Wednesday, September 30, 2020
Indonesia Energy Corp (INDO)
INDO reports 1H Financials. Drilling delayed but story still intact
Indonesia Energy Corp Ltd is an oil and gas exploration and production company focused on Indonesia. It holds two oil and gas assets through its subsidiaries in Indonesia: one producing block (the Kruh Block) and one exploration block (the Citarum Block). The Kruh Block is located to the northwest of Pendopo, Pali, South Sumatra. The Citarum Block is located to the south of Jakarta.
Michael Heim, Senior Research Analyst, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
INDO reported 2020-1H results of $(0.48) per share. Results were below our expectations of $(0.08) due to higher-than-expected G&A costs. We believe some of these costs to be one-time in nature and reflect cost associated with marketing following INDO’s December 2019 IPO. Revenues and production levels were in line with expectations from the company’s few existing producing wells.
Drilling plans pushed back. The company has not begun drilling in the Kruh Block due COVID-19 issues. Previously, management said it would drill the first of six wells in Kruh in September. Management now expects to drill one well in 2020, 4 in 2021, 6 in 2022 and 7 in 2023. Although there are delays, we still believe INDO’s plans to grow the company through the drill bit remain intact …
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.