Movers and SHAKERS
Indonesia Energy Corp (INDO)
Results for 2nd well surpass expectations
Indonesia Energy Corp Ltd is an oil and gas exploration and production company focused on Indonesia. It holds two oil and gas assets through its subsidiaries in Indonesia: one producing block (the Kruh Block) and one exploration block (the Citarum Block). The Kruh Block is located to the northwest of Pendopo, Pali, South Sumatra. The Citarum Block is located to the south of Jakarta.
Michael Heim, Senior Research Analyst, Noble Capital Markets, Inc.
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Indo announced that it has discovered oil in its Kruh 26 well. The discovery follows similar success at the initial Kruh 25 well and was largely expected. Drilling was done in only 18 days at a cost below initial expectations of $1.5 million. Drilling encountered a larger-than-expected pay zone implying that reserves may be higher than expected. Production for the first two wells is expected in the fourth quarter, in line with expectations.
Drilling continues albeit with fewer wells to be drilled in 2021. The company still plans to drill 18 wells in 2021-23 but will only do three in 2021 instead of five. The company has faced several drilling delays since it started its drilling program, mostly due to COVID issues. The most recent delay does not change our overall profile of valuation for the company, but we will be watching future ...
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