IEC details 2020 development plans for Indonesian assets
Indonesia Energy Corp. Ltd. (IEC), Jakarta, plans to progress development and exploration of its two Indonesian oil and gas assets in Sumatra and West Java, after having completed its Dec. 19, 2019, initial public offering on the New York Stock Exchange, the company said Jan. 16.
Over the next 12 months, IEC expects to drill 6-9 new wells at a depth of some 4,500 ft on the Kruh Block in Sumatra with estimated production of 190 b/d each. Production decline rates of 20%/year are expected as it intends to drill conventional vertical wells without fracing or horizontal drilling. Total completion costs are expected at $1.5 million for each well. Future exploration of upside potential is expected, as reserves come from only 3 out of the total 8 proved and potentially oil-bearing structures, the company said on its web site.
In 2019, the 258-sq-km Kruh Block produced 91,000 bbl of oil with an average of 250 b/d. Pursuant to contracts IEC sells all of its oil to the Indonesian government. ICE operates the block until 2030.
IEC's second asset is the 1,000,000-acre onshore Citarum Block on the island of Java. This year, IEC plans to begin appraisal and development operations, including seismic, to determine the location of the first well to be drilled. The initial expectation is that the well will be parallel to one of the 4 gas discoveries made by the block’s prior operator.
The block covers an area of 3,925 sq km and lies within the Northwest Java basin, which currently produces 45,000 b/d of oil and 450 million st cu ft/day of gas. Citarum Block is operated under a production sharing contract with the Indonesian government based on a “gross split” regime until July 2048.
