Production from Both New Wells Expected to Commence in October with an Expected Increase in Revenues and Production for IEC by Over 100%
JAKARTA, INDONESIA and DANVILLE, CA / ACCESSWIRE / September 15, 2021 / Indonesia Energy 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 26" well after having announced in July the discovery of oil in its Kruh 25 well. These are 2 back-to-back discoveries of oil for IEC from its previously announced new drilling plans. IEC now plans to conduct stimulation work and commence production from both wells in October 2021.
It is expected that when full production from these 2 new wells is achieved (which is anticipated to occur by the end of October) that such production is expected to increase IEC's overall daily revenues and oil production by over 100%.
IEC also announced that the Kruh 26 well took only 18 days to drill to a total depth of 3,376 feet, which is approximately half of the time that was budgeted. Both Kruh 25 and Kruh 26 were drilled under the previously announced budget of $1.5 million per well.
Additionally, approximately 111 feet of oil sands were encountered at Kruh 26 between the depths of 3,100 and 3,228 feet. This oil-bearing interval (meaning the top of the oil zone to the bottom of the oil zone) in the Kruh 26 well was thicker and therefore larger than anticipated, meaning that the total reserve potential could be larger than anticipated.
Mr. Frank Ingriselli, IEC's President, commented "The Kruh 26 well is a significant achievement for our company, which has now completed 2 discovery wells in less that 60 days. The plan is to now stimulate and commence production next month from both wells, which is expected to double our company's daily revenue and production. This will set us up to drill the third well for the 2021 drilling program, known as "Kruh 27", in the fourth quarter. We look forward to continuing to deliver on our development plans and maximize returns on our investments to grow shareholder value."
IEC also announced an update for its overall drilling program at Kruh Block. Previously, IEC announced that its three-year plan was to drill a total of 18 wells over a three-year period, with 5 of those wells drilled in 2021. IEC still plans to drill a total of 18 wells over the three-year period with 3 of those wells in 2021 and the balance of 15 more wells over the balance of the remainder of the three-year period. This slight delay was primarily caused by the permitting process in Indonesia as well as COVID-19-related delays.
Visit the IEC's website to view a video clip of the drilling operations on the Kruh 26 well located under the Investor Media tab or visit the following link: https://www.youtube.com/watch?v=Y42NsdKXMWE
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 current and future drilling activities at Kruh Block and the impact on IEC's results of operations 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.
Frank C. Ingriselli
President, Indonesia Energy Corporation Limited
SOURCE: Indonesia Energy Corporation Limited