Indonesia Energy Corporation (IEC) provided an operational update and announced that new 3D seismic exploratory operations at its 63,000 acre Kruh Block have commenced. Importantly, IEC anticipates that the results of this seismic work will allow IEC to drill new production wells at Kruh Block the by the end of 2024. Additionally, IEC announced that key environmental permits have been granted at IEC?s 650,000 acre Citarum Block where reserves could potentially exceed a billion barrels of oil equivalent.

IEC?s receipt of these permits represents an important milestone for IEC as the permits will allow for meaningful exploratory work by IEC at Citarum for the first time. As the operator of the Kruh block, IEC?s 3-D seismic program will cover the Kruh, North Kruh and West Kruh Fields. This 29 square km high-quality seismic program is strategically focused on existing proved reservoirs of the Talangakar and Lemat formations, as well as the very large and promising shallow oil/gas zones in the K-28 well discovered by IEC?s work in 2022.

The new, high quality three-dimensional seismic data will enable the identification of additional locations of proved undeveloped reserves and resources. This in turn will pave the way to prioritize the sequence of upcoming drilling locations as IEC recommences drilling operations at Kruh Block. Preparations for the new drilling operation are underway, with plans to drill the first well in the fourth quarter of 2024 after the evaluation of the new three-dimensional seismic data is completed.

IEC announced in September 2023 that its joint operation contract with Pertamina, covering the Kruh Block was extended by 5 years from May 2030 to September 2035. Kruh Block covers approximately 63,000 acres and is located onshore on the Island of South Sumatra in Indonesia. The amended joint operation contract has the following key terms: The amended contract increases IEC?s after-tax profit split from the current 15% to 35%, for an increase of more than 100%.

In addition, given the 5-year extended term of the contract, the amended contract is expected to increase IEC?s proved reserves at Kruh Block by over 40%. Furthermore, given the increased profit split, IEC?s anticipated net cash flow calculations based on its Kruh Block development plan are expected to increase by over 200% versus IEC?s anticipations under the prior contract. At Citarum Block, IEC?s receipt of government environmental permits to commence seismic operations which are planned for late this year or early next year, with plans to also commence drilling next year.

As required by government regulations, IEC relinquished approximately 35% of its original Citarum acreage but has retained approximately 97% of the original prospective resources and now has approximately 650,000 acres on which drilling could take place. As previously reported, IEC?s estimates are that the Citarum Block has prospective oil-equivalent resources of over one billion barrels of oil.