IEC commences drilling of K-28 well at Kruh Block

Indonesia Energy Corporation Limited (IEC) announced that the company commenced drilling operations at the second of its two back-to-back producing wells. This well is named the K-28 well.

Drilling at K-28 commenced in June 2022. K-28 has a target total depth of 3,400 feet, and it is expected to take approximately 45 days to complete all drilling operations.

If drilling is successful, the K-28 well, is expected to average production of over 100 barrels of oil per day over the first year of production and will cost approximately USD 1.5 million to drill and complete. Based on the terms of IEC’s contract with the Indonesian government and an oil price of USD 90.00/barrel, the well is expected to generate USD 2.4M in net revenue in its first twelve months, which would be enough to recover more than the cost of drilling the well in the first year of production.

The Kruh Block is located on Sumatra Island where IEC is already producing oil from 5 existing wells.

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