Indonesia Energy Provides Update on Operations and Reserves and Planned Drilling During the Remainder of 2025

Rhea-AI Summary

Indonesia Energy Corporation (NYSE: INDO) has announced updates on its operations and planned drilling activities for H2 2025. The company's proved gross reserves at Kruh Block increased by over 60% to approximately 3.3 million barrels, attributed to seismic work conducted in 2024 and a 5-year contract extension granted by the Indonesian government in late 2023.

IEC plans to drill at least one new well in H2 2025 as part of its multi-year program to drill 18 new wells at Kruh Block. The company scaled back drilling activity in 2024 to focus on seismic and exploration work, which is now completed. Management believes the new seismic data will enhance drilling effectiveness and maximize returns from the Kruh Block asset.

Positive

• Proved gross reserves increased by over 60% to 3.3 million barrels at Kruh Block
• Secured 5-year contract extension from Indonesian government in late 2023
• Completed 3D seismic work to enhance drilling effectiveness
• Plans to continue multi-year program to drill 18 new wells at Kruh Block

Negative

• Scaled back drilling activity during 2024
• Only planning to drill one new well in 2025, showing slower execution of the 18-well program

Insights

Petroleum Reservoir Engineer

INDO's 60% reserve increase at Kruh Block demonstrates significant asset value growth despite reduced drilling activity in 2024.

The 60% increase in proved reserves to 3.3 million barrels at the Kruh Block represents a substantial enhancement to Indonesia Energy's asset portfolio. This reserve growth is particularly notable as it was achieved without additional drilling activity, stemming instead from strategic investments in 3D seismic data acquisition and the 5-year contract extension from the Indonesian government secured in late 2023.

The company's decision to temporarily scale back drilling operations in 2024 in favor of conducting seismic work appears technically sound. High-quality seismic data acquisition and interpretation typically improves drilling success rates by providing better subsurface imaging and reducing geological uncertainty. This approach often leads to more efficient capital deployment when drilling resumes.

The planned drilling of at least one new well in H2 2025 represents a cautious restart to their previously announced 18-well development program. This measured approach suggests management is being prudent with capital allocation while validating their enhanced geological models before accelerating development. If successful, this initial well could serve as proof-of-concept for the improved subsurface mapping and potentially unlock further reserve revisions.

The reserve increase itself is significant as it extends the production life of the Kruh Block asset and enhances IEC's net asset value. At current oil prices, the incremental 1.25 million barrels represents meaningful potential future cash flow, though actual realization will depend on successful drilling execution, production performance, and maintaining favorable fiscal terms with the Indonesian government.

2024 investments in seismic and other work and Kruh contract extension increased reserves at Kruh Block by over 60%

JAKARTA, INDONESIA AND DANVILLE, CA, May 27, 2025 (GLOBE NEWSWIRE) -- Indonesia Energy Corporation (NYSE American: INDO) ("IEC"), an oil and gas exploration and production company focused on Indonesia, today provided an update on IEC’s planned drilling activity for the second half of 2025.

During 2024, IEC scaled back drilling activity at its Kruh Block asset and invested in seismic and other exploration work intended to maximize the prospects for new drilling. With that work now completed, new drilling is expected to commence at Kruh Block in the second half of 2025, as IEC plans to drill at least one new well this year as part of its multi-year program to drill 18 new wells at Kruh Block.

In its recently filed Annual Report on Form 20-F, IEC updated its proved gross reserves at Kruh Block, noting that IEC’s proved reserves increased over 60% to approximately 3.3 million barrels as a result of the additional seismic and other work conducted in 2024 and the 5-year contract extension granted in late 2023 by the Indonesian government.

Mr. Frank Ingriselli, IEC's President, commented "We are pleased that our investments in Kruh Block and the 3D seismic work we have now completed resulted in a 60% increase in our proved gross reserves (even without any additional drilling activity). After attending meetings with the technical and operating teams in Jakarta and meetings with the drilling and operating teams in Sumatra, we are finalizing the drilling plans for later this year. With a successful result from our next well, we are hopeful that a further increase in reserves will be forthcoming. We believe our seismic data in hand will make our drilling even more effective and help us maximize the returns from this important asset”

More information regarding IEC’s planned drilling activities and reserve details for the Kruh Block and the Citarum Block can be found in IEC’s Annual Report on Form 20-F which was filed last month with the Securities and Exchange Commission and is available on IEC’s website at: https://ir.indo-energy.com/sec-filings/

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 (195,000 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, and related statements 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, the words “could,” "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. In this press release, forward-looking statements include, without imitation those related to IEC’s future drilling plans at Kruh Block. 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 significant risks, uncertainties, and other factors, many of which are outside of the IEC's control, that could cause actual results 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, 2024, filed on April 29, 2025, and other filings with the Securities and Exchange Commission (SEC). Copies are of such documents are available on the SEC's website, www.sec.gov and IEC’s website at https://ir.indo-energy.com/sec-filings/. IEC undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law.

Company Contact:

Frank C. Ingriselli
President, Indonesia Energy Corporation Limited
Frank.Ingriselli@Indo-Energy.com

FAQ

What caused the 60% increase in INDO's proved reserves at Kruh Block?

The increase was due to seismic and exploration work conducted in 2024 and a 5-year contract extension granted by the Indonesian government in late 2023.

How many new wells does INDO plan to drill at Kruh Block in 2025?

INDO plans to drill at least one new well in the second half of 2025.

What is INDO's total proved reserves at Kruh Block as of 2025?

INDO's proved gross reserves at Kruh Block are approximately 3.3 million barrels.

What is Indonesia Energy Corporation's long-term drilling program at Kruh Block?

IEC has a multi-year program to drill 18 new wells at Kruh Block.

Why did INDO scale back drilling activities in 2024?

INDO scaled back drilling to invest in seismic and other exploration work intended to maximize the prospects for new drilling.