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]

One of today’s more incredible movers is Indonesia Energy (NYSEMKT:INDO) stock. Shares of the Indonesia-based oil and gas exploration company surged more than 100% at their peak today. At the time of this writing, INDO stock has held onto most of these gains, still up more than 65% in late afternoon trading.This move comes as the price of oil continues to rise higher on geopolitical concerns. A number of factors, including the ongoing Israel-Palestine conflict and supply-related concerns, have pushed up the ...

Financial Performance and Market Conditions - The company's financial performance is significantly impacted by oil and gas price volatility, which has historically led to substantial fluctuations in revenues and cash flow[38]. - The ongoing geopolitical tensions, particularly the war in Ukraine, have resulted in increased oil and gas prices, affecting global economic conditions and potentially the company's operations[40]. - The company's revenue, cash flows, profitability, and future growth rates are significantly dependent on prevailing oil and gas prices, which are subject to large fluctuations[84]. - The company faces risks related to the volatility of oil and gas prices, which can adversely affect its revenue and cash flow[85]. - A prolonged decline in oil and gas prices could necessitate significant downward adjustments to estimated proved reserves, adversely affecting financial condition[50]. Operational Challenges - The company has faced operational challenges, including difficulties in drilling at the K-25 and K-28 wells, which may adversely affect future results[48]. - Weather conditions and other external factors have previously impacted drilling operations, leading to production setbacks[69]. - The company has had to modify its drilling schedule in the past and may continue to do so due to various factors beyond its control[66]. - The company must replace its oil reserves to maintain production levels, as current reserves will decline over time[86]. - The company faces risks in exploration activities, particularly in Kruh Block and Citarum Block, where unproductive wells could lead to capital losses[62]. Financial Resources and Capital Expenditures - The company must make capital expenditures to develop existing reserves and discover new ones, but there is uncertainty regarding future capital resources[56][57]. - Significant capital investment is required for exploration and production, and the company may face challenges in financing these expenditures on satisfactory terms[88]. - 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[59]. - Actual cash requirements may exceed estimates, and additional financing will be needed to bring interests into commercial operation and cover operating expenses until positive cash flow is achieved[177]. - Under current market conditions, obtaining additional equity or debt financing on acceptable terms may be challenging, potentially impacting the company's growth strategies[178]. Regulatory and Compliance Issues - The company is subject to extensive regulations in Indonesia, which can materially affect its business and financial condition[92]. - Compliance with environmental, health, and safety laws may result in material liabilities and costs for the company[105]. - The evolving regulatory landscape in Indonesia may lead to increased compliance costs and operational changes[102]. - The company must comply with complex environmental assessment requirements, which could delay project approvals and impact operations[112]. - Compliance with the U.S. Foreign Corrupt Practices Act is critical, as violations could result in significant penalties and operational curtailments[143]. Market and Economic Conditions - The Indonesian economy experienced a decline of 2.1% in GDP during 2020, marking the first contraction in several years, which could adversely affect demand for commodities produced by the company[120]. - Negative changes in global, regional, or Indonesian economic activity could lead to reduced demand for communication services, adversely impacting financial results[134]. - The COVID-19 pandemic continues to pose uncertainties that may affect future financial results, depending on the severity and government responses[135]. - Fluctuations in the value of the Indonesian Rupiah could create difficulties in purchasing imported goods critical for operations[137]. - Political instability and social unrest in Indonesia could disrupt operations and negatively affect the company's financial condition[125]. Strategic Initiatives and Growth Opportunities - The company aims to expand its asset portfolio, specifically targeting the Rangkas Area, but faces competition from larger firms with greater resources[63]. - The company identified significant opportunities in the Indonesian oil and gas industry through the acquisition of medium-sized producing and exploration blocks[221]. - The company targets overlooked medium-sized blocks due to high barriers to entry and capital requirements, creating potential for economic profit[222][224]. - The strategy aims to maintain a sustainable upstream oil and gas production business through a mix of production, development, and exploration licenses[230]. - The portfolio management approach involves acquiring assets with different contracting structures and maturity stages to enhance diversification[229]. Risks and Liabilities - The company does not insure against all operational risks, which could result in substantial losses from unforeseen events[73]. - The company may be required to relinquish portions of its contract area under its production sharing contract, potentially limiting exploration opportunities[97]. - The company faces potential liabilities for environmental, health, and safety costs arising from its operations and those of its contractors, which could materially impact its financial condition[108]. - Terrorist activities in Indonesia pose risks that could destabilize the economy and adversely affect business performance and market confidence[132]. - Natural disasters in Indonesia, such as earthquakes and floods, could disrupt operations and adversely affect business performance[141]. Shareholder and Market Dynamics - The market for the company's ordinary shares has been volatile, with significant fluctuations in trading volume and price[171]. - The ordinary share price has been affected by external factors such as commodity price fluctuations and geopolitical events, including the COVID-19 pandemic and Russia's invasion of Ukraine[173]. - Limited analyst coverage may negatively impact the trading market for the company's ordinary shares, and any downgrades or lack of coverage could lead to a decline in share price[195]. - The company may face delisting from NYSE American if it fails to meet share price, financial, and shareholder distribution targets, which could adversely affect liquidity and investment value[175]. - Dissenting shareholders have limited rights compared to U.S. corporations, which may affect their ability to protect their interests[159].

Revenue and Financial Performance - Revenue for the six months ended June 30, 2022, was $2,332,509, representing a 120.5% increase compared to $1,057,138 for the same period in 2021[4] - Net loss for the six months ended June 30, 2022, was $1,060,377, a significant reduction from a net loss of $2,932,213 in the same period of 2021, reflecting a 63.8% improvement[4] - The company reported total operating costs and expenses of $4,248,371 for the six months ended June 30, 2022, which is a 63.0% increase from $3,990,368 in the same period of 2021[4] - The basic net loss per share for the six months ended June 30, 2022, reflects the impact of potentially dilutive securities, with 783,907 potentially dilutive securities excluded from the computation due to their anti-dilutive effect[27] - The Company reported a net loss of $1,060,377 and net cash used in operating activities of $3,059,907 for the six months ended June 30, 2022[73] Assets and Liabilities - Total current assets increased to $8,725,681 as of June 30, 2022, up from $3,532,756 as of December 31, 2021, marking a 147.5% growth[2] - Total liabilities increased to $7,550,716 as of June 30, 2022, compared to $4,270,358 as of December 31, 2021, indicating a 76.5% rise[2] - The total shareholders' equity increased to $11,573,440 as of June 30, 2022, up from $7,819,743 as of December 31, 2021, reflecting a 48.5% increase[2] - As of June 30, 2022, the company's net property and equipment amounted to $276,864, a decrease from $292,538 as of December 31, 2021[35] - The Company had an accumulated deficit of $34,878,538 and working capital of $5,502,080 as of June 30, 2022[73] Cash and Financing Activities - Cash and cash equivalents, along with restricted cash, totaled $7,385,759 at the end of June 30, 2022, compared to $6,567,987 at the end of June 30, 2021, showing a 12.5% increase[11] - The company raised $8,589,000 from the issuance of convertible notes and warrants during the six months ended June 30, 2022[11] - The company incurred interest expense of $15,500 for the six months ended June 30, 2022, compared to $5,712 for the same period in 2021[37] - The company has a convertible note payable of $400,000 as of June 30, 2022, following the closing of a $5,000,000 tranche with L1 Capital[38] - A total of $9,600,000 of the $10,000,000 principal amount of the convertible notes has been converted into Ordinary Shares at $6.00 per share by L1 Capital as of June 30, 2022[48] Operational Activities and Plans - The Company plans to drill a total of 18 new wells at the Kruh Block, with 5 wells in 2021, 6 wells in 2022, and 7 wells in 2023, although delays have been experienced due to permitting and COVID-19[21] - For the six months ended June 30, 2022, the Company incurred development costs of $1,512,127, primarily for drilling two new wells at Kruh Block[32] - The Company plans to commence a new seismic program at Kruh Block starting in Q4 2022, expected to take approximately 10 to 12 months[79] - The Company plans to drill a total of 18 wells at Kruh Block through the end of 2024, with the current drilling program expected to be completed by the end of 2025[79] Market Conditions and Risks - Crude oil prices were negatively impacted in 2020 and 2021 due to low demand and production disputes, although prices rose significantly in the first half of 2022[14] - The Company continues to face operational delays due to COVID-19, which has impacted drilling and exploration operations, as well as project approvals[14] Shareholder and Equity Activities - The weighted average number of ordinary shares outstanding increased to 7,854,830 for the six months ended June 30, 2022, compared to 7,433,673 for the same period in 2021[4] - The Company issued 199,259 restricted Ordinary Shares upon the exercise of vested options by certain executive officers on March 3, 2022[57] - The Company issued 60,000 restricted Ordinary Shares to the President, valued at $2.85 per share, totaling $128,079 charged to general and administrative expenses for the six months ended June 30, 2022[58] Legal and Compliance - The Company has no significant pending litigation as of June 30, 2022, and management believes no claims are expected to have a material adverse effect on its financial position[62] Taxation - The effective tax rate for the six months ended June 30, 2022, was 0%, consistent with the same period in 2021, due to unrecovered expenditures[55]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 20-F (Mark One) ☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☐ SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 19 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 20-F (Mark One) [ ] REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR [X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2020 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 OR [ ] SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE A ...

EXHIBIT 99.1 INDONESIA ENERGY CORPORATION LIMITED CONDENSED CONSOLIDATED BALANCE SHEETS | | | June 30, | | December 31, | | --- | --- | --- | --- | --- | | | | 2020 | | 2019 | | | | (Unaudited) | | | | Current assets | | | | | | Cash and cash equivalents | $ | 9,486,757 | $ | 12,241,339 | | Restricted cash –current | | 1,000,000 | | 2,064,130 | | Accounts receivable, net | | 172,879 | | 350,672 | | Other assets –current | | 719,033 | | 418,584 | | Total current assets | | 11,378,669 | | 15,074,725 | | Non-c ...