Indonesia Energy Corporation Limited announced that the company has mobilized the drilling rig to drill 2 back-to-back producing wells at its 63,000-acre Kruh Block. The mobilization of the rig represents a milestone in IECs previously announced plan to drill two new wells at Kruh Block during the first quarter of 2022. IEC also plans to commence drilling of a third new well at Kruh Block before the end of the second quarter, and likely a fourth new well sometime during 2022. These wells are the continuation of IECs previously announced drilling campaign to complete a total of 18 new production wells in Kruh Block by the end of 2024. If drilling is successful, each of the 2 wells are expected to average production of over 100 barrels of oil per day over the first year of production, and each well will cost approximately $1.5 million to drill and complete. Based on the terms of IECs contract with the Indonesian government and an oil price of $95.00/barrel, each well is expected to generate $2.6 million in net revenue in its first twelve months, which is enough to recover the cost of drilling the wells in the first year of production. The Kruh Block is located on Sumatra Island where IEC is already producing oil from 5 existing wells. In addition, IEC recently completed and provided to the Government of Indonesia two Geological & Geophysical studies each covering both the Kruh Block and the 1,000,000-acre Citarum Block, which IEC also has the right to explore. Additional prospects have been identified from the new study in Citarum Block which is located on the island of Java only 16 miles from the capital city of Jakarta where natural gas prices are at a 200% premium to
the prices in the United States.