Indonesia Energy Corporation, an upstream oil and gas explorer and producer focused on Indonesia, moved from celebrating one new well straight into preparing a deeper one. President Frank Ingriselli led a company delegation to IEC's Kruh Block in Sumatra in early October to mark oil production from the newly drilled K-29 well, then visited the nearby WK-5 location, where crews are assembling a rig for the next well.
WK-5 is planned to reach a depth of about 5,200 feet, significantly deeper than K-29's roughly 3,400-foot depth. It will use the same rig that drilled K-29, now being set up at the new site, and IEC expects to spud the well by the end of this month. Spudding a well means starting to drill it. Both wells sit inside IEC's 63,000-acre Kruh Block concession on Sumatra, and WK-5 is designed to test additional formations identified through the company's 3-D seismic program, including a possible natural gas-bearing zone.
K-29's output, and a job to boost it
K-29 is producing through a jack-pump with dewatering, and its current output runs about 60% oil and 40% water. That production goes into storage tanks, where it is combined with output from IEC's other wells and sold to Pertamina, the Indonesian state oil and gas company. We reported this month that Pertamina Hulu Energi turns to digital tools to meet Indonesia's oil and gas mandate.
With drilling equipment and crews already mobilized at Kruh, IEC is also running a hydraulic fracturing operation on K-29, with the goal of increasing its production.
A measured line from IEC itself
IEC's own language on WK-5 stays within the bounds of a possibility, not a promise. Ingriselli said the company believes "these formations have the potential to add significant value to IEC," a description of upside the well has not yet delivered.
Other recent appearances
IEC said Ingriselli and the company were recently featured in a CNBC segment on innovative microcap companies. An interview with Ingriselli from the EnerCom conference in Denver, Colorado, along with video of the K-29 celebration and the WK-5 site visit, is posted on IEC's investor relations site.
