Indonesia Energy Announces Five-Year Extension of its Government Contract for Kruh Block - Seite 2

IEC believes that this new work at Kruh Block, together with what has been learned from the 2022 oil and gas discoveries, is greatly assisting IEC in ascertaining the best locations to conduct its continuous drilling campaign at Kruh Block that will look to develop not only the one formation currently being targeted, but also look to develop what appears to be at least three additional oil formations that could contain significant commercial quantities of oil and natural gas. After completion and full interpretation of this seismic operations, IEC plans to re-start its continuous drilling campaign at Kruh Block in 2024. IEC still plans on drilling a total of 18 new wells at Kruh Block (4 of which have already been completed), by the end of 2026.

At the same time, on IEC’s million-acre Citarum Block, IEC expects to receive the environmental permit for two-dimensional seismic data acquisition in the fourth quarter of 2023, which would allow IEC to begin the data acquisition work in the first quarter of 2024.

Mr. Frank Ingriselli, IEC's President, commented "We are very excited about our Kruh Block contract extension and the significantly improved terms, where we get a significantly larger piece of all the oil produced which, in turn, drives improved reserves and potential future cash flows. All of this bodes well for our company as we look to recommence drilling at Kruh Block in 2024 with the benefit of information from our 2023 exploration activities. We continue to believe that Kruh Block is a world class asset and, in order to maximize future production capability, the seismic operations planned across the entire Kruh Block should positively leverage what we have learned from our previous discoveries, including our 2022 gas discovery, and determine the best locations to re-start our continuous drilling campaign. Additionally, we have now also moved forward with activities at our potential billion-barrel equivalent natural gas 1,000,000-acre Citarum Block, where the previous operator drilled a few gas discoveries. In short, we’ve never been more excited about IEC’s potential, and we look forward to continuing our efforts as we seek to drive positive shareholder value."