Indonesia Energy Corp. Ltd., filed an initial public offering (IPO) planned to United States' Securities and Exchange Commission - Photo: Special

JAKARTA (TheInsiderStories) – Indonesia Energy Corp. Ltd., filed an initial public offering (IPO) planned to United States’ Securities and Exchange Commission on Tuesday (07/30). The company aimed to raise up to US$23 million from the IPO and get thicker INDO.

The domestic oil and gas company, Indonesia Energy will accompany PT Telekomunikasi Indonesia Tbk (IDX: TLKM) as the only one listed at the New York Stock Exchange (NYSE). Previously, other telecommunications operators PT Indosat Ooreedoo Tbk (IDX: ISAT) were also listed on the NYSE but delisted it in 2013 to make efficiency.

The Jakarta based company was incorporated in 2018 as a holding company for WJ Energy Group Limited (WJ Energy), which was founded in 2014. Indonesia Energy booked $6 million in revenue for the 12 months ended Dec. 31, 2018.

Led by James J. Huang as Chief Investment Officer, the company filed confidentially on Nov. 19, 2018. Maxim Group LLC is the sole book-runner on the deal. No pricing terms were disclosed.

The company currently hold two oil and gas assets through its operating subsidiaries in Indonesia, Kruh Block in South Sumatera and Citarum Block in West Java. The company also has identified a potential third exploration block at Rangkas Area in Banten.

The company acquired rights at the Kruh Block in 2014 and started its operations in November 2014 through its subsidiary PT Green World Nusantara. Kruh Block operates with state-owned oil and gas corporation PT Pertamina until May 2020. Also as the operator of Kruh Block through a Joint Operation Partnership from May 2020 until May 2030.

This block covers an area of 258 kilometers square (63,753 acres). This block currently produces an average of about 9,000 barrels of oil per month. While, Citarum Block is an exploration block covering an area of 3,924.67 kilometer square operated under a Production Sharing Contract effective until July 2048.

In terms of geology, a very effective petroleum system has been proved in the region from the long history of exploration and production efforts since the 1960s. Citarum Block also shares its border with the producing gas fields of Subang, Pasirjadi, Jatirarangon, and Jatinegara.

The combined oil and gas production from more than 150 oil and gas fields in the onshore and offshore Northwest Java basin, operated by Pertamina, is 45,000 BOPD and 450 million standard cubic feet gas per day.

In mid-2018, the company identified an onshore open area of 3,970 kilometer square in the province of West Java, adjacent to its Citarum block.

Indonesia Energy was incorporated on April 24, 2018, as an exempted company with limited liability under the laws of the Cayman Islands and are a holding company for WJ Energy, which in turn owns Indonesian holding and operating subsidiaries.

The company presently has two shareholders Maderic Holdings Limited and HFO Investment Group, which own 87.04 percent and 12.96 percent, respectively, of company-issued shares.

WJ Energy was incorporated in Hong Kong on June 3, 2014. The initial shareholders of WJ Energy were Maderic and HFO, with each owning 50 percent of WJ Energy’ shares. On Oct. 20, 2014, HFO received HK$4,000 from Maderic as consideration for 4,000 shares in WJ Energy, which resulted in Maderic owning 90 percent of WJ Energy and HFO owning 10 percent.

Written by Lexy Nantu, Email: lexy@theinsiderstories.com