Indonesia Energy Corporation Limited In the Spotlight After Commencing Drilling of Two Back-To-Back New Wells
Jan 28, 2022 By MarketDepth
Indonesia Energy Corporation Limited (NYSE: INDO) announced this week an update on its 2022 drilling plans by announcing that it expects to commence drilling of its next two (2) new wells at IEC’s 63,000-acre Kruh Block within 30 days. Additionally; IEC plans to commence drilling of a third new well at Kruh Block before the end of the second quarter.
Drilling operations for these three new wells (named “Kruh 27”, “Kruh 28” and “Kruh 29”) are being funded from the net proceeds of IEC’s recently announced new institutional investor financing.
Production Up 50%
Last month, IEC announced that its recently completed “Kruh 26” well increased its daily oil production rate by over 50%.
Assuming the drilling campaigns for Kruh 27 and Kruh 28 yield producing wells, IEC’s production target is to be producing approximately 450 barrels of oils per day after the completion of Kruh 27 and Kruh 28. Based on current oil prices, this production is anticipated to result in IEC having cash flow positive operations. The addition of a producing Kruh 29 well would enhance IEC’s cash flow from operations later this year.
“We are excited that our recent financing enables us to commence drilling next month and to aggressively move our company towards a potential cash flow positive position, setting the stage for further drilling and growth for our company in 2022 and beyond. 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.”Mr. Frank Ingriselli, IEC’s President
Indonesia Energy Corporation Limited is an 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.