Additional well drilling on the Kruh Block anticipated to commence within 60 Days
JAKARTA, INDONESIA and DANVILLE, CA / ACCESSWIRE / December 20, 2021 / Indonesia Energy Corporation Limited (NYSE American:INDO) (IEC), an oil and gas exploration and production company focused on Indonesia, today announced that its daily oil production rate has increased over 50% as a result of the recently completed "Kruh 26" well on its 63,000-acre Kruh Block.
IEC's average daily production rate over the first 10 months of 2021 was approximately 160 barrels of oil per day. Since completion of the Kruh 26 well, IEC has been averaging production of approximately 245 barrels of oil per day. IEC anticipates that as the Kruh 26 well continues to de-water, its production rate of oil is expected to increase.
In a further update to its previously announced Kruh Block drilling program for 2021, IEC announced that its "Kruh 25" well is currently shut-in as a result of significant damage due to flooding during an extended period of heavy monsoon rain leading to extremely difficult working conditions caused by a deteriorated drill site and inadequate equipment performance. Kruh-25 will be the subject of remedial workover activities so that it can attempt to match the results of the Kruh-26 well.
After evaluation of the successful results from the Kruh-26 well, IEC now plans to commence drilling two back-to-back producing wells at Kruh Block commencing in approximately 60 days. IEC's production target is to be producing approximately 450 barrels of oils per day after completion of these next two wells. IEC also plans to commence drilling on two additional wells at Kruh Block during the third quarter of 2022.
These new wells are 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. In order to help meet its drilling plan goals for Kruh Block, IEC is in the process of completing plans to conduct a 30KM seismic program on the Kruh Block which should help to optimize well selection.
The Kruh 26 well cost approximately $1.5 million to drill and complete (exactly matching the planned drilling budget). Based on the terms of IEC's contract with the Indonesian government and an assumed oil price of $73 per barrel (the current price), this well is expected to generate approximately $1.5 million in net revenue in its first year, which is enough to recover the cost to drill such well.
Mr. Frank Ingriselli, IEC's President, commented "We are excited with the results of the Kruh 26 well which has led to a more than 50% increase in our overall daily production. This progress moves our company closer to a cash flow positive position and sets the stage for significant future growth. We believe Kruh Block is a world class asset that should significantly grow our cash flow as we drill additional wells and 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.
Frank C. Ingriselli
President, Indonesia Energy Corporation Limited
SOURCE: Indonesia Energy Corporation Limited
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