Indonesia Energy spudded its K-29 well at the Kruh Block in Sumatra, targeting 3,400 feet. The first of two planned wells in 2026, it follows months of site prep and regulatory approvals. President Ingriselli flagged logistical challenges in the remote area.
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Indonesia Energy Corporation (INDO) started drilling its K-29 well at the Kruh Block in Sumatra on Saturday, the company said Monday. The well targets a total depth of 3,400 feet.
The spudding came less than three weeks after IEC announced the formal start of wellsite operations. Once K-29 is drilled and completed, the company plans to move to the WK-5 wellsite, where preparatory work is already underway. Both wells sit on IEC's 63,000-acre Kruh Block.
"Reaching this milestone reflects months of careful planning, infrastructure preparation, procuring government approvals and disciplined execution by our field team under challenging operating conditions," President Frank Ingriselli said in a statement. He cited the logistical difficulty of drilling in a remote area after visiting the site in Sumatra.
IEC also said it plans to launch periodic YouTube Live sessions hosted by Ingriselli within the next 30 days. The sessions will provide company updates and a live question-and-answer forum for shareholders and prospective investors.
The company's principal assets are the Kruh Block and the 195,000-acre Citarum Block on Java. IEC is listed on the NYSE American under the ticker INDO.
For IEC, the K-29 spudding is the first of two planned wells in 2026. The second, WK-5, should follow once K-29 is completed. The company has not given a timeline for either well's completion or production start.
IEC's Kruh Block is onshore Sumatra, an area with existing oil and gas infrastructure but remote enough that Ingriselli flagged logistics as a challenge. The company has not disclosed the expected production rate for K-29 or whether it will flow oil or gas. The 3,400-foot target depth is relatively shallow for an exploration well, suggesting the company is targeting known reservoirs rather than wildcatting.
Ingriselli's visit to the drill site and his focus on "procuring government approvals" suggest that regulatory hurdles have been a material factor in the timeline. The company said it has received all necessary permits for the current drilling program but did not specify which approvals were obtained.
The YouTube Live sessions, expected within 30 days, represent a shift in IEC's shareholder communication strategy. The company has not historically held regular investor calls or webcasts. The move could address concerns about transparency from some shareholders.
IEC's stock closed at $1.12 on Friday, down 38% year to date. The company reported a net loss of $2.8 million in its most recent quarterly filing. It had $4.1 million in cash as of March 31, 2026.
The K-29 well is expected to take several weeks to drill and complete. The WK-5 well will follow.
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