Indonesia Energy, owned by Maderic Holdings, is involved in the extraction of fossil fuels such as oil and gas. It mines in the production blocks Kruh, which has an area of more than 250 square kilometers, and Citarum, with an area of about 3,924 square kilometers. On January 27, amid the announcement of the company’s intention to expand its fuel production territories, its stock price soared to $8.6, which is a 230% gain. However, the stock finished the last trading session at $5.91. Plus, the pre-market price fell by 8%.
With funding from a new institutional investor, Indonesia Energy will start drilling three new wells in the Kruh block: Kruh 27, Kruh 28, and Kruh 29 increasing oil production to 450 barrels per day after drilling is completed. Considering oil prices, $80 per barrel, during the first year of operation each oil well will surge net income by $1.5 million, which proves the company’s ability to cover the costs spent on drilling. According to the president of IEC’s, that block is considered a world-class asset that will help boost cash flow.