Jakarta-headquartered oil and gas company Indonesia Energy Corporation is planning to raise $23 million in an initial public offering (IPO) on the New York Stock Exchange, the company said in a filing to the US Securities and Exchange Commission on July 30.
Indonesia Energy, which operates eight wells in the archipelago, currently manages the Kruh oil block in South Sumatera and Citarum block in West Java.
“We will allocate majority of our IPO proceeds to finance the exploration of the Citarum block as part of the company’s strategy to add and develop new reserves. The remaining proceeds will go towards in funding the working capital and other corporate purposes,” the company said, in the filing.
The company has appointed Maxim Group as the lead underwriter for the IPO.
Indonesia Energy targets medium-sized blocks as they are relatively overlooked by major exploration companies who compete with larger oil assets.
Indonesia Energy, which will trade under the ticker name INDO, acquired the rights to operate Kruh Block in 2014 through its subsidiary Green World Nusantara.
Green World will continue to operate the Kruh block along with state-owned energy company Pertamina under the joint operation partnership, which will be effective till May 2030.
Kruh Block, which covers 258 sq km, is located around 25 km northwest from Pendopo, South Sumatera region. The block produces an average of 9,000 barrels of oil per month, up 25 per cent from 2015.
Kruh block has eight wells, of which in which three have undeveloped gross crude oil reserves of 4.99 million barrels as of December 31, 2018.
Meanwhile, the Citarum block is located in an area of 3,924.67 sq km in West Java. The area has tremendous gas potential, with more than 150 oil and gas fields, operated by Pertamina.
Hong Kong-established WJ Energy Group, incorporated in the Cayman Islands, is the holding company of Indonesia Energy.
With the proposed NYSE listing, Indonesia Energy will join IDX-listed telecom company Telkom Indonesia that has been trading its shares on NYSE since 1995. Telecom operator Indosat had its market outing in New York before it got delisted in 2013.