Oil and natural gas exploration and development company Indonesia Energy Corporation (IEC) has completed logging a new 3D seismic survey of 11.2 square miles (29 square kilometers) in the 63,000-acre Kuru Block, onshore South Sumatra, Indonesia.
IEC said in a news release that it will begin processing and detailed interpretation of seismic data to optimize drilling location selection for the Crewe, North Crewe and West Crewe fields. The company expects the results of the seismic survey will enable it to drill new production wells in its Crewe-operated field by the end of 2024.
IEC also said it plans to begin operations by the end of the year at its 650,000-acre Citarum block, which has potential reserves of more than 1 billion barrels of oil equivalent.
According to the release, IEC’s 3D seismic exploration program is strategically focused on existing proven reservoirs in the Tharangakkar and Remat formations, as well as the very large and prospective shallow oil/gas zone in the company’s 2022 discovery well K-28.
The newly acquired high-quality 3D seismic data will enable the location of additional proven undeveloped reserves and resources, which will enable IEC to prioritize the sequence of future drilling locations as drilling operations resume on the Kruh Block. Preparation for the new drilling operation is underway, with the first wells scheduled to be drilled in the fourth quarter.
In September 2023, IEC’s contract covering the Kuruhu block, which it co-owns with Indonesian state-owned company Pertamina, was extended for another five years, from May 2030 to September 2035. The amended agreement increases IEC’s after-tax profit share from 15% to 35%. The amended agreement is expected to increase IEC’s proven reserves in the Kuruhu block by more than 40%, the company noted.
In addition, taking into account the increased profit sharing, IEC’s projected net cash flow calculations under the Kruh Block development plan are expected to increase by more than 200% compared to IEC’s expectations under the previous agreement.
At the Citarum block, IEC said it recently received environmental clearance from the government, paving the way for it to begin seismic exploration work, with drilling due to start next year.
IEC Chairman Frank Ingliselli said, “We are very pleased to have completed the acquisition and commencement of interpretation of new seismic data for Kuru, which bodes well for the Company as it plans to resume drilling in the Kuru Block in late 2024. We continue to believe that the Kuru Block is a world-class asset, further enhanced by the significantly improved economics resulting from the contract extension with the Indonesian government in 2023. The operations should proactively leverage learnings from previous discoveries, including the gas discovery in 2022, to determine the best location to resume their ongoing drilling campaign.”
“Additionally, we are currently operating in the 650,000-acre Citarum block with potential reserves of one billion barrels worth of natural gas, where the previous operator discovered multiple gas fields. This means we are more excited than ever about IEC’s potential and look forward to continuing to work toward enhancing shareholder value,” Ingliselli added.
IEC is a publicly traded energy company engaged in the acquisition and development of strategic and fast-growing energy projects in Indonesia. The company is headquartered in Jakarta, Indonesia and has a representative office in Danville, California.
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