Indonesia Energy Signs Memorandum of Understanding with Brazilian Energy Company To Explore Energy Opportunities in Brazil
Indonesia Energy Corporation (NYSE American: INDO) has signed a non-binding Memorandum of Understanding (MOU) with Brazil's Aguila Energia e Participa莽玫es Ltda. (AEP) to explore energy opportunities in Brazil. This marks IEC's first expansion initiative beyond Indonesia.
The collaboration combines IEC's oil and gas expertise with AEP's local Brazilian market knowledge to identify and pursue energy assets across upstream and downstream segments. The partnership comes as IEC prepares to drill two back-to-back wells in its Kruh Block in Indonesia during Q4 2025, following successful seismic work that led to a 60% increase in proved gross reserves in May 2025.
Indonesia Energy Corporation (NYSE American: INDO) ha firmato un Memorandum of Understanding (MOU) non vincolante con la brasiliana Aguila Energia e Participa莽玫es Ltda. (AEP) per esplorare opportunit脿 nel settore energetico in Brasile. Si tratta della prima iniziativa di espansione di IEC al di fuori dell'Indonesia.
La collaborazione unisce l'esperienza di IEC nel petrolio e gas alla conoscenza del mercato locale di AEP per individuare e sviluppare asset energetici sia a monte che a valle. La partnership arriva mentre IEC si prepara a perforare due pozzi consecutivi nel suo Blocco Kruh in Indonesia nel Q4 2025, a seguito di lavori sismici che hanno determinato un aumento del 60% delle riserve lorde provate a maggio 2025.
Indonesia Energy Corporation (NYSE American: INDO) ha firmado un Memorando de Entendimiento (MOU) no vinculante con la brasile帽a Aguila Energia e Participa莽玫es Ltda. (AEP) para explorar oportunidades energ茅ticas en Brasil. Esta es la primera iniciativa de expansi贸n de IEC fuera de Indonesia.
La colaboraci贸n combina la experiencia de IEC en petr贸leo y gas con el conocimiento del mercado local de AEP para identificar y desarrollar activos energ茅ticos tanto en los segmentos upstream como downstream. La asociaci贸n llega mientras IEC se prepara para perforar dos pozos consecutivos en su Bloque Kruh en Indonesia en el Q4 de 2025, tras trabajos s铆smicos que condujeron a un aumento del 60% en las reservas brutas probadas en mayo de 2025.
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鞚措矆 順戨牓鞚� IEC鞚� 靹濎湢路臧�鞀� 鞝勲靹膘棎 AEP鞚� 順勳 鞁滌灔 歆�鞁濎潉 瓴绊暕頃� 靸侂 氚� 頃橂 攵�氍� 鞝勲皹鞚� 鞐愲剤歆� 鞛愳偘鞚� 氚滉荡路於旍頃橂姅 瓴冹潉 氇╉憸搿� 頃╇媹雼�. 鞚� 韺岉姼雱堨嫮鞚� IEC臧� 2025雲� 4攵勱赴鞐� 鞚鸽弰雱れ嫓鞎� Kruh 敫旊鞐愳劀 鞐办啀鞙茧 霊� 臧滌潣 鞁滌稊瓿�鞚� 鞁滌稊頃� 欷�牍勲ゼ 頃橂姅 臧�鞖措嵃 鞚措臁岇溂氅�, 歆�雮� 2025雲� 5鞗� 歆�歆勴儛靷� 鞛戩梾鞙茧 歃濍獏霅� 齑濍Г鞛ル焿鞚� 60% 歃濌皜頃� 靹标臣毳� 氚旐儠鞙茧 頃╇媹雼�.
Indonesia Energy Corporation (NYSE American: INDO) a sign茅 un protocole d'accord (MOU) non contraignant avec la br茅silienne Aguila Energia e Participa莽玫es Ltda. (AEP) pour 茅tudier des opportunit茅s 茅nerg茅tiques au Br茅sil. Il s'agit de la premi猫re d茅marche d'expansion d'IEC en dehors de l'Indon茅sie.
La coop茅ration associe l'expertise p茅troli猫re et gazi猫re d'IEC 脿 la connaissance du march茅 local d'AEP afin d'identifier et de d茅velopper des actifs 茅nerg茅tiques en amont et en aval. Ce partenariat intervient alors qu'IEC se pr茅pare 脿 forer deux puits cons茅cutifs dans son bloc Kruh en Indon茅sie au quatri猫me trimestre 2025, suite 脿 des travaux sismiques ayant entra卯n茅 en mai 2025 une augmentation de 60 % des r茅serves brutes prouv茅es.
Indonesia Energy Corporation (NYSE American: INDO) hat eine unverbindliche Absichtserkl盲rung (MOU) mit dem brasilianischen Unternehmen Aguila Energia e Participa莽玫es Ltda. (AEP) unterzeichnet, um Energiechancen in Brasilien zu erkunden. Dies ist IECs erster Expansionsschritt au脽erhalb Indonesiens.
Die Zusammenarbeit verbindet IECs 脰l- und Gasexpertise mit AEPs lokalem Marktwissen, um Energieanlagen im Upstream- und Downstream-Bereich zu identifizieren und voranzutreiben. Die Partnerschaft kommt, w盲hrend IEC sich darauf vorbereitet, im 4. Quartal 2025 zwei unmittelbar aufeinanderfolgende Bohrungen in seinem Kruh-Block in Indonesien durchzuf眉hren, nachdem seismische Arbeiten im Mai 2025 zu einer Steigerung der nachgewiesenen Bruttoreserven um 60% gef眉hrt hatten.
- Strategic expansion into Brazil's attractive energy market
- Recent 60% increase in proved gross reserves at Kruh Block
- Planned drilling of two new wells in Q4 2025
- Potential for higher after-tax cash flows in Brazil due to favorable royalty rates (5-10%)
- MOU is non-binding with no guaranteed outcomes
- Expansion beyond core Indonesian market introduces new operational risks
- Entry into Brazilian market will require additional capital investment
Insights
IEC signs non-binding MOU with Brazilian firm to explore expansion beyond Indonesia, signaling geographical diversification strategy alongside planned domestic drilling.
Indonesia Energy Corporation's MOU with Aguila Energia e Participa莽玫es represents a strategic pivot toward geographical diversification, as the company looks beyond its Indonesian assets for the first time. This non-binding agreement establishes a framework to pursue oil and gas opportunities in Brazil, leveraging AEP's local expertise and IEC's operational experience.
Brazil's appeal stems from three key factors: its year-round acquisition opportunities through the Oferta Permanente bid system, distressed asset sales by capital-constrained junior operators, and favorable concession contract terms with
This international exploration strategy runs parallel to IEC's domestic growth initiatives, including their planned Q4 2025 drilling of two wells at the Kruh Block where recent seismic work contributed to a
However, investors should note that the MOU simply establishes intent, with no binding commitments or capital deployment yet. The company will need to negotiate definitive agreements for specific projects, suggesting material impact remains contingent on future developments. The initiative nonetheless signals management's strategic vision to diversify beyond a single-country operation, potentially reducing geographical concentration risk while leveraging Brazil's favorable market conditions for independent operators.
Collaboration effort represents IEC鈥檚 first steps to evaluate expansion beyond Indonesia聽
JAKARTA, INDONESIA AND DANVILLE, CA, Aug. 19, 2025 (GLOBE NEWSWIRE) -- Indonesia Energy Corporation (NYSE American: INDO) ("IEC"), an oil and gas exploration and production company focused on high-growth energy assets, today announced that it has signed a Memorandum of Understanding (MOU) dated August 18, 2025 with Aguila Energia e Participa莽玫es Ltda. (鈥淎EP鈥�), an affiliate of Rio de Janeiro鈥揵ased investment firm Aguila Capital, led by energy executive Blener Mayhew.
The MOU establishes a cooperative framework between the parties to jointly identify, evaluate, and pursue potential opportunities to acquire or participate in oil and gas or other energy-related assets and projects located in Brazil, a major global energy market. The cooperation combines IEC鈥檚 oil and gas and capital market experience with AEP鈥檚 capabilities in local Brazilian transactions, regulatory engagement, and asset development. The MOU reflects IEC and AEP鈥檚 shared vision to build a diversified energy portfolio across upstream and downstream segments through disciplined, cross-border cooperation.
Mr. Frank Ingriselli, IEC's President, commented 鈥淭his collaboration marks an exciting first step by IEC to evaluate world-class opportunities beyond Indonesia in Brazil, a market that has become one of the most attractive for upstream investment. Working with Blener Mayhew and his team will give us immediate local insight and access. In addition to opportunities in Brazil, AEP may also assist us in further commercializing our Indonesian assets and identifying new Indonesian domestic growth projects. Together with our planned drilling program at our Kruh Block, this initiative advances our growth strategy to scale production and diversify our portfolio in the final months of 2025 and beyond.鈥�
Commenting on the reasons for IEC鈥檚 exploration of opportunities in Brazil, Mr. Ingriselli stated 鈥淲e believe Brazil is experiencing an attractive convergence of market catalysts that create an exceptional entry point for nimble independent oil and gas companies like ours.鈥�
鈥淔irst, Brazil鈥檚 Oferta Permanente bid system allows year-round acquisition opportunities of relinquished and new exploration and production blocks, creating potential faster deal cycles once qualification and bid requirements are met.
Second, it is our understanding that many junior operators in Brazil are divesting producing and near-producing fields at attractive valuations due to capital constraints, creating opportunities for relatively near term brownfield optimization and predictable cash flow profiles.
Third, under concession contracts with the Brazilian government, royalties typically range from 5鈥�
All of these and similar factors have led us to conclude that Brazil is the first jurisdiction outside of Indonesia that our company should explore for growth opportunities,鈥� concluded Mr. Ingriselli.
This announcement comes just a few weeks after IEC announced that it plans to drill two (2) back-to-back wells on its 63,000 acre Kruh Block in Indonesia commencing in the fourth quarter of 2025. This new drilling activities will be supported by the previously announced exploratory seismic work which was undertaken by IEC during 2024 and early 2025 that upgraded IEC鈥檚 wellsite prospects and drilling locations with a view towards maximizing production.
In May 2025, IEC reported that investments in Kruh Block and the 3D seismic work completed earlier this year resulted in a
The MOU is a non-binding statement of intent. IEC and AEP will seek to enter into appropriate definitive agreements for projects on an opportunity-by-opportunity basis.
About AEP
AEP was founded in 2020 by former PetroRio (now PRIO S.A., PRIO3) executive Blener Mayhew. During his tenure at PetroRio, Mr. Mayhew served as Executive Director, Chief Financial Officer and Director of Investor Relations/New Business (2015鈥�2019). Over that period, PetroRio鈥檚 market capitalization increased from approximately US
AEP is a Rio de Janeiro鈥揵ased independent oil and gas company focused on unlocking value in mature onshore oilfields across Northeast Brazil. The company holds a portfolio of seven development-stage oilfields in the states of Bahia and Rio Grande do Norte. The company鈥檚 principals have participated in Brazilian onshore asset processes, including leading a US
About Indonesia Energy Corporation Limited
Indonesia Energy Corporation Limited (NYSE American: INDO) is a publicly traded energy company engaged in the acquisition and development of strategic, high growth energy projects in Indonesia. IEC鈥檚 principal assets are its Kruh Block (63,000 acres) located onshore on the Island of Sumatra in Indonesia and its Citarum Block (195,000 acres) located onshore on the Island of Java in Indonesia. IEC is headquartered in Jakarta, Indonesia and has a representative office in Danville, California. For more information on IEC, please visit聽.
Cautionary Statement Regarding Forward-Looking Statements
All statements in this press release, and related statements of Indonesia Energy Corporation Limited (鈥淚EC鈥�) and its representatives and partners that are not based on historical fact are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and the provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the 鈥淎cts鈥�). In particular, the words 鈥渆xplore,鈥� 鈥渃ould,鈥� "estimates," 鈥渟eek,鈥� "believes," "hopes," 鈥渦nderstand,鈥� "expects," "intends," 鈥渙n-track鈥�, "plans," "anticipates," or "may," and similar conditional expressions are intended to identify forward-looking statements within the meaning of the Acts and are subject to the safe harbor created by the Acts. Any statements made in this news release other than those of historical fact, about an action, event or development, are forward-looking statements. In this press release, forward-looking statements include, without imitation those related to the anticipated benefits of IEC鈥檚 recently signed MOU with AEP, and its future drilling plans at Kruh Block. While management has based any forward-looking statements contained herein on its current expectations, the information on which such expectations were based may change. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of significant risks, uncertainties, and other factors, many of which are outside of the IEC's control, that could cause actual results to materially and adversely differ from such statements. Such risks, uncertainties, and other factors include, but are not necessarily limited to, those set forth in the Risk Factors section of the Company鈥檚 annual report on Form 20-F for the fiscal year ended December 31, 2024, filed on April 29, 2025, and other filings with the Securities and Exchange Commission (SEC). Copies are of such documents are available on the SEC's website,聽 and IEC鈥檚 website at . IEC undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law.
Company Contact:
Frank C. Ingriselli
President, Indonesia Energy Corporation Limited
FAQ
What is the significance of Indonesia Energy's (INDO) MOU with Aguila Energia?
What are Indonesia Energy's (INDO) recent developments in its Kruh Block?
What advantages does Brazil offer for Indonesia Energy's (INDO) expansion?
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How binding is the MOU between Indonesia Energy (INDO) and Aguila Energia?
