Indonesia Energy Corporation Limited Investor update

Before I begin, please note today's question and presentation to questions and answers contain forward-looking statements about Indonesia's future that are made under the Safe Harbor provisions of the applicable U.S. Federal Securities Law. You are cautioned that actual results, including without limitation, the results of our drilling activities on the Kruh Block, our exploration activities on the Citarum Block, and other matters relating to our future operations and industry or market trends may differ materially and adversely from those expressed or implied by forward-looking statements I make today. Important risks and other factors that could cause actual results to differ from those in our forward-looking statements are contained in our filings with the SEC, including our annual report, which you are encouraged to review along with our other SEC filings. These filings and replay of our presentation may be available on our website if that is possible to rebroadcast.

Thank you, and let me just begin now. Sorry about the delay in getting this going. We had some exciting news just the other day that our K-29 well reached its total depth, and in the oil zone we had good quality oil. In fact, the perforation gun that was put into the well, as we took it out, was seeping oil and bleeding oil out of the perforation holes. This is the first time that has happened in the four other wells that we drilled for Indonesia Energy. So we are very excited about that. What happens now is we have put a pump jack, is being installed presently on the well, and within 2 weeks we will know what some of the results are.

One of the things we are going to do differently this time is in the past we did a little bit of fracturing work to get the production to come up to a good level. What we see here now is potentially a very good natural flow. So we are going to start the well just with a natural flow and see if we can delay doing any fracturing in order to get the maximum production. So this will take about 2 weeks. We will get that information out to you. One thing that probably I am sure most of you know, Indonesia, just to give a little background on Indonesia, and I will talk about the well a little more and what our future plans are. But for those who are joining new, don't know much about Indonesia Energy. Indonesia is the fourth largest country in the world.

You have got India, China, United States, Indonesia. It has been growing at a clip of over 5% GDP over the last dozen years. It has got a demand for energy that is increasing about 5%-6% every year. It is a country that is the number one economy in Southeast Asia, or number one, seventh largest economy in the world by GDP growth. The demand is exploding in the country. It expects to move from seventh in the GDP in the world to moving up into the top five within the next decade. That is one of their plans going forward. But I encourage everybody to go to our website. In our website, please go to see our presentation. What is exciting in that presentation is one slide we have, which is called our single well economic slide. So I encourage you to look at that.

What we tell you there is so much information about the economics of these wells, and in particular the K-29 well that we just completed drilling. That well, as we show in the bottom corner of that slide, at the current oil price, which is around $95 on Brent, we show an analysis of it at $80. When you look at that at $80, I've got that slide right here, which is quite interesting. This is the slide that you're going to look at. Down here in the Let me see here. I'm looking backwards here. On the left-hand corner, it'll tell you about what kind of cash flow we should receive if everything goes right from this well.

If we're at about 125 barrels of oil per day at $80 a barrel, so significantly less than what we are right now, the net cash flow coming from that well will be about $2 million. Putting that in perspective, the well we just drilled, this K-29 well, cost us about $1.8 million to drill. Just think of that. You pay $1.8 million to drill this well, and at 125 barrels of oil per day at $80 a barrel, which is significantly below the current price for Brent, we've returned more than 100% of what the cost is to drill that well. These are great cash flow wells. You add that into our current production, which is about 150 barrels a day, you're basically doubling the production of the company.

You're doubling the cash flow of the company, and should march us, especially as the rig has now been mobilized and is moving over to the WK-5 well site. It's moving over there, and we should start drilling there in the next several weeks. Probably within two to four weeks, we'll be drilling over there. We'll give information about that well going forward. If that well has the kind of success that we're hoping for in the K-29 well, as we go and start production there, now you're talking about 125 barrels of oil per day like this graph shows you. Now you're doubling that back up. If you look at what our cash flow, you look at what the spend of the company is, what the cost is to run our company.

We have a very good possibility to be cash flow positive in the company, certainly above cash flow even as a company. It's an exciting time. I know everybody has been anxious to see us drill a well. There have been a lot of complaints that we haven't gotten the well drilled yet. It's been operating in a place like Sumatra, where this 63,000-acre block is not an easy task. You're challenged by weather conditions. You're challenged by government processes to get approvals to drill. Just a multitude of issues that we've been able to maneuver and been able to finally get this well drilled. Look at the tragedy taking place in Nepal right now with all that just horrendous loss of life.

As we reported before, we had significant storms in Indonesia that wiped out roads, completely washed out roads to enter where our rig is. We had to go in there and reconstruct roads, and then they get washed out again. These are issues that we're constantly inundated with, but we found a way to get there, to drill this well, and now we're going to see the results happening from this well. Some questions about our Citarum Block. We've talked about looking at a partnership with another company. We're now considering that, you know what, maybe the best strategy will be we will go ahead and drill that first well there. We did a geothermal, geochemical survey there not so long ago.

Took about 135 soil samples, used a firm in Denver to analyze those, and the results of that has told us that we can bypass doing any seismic work there and go right into a drilling campaign. Look for that. Look for us to do it on our own, possibly the first well. Just like in real estate. If you've got some empty property, it'll be a lot more valuable if you put a house on it. That's what we're doing. We're putting a well on that Citarum Block and that's the big upside for the company. I'm going to go ahead and I know that some people want to ask some questions. I'm going to go ahead and see if we've got some questions from people here that want to ask me questions about this. Let's see. "Nice meeting. I'm an INDO stockholder, over 13,000 in Korea.

I'm waiting for 3 years." I don't know exactly what that means. Let me go ahead and I'm going to go ahead and keep seeing if other people want to go ahead and ask some questions in here. Okay. "How will you fund the gas well project?" That's a good question. We do have cash on the books right now. One thing with our company is we have no debt. No debt in the company. We have cash. We have an ability to raise more cash without going out and signing up an investment bank to do some kind of an offering that would provide some discount to the current marketplace. We're not planning to do that. We plan to go ahead and self-fund this well. Partners, yeah, there are partners.

We have some partners that want to join us, but we can get a better price if we go ahead and drill well number 1. Yeah, there have been partners from Japan and the U.S. and in China that are looking to join us in this deal. Yeah, we're going to look at doing this ourselves. "We heard about the company funding natural gas pockets or something. Can you elaborate on that?" In our Citarum Block, previously that company was held by a firm called Pan Orient, a Canadian company that was on the brink of bankruptcy, was taken over by somebody else. They lost that interest in Indonesia. We took it over through a competitive bid, and we now have that block. However, they drilled 4 wells, spent $40 million, had 4 discoveries.

With this geochemical survey we just did, we've high picked two locations where we want to drill parallel to the current discoveries. That's what we're going to do. We're going to drill on one of those two locations. Natural gas prices in Indonesia are 3X what they are here in the U.S. So you've got a great natural gas price environment in Indonesia. This is going to be the big upside for the company and that's what we're planning to do, is parallel drill to where two of those four discoveries made by the Canadian company are. "What's the expected timeline on date on WP in terms of spud?" We'll get something out there exactly the time.

They've got to move right now to the next location and taking, as I mentioned, with these roads that we reconstructed, it's going to take a little while for that rig even to move several kilometers away, which it will. So I'm going to say that within the next two weeks or so, that rig will start reconstructing there, because I got to take it apart to move it to the next location and mobilize it in the next location. Somewhere between two to four weeks, that well will be ready to start to drill. I'll be going out there and joining with some of the other executives in the company and look at our current production, and then also going there. When to start the next well? What is the expected timeline on the spud? I did that. The barrel of oil per day of this well is expected at 125.