Core Viewpoint - Indonesia Energy Corporation (IEC) has signed a Memorandum of Understanding (MOU) with Aguila Energia e Participações Ltda. (AEP) to explore energy opportunities in Brazil, marking its first steps towards expansion beyond Indonesia [1][2][3] Group 1: MOU and Collaboration - The MOU establishes a framework for IEC and AEP to jointly identify and pursue opportunities in oil and gas and other energy-related assets in Brazil [2] - The collaboration aims to leverage IEC's experience in oil and gas and capital markets alongside AEP's local expertise in Brazilian transactions and asset development [2][3] Group 2: Strategic Rationale for Brazil - IEC's President highlighted Brazil as an attractive market for upstream investment due to favorable market conditions [3] - Brazil's Oferta Permanente bid system allows for year-round acquisition of exploration and production blocks, potentially leading to quicker deal cycles [4] - Many junior operators in Brazil are divesting producing fields at attractive valuations, creating opportunities for cash flow optimization [4] - Royalties under Brazilian concession contracts typically range from 5-10%, which may result in higher after-tax cash flows compared to production-sharing contracts [5] Group 3: Future Plans and Developments - IEC plans to drill two back-to-back wells on its Kruh Block in Indonesia starting in Q4 2025, supported by recent seismic work that enhanced wellsite prospects [7][8] - In May 2025, IEC reported a 60% increase in proved gross reserves due to investments in the Kruh Block and seismic work [8]