Indonesian oil and gas company Indonesia Energy Corporation (IEC) has announced the discovery of a potential natural gas-bearing reservoir on Sumatra Island.

The firm said it unexpectedly identified signs of a potential reservoir on the Kruh block between 976ft and 1,006ft, with a net thickness of 25ft, while drilling the Kruh 28 well.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

Its initial evidence was supported by geologic logging and wireline logging data.

Drilling on the Kruh 28 started on 22 June and is planned to continue towards the expected oil zone at between 2,836ft and 2,964ft.

Following this, IEC plans to report the final results from the well-drilling, which is due to be completed in the coming weeks.

Indonesia Energy expects the gas zone, if it is confirmed as a natural gas discovery, to add significant value to the Kruh 28 well’s expected oil discoveries.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

IEC president Frank Ingriselli said: “We are certainly very excited about encountering this gas zone in the Kruh 28 well which, if fully confirmed, could provide significant upside to our plans to develop the Kruh Block, where our new wells at the current price of oil are expected to have net revenues in their first 12 months that is more than 150% of the cost to drill such well.

“Obviously oil prices are subject to volatility, but if the current high prices for oil are sustained as we move forward, we believe we will have the potential to grow our cash flow as new wells from our Kruh Block drilling programme begin to produce.

“Additionally, we are moving forward to aggressively set the stage to develop our potential billion-barrel equivalent natural gas Citarum Block, where the previous operator drilled a few gas discoveries.”

IEC previously said that the K-28 well, if successfully drilled, would have an average daily production capacity of more than 100 barrels of oil during its first production year.