Collaboration effort represents IEC’s first steps to evaluate expansion beyond Indonesia

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 Participações Ltda. (“AEP”), an affiliate of Rio de Janeiro–based 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’s oil and gas and capital market experience with AEP’s capabilities in local Brazilian transactions, regulatory engagement, and asset development. The MOU reflects IEC and AEP’s 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 “This 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.”

Commenting on the reasons for IEC’s exploration of opportunities in Brazil, Mr. Ingriselli stated “We 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.”

“First, Brazil’s 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 5–10% (with reductions possible for mature or marginal fields), offering the potential for higher after-tax cash flows compared to production-sharing contracts, as well as the potential for enhanced operational flexibility and internal rates of return.

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,” 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’s 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 60% increase in proved gross reserves.

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 (2015–2019). Over that period, PetroRio’s market capitalization increased from approximately US$50 million at year-end 2014 to about US$1.10 billion at year-end 2019, supported by portfolio expansion, including strategic acquisitions such as the Frade field, which added production and diversified revenue streams.

AEP is a Rio de Janeiro–based 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’s principals have participated in Brazilian onshore asset processes, including leading a US$1.5 billion consortium bid for Petrobras assets in Bahia.

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’s 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 www.indo-energy.com .

Cautionary Statement Regarding Forward-Looking Statements

All statements in this press release, and related statements of Indonesia Energy Corporation Limited (“IEC”) 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 “Acts”). In particular, the words “explore,” “could,” "estimates," “seek,” "believes," "hopes," “understand,” "expects," "intends," “on-track”, "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’s 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’s 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, www.sec.gov and IEC’s website at https://ir.indo-energy.com/sec-filings/ . 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
[email protected]