesia Energy Corporation (NYSE American: INDO) ("IEC"), an oil and gas exploration and production company based in Indonesia, today announced its President, Frank Ingriselli, will be presenting at The Microcap Conference in Atlantic City on January 31, 2024 at 3:40PM EST and again on February 1, 2024 at 10:25AM EST.
The in-person event will take place at the Caesar's Atlantic City Hotel and Casino. IEC will provide an update on its previously announced exploratory work done in 2023 with a view towards renewing and maximizing drilling activities in 2024 and beyond as well as its drive towards early commercialization of IEC’s Citarum Block, a potential billion-barrel equivalent structure. IEC will also discuss the positive impact resulting from the recent contract extension to its Kruh Block as discussed further below.
To register to attend The Microcap Conference, follow this link.
The presentation will also be available for replay at IEC’s website for 30 days at:
https://ir.indo-energy.com/events-and-presentations/
Recent Updates
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% to35% , for an increase of more than100% . - 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.
Mr. Frank Ingriselli, IEC's President, commented "We look forward to participating at the Microcap Conference so that we can discuss our Kruh Block contract extension and the significantly improved terms for our Kruh Block along with our future operational plans for both the Kruh Block and the Citarum Block. We believe we have world class assets that should contribute our strategic plan 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, the conference presentation referred to herein 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 "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, 2022, filed on May 1, 2023 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. Ingriselli
President, Indonesia Energy Corporation Limited
Frank.Ingriselli@Indo-Energy.com
FAQ
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