Geochemical survey completed confirming gas and oil presence in previous discoveries which will be the target of first well to be drilled by IEC at Citarum JAKARTA, INDONESIA AND DANVILLE, CA, May 29, 2025 (GLOBE NEWSWIRE) -- Indonesia Energy Corporation (NYSE American: INDO) ("IEC"), an oil and gas exploration and production company focused on Indonesia, today announced encouraging results from a regional geochemical survey conducted between September 2024 and March 2025 at IEC’s 195,000 acre Citarum Block ...

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 ...

Follow IEC’s vision through its multi-weekly updates on LinkedIn and its website 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, issued today a letter to shareholders from the company’s senior management outlining IEC’s strategic vision and dedication to playing a key role in energy development in Indonesia as well as the country’s future in general. You c ...

2024 investments in seismic and other exploration work at Kruh Block set the stage for new drilling in the second half of 2025 JAKARTA, INDONESIA AND DANVILLE, CA, April 30, 2025 (GLOBE NEWSWIRE) -- Indonesia Energy Corporation (NYSE American: INDO) ("IEC"), an oil and gas exploration and production company focused on Indonesia, today announced that it has filed today its annual report on Form 20-F which contains its financial and operating results for the year ended December 31, 2024. Also provided in that ...

Drilling and Exploration Challenges - The company experienced drilling difficulties in 2021 and 2022, leading to delays in its drilling program, with major drilling activities discontinued during parts of 2023 and 2024[37]. - The company expects to resume drilling in 2025, but there are no assurances of positive outcomes from these activities[37]. - The company has identified significant future drilling locations at Kruh Block and Citarum Block, but drilling success is dependent on various factors including capital availability and regulatory approvals[58]. - The company has experienced delays in its exploration and drilling schedule, which may continue to impact operations and financial results[64]. - The company may struggle to obtain special permits for drilling in forest areas, which could delay operations[111]. Financial Performance and Risks - Oil and gas price volatility has significantly impacted the company's revenues and cash flow, with historical fluctuations leading to reduced profitability[41]. - Sustained declines in oil and gas prices may render many of the company's projects economically unviable, potentially leading to significant downward adjustments in estimated proved reserves[51]. - Revenue, cash flows, and profitability are highly dependent on prevailing oil and gas prices, which are subject to volatility and can adversely affect capital expenditures[82]. - The company may not have sufficient capital resources in the future to finance all planned capital expenditures, which could limit operational plans[55]. - Volatility in oil and gas prices and drilling results will affect cash flow from operations, potentially reducing available financial resources for capital requirements[56]. Geopolitical and Economic Risks - The company faces risks related to geopolitical tensions, particularly the ongoing Russia-Ukraine conflict and the Israel-Hamas conflict, which could adversely affect global oil prices and market conditions[43][45]. - A proposed 32% tariff on imports from Indonesia by the U.S. could materially affect the cost competitiveness of Indonesian exports, including energy products[52]. - The company’s financial condition and results of operations may be adversely affected by changes in trade policies and global economic conditions, particularly due to heightened geopolitical tensions[52]. - Economic downturns in Indonesia could materially affect demand for the company's products and overall business performance[120]. - Prolonged regional conflict in Southeast Asia could significantly impact earnings and cash flow, with potential loss of property and business interruptions[131]. Regulatory and Compliance Issues - Regulatory compliance in Indonesia is complex and can lead to significant expenditures, with potential liabilities for non-compliance[91]. - The evolving regulatory landscape in Indonesia may increase compliance costs and impact operational plans, potentially affecting financial results[100]. - The uncertainty surrounding the Oil and Gas Law of 2001 and its amendments may increase operational costs and risks for the company[102]. - Changes in government policies regarding oil and gas exploration and production could adversely impact the company's business operations and financial condition[103]. - The company is subject to numerous environmental, health, and safety laws, which may result in material liabilities and costs[105]. Environmental and Operational Risks - The company must obtain environmental permits for operations, including drilling permits, and non-compliance could lead to fines or sanctions[106]. - Failure to meet environmental impact assessment obligations could lead to the nullification of the company's business license[107]. - The company could be held liable for environmental costs arising from its operations and those of its contractors, which may adversely affect financial results[108]. - Releases of regulated substances could result in significant remediation costs and liabilities for contamination at facilities and disposal sites[109]. - Climate change and related regulations could increase operating costs and decrease demand for oil and natural gas products[114]. Competition and Market Position - The company faces competition from larger oil and gas companies in securing rights to additional exploration blocks, which could limit revenue opportunities[61]. - The company may struggle to keep pace with technological advancements in the oil and gas industry, potentially placing it at a competitive disadvantage[63]. - The marketability of the company's production is significantly influenced by the availability and capacity of oil and gas gathering systems, pipelines, and processing facilities[79]. Capital and Financing - The company has historically financed capital expenditures through related and non-related party financings, including funds raised from its IPO in December 2019 and financing with L1 Capital in 2022[54]. - Under current capital and credit market conditions, obtaining additional equity or debt financing on acceptable terms may be challenging[177]. - If the company is unable to obtain additional financing, planned production and exploration activities may need to be scaled down or ceased[178]. - The company may raise additional capital through the sale of equity or convertible debt securities, which could dilute existing shareholders' ownership[200]. Shareholder and Governance Issues - The concentration of share ownership may adversely affect the trading price of the company's ordinary shares due to perceived disadvantages by investors[181]. - The Chairman and CEO, Wirawan Jusuf, owns approximately 38.31% of the company's ordinary shares, leading to significant concentration of voting power[180]. - Limitations on the ability of subsidiaries to distribute dividends could materially affect the company's ability to fund obligations and pay dividends to shareholders[147]. Market Trends and Future Outlook - The average price of Indonesia Crude Price (ICP) was $96.94 per barrel in 2022, 45% higher than the 2021 average of $67.02 per barrel, but declined to $77.61 per barrel in 2023[218]. - The Indonesian oil and gas sector contributed IDR 117 trillion to the Non-Tax State Revenue in 2023, accounting for 4.75% of total state revenue, showing a decline of 3.30% compared to 2022[221]. - Upstream oil and gas investment in Indonesia reached $13.7 billion in 2023, a 13% increase from $12.1 billion in 2022, surpassing the global growth rate of 6.5%[222]. - The Indonesian oil and gas market is projected to grow to 635.23 thousand barrels per day in 2024, with a CAGR of 1.60% to reach 687.70 thousand barrels per day by 2029[225]. - Natural gas production in 2023 was 6,630 MMSCFD, a 2.13% increase from 2022[227].

Core Viewpoint - Indonesia Energy Corporation (IEC) is set to provide an update on its production, future drilling, and development plans, including a new reserve report and a new corporate logo during an investor update conference call on January 21, 2025 [1][2]. Group 1: Production and Development Plans - IEC will discuss the completion of its 3D seismic program and current drilling plans for the Kruh Block, which is expected to see a significant increase in proved reserves by over 40% due to a recent contract extension with the Indonesian government [2][4]. - The Citarum Block, which has prospective oil-equivalent resources exceeding one billion barrels, will also be a focus, with plans for development operations moving forward in 2025 [5]. Group 2: Financial and Economic Improvements - The recent contract extension has increased IEC's after-tax profit split from 15% to 35%, representing an increase of more than 100%, which is expected to enhance the company's economic position [4]. - The company anticipates that the extended term of the Kruh contract will contribute positively to its overall reserves and financial outlook [4]. Group 3: Corporate Communication - The investor update will be conducted as a media and video interactive Zoom webinar, including a question-and-answer session to engage with shareholders and the investment community [3]. - IEC's new corporate logo and investor relations outreach program will also be unveiled during the call, indicating a strategic shift in its branding and communication efforts [1].

Core Insights - Indonesia Energy Corporation (IEC) is set to hold an investor update conference call on January 21, 2025, to discuss future drilling and development plans, including a new reserve report and corporate branding initiatives [2][5] - The estimated ultimate recovery (EUR) from the Kruh field is projected to increase by over 30%, while reserves are expected to rise by over 40% due to a recent 3-D seismic program and a five-year extension of IEC's government contract [3][6] - IEC's Citarum Block has prospective oil-equivalent resources exceeding one billion barrels, with plans for further development in 2025 [4][7] Company Developments - The conference call will feature IEC's President Frank Ingriselli and other management team members, providing updates on the Kruh Block's 3-D seismic program and drilling plans [3][6] - The recent contract extension with the Indonesian government has increased IEC's after-tax profit split from 15% to 35%, representing a more than 100% increase [6] - IEC is focused on enhancing shareholder value through its strategic projects in Indonesia, particularly in the Kruh and Citarum Blocks [7][8]

Financial Performance - Total revenue for the six months ended June 30, 2024, was $1,443,388, a decrease of 21.6% compared to $1,841,255 for the same period in 2023[4] - The net loss for the six months ended June 30, 2024, was $2,099,146, compared to a net loss of $1,621,164 for the same period in 2023, representing an increase in loss of 29.5%[4] - The company reported a basic and diluted loss per ordinary share of $0.26 for the six months ended June 30, 2024, compared to $0.16 for the same period in 2023[4] - The Company reported a net loss per ordinary share for the six months ended June 30, 2024, with basic and diluted net loss per share being equal due to anti-dilutive effects of potential securities[26] - The Company reported a net loss of $2,099,146 and net cash used in operating activities of $700,941 for the six months ended June 30, 2024[71] Operating Costs and Expenses - Operating costs and expenses for the same period were $3,334,492, down from $3,786,153, reflecting a reduction of 11.9%[4] - The company incurred lease operating expenses of $1,405,429 for the six months ended June 30, 2024, compared to $1,627,160 for the same period in 2023, a reduction of 13.6%[4] - Total operating lease costs for the six months ended June 30, 2024, were $460,636, a decrease of 39% from $755,787 in the same period of 2023[57] Assets and Liabilities - Total current assets decreased to $5,108,847 as of June 30, 2024, from $6,080,098 as of December 31, 2023, a decline of 16%[2] - Total liabilities increased to $4,396,980 as of June 30, 2024, compared to $3,034,813 as of December 31, 2023, an increase of 45%[2] - Shareholders' equity decreased to $13,076,029 as of June 30, 2024, from $14,689,868 as of December 31, 2023, a decline of 11%[2] - Cash and cash equivalents, along with restricted cash, totaled $2,636,724 as of June 30, 2024, down from $3,997,187 at the beginning of the period, a decrease of 34.2%[12] - The Company’s total property and equipment, net, decreased to $62,777 as of June 30, 2024, from $109,017 as of December 31, 2023, due to accumulated depreciation[35] Future Plans and Commitments - The company plans to drill one new production well at the Kruh Block in 2025, with an additional 13 wells to be drilled between 2025 and 2028, pending funding availability[14] - The Company has total commitments of $134,924,642 related to its Kruh Block and Citarum Block operations as of June 30, 2024[67] - The Company anticipates drilling one new production well at Kruh Block in early 2025, with 13 additional wells planned between 2025 and 2028, subject to funding availability[73] Debt and Financing - The Company incurred a working capital loan of $248,447 on May 10, 2024, with a maturity date of November 9, 2024, at an interest rate of 12% per annum[36] - The Company entered into an agreement with L1 Capital to increase the Second Tranche Amount from $2,000,000 to $5,000,000[39] - The total proceeds from both tranches of the Notes supported oil well drilling of the K-27 and K-28 wells and working capital[45] - The Company has financed operations primarily through cash flow from operations, loans, and equity financing, with an ATM Agreement allowing for gross offerings of up to $9,600,000[72] - A total of 2,981,253 ordinary shares have been issued through the ATM, generating net proceeds of $7,794,843 from January to September 2024[76] Accounting and Reporting - The Company is evaluating the impact of recently issued accounting standards on its financial statements, including ASU 2023-07 and ASU 2023-09, which enhance segment reporting and income tax disclosures, respectively[19][20] - The Company has elected to adopt ASU 2020-06 as of January 1, 2022, impacting the accounting treatment for convertible notes[41] - The Company has not recognized a "right of use" asset or lease liability for short-term leases under ASC 842[55] Impairment and Depletion - The Company recorded no impairment to oil and gas property for the six months ended June 30, 2024, as future net revenues exceeded carrying balances[33] - The Company’s accumulated impairment for oil and gas property remained unchanged at $11,859,183 as of both June 30, 2024, and December 31, 2023[31] - The accumulated depletion for oil and gas properties subject to amortization for the six months ended June 30, 2024, was $258,850, compared to $551,225 for the same period in 2023[33] Taxation - The effective tax rate for the six months ended June 30, 2024, was 0%, consistent with the same period in 2023[60]

Core Insights - Indonesia Energy Corporation (IEC) has received key environmental permits for its Citarum Block, which has potential natural gas reserves exceeding one billion barrels of oil equivalent [1][4] - The company is set to commence new 3D seismic operations at its Kruh Block, with drilling planned to start in late 2024 [2][9] - IEC anticipates a significant increase in net cash flow from its Kruh Block development plan, projected to rise over 200% due to an amended profit-sharing agreement [3][12] Citarum Block Developments - IEC has been granted government environmental permits to begin seismic operations at the Citarum Block, with drilling expected to start next year [4][5] - The company relinquished approximately 35% of its original Citarum acreage but retains about 97% of the prospective resources, totaling around 650,000 acres [4][5] Kruh Block Operations - The new 3D seismic data will help identify additional drilling locations and prioritize upcoming drilling sequences at Kruh Block [2][10] - The amended joint operation contract with Pertamina has extended the contract term by five years and increased IEC's after-tax profit split from 15% to 35% [11][12] - The contract extension is expected to boost IEC's proved reserves at Kruh Block by over 40% [12] Company Overview - IEC is an oil and gas exploration and production company based in Indonesia, focusing on high-growth energy projects [6]

Investment Risks - The company lacks asset and geographic diversification, focusing primarily on oil and gas exploration in Indonesia, which increases investment risk[38] - Oil and gas price volatility significantly affects the company's revenues and cash flow, with recent geopolitical events causing dramatic price fluctuations[43][45] - Sustained declines in oil and gas prices may render many projects economically unviable, potentially leading to significant downward adjustments in estimated proved reserves[54] - The company’s ability to generate revenue is materially dependent on the success of its exploration and drilling programs, which are subject to various risks[39] - The company faces risks related to the inability to replace oil reserves, which could lead to a decline in production and cash flows over time[84] - The oil and gas industry is capital intensive, and the company expects substantial capital expenditures for exploration and production, which may require additional financing[86] Operational Challenges - The company faced drilling difficulties in 2021 and 2022, impacting future drilling success and operational results[40] - The company has modified its drilling and operational plans in 2022 and 2023 due to limitations on capital resources[56] - Future drilling activities are planned at Kruh Block and Citarum Block, but are subject to uncertainties including capital availability, regulatory approvals, and commodity prices[60] - The company faces risks in exploration activities, particularly in Kruh Block and Citarum Block, where new wells may be unproductive, impacting capital recovery[62] - Delays in exploration and drilling schedules have occurred previously and may continue to affect operations, potentially damaging the company's reputation and financial results[66] - The availability and cost of drilling rigs and services are cyclical, and shortages could adversely impact the execution of development plans[70] - The company does not insure against all operational risks, which could lead to substantial losses from uninsured events[72] - Cyber-attacks targeting the oil and gas industry could disrupt operations and impact the company's ability to deliver production to market[79] Regulatory and Compliance Issues - The company is subject to extensive regulations in Indonesia, which can materially affect its business operations and financial condition[90] - Compliance with environmental, health, and safety laws may result in significant liabilities and costs for the company[102] - The evolving regulatory landscape in Indonesia may lead to increased compliance costs and operational changes that could adversely impact the company's results[99] - The company may be required to relinquish portions of its contract area under its production sharing contract, potentially limiting exploration opportunities[94] - The company is required to obtain special permits for drilling in forest areas, which involves a complex application process that could delay operations[108] - Labor laws in Indonesia have been amended, potentially increasing severance payments and affecting labor relations, which could disrupt operations[114] - Political instability and social unrest in Indonesia could adversely affect the company's business and financial results[127] Financial Performance and Capital Structure - The company raised less capital than anticipated in its December 2019 IPO, impacting its ability to fund its business plan and requiring modifications to its strategy[58] - The company requires significant additional capital to realize its business plan, particularly after raising less funding than anticipated in its December 2019 IPO[172] - The company may not be able to obtain additional financing on favorable terms, which could hinder its growth strategies and operational plans[175] - The company has identified a material weakness in internal control over financial reporting for the year ended December 31, 2023, which could impact financial accuracy and investor confidence[179] - The company may face challenges in maintaining its NYSE American listing due to share price and financial distribution requirements, which could adversely affect liquidity and market price[171] - The company may be classified as a passive foreign investment company (PFIC), which could lead to adverse U.S. federal income tax consequences for U.S. shareholders[160] Market and Economic Conditions - The ongoing geopolitical conflicts, including the war in Ukraine and the Israel-Hamas conflict, could have indirect effects on the global economy and the company's operations[45][50] - The Indonesian economy's growth rate increased by 5.3% in 2023, but any future slowdown could adversely affect the demand for commodities produced by the company[117] - The company is subject to risks from global economic conditions, which could lead to volatility in the Indonesian financial markets and affect its operations[119] - Adverse economic conditions in Indonesia could lead to reduced consumer purchasing power, negatively impacting demand for communication services[133] - The depreciation of the Indonesian Rupiah may create difficulties in purchasing imported goods critical for operations[134] Strategic Initiatives - The company aims to raise up to $50,000,000 through a new shelf registration statement, which includes a maximum of $4,267,622 of ordinary shares under the At The Market Offering Agreement[188] - The company is focused on acquiring additional oil and gas producing assets to enhance its portfolio[196] - The company’s mission is to efficiently manage targeted profitable energy resources in Indonesia while minimizing environmental and social impacts[198] - The company aims to initiate operations with a cash-producing asset and gain experience for future bids and tenders with the Government[231] Production and Reserves - Indonesia held proven oil reserves of 4.17 billion barrels as of July 2023[201] - Kruh Block produced an average of approximately 6,044 barrels of oil per month in 2020, decreasing to about 4,885 barrels per month in 2023[227] - As of December 31, 2023, Kruh Block has proved developed and undeveloped gross crude oil reserves of 3.14 million barrels and probable undeveloped gross crude oil reserves of 3.17 million barrels[227] - The estimated proved reserves increased from 2.06 million barrels to 3.14 million barrels from December 31, 2022, to December 31, 2023[227] Shareholder and Corporate Governance - The company operates as a holding company, which may limit its ability to receive dividends from subsidiaries due to regulatory or tax reasons[145] - The company has received a tax concession from the Cayman Islands, ensuring no tax on profits until November 2, 2038[147] - The company may face challenges in protecting investor rights due to its incorporation in the Cayman Islands[148] - The market for the company's ordinary shares has been volatile, with significant price fluctuations influenced by external factors such as commodity prices and geopolitical events[169]