Indonesia Energy's K-29 Well Heads for Its Target Zone, With WK-5 Next in Line

Indonesia Energy Corporation (NYSE American: INDO) is working through the first of two planned wells on its Kruh Block in South Sumatra, and the next steps are drilling K-29 to depth and then starting WK-5.

What happens next

The company says K-29 will enter its target reservoir zone at about 3,000 feet and core it. Drilling will then continue to target depth, followed by:

• wireline logging
• casing and cementing
• perforation
• preparation for production

Only after K-29 is drilled and completed does the company plan to begin drilling at the WK-5 wellsite. It says preparation there is progressing as planned. It has not given dates for any of these steps.

Why it matters

Kruh, at 63,000 acres, is one of the company's two principal assets, alongside the Citarum Block on Java. Under its contract with Pertamina, the Indonesian state oil and gas company, Pertamina buys all crude produced from Kruh and pays in US dollars at the Brent price less a small transportation cost. A 2023 extension runs the contract to September 2035 and raised the company's after-tax profit split from 15% to 35%. If K-29 and WK-5 produce, that would mean oil revenue tied directly to Brent.

President Frank Ingriselli also said the company has submitted environmental clearances to drill an additional 30 wells on Kruh before 2035. Those clearances have been submitted, not granted, and no schedule has been given.

What is uncertain

Timing has moved before. In June 2024 the company said the first new Kruh production well was planned for the fourth quarter of 2024. K-29 operations were announced as commenced in July 2026, and the company said drilling would proceed after final government safety clearances. The company has not said when the well will be finished or what it expects it to produce, and drilling results are not guaranteed.

The company's descriptions of Citarum also differ: a June 2024 update cited 650,000 acres, while its July 2026 release gives 195,000 acres. The company has not explained the difference in the material reviewed.

All plans are forward-looking statements, and the company notes that oil prices change daily and could fall.