Indonesia Energy Corporation (INDO) completed pre‑drilling work for wells K‑29 and WK‑5 on its 64,000‑acre Kruh Block in Sumatra, positioning the project for a spud before the end of the first quarter of 2026. The announcement, made on January 9 2026, confirms that all drilling pads, pipe, drill bits, wellheads and explosives have been delivered, the rig has been selected and inspected, and the company is ready to begin drilling.
The two wells will be drilled on a back‑to‑back basis, a strategy designed to accelerate the production ramp‑up and reduce overall development costs. Back‑to‑back drilling allows the rig to remain in place for consecutive wells, cutting mobilization time and shared infrastructure costs. The pre‑drilling completion date is not specified, but the announcement indicates that the work was finished in late 2025 or early 2026, with the rig now ready for the first quarter spud.
This milestone is a key validation of INDO’s 18‑well program and could unlock additional financing, improving the firm’s cash runway and supporting its broader strategy to expand production in Indonesia. The company’s most recent reserve estimate for the Kruh Block is 4.99 million barrels of proved gross reserves, a figure that reflects the asset’s growth since the 2020 estimate of 4.39 million barrels. Moving closer to monetizing these reserves is critical for a company that has reported net losses in recent years.
Financially, INDO posted revenue of $2.67 million and a net loss of $6.34 million in 2024, a decline from $3.53 million in revenue and a smaller loss in 2023. Despite these losses, the company maintains a relatively strong balance sheet with ample cash and low debt. The drilling program is expected to generate revenue once the wells come online, and management has emphasized the importance of the Kruh Block’s world‑class assets in maximizing shareholder returns. Frank Ingriselli, INDO’s president, said the company is excited to move forward with drilling and believes the assets will deliver strong returns.
No specific market reaction has been reported for this announcement, but analysts generally maintain a positive outlook on INDO, with a consensus “Buy” rating. The pre‑drilling completion is a significant operational step that supports the company’s long‑term growth plans and positions it to secure financing for the remaining wells in the program.
Pre‑drilling completion for K‑29 and WK‑5 places INDO on a clear path to accelerate production, validate its reserve base, and potentially secure the financing needed to complete its 18‑well program, thereby strengthening its position in Indonesia’s oil and gas sector.
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