Movers and SHAKERS
Indonesia Energy Corp (INDO)
Delay to Drilling Start May Be a Good Thing With Rising Oil Prices
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.
Refer to the full report for the price target, fundamental analysis, and rating.
INDO management held a conference call to update investors on its drilling program. The President, CIO and Chief Development Officer were on the call. The call was largely a rehash of the company's underlying story, but did have a few tidbits of new information. Chief among these was that management now expects the company to begin drilling its first well in the Kruh Block next month. As recently as October, it had been saying drilling would start at the end of 2020. Earlier in the year, it had been targeting an end of summer date but COVID-19 issues delayed drilling. Management continues to target 4 wells in 2021, 6 in 2022 and 7 in 2023.
Management indicates it has completed most of the steps to start drilling. The company has identified the locations for the first three wells it will drill. It has held a bidding process and awarded a contract to a driller. It is currently waiting on forestry permitting, the last hurdle. Each Kruh well costs around $1.5 million and will generate $1.3 million in cash flow at current oil prices. Cash ...
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.