The Citarum field, which could have natural gas reserves of more than 1 billion barrels of oil equivalent, is expected to begin operations by the end of the year.
JAKARTA, Indonesia and DANVILLE, Calif., July 16, 2024 (GLOBE NEWSWIRE) — Indonesia Energy Corporation (NYSE American:INDO) (“International TelecommunicationsIEC (Headquarters: Bali, Indonesia, Nunavut; President: Ivan Agnes), an Indonesia-based oil and gas exploration and production company, today provided an operational update, announcing that it has completed logging 29 square kilometers of new 3D seismic in the 63,000-acre Kurhu field. IEC will now begin processing and detailed interpretation of the seismic data to optimize drilling location selection in the Kurhu, North Kurhu and West Kurhu fields. Importantly, IEC expects the seismic results will enable it to drill new production wells in the Kurhu field by the end of 2024.
Additionally, IEC announced 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.
As operator of the Kruh block, IEC’s 3D seismic exploration program is strategically focused on the existing proven reservoirs in the Tharangakkar and Remat formations, as well as the very large and prospective shallow oil/gas zone in IEC’s discovery well K-28 in 2022.
The newly acquired high-quality 3D seismic data will enable the location of additional proven undeveloped reserves and resources, which will enable prioritization of future drilling locations as IEC resumes drilling operations in the Kruh Block. Preparation for new drilling operations is underway, with the first well scheduled to be drilled in the fourth quarter of 2024, once evaluation of the new 3D seismic data is complete.
In September 2023, IEC announced a five-year extension of its joint operation agreement with Indonesian state-owned oil and gas company Pertamina for the Kuruhu field, from May 2030 to September 2035. The Kuruhu field covers approximately 63,000 acres and is located onshore on the Indonesian island of South Sumatra.
The revised joint operating agreement contains the following significant provisions:
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The amended agreement will increase IEC’s after-tax profit sharing percentage from the current 15% to 35%, an increase of more than 100%.
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Moreover, taking into account the extension of the contract period by five years, the amended agreement is expected to increase IEC’s proven reserves in the Kulu block by more than 40%.
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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.
In the Citarum Block, IEC recently received environmental clearance from the government, paving the way for the rapid commencement of seismic exploration work, with drilling expected to commence next year. As previously reported, IEC estimates that the Citarum Block holds resources of more than one billion barrels of oil equivalent.
IEC President Frank Ingliselli commented, “We are extremely pleased to have completed the acquisition and commencement of interpretation of new seismic data for Crewe as we plan to resume drilling in the Crewe Block in late 2024. We continue to believe that the Crewe Block is a world-class asset, further enhanced by significantly improved economics through the contract extension with the Indonesian government in 2023. The operations should aggressively leverage learnings from previous discoveries, including the gas discovery in 2022, to determine the best location to resume our ongoing drilling campaign.”
“In addition, we are also currently advancing activities 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. In short, we are more excited about IEC’s potential than ever before and look forward to continuing to work towards enhancing shareholder value,” Ingliselli concluded.
About Indonesia Energy Corporation
Indonesia Energy Corporation Limited (NYSE American: INDO) is a publicly traded energy company engaged in the acquisition and development of strategic and fast-growing energy projects in Indonesia. IEC’s primary assets are the Kulu Block (63,000 acres) onshore Sumatra, Indonesia and the Citarum Block (650,000 acres) onshore Java, Indonesia. IEC is headquartered in Jakarta, Indonesia and has a representative office in Danville, California. For more information about IEC, please visit: Indian Energy.
Caution Regarding Forward-Looking Statements
This press release and all related statements by Indonesia Energy Co., Ltd. (“IEC”) and its representatives and partners that are not based on historical facts are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, 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, the conditional expressions “may,” “estimates,” “believes,” “hopes,” “expects,” “intends,” “on track,” “plans,” “anticipates,” “may” and similar expressions used in the preceding statements are intended to identify forward-looking statements within the meaning of the Act and are subject to the safe harbor created by the Act. All statements made in this news release regarding actions, events or developments, other than historical facts, are forward-looking statements. Management has made the forward-looking statements contained herein based on its current expectations, but the information on which such expectations are based is subject to change. These forward-looking statements are based on a number of assumptions regarding future events and are subject to a number of risks, uncertainties and other factors. Many of these are beyond IEC’s control and could cause actual results (including, but not limited to, the expected benefits of the Kruh Block Agreement, as amended, the results of IEC’s exploration, drilling and production activities, and the impact of such agreements and activities on IEC’s financial results) to differ materially and adversely from those statements. Such risks, uncertainties and other factors include, but are not necessarily limited to, those described in the Risk Factors section of the Company’s Annual Report on Form 20-F for the fiscal year ended December 31, 2023, filed on April 26, 2024, and in other SEC filings with the Securities and Exchange Commission (SEC). Copies of these documents may be obtained at the SEC’s website. Click here for detailsIEC undertakes no obligation to update these statements with revisions or changes after the date of this release, except as required by law.
Company Contact:
Frank C. Ingliselli
President of Indonesia Energy Corporation
Frank.Ingriselli@Indo-Energy.com
