Indonesia Energy Corp. (IEC) discovered oil in the Kruh 27 well at its 63,000-acre Kruh block on Sumatra Island, Indonesia, where IEC is already producing oil from five existing wells, the company said in a May 11 release.
The well was spudded Apr. 7, 2022. On May 9, 2022, the drilling reached the final total depth (TD) at 3,359 ft. It took 32 days to drill to TD, less than the 45 days budgeted.
About 132 ft of oil sands were encountered between 3,058 and 3,190 ft. This oil-bearing interval was 14 ft thicker than anticipated, and total reserve potential for Kruh 27 could be larger than anticipated. Based on drilling results, IEC expects production to begin at Kruh 27 by end May 2022.
Kruh 27 is the first of two back-to-back wells being drilled by IEC during in first-half 2022. The rig will move to the next location to start drilling Kruh 28. A third new well at Kruh block is anticipated to commence drilling in the July-August 2022 timeframe, and likely a fourth new well will drill sometime before yearend.
These wells are the continuation of IEC’s previously announced drilling campaign to complete a total of 18 new production wells in on the block by end 2024.
Production from each well is expected to reach 100 b/d or more over the first year, at a cost of $1.5 million each to drill and complete. Based on current oil prices, drilling costs are expected to be recovered in the first year of production.
Out of the total eight proved and potentially oil bearing structures in Kruh, three structures (North Kruh, Kruh, and West Kruh fields) have combined proved developed and undeveloped gross crude oil reserves of 4.99 million bbl (net crude oil proved reserves of 2.13 million bbl) and probable undeveloped gross crude oil reserves of 2.59 million bbl (net probable crude oil reserves of 1.12 million bbl) as of Jan. 1, 2019.
IEC holds 100% participating interest in the block.
