Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16]

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 6-K

 

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16

OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the month of October 2024

 

Commission File Number 001-39164

 

Indonesia Energy Corporation Limited

(Translation of registrant’s name into English)

 

GIESMART PLAZA 7^th Floor

Jl. Raya Pasar Minggu No. 17A

Pancoran – Jakarta 12780

Indonesia

(Address of principal executive offices)

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

 

Form 20-F ☒ Form 40-F ☐

 

INCORPORATION BY REFERENCE

 

This report on Form 6-K (“Form 6-K Report”) shall be deemed to be incorporated by reference into the shelf registration statement on Form F-3, as amended (Registration Number 333-278175) of Indonesia Energy Corporation Limited, a Cayman Islands exempted company (the “Company”), declared effective by the U.S. Securities and Exchange Commission (the “SEC”) on May 31, 2024 (“Registration Statement”), and into each prospectus or prospectus supplement outstanding under the Registration Statement, to the extent not superseded by documents or reports subsequently filed or furnished by the Company under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended.

 

 

 

 

 

INFORMATION CONTAINED IN THIS FORM 6-K REPORT

 

Attached as Exhibit 99.1 to this Form 6-K Report are the unaudited condensed consolidated financial statements of the Company as of June 30, 2024 and for the six-month periods ended June 30, 2024 and 2023, respectively.

 

Attached as Exhibit 99.2 to this Form 6-K Report is an Operating and Financial Review for the Company’s six-month periods ended June 30, 2024 and 2023, respectively.

 

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

 

This Form 6-K Report and the exhibits hereto contain certain forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, statements regarding our or our management’s expectations, hopes, beliefs, intentions or strategies regarding the future and other statements that are other than statements of historical fact. In addition, any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. The words “anticipate”, “believe”, “continue”, “could”, “estimate”, “expect”, “intend”, “may”, “might”, “plan”, “possible”, “potential”, “predict”, “project”, “should”, “would” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking.

 

The forward-looking statements in this Form 6-K Report and the exhibits hereto are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, management’s examination of historical operating trends, data contained in our records and other data available from third parties. Although we believe that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, we cannot assure you that we will achieve or accomplish these expectations, beliefs or projections. As a result, you are cautioned not to rely on any forward-looking statements.

 

Many of these statements are based on our assumptions about factors that are beyond our ability to control or predict and are subject to significant risks and uncertainties that are described more fully in “Item 3. Key Information—D. Risk Factors” on our annual report on Form 20-F filed with the SEC on April 26, 2024. Any of these factors or a combination of these factors could materially affect our future results of operations and the ultimate accuracy of the forward-looking statements. Fluctuations in our future financial results may negatively impact the value of our ordinary shares. In addition to these important factors, important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include among other things:

 

	●	Our overall ability (including our anticipated timing) to meet our goals and strategies, including our plans to continue to conduct seismic testing and interpretation activities, and drill additional wells at Kruh Block, to explore and develop (including drilling wells at) Citarum Block or acquire rights in additional oil and gas assets in the future;
	●	The economic and capital markets impact of macro-economic and other conditions beyond our control (such as the war between Russia and Ukraine, the conflicts in the Middle East involving Israel and Hamas, Hezbollah and Iran, inflation, interest rates and the political situation in Indonesia) on the demand for our oil and gas products in Indonesia and the price of our oil and gas products;
	●	Our ability to estimate our oil reserves;
	●	Our ability to anticipate our capital needs, financial condition and results of operations;

 

2

 

 

	●	The anticipated prices for, and volatility in the prices for, oil and gas products and the growth of the oil and gas market in Indonesia and worldwide;
	●	Our expectations regarding our relationships with the Indonesian government (“Government”) and its oil and gas regulatory agencies;
	●	Relevant Government policies and regulations relating to our industry; and
	●	Our corporate structure and related laws, rules and regulations.

 

Should one or more of the foregoing risks or uncertainties materialize, should any of our assumptions prove incorrect, or should we be unable to address any of the foregoing factors, our actual results may vary in material and adverse respects from those projected in these forward-looking statements. Consequently, there can be no assurance that actual results or developments anticipated by us will be realized or, even if substantially realized, that they will have the expected consequences to, or effects, on us. Given these uncertainties, prospective investors are cautioned not to place undue reliance on such forward-looking statements.

 

We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable laws. If one or more forward-looking statements are updated, no inference should be drawn that additional updates will be made with respect to those or other forward-looking statements.

 

3

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

	INDONESIA ENERGY CORPORATION LIMITED
Dated: October 25, 2024	By:	/s/ Wirawan Jusuf
	Name:	Wirawan Jusuf
	Title:	Chief Executive Officer

 

4

 

 

EXHIBIT INDEX

 

Exhibit Number		Description
99.1		Unaudited condensed consolidated financial statements of the Company as of June 30, 2024 and for the six-month periods ended June 30, 2024 and 2023
99.2		Operating and Financial Review for the six-month periods ended June 30, 2024 and 2023
101.INS		Inline XBRL Instance Document
101.SCH		Inline XBRL Taxonomy Extension Schema Document
101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF		Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB		Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase Document
104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

5

 

 

EXHIBIT 99.1

 

INDONESIA ENERGY CORPORATION LIMITED

CONDENSED CONSOLIDATED BALANCE SHEETS

 

		June 30,				December 31,
		2024				2023
		(Unaudited)
Current assets
Cash		$	716,724			$	2,009,687
Restricted cash - current			1,500,000				1,567,500
Accounts receivables			444,282				582,335
Prepayment and other current assets			2,447,841				1,920,576
Total current assets			5,108,847				6,080,098
Non-current assets
Restricted cash – non-current			420,000				420,000
Property and equipment, net			62,777				109,017
Oil and gas property - subject to amortization, net			8,061,058				7,111,624
Oil and gas property - not subject to amortization, net			1,155,439				1,155,439
Right of use assets, net			948,607				1,097,168
Deferred charges			900,807				938,392
Other non-current assets			815,474				812,943
Total non-current assets			12,364,162				11,644,583
Total assets		$	17,473,009			$	17,724,681
Liabilities and Equity
Current liabilities
Accounts payables		$	1,465,358			$	753,823
Short-term operating lease liabilities			568,317				629,325
Accrued expenses			279,516				152,078
Taxes payable			80,202				60,698
Other current liabilities			283,295				17,941
Total current liabilities			2,676,688				1,613,865
Non-current liabilities
Asset retirement obligations			577,791				352,636
Warrant liabilities			626,788				482,219
Long-term operating lease liabilities			380,289				467,843
Provision for post-employment benefits			135,424				118,250
Total non-current liabilities			1,720,292				1,420,948
Total liabilities		$	4,396,980			$	3,034,813
Commitments and contingencies			-				-
Shareholders’ Equity
Preferred shares (par value $0.00267; 3,750,000 shares authorized, nil shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively)			-				-
Ordinary shares (par value $0.00267; 37,500,000 shares authorized, 10,349,266 and 10,142,694 shares issued and outstanding as of June 30, 2024 and December 31, 2023)		$	27,597			$	27,046
Additional paid-in capital			54,632,525				54,147,769
Accumulated deficit			(41,682,583	)			(39,583,437	)
Accumulated other comprehensive income			98,490				98,490
Total shareholders’ equity			13,076,029				14,689,868
Total liabilities and shareholders’ equity		$	17,473,009			$	17,724,681

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

 

F-1

 

INDONESIA ENERGY CORPORATION LIMITED

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

 

		Six months ended June 30,				Six months ended June 30,
		2024				2023
Revenue		$	1,443,388			$	1,841,255
Operating costs and expenses:
Lease operating expenses			1,405,429				1,627,160
Depreciation, depletion and amortization			305,090				597,465
General and administrative expenses			1,623,973				1,561,528
Total operating costs and expenses			3,334,492				3,786,153
Loss from operations			(1,891,104	)			(1,944,898	)
Other income (expense):
Change in fair value of warrants			(144,569	)			273,472
Exchange (loss) gain			(63,983	)			90,060
Other income (expenses), net			510				(39,798	)
Total other income (expenses), net			(208,042	)			323,734
Loss before income tax			(2,099,146	)			(1,621,164	)
Income tax provision			-				-
Net loss		$	(2,099,146	)		$	(1,621,164	)
Loss per ordinary share attributable to the Company
Basic and diluted		$	(0.26	)		$	(0.16	)
Weighted average number of ordinary shares outstanding
Basic and diluted			10,142,694				10,142,694

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

 

F-2

 

INDONESIA ENERGY CORPORATION LIMITED

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

FOR THE SIX MONTHS ENDED JUNE 30, 2024

(UNAUDITED)

 

		Preferred Shares, $0.00267 Par Value								Ordinary Shares, $0.00267 Par Value								Additional								Accumulated Other
		Number of Shares				Amount				Number of Shares				Amount				Paid-in Capital				Accumulated Deficit				Comprehensive Income				Total Equity
Balance as of January 1, 2024			-			$	-				10,142,694			$	27,046			$	54,147,769			$	(39,583,437	)		$	98,490			$	14,689,868
Net loss			-				-				-				-				-				(2,099,146	)			-				(2,099,146	)
Share-based compensation			-				-				60,000				160				125,114				-				-				125,274
Issuance of shares in exchange for services			-				-				25,000				67				66,933				-				-				67,000
Issuance of ordinary shares by ATM offering			-				-				121,572				324				292,709				-				-				293,033
Balance as of June 30, 2024			-			$	-				10,349,266			$	27,597			$	54,632,525			$	(41,682,583	)		$	98,490			$	13,076,029

 

INDONESIA ENERGY CORPORATION LIMITED

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

FOR THE SIX MONTHS ENDED JUNE 30, 2023

(UNAUDITED)

 

		Preferred Shares, $0.00267 Par Value								Ordinary Shares, $0.00267 Par Value								Additional								Accumulated Other
		Number of Shares				Amount				Number of Shares				Amount				Paid-in Capital				Accumulated Deficit				Comprehensive Income				Total Equity
Balance as of January 1, 2023			-			$	-				10,142,694			$	27,046			$	54,147,769			$	(36,940,753	)		$	89,947			$	17,324,009
Net loss			-				-				-				-				-				(1,621,164	)			-				(1,621,164	)
Balance as of June 30, 2023			-			$	-				10,142,694			$	27,046			$	54,147,769			$	(38,561,917	)		$	89,947			$	15,702,845

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

 

F-3

 

INDONESIA ENERGY CORPORATION LIMITED

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

 

		Six Months Ended June 30,
		2024				2023
Cash flows from operating activities
Net loss		$	(2,099,146	)		$	(1,621,164	)
Adjustments to reconcile net loss to net cash used in operating activities
Change in fair value of warrant liability			144,569				(273,472	)
Depreciation, depletion and amortization			305,090				597,465
Amortization on Right of Use Asset			148,561				179,661
Amortization of deferred charges			37,585				37,448
Amortization of Issuance Discount on Convertible note			-				43,655
Issuance of ordinary shares for service fee settlement			161,698				-
Provision for post-employment benefit			17,174				43,439
Asset retirement obligations			-				-
Changes in operating assets and liabilities
Accounts receivable, net			138,053				(73,907	)
Prepayment and other current assets			(527,265	)			(283,726	)
Other assets - Non-Current			(2,531	)			194,510
Payment of operating lease liability			(148,562	)			(179,661	)
Accounts payable			711,537				47,504
Other current liabilities			265,354				-
Accrued expenses			127,438				64,884
Taxes payable			19,504				(108,211	)
Net cash used in operating activities			(700,941	)			(1,331,575	)
Cash flows from investing activities
Cash paid for oil and gas property development costs			(983,131	)			(135,152	)
Purchase of property and equipment			-				-
Net cash used in investing activities			(983,131	)			(135,152	)
Cash flows from financing activities
Issuance of ordinary shares by ATM offering, net of issuance cost			323,609				-
Net cash generated from financing activities			323,609				-
Net change in cash and cash equivalents, and restricted cash			(1,360,463	)			(1,466,727	)
Cash and cash equivalents, and restricted cash at beginning of period			3,997,187				7,395,565
Cash and cash equivalents, and restricted cash at end of period		$	2,636,724			$	5,928,838
Supplementary disclosure of cash flow information:
Cash paid for:
Interest		$	-			$	-
Non-cash transactions
Right-of-use assets acquired under operating leases in exchange for operating liabilities		$	-			$	169,094

 

Reconciliation of cash and restricted cash to the consolidated balance sheets

 

		June 30,				December 31,
		2024				2023
		(Unaudited)				(Audited)
Cash		$	716,724			$	2,009,687
Restricted cash – current			1,500,000				1,567,500
Restricted cash - non-current			420,000				420,000
Total Cash and Restricted cash		$	2,636,724			$	3,997,187

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

 

F-4

 

INDONESIA ENERGY CORPORATION LIMITED

 

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

 

NOTE 1 – ORGANIZATION AND PRINCIPAL ACTIVITIES

 

Indonesia Energy Corporation Limited (the “Company,” “IEC,” “we,” “us,” our” and similar terminology), through its subsidiaries in Hong Kong and Indonesia, is an oil and gas exploration and production company focused on the Indonesian market. The Company currently holds two oil and gas assets through its subsidiaries in Indonesia: one producing block (the “Kruh Block”) and one exploration block (the “Citarum Block”). The Company also identified a potential third exploration block known as the “Rangkas Area”. In June 2024, new 3D seismic exploratory operations at the Company’s 63,000 acre Kruh Block commenced. Importantly, the Company anticipates that the results of this seismic work will allow it to drill one new production well at Kruh Block in 2025, with the remaining 13 wells to be drilled between 2025 and 2028, subject to the availability of funding necessary to conduct such activity.

 

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Basis of presentation and consolidation

 

The unaudited condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) for interim financial statements. Accordingly, they may not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The interim financial information should be read in conjunction with the consolidated financial statements and footnotes in the Company’s financial statements for the fiscal year ended December 31, 2023 included in the Company’s Form 20-F filed with the SEC on April 26, 2024.

 

In the opinion of management, all adjustments (which include normal recurring adjustments) necessary to present a fair presentation of the Company’s condensed consolidated balance sheet as of June 30, 2024, condensed consolidated statements of operations, changes in equity and cash flows for the six months ended June 30, 2024 and 2023, as applicable, have been made. Operating results for the six months ended June 30, 2024 are not necessarily indicative of the operating results that may be expected for the fiscal year ending December 31, 2024 or any future periods.

 

The unaudited condensed consolidated financial statements include the financial statements of the Company and all its majority-owned subsidiaries from the dates they were acquired or incorporated. All intercompany balances and transactions have been eliminated in consolidation.

 

Recently issued accounting standards

 

The Company is an “emerging growth company,” as defined in the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). Under the JOBS Act, emerging growth companies (“EGCs”) can delay adopting new or revised accounting standards issued subsequent to the enactment of the JOBS Act until such time as those standards apply to private companies. The Company will cease its status as an emerging growth company as of January 1, 2025.

 

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. This ASU updates reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses and information used to assess segment performance. The amendments in this ASU are effective for public entities for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The Group is still evaluating the effect of the adoption of this guidance.

 

In December 2023, the FASB issued Accounting Standards Update (ASU) 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which enhances the transparency and decision usefulness of income tax disclosures. The amendments address more transparency about income tax information through improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid information. The ASU also includes certain other amendments to improve the effectiveness of income tax disclosures. The amendments in this ASU are effective for public business entities for annual periods beginning after December 15, 2024 on a prospective basis. Early adoption is permitted. The Company is still evaluating the effect of the adoption of this guidance.

 

On March 6, 2024, the SEC approved a rule that will require registrants to provide certain climate-related information in their registration statements and annual reports, beginning with annual reports for the year ending December 31, 2025, for calendar-year-end large accelerated filers. The rule requires information about a registrant’s climate-related risks that are reasonably likely to have a material impact on its business, results of operations, or financial condition. The required information about climate-related risks also includes disclosure of a registrant’s greenhouse gas emissions. In addition, the rules will require registrants to present certain climate-related financial metrics in their audited financial statements. The Company is evaluating the potential impact of this rule on the consolidated financial statements and related disclosures, although implementation of the rule has been stayed due to legal challenges, and as a non-accelerated filer and an EGC, the Company believes this rule is currently inapplicable to the Company.

 

Other accounting pronouncements that have been issued or proposed by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Company’s condensed consolidated financial statements upon adoption.

 

F-5

 

Warrant Liabilities

 

The Company accounts for the warrants issued in connection with its January 2022 convertible note financing (see Note 7) in accordance with the guidance contained in Accounting Standards Codification (“ASC”) 815-40 Derivatives and Hedging - Contracts in Entity’s Own Equity (“ASC 815”) under which the warrants do not meet the criteria for equity treatment and must be recorded as liabilities. Accordingly, the Company classifies such warrants as liabilities at their fair value and adjusts the warrants to fair value at each reporting period. This liability is subject to re-measurement at each balance sheet date until exercised, and any change in fair value is recognized in the condensed consolidated statements of operations. Such warrants are valued using the Black-Scholes option-pricing model as no observable traded price was available for such warrants. See Note 7 for further information.

 

Fair Value of Financial Instruments

 

The Company records certain of its financial assets and liabilities at fair value on a recurring basis. Fair value is considered to be the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and considers assumptions that market participants would use when pricing the asset or liability. The established fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The three levels of inputs may be used to measure fair value include:

 

Level 1	applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities.
Level 2	applies to assets or liabilities for which there are inputs other than quoted prices included within Level 1 that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data.
Level 3	applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.

 

The carrying values of the Company’s financial instruments, including cash and cash equivalents, restricted cash, accounts receivable, other current assets, accounts payables, other current liabilities, accrued expenses and tax payables, approximate their fair values due to the short-term nature of these instruments.

 

Net Loss per Ordinary Share

 

Basic net loss per share is determined by dividing net loss by the weighted average number of the Company’s ordinary shares, par value $0.00267 per share (the “Ordinary Shares”), outstanding during the period, without consideration of potentially dilutive securities, except for those Ordinary Shares that are issuable for little or no cash consideration. Diluted net loss per share is determined by dividing net loss by diluted weighted average Ordinary Shares outstanding. Diluted weighted average shares reflect the dilutive effect, if any, of potentially dilutive Ordinary Shares, such as stock options and warrants calculated using the “treasury stock” and/or “if converted” methods, as applicable. In periods with reported net operating losses, all potential dilutive securities are generally deemed anti-dilutive such that basic net loss per share and diluted net loss per share are equal.

 

F-6

 

For six months ended June 30, 2024 and 2023, the following potentially dilutive securities were excluded from the computation of diluted earnings per share because their effects would be anti-dilutive:

 

		June 30,				June 30,
		2024				2023
Warrants issued to L1 Capital (see NOTE 6)			442,240				442,240
Convertible note issued to L1 Capital (see NOTE 6) (i)			-				16,667
Share options granted to the executive management			-				200,000
Total			442,240				658,907

 

(i)	Convertible note is assumed to be converted at the exercise price of $6.00 per share (subject to adjustment) as disclosed in Note 6.

 

NOTE 3 – PREPAYMENT AND OTHER ASSETS

 

		June 30,				December 31,
		2024				2023
		(Unaudited)				(Audited)
Prepaid VAT taxes		$	1,483,892			$	1,442,517
Prepaid expenses			742,456				21,983
Other receivables			82,227				307,700
Consumables and spare parts			139,266				148,376
Prepayment and other current assets		$	2,447,841			$	1,920,576
Other receivable from well equipment		$	609,602			$	609,604
Deposit and others			132,542				134,836
Durable spare parts			127,128				128,107
Advanced to venders			5,806				-
Other assets - non current			875,078				872,547
Less: allowance on doubtful receivables			(59,604	)			(59,604	)
Other non-current assets, net		$	815,474			$	812,943

 

During the year ended December 31, 2023, the Company sold certain rig equipment to a third party, PT Andam Resorsis Nusantara. As of the date of this Form 6-K Report, there is an outstanding balance of $550,000, which is expected to be received by the Company by December 2025. Considering the potential risk of default, the Company recorded $59,604 allowance for the doubtful account as of December 31, 2023. No allowance was provided or reversed for the doubtful account for the six months ended June 30, 2024.

 

F-7

 

NOTE 4 – OIL AND GAS PROPERTY, NET

 

The following tables summarize the Company’s oil and gas activities by classification.

 

		June 30, 2024				December 31, 2023
		(Unaudited)				(Audited)
Oil and gas property - subject to amortization		$	29,243,303			$	28,035,019
Accumulated depletion			(9,323,062	)			(9,064,212	)
Accumulated impairment			(11,859,183	)			(11,859,183	)
Oil and gas property - subject to amortization, net		$	8,061,058			$	7,111,624
Oil and gas property - not subject to amortization		$	1,155,439			$	1,155,439
Accumulated impairment			-				-
Oil and gas property - not subject to amortization, net		$	1,155,439			$	1,155,439

 

The following shows the movement of the oil and gas property - subject to amortization balance.

 

		Oil & Gas Property – Kruh
December 31, 2023		$	7,111,624
Additional capitalization			1,208,284
Depletion			(258,850	)
June 30, 2024 (Unaudited)		$	8,061,058

 

For the six months ended June 30, 2024, the Company incurred aggregated development costs and abandonment and site restoration provisions, which were capitalized of $1,208,284, mainly for development administration costs and for the purpose of the geological and geophysical studies, seismic studies and re-calculation of abandonment and site restoration (ASR).

 

Depletion recorded for production on properties subject to amortization for the six months ended June 30, 2024 and 2023, were $258,850 and $551,225 respectively.

 

Furthermore, for the six months ended June 30, 2024, the Company did not record any impairment to the oil and gas property according to the ceiling tests conducted, which showed that the present value of estimated future net revenues generated by the oil and gas property exceeded the carrying balances.

 

F-8

 

NOTE 5 – PROPERTY AND EQUIPMENT, NET

 

		June 30, 2024				December 31, 2023
		(Unaudited)				(Audited)
Drilling and production tools		$	1,499,535			$	1,499,535
Leasehold improvement			323,675				323,675
Production facilities			93,049				93,049
Computer and software			5,605				5,605
Housing and welfare			4,312				4,312
Furniture and office equipment			4,013				4,013
Equipment			1,650				1,650
Total			1,931,839				1,931,839
Less: accumulated depreciation			(1,869,062	)			(1,822,822	)
Property and equipment, net		$	62,777			$	109,017

 

Depreciation charged to expense amounted to $46,240 and $46,239 for the six months ended June 30, 2024 and 2023, respectively.

 

NOTE 6 – WORKING CAPITAL LOAN

 

On May 10, 2024, the Company borrowed a six-month loan in the amount of $248,447 with maturity date of November 9, 2024 from a third-party, PT Nusantara Group Komoditas, for working capital purpose. The loan bears interest rate at twelve percent (12%) per annum, calculated on the principal loan amount from the loan date until the maturity date. The loan is recorded under Other Current Liabilities. As of June 30, 2024 and December 31, 2023, there were $283,295 and nil of such loan classified under other current liabilities, respectively.

 

NOTE 7 – FINANCIAL LIABILITY

 

 SCHEDULE OF FINANCIAL LIABILITY

		June 30, 2024				December 31, 2023
Warrant liabilities, net of debt issuance costs		$	626,788			$	482,219

 

On January 21, 2022 (the “Initial Closing Date”), the Company closed an initial $5,000,000 tranche (the “First Tranche”) of a total then anticipated $7,000,000 private placement with L1 Capital Global Opportunities Master Fund (“L1 Capital”) pursuant to the terms of a Securities Purchase Agreement, dated January 21, 2022, between the Company and L1 Capital (the “Purchase Agreement”). In connection with the closing of the First Tranche, the Company issued to the L1 Capital (i) a 6% Original Issuance Discount Senior Convertible Note in a principal amount of up to $7,000,000 (the “Note”) and (ii) a five-year Ordinary Share Purchase Warrant (the “Initial Warrant”) to purchase up to 383,620 ordinary shares at an exercise price of $6.00 per share, subject to adjustment. As of the date of the original Purchase Agreement, a second tranche (the “Second Tranche”) of funding under the Note in the amount of $2,000,000 (the “Second Tranche Amount”) was contemplated. The Note was subject to a deduction of a 6.0% original issuance discount. Except as upon an Event of Default (as defined in the Note), the Note did not bear interest.

 

Beginning 120 days after the Initial Closing Date, the Company was required to commence monthly installment payments of the Note through maturity (or 14 payments) (“Monthly Payments”), which Monthly Payments could be made, at the Company’s election, in cash or ordinary shares (or a combination of cash and ordinary shares), with such ordinary shares being issued at a valuation equal to the lesser of: (i) $6.00 per share or (ii) 90% of the average of the two lowest closing bid prices of the ordinary shares for the ten (10) consecutive trading days ending on the trading day immediately prior to the payment date, with a floor price of $1.20 per share. In addition, at any time following the date of effectiveness of a Registration Statement covering the applicable ordinary shares underlying the Note (such Registration Statement was declared effective on June 1, 2022), the Note is convertible (in whole or in part), at the option of L1 Capital, into such number of fully paid and non-assessable ordinary shares determined by dividing (x) that portion of the outstanding principal amount of the Note that L1 Capital elects to convert by (y) $6.00 per share, which price was subject to adjustment as provided in the Note. Upon the occurrence of any Event of Default that has not been remedied, the Company would be obligated to pay to L1 Capital an amount equal to one hundred twenty percent (120%) of the outstanding principal amount of the Amended Note on the date on which the first Event of Default has occurred.

 

F-9

 

On March 4, 2022, the Company and L1 Capital entered into a First Amendment to the Purchase Agreement and an Amended and Restated Senior Convertible Promissory Note (the “Amended Note”) pursuant to which, among other items, Second Tranche Amount was increased from $2,000,000 to $5,000,000. Upon the funding of the Second Tranche Amount, L1 Capital was entitled to receive an additional five-year Ordinary Share Purchase Warrant (the “Second Warrant”) to purchase up to 383,620 ordinary shares at $6.00 per share (subject to adjustment).

 

On May 16, 2022, the Company and L1 Capital entered into a Second Amended and Restated Senior Convertible Promissory Note which amends and restates the Amended Note in its entirety (the “Second Amended Note” and collectively with the Note and the Amended Note, the “Notes”). Among other matters, the Second Amended Note provided for an accelerated funding of the Second Tranche Amount, which was funded to the Company on May 23, 2022, at which time the Second Warrant was issued to L1 Capital.

 

Accounting for convertible notes

 

Adoption of ASU 2020-06

 

In August 2020, the FASB issued ASU No. 2020-06, Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40) (“ASU 2020-06”). The update removes separation models for (i) convertible debt with a cash conversion feature and (ii) convertible instruments with a beneficial conversion feature. Under ASU 2020-06, these features will be combined with the host contract. ASU 2020-06 does not impact the accounting treatment for conversion features that are accounted for as a derivative under Topic 815. The update also requires the application of the if-converted method to be used for convertible instruments and the effect of potential share settlement be included in the diluted earnings per share calculation when an instrument may be settled in cash or shares. The amendments in this update are effective for public business entities for fiscal years beginning after December 15, 2021, and interim periods within those fiscal years. The amendment is to be adopted through either a fully retrospective or modified retrospective method of transition, only at the beginning of an entity’s fiscal year. Early adoption is permitted. The Company has elected to adopt the standard as of January 1, 2022.

 

The Company evaluated the terms of its Notes with L1 Capital and concluded that the instrument does not require separation and that there were no other derivatives that required separation. The Company evaluated the embedded features of the Notes in accordance with ASC 815-15-25 and determined that the most significant feature is the equity-like conversion option, which is not clearly and closely related to the debt host instrument. The Company further determined it would not meet the definition of a derivative, and therefore not required to be bifurcated and separately measured at fair value. As a result, there is no equity component, and the Company recorded the Notes as a single liability within long-term debt on the accompanying condensed consolidated balance sheet.

 

The Initial Warrant and the Second Warrant (collectively, the “Warrants”) were issued in connection with the Notes, and exercise of such Warrants are not contingent upon conversion of the Notes; therefore, proceeds were allocated first to the Warrants based on their fair value and the residual were allocated to the Notes.

 

The Company incurred debt issuance costs associated with the Notes in the amount of $811,000, which are allocated to the Warrants based on assessed fair value of Warrants and residual proceeds allocated to Notes, compared to total proceeds received. Debt issuance costs associated with derivative warrant liabilities are expensed as incurred, presented as other expenses in the consolidated statements of operations. Offering costs associated with the Notes were charged as a direct deduction from the principal amount of the Notes. Debt issuance and offering costs are recorded as debt discount, which is amortized as interest expense over the term of the convertible debt instrument using the effective interest method.

 

With regards to the Second Tranche, due to the relatively high closing price of the ordinary shares on May 23, 2022 (the date of issuance of the Second Warrant), the fair value of Second Warrant of $4,833,325 exceeds the net proceeds received (see below for details on accounting for warrants). $133,325 of insurance loss was recognized and no residual proceeds were allocated to Notes. For the fiscal year ended December 31, 2022, the total proceeds from both tranches of the Notes have supported oil well drilling of the K-27 and K-28 wells and working capital general corporate purposes.

 

F-10

 

During the year ended December 31, 2022, $9,900,000 of the total $10,000,000 principal amount of the Notes has been converted into ordinary shares at $6.00 per share at L1 Capital’s election. On July 21, 2023, the Company repaid the remaining $100,000 principal amount of the Notes to L1 Capital in cash. As of June 30, 2024 and December 31, 2023, the carrying value balance of the convertible note was $0.

 

Convertible note		First Tranche				Second Tranche				Total
Initial recognition		$	3,438,933			$	-			$	3,438,933
Amortization of insurance cost			358,155				288,095			$	646,250
Conversion to ordinary shares			(3,797,088	)			(235,952	)			(4,033,040	)
Balance as of December 31, 2022		$	-			$	52,143			$	52,143
Amortization of insurance cost			-				47,857				47,857
Repayment			-				(100,000	)			(100,000	)
Balance as of December 31, 2023		$	-			$	-			$	-

 

Accounting for warrants

 

The Warrants were issued in conjunction with the convertible note by a separate contract, and legally detachable and separately transferrable. The Warrants were exercisable via “cashless” exercise if there is not an effective registration statement covering resale of the ordinary share under the Warrants. The exercise price per ordinary share under the Warrants was $6.00 and subject to certain adjustments which do not meet the criteria for equity treatment in accordance with the guidance contained in ASC 815-40-15-7E. Accordingly at initial recognition, the Company classifies such warrants as liabilities at their fair value. This warrant liability is subject to re-measurement at each balance sheet date until exercised, and any change in fair value is recognized in the consolidated statements of operations.

 

The Company recognized $915,644 for warrant liabilities upon issuance of the Initial Warrant on January 24, 2022. The Company recognized $4,833,325 for warrant liabilities upon issuance of the Second Warrant on May 23, 2022.

 

The Company utilizes the Black-Scholes option-pricing model to estimate the fair value of the Warrants at each reporting period since the Warrants are not actively traded. The estimated fair value of the Warrant liabilities is determined using Level 3 inputs in accordance with ASC 820, “Fair Value Measurement”. Inherent in the Black-Scholes model are assumptions related to expected stock-price volatility, expected life, risk-free interest rate and dividend yield. The Company estimates the volatility of its ordinary shares based on historical volatility of its own stock price during the period that matches the expected remaining life of the Warrants. The risk-free interest rate is based on the U.S. Treasury zero-coupon yield curve on the grant date for a maturity similar to the expected remaining life of the Warrants. The expected life of the Warrants is assumed to be equivalent to their remaining contractual term. The dividend rate is based on the historical rate, which the Company anticipates remaining at zero.

 

The following reflects the inputs and assumptions used:

 

		January 24, 2022				May 23, 2022				December 31, 2022				December 31, 2023				June 30, 2024
Exercise price		$	6.00			$	6.00			$	6.00			$	6.00			$	6.00
Share price		$	3.64			$	14.94			$	4.66			$	2.71			$	2.75
Expected term from grant date (in years)			5.00				5.00				4.10 for Initial Warrant and 4.50 for Second Warrant				3.10 for Initial Warrant and 3.40 for Second Warrant				2.60 for Initial Warrant and 2.90 for Second Warrant
Expected volatility			96.32	%			95.90	%			96.03	%			82.40	%			107.43	%
Risk-free interest rate			1.53	%			2.88	%			3.99	%			4.01	%			4.52	%
Dividend yield (per share)			-				-				-				-				-

 

During the year ended December 31, 2022, L1 Capital has exercised 325,000 of the Initial Warrant at $6.00 per share while the Company has received $1,950,000 proceeds from exercise of these warrants. During six months ended June 30, 2024, no warrant was exercised. As of June 30, 2024 and December 31, 2023, there were 442,240 warrants issued and outstanding.

 

F-11

 

The movement of warrant liabilities is summarized as follows:

 

Balance as of January 1, 2022		$	-
Issuance of Initial Warrant as of January 24, 2022			915,644
Issuance of Second Warrant as of May 23, 2022			4,833,325
50,000 warrant shares exercised on June 16, 2022			(119,343	)
185,000 warrant shares exercised on August 18, 2022			(915,799	)
90,000 warrant shares exercised on August 29, 2022			(445,524	)
Change in fair value of warrant liabilities			(2,878,660	)
Balance as of December 31, 2022		$	1,389,643
Change in fair value of warrant liabilities for the year			(907,425	)
Balance as of December 31, 2023		$	482,219
Change in fair value of warrant liabilities			144,569
Balance as of June 30, 2024		$	626,788

 

NOTE 8 – OPERATING LEASES

 

The Company accounts for leases in accordance with ASC Topic 842, Leases (“ASC 842”). All contracts are evaluated to determine whether or not they represent a lease. A lease conveys the right to control the use of an identified asset for a period of time in exchange for consideration. The Company has operating leases primarily consisting of facilities with remaining lease terms of one year to three years. The lease term represents the period up to the early termination date unless it is reasonably certain that the Company will not exercise the early termination option.

 

Leases are classified as finance or operating in accordance with the guidance in ASC 842. The Company does not hold any finance leases as of June 30, 2024 and December 31, 2023.

 

The Company also has certain short-term leases related to equipment and tools. A short-term lease is a lease with a term of 12 months or less and does not include the option to purchase the underlying asset that the Company would expect to exercise. The Company has elected to adopt the short-term lease exemption in ASC 842 and as such has not recognized a “right of use” asset or lease liability for these short-term leases.

 

The Company’s lease agreements generally do not provide an implicit borrowing rate, therefore the incremental borrowing rate (“IBR”) on a collateralized basis for a similar term as the underlying lease was used at lease commencement date for purposes of determining the present value of lease payments. As of June 30, 2024, there was no update to an incremental borrowing rate at 10%, which was a 3-year tenure secured borrowing rate as quoted by a local bank.

 

The components of lease expense were as follows for each of the periods presented:

 

		June 30, 2024				June 30, 2023
		(Unaudited)				(Unaudited )
Operating lease expense		$	442,648				202,680
Short-term lease expense			17,988				553,107
Total operating lease costs			460,636				755,787
Other information
Operating cash flows used in operating leases			136,016				179,661
Weighted average remaining lease term (in years)			1.87				1.30
Weighted average discount rate			10	%			10	%

 

Future lease payments included in the measurement of operating lease liabilities as of June 30, 2024 is as follows:

 

		June 30, 2024
2024		$	322,326
2025			489,435
2026			210,739
2027			13,648
			1,036,148
Less: discount on operating lease liabilities			(87,542	)
Present value of operating lease liabilities			948,606
Less: Current portion of operating lease liabilities			(568,317	)
Non-current portion of operating lease liabilities			380,289

 

F-12

 

NOTE 9 – TAXES

 

The current and deferred components of the income tax provision which are substantially attributable to the Company’s subsidiaries in Indonesia. Due to the unrecovered expenditures on the Company’s Kruh Block operations, there was no provision for income taxes for the six months ended June 30, 2024 and 2023, respectively.

 

The effective tax rate is based on expected income and statutory tax rates. For interim financial reporting, the Company estimates the annual tax rate based on projected taxable income for the full year and records an interim income tax provision in accordance with guidance on accounting for income taxes in an interim period. As the year progresses, the Company refines the estimates of the year’s taxable income as new information becomes available. The Company’s effective tax rates for the six months ended June 30, 2024 and 2023 were 0% and 0%, respectively.

 

The Company did not incur any interest and penalties related to potential underpaid income tax expenses.

 

NOTE 10 – SHARE BASED COMPENSATION EXPENSES

 

On January 30, 2024, the Company issued 60,000 of the Company’s restricted ordinary shares to Frank Ingriselli, the Company’s President, pursuant to his employment agreement with the Company, with 30,000 shares vesting on July 1, 2024 and 30,000 shares vesting on January 1, 2025. Such ordinary shares were valued at $2.70 per share, which was based on the closing price of the shares traded on the NYSE American exchange on January 30, 2024.

 

NOTE 11 – EQUITY

 

As of June 30, 2024 and December 31, 2023, there were 10,349,266 and 10,142,694 of ordinary shares, $0.00267 par value per share, issued and outstanding.

 

NOTE 12 – COMMITMENTS AND CONTINGENCIES

 

Litigation

 

From time to time, the Company may be subject to routine litigation, claims, or disputes in the ordinary course of business. Litigation or any other legal or administrative proceeding, regardless of the outcome, is likely to result in substantial cost and diversion of our resources, including our management’s time and attention. The Company defends itself vigorously in all such matters. In the opinion of management, no pending or known threatened claims, actions or proceedings against the Company are expected to have a material adverse effect on its financial position, results of operations or cash flows. However, the Company cannot predict with certainty the outcome or effect of any such litigation or investigatory matters or any other pending litigation or claims. There can be no assurance as to the ultimate outcome of any such lawsuits and investigations. The Company has no significant pending litigation as of June 30, 2024.

 

Commitments

 

As a requirement to acquire and maintain the operatorship of oil and gas blocks in Indonesia, the Company follows a work program and budget that includes firm capital commitments.

 

Currently, Kruh Block is operated under a KSO until May 2030, which was extended to 2035 in August 2023. The Company has material commitments related to its development and exploration activities in the Kruh Block and material commitments in regard to the exploration activity in the Citarum Block under a Production Sharing Contract with the Indonesian Special Task Force for Upstream Oil and Gas Business Activities (known as SKK Migas) (the “PSC”). The following table summarizes future commitments amounts on an undiscounted basis as of June 30, 2024 for all the planned expenditures to be carried out in Kruh Block and Citarum Block (this table takes into account the Company’s updated seismic and drilling plans for Kruh Block):

 

F-13

 

						Future commitments (Unaudited)
		Nature of commitments				Remaining of 2024				2025				2026 and beyond
Citarum Block PSC
Geological and geophysical (G&G) studies			(a)			$	-			$	150,000			$	950,000
2D seismic			(a)				-				-				6,050,000
3D seismic			(a)				-				-				2,100,000
Drilling			(b)(c)				-				-				30,000,000
Total commitments - Citarum PSC						$	-			$	150,000			$	39,100,000
Kruh Block KSO															-
Lease commitments			(d)			$	774,297			$	2,021,236			$	72,649,378
Production facility							-				-				1,300,000
G&G studies			(a)				100,000				100,000				350,000
2D seismic			(a)				-				-				1,250,000
3D seismic			(a)				1,177,633				-				-
Drilling			(a)(c)				-				1,500,000				19,500,000
Workover							-				-				-
Certification							-				-				250,000
Abandonment and Site Restoration			(a)				26,263				52,526				525,264
Total commitments - Kruh KSO						$	2,078,193			$	3,672,762			$	95,824,642
Total Commitments						$	2,078,193			$	3,823,762			$	134,924,642

 

Nature of commitments: 

 

	(a)	Both firm commitments and a 5-year work program according to the Company’s economic model are included in the estimate. Firm capital commitments represent legally binding obligations with respect to the KSO for Kruh Block or the PSC for Citarum Block in which the contract specifies the minimum exploration or development work to be performed by us within the first three years of the contract. In certain cases where we execute contracts requiring commitments to a work scope, those commitments have been included to the extent that the amounts and timing of payments can be reliably estimated.
	(b)	Includes one exploration and two delineation wells.
	(c)	Abandonment and site restoration are primarily upstream asset removal costs at the drilling completion of a field life related to or associated with site clearance, site restoration, and site remediation, based on Indonesian government rules.
	(d)	Lease commitments are contracts that allow for the use of an asset but does not convey rights of ownership of the asset. The Company accounts for leases in accordance with ASC Topic 842, Leases (“ASC 842”). Right of use assets and lease liabilities for the Company’s operating leases are recorded in the condensed consolidated balance sheet except for the short-term lease exemption. An operating lease represents a rental agreement for an asset from a lessor under the terms. Most of our operating leases are related to the equipment and machinery used in oil production. All of the Company’s operating lease agreements with third parties can be cancelled or terminated at any time by the Company.

 

F-14

 

NOTE 13 – LIQUIDITY AND GOING CONCERN

 

The Company reported a net loss of $2,099,146 and net cash used in operating activities of $700,941 for the six months ended June 30, 2024. In addition, the Company had an accumulated deficit of $41,682,583 and working capital of $2,432,159 as of June 30, 2024. The Company’s operating results for future periods are subject to numerous uncertainties and it is uncertain if the Company will be able to reduce or eliminate its net losses and achieve profitability for the foreseeable future. These conditions raise substantial doubt about the Company’s ability to continue as a going concern.

 

The Company has financed the operations primarily through cash flow from operations, loans from banks, and proceeds from equity instrument financing, where necessary. On July 22, 2022, the Company entered into an At The Market Offering Agreement (the “ATM Agreement”) with H.C. Wainwright & Co., LLC (the “Sales Agent”), acting as its sales agent, pursuant to which the Company may offer and sell, from time to time, to or through the Sales Agent, ordinary shares having an aggregate gross offering price of up to $20,000,000. The ATM Agreement was amended on March 22, 2024 (“ATM Amendment No.1”), pursuant to which the Company may sell ordinary shares with an aggregate gross offering price of up to $9,600,000. The Company received net proceeds of $323,934 through issuance of ordinary shares by such ATM offering as of June 30, 2024. See Note 14 for information on additional funds raised via the ATM Agreement.

 

As of October 24, 2024, the Company had approximately $5.61 million of cash which is placed with financial institutions and is unrestricted as to withdrawal or use. Management’s plan for mitigating the conditions of substantial doubt about the Company’s ability to continue as a going concern includes a combination of improving operational efficiency, cost reductions, debt and equity. In June 2024, new 3D seismic exploratory operations at the Company’s 63,000 acre Kruh Block commenced. Importantly, the Company anticipates that the results of this seismic work will allow it to drill one new production well at Kruh Block in early 2025, with the remaining 13 wells to be drilled between 2025 and 2028, subject to the availability of funding necessary to conduct such activity. The Company currently does not have any outstanding short-term or long-term bank borrowings balance. Management expects that it will be able to obtain new bank loans based on past experience and the Company’s good credit history. The Company intends to meet its cash requirements for the 12 months following the date of the issuance of the condensed consolidated financial statements through operations and the foregoing potential funding opportunities.

 

The Company believes that the Company’s current cash and cash equivalents and anticipated cash flows from operating and financing activities will be sufficient to meet its anticipated working capital requirements and commitments for at least the next 12 months after the issuance of the Company’s unaudited condensed consolidated financial statements. The Company has prepared the condensed consolidated financial statements on a going concern basis. If the Company encounters unforeseen circumstances that place constraints on its capital resources, management will be required to take various measures to conserve liquidity. Management cannot provide any assurance that the Company will be able to raise additional capital if needed.

 

NOTE 14 – SUBSEQUENT EVENTS

 

The Company evaluated all events that occurred up to October 24, 2024 and determined that no events that would have required adjustment or disclosure in the condensed consolidated financial statements except the following.

 

On August 22, 2024, 60,000 restricted ordinary shares that were issued to Frank Ingriselli, the Company’s President, as compensation became unrestricted.

 

As of the date of these interim condensed financial statements, a total of 2,981,253 ordinary shares have been issued through ATM and the Company has received aggregate net proceeds of $7,794,843 from January to September 2024   through issuance of ordinary shares through the ATM offering. A significant majority of these ordinary shares were issued subsequent to June 30, 2024. As such, as of October 24, 2024, the Company has approximately $5.61 million in cash and cash equivalents.

 

F-15

 

 

EXHIBIT 99.2

 

INDONESIA ENERGY CORPORATION LIMITED

OPERATING AND FINANCIAL REVIEW

FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2024 AND 2023

 

The following discussion of the results of our operations and our financial condition should be read in conjunction with the unaudited condensed consolidated financial statements included as Exhibit 99.1 to this report. This discussion contains forward-looking statements that involve risks, uncertainties, and assumptions. Actual results may differ materially from those anticipated in these forward-looking statements as a result of many factors, including those set forth in “Item 3. Key Information–D. Risk Factors” set forth in our Form 20-F filed with the SEC on April 26, 2024.

 

Business Overview

 

Indonesia Energy Corporation Limited (“IEC,” “the Company,” or “we,” “our,” “us” and similar terminology) is an oil and gas exploration and production company focused on the Indonesian market. Alongside operational excellence, we believe we have set the highest standards for ethics, safety and corporate social responsibility practices to ensure that we add value to society. Led by a professional management team with extensive oil and gas experience, we seek to bring forth at all times the best of our expertise to ensure the sustainable development of a profitable and integrated energy exploration and production business model.

 

We currently have rights through contracts with the Indonesian government to one oil and gas producing block (“Kruh Block”) and one oil and gas exploration block (“Citarum Block”). We have also identified a potential third exploration block, known as the Rangkas Area, and we may seek to acquire or otherwise obtain rights to additional oil and gas producing assets. In June 2024, new 3D seismic operations at the Company’s 63,000 acre Kruh Block commenced. Importantly, the Company anticipates that the results of this seismic work will allow it to drill one new production well at Kruh Block in early 2025, with the remaining 13 wells to be drilled between 2025 and 2028, subject to the availability of funding necessary to conduct such activity.

 

We produce oil through PT Green World Nusantara (“Green World”), our indirect wholly-owned subsidiary, which operates the Kruh Block under an agreement with PT Pertamina EP (Persero), the Indonesian state-owned oil and gas company (“Pertamina”). Our operatorship Kruh Block previously ran until May 2030 under a ten-year Joint Operation Partnership (the “KSO”) with Pertamina. Kruh Block covers an area of 258 km² (63,753 acres) and is located onshore 16 miles northwest of Pendopo, Pali, South Sumatra. In December 2022, we started our negotiations with Pertamina for a five-year extension of our contract for Kruh Block. Effective August 9, 2023, Green World and Pertamina executed an amendment to the KSO (the “Amended KSO”) that moved the expiration date of our operatorship of Kruh Block to September 2035. This extension effectively gives us 13 years to fully develop the existing 3 oil fields, and 5 other undeveloped oil and gas bearing structures at Kruh Block. Further, the Amended KSO increases our after-tax profit split from the current 15% to 35%, for an increase of more than 100%. We received Pertamina’s signature to the Amended KSO in early September 2023.

 

Citarum Block is an exploration block initially covering an area of 3,924.67 km² (969,807 acres). On April 18, 2024, the Indonesian Special Task Force for Upstream Oil and Gas Business Activities (“SKK Migas”) approved the relinquishment of 1,378.78 Km² block area, with remaining block area of 2,545.89 km²  . This block is located onshore in West Java and only 16 miles south of the capital city of Indonesia, Jakarta. Our rights to Citarum Block run until July 2048 under Production Sharing Contract (“PSC”) agreement with SKK Migas.

 

Overview of Results of Operations

 

Our key financial and operating highlights for the six months ended June 30, 2024 are:

 

	●	Total oil production by IEC for the six months ended June 30, 2024 was 23,697 barrels (“Bbl”), a decrease of 6,833 Bbl for the same period in 2023, which resulted in lower cost recovery entitlements and revenue for the six months ended June 30, 2024 compared to the same period in 2023. This decrease was primarily due to natural decline of production as a result of reservoir energy decline of existing wells.
	●	The Indonesian Crude Price (“ICP”) increased approximately 8.22% from an average price of $74.13 per Bbl for the six months ended June 30, 2023 to $80.22 per Bbl for the same period in 2024, resulting in the corresponding increases in our revenue and cost recovery entitlements.

 

●

The average production cost per Bbl for the six months ended June 30, 2024 was $45.51 compared to $53.30 for same period in 2023. The lower production cost per Bbl in 2023 was primarily due to less oil production and expenses.

 

	●	Kruh Block: with respect to our currently producing Kruh Block, our KSO contract commenced in May 2020 for production in the Kruh Block until 2030 and in August 2023, this has been amended to extend the contract term by 5 years to September 2035. We received government approval on our drilling, workover, G&G study and seismic program for Kruh Block. The last drilling of K-28 well was spudded on June 22, 2022. Final well testing has been planned in late 2024 due to rig schedule. From late 2023 to June 2024, we have completed a three-dimensional seismic acquisition program. The newly acquired high quality seismic data will be processed and interpreted, and used for the planning of next drilling program.
	●	Citarum Block: with respect to Citarum Block, we are currently designing the 2D seismic program, and we plan to start conducting such program in 2026, subject to the availability of funding necessary to conduct such activity. Following comprehensive geological and geophysical assessments of the Citarum Block, we have elected to retain 2,545.89 km², after relinquishing 1,378.78 km² from the original 3,924.67 km² (969,807 acres). Our focus remains on assessing and ranking petroleum projects within the block as we prepare for the next phase of drilling and seismic operations.

 

 

Update to Kruh Block Drilling Program

 

With respect to our drilling program at Kruh Block, in March 2021 we announced our plan to drill a total of 5 wells in 2021, 6 wells in 2022 and 7 wells in 2023, for a total of 18 new wells on Kruh Block. Due to delays in the Indonesian government permitting process and COVID-19-related delays experienced during 2021, our overall drilling program for Kruh Block has similarly been delayed.

 

As part of the 18 wells drilling program, 2 wells each were drilled in 2021 and 2022, we plan to complete the rest of 14 wells after the interpretation of the newly acquired three-dimensional seismic data is completed. As of June 30, 2024, we modified our drilling plan for Kruh Block with an anticipation to drill one well in 2025, with the remaining 13 wells to be drilled between 2025 and 2028, depending on the availability of funding necessary to conduct such activity.

 

With the amended KSO contract providing higher profit share and extension of 5 years production period effective in August 2023, besides the completion of drilling 14 remaining wells, additional drilling program would maximize the net cash flow and net present value of Kruh field development.

 

Citarum Block Update

 

Citarum Block is an exploration block initially covering an area of 3,924.67 km² (969,807 acres). On April 18, 2024, the SKK Migas approved the relinquishment of 1,378.78 Km² block area, with remaining block area of 2,545.89 km². Our rights to Citarum Block run until July 2048 under the PSC agreement with SKK Migas.

 

With respect to the Citarum Block, we are currently designing the 2D seismic program, and we plan to start conducting such program in 2026, subject to the availability of funding necessary to conduct such activity. Our focus remains on assessing and ranking petroleum projects within the block as we prepare for the next phase of drilling and seismic operations.

 

Results of Operations for the Six Months Ended June 30, 2024 and 2023

 

Revenue

 

Revenues decreased by $397,867 or approximately 22%, to $1.44 million for the six months ended June 30, 2024 compared with the same period in 2023. The decrease was primarily due to a significant reduction in oil and gas production as the production of oil and gas is expected to decline progressively each year.

 

Lease operating expenses

 

Lease operating expenses decreased by $221,731 or approximately 13.63%, for the six months ended June 30, 2024 compared to the same period in 2023, mainly due to a decrease in equipment rental and well service cost.

 

Depreciation, depletion and amortization (DD&A)

 

DD&A decreased by $292,375, or approximately 49%, for the six months ended June 30, 2024 compared to the same period in 2023, primarily due to a decrease in depletion expenses related to the addition of oil and gas properties and a reduction in the oil and gas production in 2024.

 

2

 

General and Administrative Expenses

 

General and administrative expenses increased by $62,445, or approximately 4.00%, to $1,623,973 for the six months ended June 30, 2024 compared to the same period in 2023 due to an increase in amortization of share-based compensation and the increase in bank guarantee fees and travelling expenses.

 

Other income (expenses), net

 

We had other expenses, net of $208,042 for the six months ended June 30, 2024 as compared with $323,734 other income for the same period in 2023. The net other expenses for the six months ended June 30, 2024 was mainly due to the exchange loss and fair value change of warrant liability.

 

Net Loss

 

We had a net loss of $2,099,146 for the six months ended June 30, 2024 compared to $1,621,164 for the same period in 2023. The increase in net loss was due to the combination of the factors discussed above.

 

Liquidity and Capital Resources

 

We generated a net loss of $2,099,146 and net cash used in operating activities of $700,941 for the six months ended June 30, 2024. In addition, we had an accumulated deficit of $41,682,583 and working capital of $2,432,159 as of June 30, 2024. Our operating results for future periods are subject to numerous risks and uncertainties and it is uncertain if we will be able to reduce or eliminate our net losses and achieve cash flow positive operations in the near term or eventually achieve profitability. If we are not able to increase revenues or manage operating expenses in line with revenue forecasts, or if the price of oil should drop significantly, we may not be able to achieve profitability.

 

Our principal sources of liquidity during the six months ended June 30, 2024 and subsequently were proceeds from At The Market Offering Agreement (the “ATM Agreement”) we entered with H.C. Wainwright & Co., LLC on July 22, 2022. Pursuant to this ATM Agreement, we may offer and sell, from time to time, to or through the Sales Agent, ordinary shares having an aggregate gross offering price of up to $20,000,000. The ATM Agreement was amended on March 22, 2024 (“ATM Amendment No.1”), pursuant to which the Company may sell ordinary shares with an aggregate gross offering price of up to $9,600,000. From January to June 2024, we have received net proceeds of $323,934 through our utilization of such at-the-market offering program, although subsequent to June 30, 2024, we have raised an additional $7,470,909 via this program.

 

As of October 24, 2024, we had approximately $5.61 million of cash which is placed with financial institutions and is unrestricted as to withdraw al or use. Management’s plan for mitigating the conditions of substantial doubt about our ability to continue as a going concern includes a combination of improving operational efficiency, cost reductions, debt and equity. In June 2024, new 3D seismic exploratory operations at our 63,000 acre Kruh Block commenced. Importantly, we anticipate that the results of this seismic work will allow us to drill one new production well at Kruh Block in early 2025, with the remaining 13 wells to be drilled between 2025 and 2028, subject to the availability of funding necessary to conduct such activity. We currently do not have any outstanding short-term or long-term bank borrowings balance. Management expects that it will be able to obtain new bank loans based on past experience and our good credit history. We intend to meet our cash requirements for the 12 months following the date of the issuance of the condensed consolidated financial statements through operations and the foregoing potential funding opportunities.

 

We believe that our current cash and anticipated cash flows from operating and financing activities will be sufficient to meet our anticipated working capital requirements and commitments for at least the next 12 months after the issuance of this report. If we encounter unforeseen circumstances that place constraints on our capital resources, management will be required to take various measures to conserve liquidity. Management cannot provide any assurance that the Company will be able to raise additional capital if needed.

 

3

 

Contractual Obligations

 

After taking into consideration our updating seismic and drilling plans for Kruh Block as described above under “Update to Kruh Block Drilling Program”, the following table summarizes future commitments amounts on an undiscounted basis as of June 30, 2024 for all the planned expenditures to be carried out at Kruh Block and Citarum Block:

 

						Future commitments
		Nature of commitments				Remainder of 2024				2025				2026 and beyond
Citarum Block PSC
Geological and geophysical (G&G) studies			(a)			$	-			$	150,000			$	950,000
2D seismic			(a)				-								6,050,000
3D seismic			(a)				-				-				2,100,000
Drilling			(b)(c)				-				-				30,000,000
Total commitments -Citarum PSC						$	-			$	150,000			$	39,100,000
Kruh Block KSO															-
Lease commitments			(d)			$	774,297			$	2,021,236			$	72,649,378
Production facility							-				-				1,300,000
G&G studies			(a)				100,000				100,000				350,000
2D seismic			(a)				-				-				1,250,000
3D seismic			(a)				1,177,633				-				-
Drilling			(a)(c)				-				1,500,000				19,500,000
Workover							-				-				-
Certification							-				-				250,000
Abandonment and Site Restoration			(a)				26,263				52,526				525,264
Total commitments -Kruh KSO						$	2,078,193			$	3,673,762			$	95,824,642
Total Commitments						$	2,078,193			$	3,823,762			$	134,924,642

 

Nature of commitments:

 

	(a)	Both firm commitments and a 5-year work program according to our economic model are included in the estimate. Firm capital commitments represent legally binding obligations with respect to the KSO for Kruh Block or the PSC for Citarum Block in which the contract specifies the minimum exploration or development work to be performed by us within the first three years of the contract. In certain cases where we execute contracts requiring commitments to a work scope, those commitments have been included to the extent that the amounts and timing of payments can be reliably estimated.
	(b)	Includes one exploration and two delineation wells.
	(c)	Abandonment and site restoration are primarily upstream asset removal costs at the drilling completion of a field life related to or associated with site clearance, site restoration, and site remediation, based on Indonesian government rules.
	(d)	Lease commitments are contracts that allow for the use of an asset but does not convey rights of ownership of the asset. The Company accounts for leases in accordance with ASC Topic 842, Leases (“ASC 842”). Right of use assets and lease liabilities for the Company’s operating leases are recorded in the condensed consolidated balance sheet except the short-term lease exemption. An operating lease represents a rental agreement for an asset from a lessor under the terms. Most of our operating leases are related to the equipment and machinery used in oil production. All of our operating lease agreements with third parties can be cancelled or terminated at any time by us.

 

4

 

Cover	6 Months Ended
	Jun. 30, 2024
Cover [Abstract]
Document Type	6-K
Amendment Flag	false
Document Period End Date	Jun. 30, 2024
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2024
Current Fiscal Year End Date	--12-31
Entity File Number	001-39164
Entity Registrant Name	Indonesia Energy Corporation Limited
Entity Central Index Key	0001757840
Entity Address, Address Line One	GIESMART PLAZA
Entity Address, Address Line Two	7th Floor
Entity Address, Address Line Three	Jl. Raya Pasar Minggu No. 17A
Entity Address, City or Town	Jakarta
Entity Address, Country	ID
Entity Address, Postal Zip Code	12780

Condensed Consolidated Balance Sheets - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Current assets
Cash	$ 716,724	$ 2,009,687
Restricted cash - current	1,500,000	1,567,500
Accounts receivables	444,282	582,335
Prepayment and other current assets	2,447,841	1,920,576
Total current assets	5,108,847	6,080,098
Non-current assets
Restricted cash – non-current	420,000	420,000
Property and equipment, net	62,777	109,017
Oil and gas property - subject to amortization, net	8,061,058	7,111,624
Oil and gas property - not subject to amortization, net	1,155,439	1,155,439
Right of use assets, net	948,607	1,097,168
Deferred charges	900,807	938,392
Other non-current assets	815,474	812,943
Total non-current assets	12,364,162	11,644,583
Total assets	17,473,009	17,724,681
Current liabilities
Accounts payables	1,465,358	753,823
Short-term operating lease liabilities	568,317	629,325
Accrued expenses	279,516	152,078
Taxes payable	80,202	60,698
Other current liabilities	283,295	17,941
Total current liabilities	2,676,688	1,613,865
Non-current liabilities
Asset retirement obligations	577,791	352,636
Warrant liabilities	626,788	482,219
Long-term operating lease liabilities	380,289	467,843
Provision for post-employment benefits	135,424	118,250
Total non-current liabilities	1,720,292	1,420,948
Total liabilities	4,396,980	3,034,813
Commitments and contingencies
Shareholders’ Equity
Preferred shares (par value $0.00267; 3,750,000 shares authorized, nil shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively)
Ordinary shares (par value $0.00267; 37,500,000 shares authorized, 10,349,266 and 10,142,694 shares issued and outstanding as of June 30, 2024 and December 31, 2023)	27,597	27,046
Additional paid-in capital	54,632,525	54,147,769
Accumulated deficit	(41,682,583)	(39,583,437)
Accumulated other comprehensive income	98,490	98,490
Total shareholders’ equity	13,076,029	14,689,868
Total liabilities and shareholders’ equity	$ 17,473,009	$ 17,724,681

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Preferred shares, par value	$ 0.00267	$ 0.00267
Preferred shares, shares authorized	3,750,000	3,750,000
Preferred shares, shares issued
Preferred shares, shares outstanding
Ordinary shares, par value	$ 0.00267	$ 0.00267
Ordinary shares, shares authorized	37,500,000	37,500,000
Ordinary shares, shares issued	10,349,266	10,142,694
Ordinary shares, shares outstanding	10,349,266	10,142,694

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Income Statement [Abstract]
Revenue	$ 1,443,388	$ 1,841,255
Operating costs and expenses:
Lease operating expenses	1,405,429	1,627,160
Depreciation, depletion and amortization	305,090	597,465
General and administrative expenses	1,623,973	1,561,528
Total operating costs and expenses	3,334,492	3,786,153
Loss from operations	(1,891,104)	(1,944,898)
Other income (expense):
Change in fair value of warrants	(144,569)	273,472
Exchange (loss) gain	(63,983)	90,060
Other income (expenses), net	510	(39,798)
Total other income (expenses), net	(208,042)	323,734
Loss before income tax	(2,099,146)	(1,621,164)
Income tax provision
Net loss	$ (2,099,146)	$ (1,621,164)
Loss per ordinary share attributable to the Company
Basic	$ (0.26)	$ (0.16)
Diluted	$ (0.26)	$ (0.16)
Weighted average number of ordinary shares outstanding
Basic	10,142,694	10,142,694
Diluted	10,142,694	10,142,694

Condensed Consolidated Statements of Changes in Equity (Unaudited) - USD ($)	Preferred Stock [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	AOCI Attributable to Parent [Member]	Total
Balance at Dec. 31, 2022		$ 27,046	$ 54,147,769	$ (36,940,753)	$ 89,947	$ 17,324,009
Balance, shares at Dec. 31, 2022		10,142,694
Net loss				(1,621,164)		(1,621,164)
Balance at Jun. 30, 2023		$ 27,046	54,147,769	(38,561,917)	89,947	15,702,845
Balance, shares at Jun. 30, 2023		10,142,694
Balance at Dec. 31, 2023		$ 27,046	54,147,769	(39,583,437)	98,490	14,689,868
Balance, shares at Dec. 31, 2023		10,142,694
Net loss				(2,099,146)		(2,099,146)
Share-based compensation		$ 160	125,114			125,274
Share-based compensation, shares		60,000
Issuance of shares in exchange for services		$ 67	66,933			67,000
Issuance of shares in exchange of service, shares		25,000
Issuance of ordinary shares by ATM offering		$ 324	292,709			293,033
Issuance of ordinary shares by ATM offering, shares		121,572
Balance at Jun. 30, 2024		$ 27,597	$ 54,632,525	$ (41,682,583)	$ 98,490	$ 13,076,029
Balance, shares at Jun. 30, 2024		10,349,266

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Cash flows from operating activities
Net loss	$ (2,099,146)	$ (1,621,164)
Adjustments to reconcile net loss to net cash used in operating activities
Change in fair value of warrant liability	144,569	(273,472)
Depreciation, depletion and amortization	305,090	597,465
Amortization on Right of Use Asset	148,561	179,661
Amortization of deferred charges	37,585	37,448
Amortization of Issuance Discount on Convertible note		43,655
Issuance of ordinary shares for service fee settlement	161,698
Provision for post-employment benefit	17,174	43,439
Asset retirement obligations
Changes in operating assets and liabilities
Accounts receivable, net	138,053	(73,907)
Prepayment and other current assets	(527,265)	(283,726)
Other assets - Non-Current	(2,531)	194,510
Payment of operating lease liability	(148,562)	(179,661)
Accounts payable	711,537	47,504
Other current liabilities	265,354
Accrued expenses	127,438	64,884
Taxes payable	19,504	(108,211)
Net cash used in operating activities	(700,941)	(1,331,575)
Cash flows from investing activities
Cash paid for oil and gas property development costs	(983,131)	(135,152)
Purchase of property and equipment
Net cash used in investing activities	(983,131)	(135,152)
Cash flows from financing activities
Issuance of ordinary shares by ATM offering, net of issuance cost	323,609
Net cash generated from financing activities	323,609
Net change in cash and cash equivalents, and restricted cash	(1,360,463)	(1,466,727)
Cash and cash equivalents, and restricted cash at beginning of period	3,997,187	7,395,565
Cash and cash equivalents, and restricted cash at end of period	2,636,724	5,928,838
Supplementary disclosure of cash flow information:
Interest
Non-cash transactions
Right-of-use assets acquired under operating leases in exchange for operating liabilities		169,094
Cash	716,724
Restricted cash – current	1,500,000
Restricted cash - non-current	420,000
Total Cash and Restricted cash	$ 2,636,724	$ 5,928,838

ORGANIZATION AND PRINCIPAL ACTIVITIES	6 Months Ended
	Jun. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
ORGANIZATION AND PRINCIPAL ACTIVITIES	NOTE 1 – ORGANIZATION AND PRINCIPAL ACTIVITIES   Indonesia Energy Corporation Limited (the “Company,” “IEC,” “we,” “us,” our” and similar terminology), through its subsidiaries in Hong Kong and Indonesia, is an oil and gas exploration and production company focused on the Indonesian market. The Company currently holds two oil and gas assets through its subsidiaries in Indonesia: one producing block (the “Kruh Block”) and one exploration block (the “Citarum Block”). The Company also identified a potential third exploration block known as the “Rangkas Area”. In June 2024, new 3D seismic exploratory operations at the Company’s 63,000 acre Kruh Block commenced. Importantly, the Company anticipates that the results of this seismic work will allow it to drill one new production well at Kruh Block in 2025, with the remaining 13 wells to be drilled between 2025 and 2028, subject to the availability of funding necessary to conduct such activity.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Jun. 30, 2024
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES   Basis of presentation and consolidation   The unaudited condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) for interim financial statements. Accordingly, they may not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The interim financial information should be read in conjunction with the consolidated financial statements and footnotes in the Company’s financial statements for the fiscal year ended December 31, 2023 included in the Company’s Form 20-F filed with the SEC on April 26, 2024.   In the opinion of management, all adjustments (which include normal recurring adjustments) necessary to present a fair presentation of the Company’s condensed consolidated balance sheet as of June 30, 2024, condensed consolidated statements of operations, changes in equity and cash flows for the six months ended June 30, 2024 and 2023, as applicable, have been made. Operating results for the six months ended June 30, 2024 are not necessarily indicative of the operating results that may be expected for the fiscal year ending December 31, 2024 or any future periods.   The unaudited condensed consolidated financial statements include the financial statements of the Company and all its majority-owned subsidiaries from the dates they were acquired or incorporated. All intercompany balances and transactions have been eliminated in consolidation.   Recently issued accounting standards   The Company is an “emerging growth company,” as defined in the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). Under the JOBS Act, emerging growth companies (“EGCs”) can delay adopting new or revised accounting standards issued subsequent to the enactment of the JOBS Act until such time as those standards apply to private companies. The Company will cease its status as an emerging growth company as of January 1, 2025.   In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. This ASU updates reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses and information used to assess segment performance. The amendments in this ASU are effective for public entities for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The Group is still evaluating the effect of the adoption of this guidance.   In December 2023, the FASB issued Accounting Standards Update (ASU) 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which enhances the transparency and decision usefulness of income tax disclosures. The amendments address more transparency about income tax information through improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid information. The ASU also includes certain other amendments to improve the effectiveness of income tax disclosures. The amendments in this ASU are effective for public business entities for annual periods beginning after December 15, 2024 on a prospective basis. Early adoption is permitted. The Company is still evaluating the effect of the adoption of this guidance.   On March 6, 2024, the SEC approved a rule that will require registrants to provide certain climate-related information in their registration statements and annual reports, beginning with annual reports for the year ending December 31, 2025, for calendar-year-end large accelerated filers. The rule requires information about a registrant’s climate-related risks that are reasonably likely to have a material impact on its business, results of operations, or financial condition. The required information about climate-related risks also includes disclosure of a registrant’s greenhouse gas emissions. In addition, the rules will require registrants to present certain climate-related financial metrics in their audited financial statements. The Company is evaluating the potential impact of this rule on the consolidated financial statements and related disclosures, although implementation of the rule has been stayed due to legal challenges, and as a non-accelerated filer and an EGC, the Company believes this rule is currently inapplicable to the Company.   Other accounting pronouncements that have been issued or proposed by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Company’s condensed consolidated financial statements upon adoption.     Warrant Liabilities   The Company accounts for the warrants issued in connection with its January 2022 convertible note financing (see Note 7) in accordance with the guidance contained in Accounting Standards Codification (“ASC”) 815-40 Derivatives and Hedging - Contracts in Entity’s Own Equity (“ASC 815”) under which the warrants do not meet the criteria for equity treatment and must be recorded as liabilities. Accordingly, the Company classifies such warrants as liabilities at their fair value and adjusts the warrants to fair value at each reporting period. This liability is subject to re-measurement at each balance sheet date until exercised, and any change in fair value is recognized in the condensed consolidated statements of operations. Such warrants are valued using the Black-Scholes option-pricing model as no observable traded price was available for such warrants. See Note 7 for further information.   Fair Value of Financial Instruments   The Company records certain of its financial assets and liabilities at fair value on a recurring basis. Fair value is considered to be the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and considers assumptions that market participants would use when pricing the asset or liability. The established fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The three levels of inputs may be used to measure fair value include:   Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities.     Level 2 applies to assets or liabilities for which there are inputs other than quoted prices included within Level 1 that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data.     Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.   The carrying values of the Company’s financial instruments, including cash and cash equivalents, restricted cash, accounts receivable, other current assets, accounts payables, other current liabilities, accrued expenses and tax payables, approximate their fair values due to the short-term nature of these instruments.   Net Loss per Ordinary Share   Basic net loss per share is determined by dividing net loss by the weighted average number of the Company’s ordinary shares, par value $0.00267 per share (the “Ordinary Shares”), outstanding during the period, without consideration of potentially dilutive securities, except for those Ordinary Shares that are issuable for little or no cash consideration. Diluted net loss per share is determined by dividing net loss by diluted weighted average Ordinary Shares outstanding. Diluted weighted average shares reflect the dilutive effect, if any, of potentially dilutive Ordinary Shares, such as stock options and warrants calculated using the “treasury stock” and/or “if converted” methods, as applicable. In periods with reported net operating losses, all potential dilutive securities are generally deemed anti-dilutive such that basic net loss per share and diluted net loss per share are equal.     For six months ended June 30, 2024 and 2023, the following potentially dilutive securities were excluded from the computation of diluted earnings per share because their effects would be anti-dilutive:       June 30,     June 30,       2024     2023   Warrants issued to L1 Capital (see NOTE 6)     442,240       442,240   Convertible note issued to L1 Capital (see NOTE 6) (i)     -       16,667   Share options granted to the executive management     -       200,000   Total     442,240       658,907     (i) Convertible note is assumed to be converted at the exercise price of $6.00 per share (subject to adjustment) as disclosed in Note 6.

PREPAYMENT AND OTHER ASSETS	6 Months Ended
	Jun. 30, 2024
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
PREPAYMENT AND OTHER ASSETS	NOTE 3 – PREPAYMENT AND OTHER ASSETS       June 30,     December 31,       2024     2023       (Unaudited)     (Audited)   Prepaid VAT taxes   $ 1,483,892     $ 1,442,517   Prepaid expenses     742,456       21,983   Other receivables     82,227       307,700   Consumables and spare parts     139,266       148,376   Prepayment and other current assets   $ 2,447,841     $ 1,920,576                     Other receivable from well equipment   $ 609,602     $ 609,604   Deposit and others     132,542       134,836   Durable spare parts     127,128       128,107   Advanced to venders     5,806       -   Other assets - non current     875,078       872,547   Less: allowance on doubtful receivables     (59,604 )     (59,604 ) Other non-current assets, net   $ 815,474     $ 812,943     During the year ended December 31, 2023, the Company sold certain rig equipment to a third party, PT Andam Resorsis Nusantara. As of the date of this Form 6-K Report, there is an outstanding balance of $550,000, which is expected to be received by the Company by December 2025. Considering the potential risk of default, the Company recorded $59,604 allowance for the doubtful account as of December 31, 2023. No allowance was provided or reversed for the doubtful account for the six months ended June 30, 2024.

OIL AND GAS PROPERTY, NET	6 Months Ended
	Jun. 30, 2024
Extractive Industries [Abstract]
OIL AND GAS PROPERTY, NET	NOTE 4 – OIL AND GAS PROPERTY, NET   The following tables summarize the Company’s oil and gas activities by classification.       June 30, 2024     December 31, 2023       (Unaudited)     (Audited)   Oil and gas property - subject to amortization   $ 29,243,303     $ 28,035,019   Accumulated depletion     (9,323,062 )     (9,064,212 ) Accumulated impairment     (11,859,183 )     (11,859,183 ) Oil and gas property - subject to amortization, net   $ 8,061,058     $ 7,111,624                     Oil and gas property - not subject to amortization   $ 1,155,439     $ 1,155,439   Accumulated impairment     -       -   Oil and gas property - not subject to amortization, net   $ 1,155,439     $ 1,155,439     The following shows the movement of the oil and gas property - subject to amortization balance.       Oil & Gas Property – Kruh   December 31, 2023   $ 7,111,624   Additional capitalization     1,208,284   Depletion     (258,850 ) June 30, 2024 (Unaudited)   $ 8,061,058     For the six months ended June 30, 2024, the Company incurred aggregated development costs and abandonment and site restoration provisions, which were capitalized of $1,208,284, mainly for development administration costs and for the purpose of the geological and geophysical studies, seismic studies and re-calculation of abandonment and site restoration (ASR).   Depletion recorded for production on properties subject to amortization for the six months ended June 30, 2024 and 2023, were $258,850 and $551,225 respectively.   Furthermore, for the six months ended June 30, 2024, the Company did not record any impairment to the oil and gas property according to the ceiling tests conducted, which showed that the present value of estimated future net revenues generated by the oil and gas property exceeded the carrying balances.

PROPERTY AND EQUIPMENT, NET	6 Months Ended
	Jun. 30, 2024
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT, NET	NOTE 5 – PROPERTY AND EQUIPMENT, NET       June 30, 2024     December 31, 2023       (Unaudited)     (Audited)   Drilling and production tools   $ 1,499,535     $ 1,499,535   Leasehold improvement     323,675       323,675   Production facilities     93,049       93,049   Computer and software     5,605       5,605   Housing and welfare     4,312       4,312   Furniture and office equipment     4,013       4,013   Equipment     1,650       1,650   Total     1,931,839       1,931,839               Less: accumulated depreciation     (1,869,062 )     (1,822,822 ) Property and equipment, net   $ 62,777     $ 109,017     Depreciation charged to expense amounted to $46,240 and $46,239 for the six months ended June 30, 2024 and 2023, respectively.

WORKING CAPITAL LOAN	6 Months Ended
	Jun. 30, 2024
Debt Disclosure [Abstract]
WORKING CAPITAL LOAN	NOTE 6 – WORKING CAPITAL LOAN   On May 10, 2024, the Company borrowed a six-month loan in the amount of $248,447 with maturity date of November 9, 2024 from a third-party, PT Nusantara Group Komoditas, for working capital purpose. The loan bears interest rate at twelve percent (12%) per annum, calculated on the principal loan amount from the loan date until the maturity date. The loan is recorded under Other Current Liabilities. As of June 30, 2024 and December 31, 2023, there were $283,295 and nil of such loan classified under other current liabilities, respectively.

FINANCIAL LIABILITY	6 Months Ended
	Jun. 30, 2024
Investments, All Other Investments [Abstract]
FINANCIAL LIABILITY	NOTE 7 – FINANCIAL LIABILITY    SCHEDULE OF FINANCIAL LIABILITY     June 30, 2024     December 31, 2023                 Warrant liabilities, net of debt issuance costs   $ 626,788     $ 482,219     On January 21, 2022 (the “Initial Closing Date”), the Company closed an initial $5,000,000 tranche (the “First Tranche”) of a total then anticipated $7,000,000 private placement with L1 Capital Global Opportunities Master Fund (“L1 Capital”) pursuant to the terms of a Securities Purchase Agreement, dated January 21, 2022, between the Company and L1 Capital (the “Purchase Agreement”). In connection with the closing of the First Tranche, the Company issued to the L1 Capital (i) a 6% Original Issuance Discount Senior Convertible Note in a principal amount of up to $7,000,000 (the “Note”) and (ii) a five-year Ordinary Share Purchase Warrant (the “Initial Warrant”) to purchase up to 383,620 ordinary shares at an exercise price of $6.00 per share, subject to adjustment. As of the date of the original Purchase Agreement, a second tranche (the “Second Tranche”) of funding under the Note in the amount of $2,000,000 (the “Second Tranche Amount”) was contemplated. The Note was subject to a deduction of a 6.0% original issuance discount. Except as upon an Event of Default (as defined in the Note), the Note did not bear interest.   Beginning 120 days after the Initial Closing Date, the Company was required to commence monthly installment payments of the Note through maturity (or 14 payments) (“Monthly Payments”), which Monthly Payments could be made, at the Company’s election, in cash or ordinary shares (or a combination of cash and ordinary shares), with such ordinary shares being issued at a valuation equal to the lesser of: (i) $6.00 per share or (ii) 90% of the average of the two lowest closing bid prices of the ordinary shares for the ten (10) consecutive trading days ending on the trading day immediately prior to the payment date, with a floor price of $1.20 per share. In addition, at any time following the date of effectiveness of a Registration Statement covering the applicable ordinary shares underlying the Note (such Registration Statement was declared effective on June 1, 2022), the Note is convertible (in whole or in part), at the option of L1 Capital, into such number of fully paid and non-assessable ordinary shares determined by dividing (x) that portion of the outstanding principal amount of the Note that L1 Capital elects to convert by (y) $6.00 per share, which price was subject to adjustment as provided in the Note. Upon the occurrence of any Event of Default that has not been remedied, the Company would be obligated to pay to L1 Capital an amount equal to one hundred twenty percent (120%) of the outstanding principal amount of the Amended Note on the date on which the first Event of Default has occurred.     On March 4, 2022, the Company and L1 Capital entered into a First Amendment to the Purchase Agreement and an Amended and Restated Senior Convertible Promissory Note (the “Amended Note”) pursuant to which, among other items, Second Tranche Amount was increased from $2,000,000 to $5,000,000. Upon the funding of the Second Tranche Amount, L1 Capital was entitled to receive an additional five-year Ordinary Share Purchase Warrant (the “Second Warrant”) to purchase up to 383,620 ordinary shares at $6.00 per share (subject to adjustment).   On May 16, 2022, the Company and L1 Capital entered into a Second Amended and Restated Senior Convertible Promissory Note which amends and restates the Amended Note in its entirety (the “Second Amended Note” and collectively with the Note and the Amended Note, the “Notes”). Among other matters, the Second Amended Note provided for an accelerated funding of the Second Tranche Amount, which was funded to the Company on May 23, 2022, at which time the Second Warrant was issued to L1 Capital.   Accounting for convertible notes   Adoption of ASU 2020-06   In August 2020, the FASB issued ASU No. 2020-06, Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40) (“ASU 2020-06”). The update removes separation models for (i) convertible debt with a cash conversion feature and (ii) convertible instruments with a beneficial conversion feature. Under ASU 2020-06, these features will be combined with the host contract. ASU 2020-06 does not impact the accounting treatment for conversion features that are accounted for as a derivative under Topic 815. The update also requires the application of the if-converted method to be used for convertible instruments and the effect of potential share settlement be included in the diluted earnings per share calculation when an instrument may be settled in cash or shares. The amendments in this update are effective for public business entities for fiscal years beginning after December 15, 2021, and interim periods within those fiscal years. The amendment is to be adopted through either a fully retrospective or modified retrospective method of transition, only at the beginning of an entity’s fiscal year. Early adoption is permitted. The Company has elected to adopt the standard as of January 1, 2022.   The Company evaluated the terms of its Notes with L1 Capital and concluded that the instrument does not require separation and that there were no other derivatives that required separation. The Company evaluated the embedded features of the Notes in accordance with ASC 815-15-25 and determined that the most significant feature is the equity-like conversion option, which is not clearly and closely related to the debt host instrument. The Company further determined it would not meet the definition of a derivative, and therefore not required to be bifurcated and separately measured at fair value. As a result, there is no equity component, and the Company recorded the Notes as a single liability within long-term debt on the accompanying condensed consolidated balance sheet.   The Initial Warrant and the Second Warrant (collectively, the “Warrants”) were issued in connection with the Notes, and exercise of such Warrants are not contingent upon conversion of the Notes; therefore, proceeds were allocated first to the Warrants based on their fair value and the residual were allocated to the Notes.   The Company incurred debt issuance costs associated with the Notes in the amount of $811,000, which are allocated to the Warrants based on assessed fair value of Warrants and residual proceeds allocated to Notes, compared to total proceeds received. Debt issuance costs associated with derivative warrant liabilities are expensed as incurred, presented as other expenses in the consolidated statements of operations. Offering costs associated with the Notes were charged as a direct deduction from the principal amount of the Notes. Debt issuance and offering costs are recorded as debt discount, which is amortized as interest expense over the term of the convertible debt instrument using the effective interest method.   With regards to the Second Tranche, due to the relatively high closing price of the ordinary shares on May 23, 2022 (the date of issuance of the Second Warrant), the fair value of Second Warrant of $4,833,325 exceeds the net proceeds received (see below for details on accounting for warrants). $133,325 of insurance loss was recognized and no residual proceeds were allocated to Notes. For the fiscal year ended December 31, 2022, the total proceeds from both tranches of the Notes have supported oil well drilling of the K-27 and K-28 wells and working capital general corporate purposes.     During the year ended December 31, 2022, $9,900,000 of the total $10,000,000 principal amount of the Notes has been converted into ordinary shares at $6.00 per share at L1 Capital’s election. On July 21, 2023, the Company repaid the remaining $100,000 principal amount of the Notes to L1 Capital in cash. As of June 30, 2024 and December 31, 2023, the carrying value balance of the convertible note was $0.   Convertible note   First Tranche     Second Tranche     Total   Initial recognition   $ 3,438,933     $ -     $ 3,438,933   Amortization of insurance cost     358,155       288,095     $ 646,250   Conversion to ordinary shares     (3,797,088 )     (235,952 )     (4,033,040 ) Balance as of December 31, 2022   $ -     $ 52,143     $ 52,143   Amortization of insurance cost     -       47,857       47,857   Repayment     -       (100,000 )     (100,000 ) Balance as of December 31, 2023   $ -     $ -     $ -     Accounting for warrants   The Warrants were issued in conjunction with the convertible note by a separate contract, and legally detachable and separately transferrable. The Warrants were exercisable via “cashless” exercise if there is not an effective registration statement covering resale of the ordinary share under the Warrants. The exercise price per ordinary share under the Warrants was $6.00 and subject to certain adjustments which do not meet the criteria for equity treatment in accordance with the guidance contained in ASC 815-40-15-7E. Accordingly at initial recognition, the Company classifies such warrants as liabilities at their fair value. This warrant liability is subject to re-measurement at each balance sheet date until exercised, and any change in fair value is recognized in the consolidated statements of operations.   The Company recognized $915,644 for warrant liabilities upon issuance of the Initial Warrant on January 24, 2022. The Company recognized $4,833,325 for warrant liabilities upon issuance of the Second Warrant on May 23, 2022.   The Company utilizes the Black-Scholes option-pricing model to estimate the fair value of the Warrants at each reporting period since the Warrants are not actively traded. The estimated fair value of the Warrant liabilities is determined using Level 3 inputs in accordance with ASC 820, “Fair Value Measurement”. Inherent in the Black-Scholes model are assumptions related to expected stock-price volatility, expected life, risk-free interest rate and dividend yield. The Company estimates the volatility of its ordinary shares based on historical volatility of its own stock price during the period that matches the expected remaining life of the Warrants. The risk-free interest rate is based on the U.S. Treasury zero-coupon yield curve on the grant date for a maturity similar to the expected remaining life of the Warrants. The expected life of the Warrants is assumed to be equivalent to their remaining contractual term. The dividend rate is based on the historical rate, which the Company anticipates remaining at zero.   The following reflects the inputs and assumptions used:       January 24, 2022     May 23, 2022     December 31, 2022     December 31, 2023     June 30, 2024   Exercise price   $ 6.00     $ 6.00     $ 6.00     $ 6.00     $ 6.00   Share price   $ 3.64     $ 14.94     $ 4.66     $ 2.71     $ 2.75   Expected term from grant date (in years)     5.00       5.00       4.10 for Initial Warrant and 4.50 for Second Warrant       3.10 for Initial Warrant and 3.40 for Second Warrant       2.60 for Initial Warrant and 2.90 for Second Warrant   Expected volatility     96.32 %     95.90 %     96.03 %     82.40 %     107.43 % Risk-free interest rate     1.53 %     2.88 %     3.99 %     4.01 %     4.52 % Dividend yield (per share)     -       -       -       -       -     During the year ended December 31, 2022, L1 Capital has exercised 325,000 of the Initial Warrant at $6.00 per share while the Company has received $1,950,000 proceeds from exercise of these warrants. During six months ended June 30, 2024, no warrant was exercised. As of June 30, 2024 and December 31, 2023, there were 442,240 warrants issued and outstanding.     The movement of warrant liabilities is summarized as follows:   Balance as of January 1, 2022   $ -   Issuance of Initial Warrant as of January 24, 2022     915,644   Issuance of Second Warrant as of May 23, 2022     4,833,325         50,000 warrant shares exercised on June 16, 2022     (119,343 ) 185,000 warrant shares exercised on August 18, 2022     (915,799 ) 90,000 warrant shares exercised on August 29, 2022     (445,524 )       Change in fair value of warrant liabilities     (2,878,660 ) Balance as of December 31, 2022   $ 1,389,643   Change in fair value of warrant liabilities for the year     (907,425 ) Balance as of December 31, 2023   $ 482,219   Change in fair value of warrant liabilities     144,569   Balance as of June 30, 2024   $ 626,788

OPERATING LEASES	6 Months Ended
	Jun. 30, 2024
Operating Leases
OPERATING LEASES	NOTE 8 – OPERATING LEASES   The Company accounts for leases in accordance with ASC Topic 842, Leases (“ASC 842”). All contracts are evaluated to determine whether or not they represent a lease. A lease conveys the right to control the use of an identified asset for a period of time in exchange for consideration. The Company has operating leases primarily consisting of facilities with remaining lease terms of one year to three years. The lease term represents the period up to the early termination date unless it is reasonably certain that the Company will not exercise the early termination option.   Leases are classified as finance or operating in accordance with the guidance in ASC 842. The Company does not hold any finance leases as of June 30, 2024 and December 31, 2023.   The Company also has certain short-term leases related to equipment and tools. A short-term lease is a lease with a term of 12 months or less and does not include the option to purchase the underlying asset that the Company would expect to exercise. The Company has elected to adopt the short-term lease exemption in ASC 842 and as such has not recognized a “right of use” asset or lease liability for these short-term leases.   The Company’s lease agreements generally do not provide an implicit borrowing rate, therefore the incremental borrowing rate (“IBR”) on a collateralized basis for a similar term as the underlying lease was used at lease commencement date for purposes of determining the present value of lease payments. As of June 30, 2024, there was no update to an incremental borrowing rate at 10%, which was a 3-year tenure secured borrowing rate as quoted by a local bank.   The components of lease expense were as follows for each of the periods presented:       June 30, 2024     June 30, 2023       (Unaudited)     (Unaudited )   Operating lease expense   $ 442,648       202,680   Short-term lease expense     17,988       553,107   Total operating lease costs     460,636       755,787   Other information                 Operating cash flows used in operating leases     136,016       179,661   Weighted average remaining lease term (in years)     1.87       1.30   Weighted average discount rate     10 %     10 %   Future lease payments included in the measurement of operating lease liabilities as of June 30, 2024 is as follows:       June 30, 2024   2024   $ 322,326   2025     489,435   2026     210,739   2027     13,648       1,036,148   Less: discount on operating lease liabilities     (87,542 ) Present value of operating lease liabilities     948,606   Less: Current portion of operating lease liabilities     (568,317 ) Non-current portion of operating lease liabilities     380,289

TAXES	6 Months Ended
	Jun. 30, 2024
Income Tax Disclosure [Abstract]
TAXES	NOTE 9 – TAXES   The current and deferred components of the income tax provision which are substantially attributable to the Company’s subsidiaries in Indonesia. Due to the unrecovered expenditures on the Company’s Kruh Block operations, there was no provision for income taxes for the six months ended June 30, 2024 and 2023, respectively.   The effective tax rate is based on expected income and statutory tax rates. For interim financial reporting, the Company estimates the annual tax rate based on projected taxable income for the full year and records an interim income tax provision in accordance with guidance on accounting for income taxes in an interim period. As the year progresses, the Company refines the estimates of the year’s taxable income as new information becomes available. The Company’s effective tax rates for the six months ended June 30, 2024 and 2023 were 0% and 0%, respectively.   The Company did not incur any interest and penalties related to potential underpaid income tax expenses.

SHARE BASED COMPENSATION EXPENSES	6 Months Ended
	Jun. 30, 2024
Share-Based Payment Arrangement [Abstract]
SHARE BASED COMPENSATION EXPENSES	NOTE 10 – SHARE BASED COMPENSATION EXPENSES   On January 30, 2024, the Company issued 60,000 of the Company’s restricted ordinary shares to Frank Ingriselli, the Company’s President, pursuant to his employment agreement with the Company, with 30,000 shares vesting on July 1, 2024 and 30,000 shares vesting on January 1, 2025. Such ordinary shares were valued at $2.70 per share, which was based on the closing price of the shares traded on the NYSE American exchange on January 30, 2024.

EQUITY	6 Months Ended
	Jun. 30, 2024
Equity [Abstract]
EQUITY	NOTE 11 – EQUITY   As of June 30, 2024 and December 31, 2023, there were 10,349,266 and 10,142,694 of ordinary shares, $0.00267 par value per share, issued and outstanding.

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jun. 30, 2024
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 12 – COMMITMENTS AND CONTINGENCIES   Litigation   From time to time, the Company may be subject to routine litigation, claims, or disputes in the ordinary course of business. Litigation or any other legal or administrative proceeding, regardless of the outcome, is likely to result in substantial cost and diversion of our resources, including our management’s time and attention. The Company defends itself vigorously in all such matters. In the opinion of management, no pending or known threatened claims, actions or proceedings against the Company are expected to have a material adverse effect on its financial position, results of operations or cash flows. However, the Company cannot predict with certainty the outcome or effect of any such litigation or investigatory matters or any other pending litigation or claims. There can be no assurance as to the ultimate outcome of any such lawsuits and investigations. The Company has no significant pending litigation as of June 30, 2024.   Commitments   As a requirement to acquire and maintain the operatorship of oil and gas blocks in Indonesia, the Company follows a work program and budget that includes firm capital commitments.   Currently, Kruh Block is operated under a KSO until May 2030, which was extended to 2035 in August 2023. The Company has material commitments related to its development and exploration activities in the Kruh Block and material commitments in regard to the exploration activity in the Citarum Block under a Production Sharing Contract with the Indonesian Special Task Force for Upstream Oil and Gas Business Activities (known as SKK Migas) (the “PSC”). The following table summarizes future commitments amounts on an undiscounted basis as of June 30, 2024 for all the planned expenditures to be carried out in Kruh Block and Citarum Block (this table takes into account the Company’s updated seismic and drilling plans for Kruh Block):               Future commitments (Unaudited)       Nature of commitments     Remaining of 2024     2025     2026 and beyond   Citarum Block PSC                                 Geological and geophysical (G&G) studies     (a)     $ -     $ 150,000     $ 950,000   2D seismic     (a)       -       -       6,050,000   3D seismic     (a)       -       -       2,100,000   Drilling     (b)(c)       -       -       30,000,000   Total commitments - Citarum PSC           $ -     $ 150,000     $ 39,100,000   Kruh Block KSO                             -   Lease commitments     (d)     $ 774,297     $ 2,021,236     $ 72,649,378   Production facility             -       -       1,300,000   G&G studies     (a)       100,000       100,000       350,000   2D seismic     (a)       -       -       1,250,000   3D seismic     (a)       1,177,633       -       -   Drilling     (a)(c)       -       1,500,000       19,500,000   Workover             -       -       -   Certification             -       -       250,000   Abandonment and Site Restoration     (a)       26,263       52,526       525,264   Total commitments - Kruh KSO           $ 2,078,193     $ 3,672,762     $ 95,824,642   Total Commitments           $ 2,078,193     $ 3,823,762     $ 134,924,642     Nature of commitments:      (a) Both firm commitments and a 5-year work program according to the Company’s economic model are included in the estimate. Firm capital commitments represent legally binding obligations with respect to the KSO for Kruh Block or the PSC for Citarum Block in which the contract specifies the minimum exploration or development work to be performed by us within the first three years of the contract. In certain cases where we execute contracts requiring commitments to a work scope, those commitments have been included to the extent that the amounts and timing of payments can be reliably estimated.         (b) Includes one exploration and two delineation wells.         (c) Abandonment and site restoration are primarily upstream asset removal costs at the drilling completion of a field life related to or associated with site clearance, site restoration, and site remediation, based on Indonesian government rules.         (d) Lease commitments are contracts that allow for the use of an asset but does not convey rights of ownership of the asset. The Company accounts for leases in accordance with ASC Topic 842, Leases (“ASC 842”). Right of use assets and lease liabilities for the Company’s operating leases are recorded in the condensed consolidated balance sheet except for the short-term lease exemption. An operating lease represents a rental agreement for an asset from a lessor under the terms. Most of our operating leases are related to the equipment and machinery used in oil production. All of the Company’s operating lease agreements with third parties can be cancelled or terminated at any time by the Company.

LIQUIDITY AND GOING CONCERN	6 Months Ended
	Jun. 30, 2024
Liquidity And Going Concern
LIQUIDITY AND GOING CONCERN	NOTE 13 – LIQUIDITY AND GOING CONCERN   The Company reported a net loss of $2,099,146 and net cash used in operating activities of $700,941 for the six months ended June 30, 2024. In addition, the Company had an accumulated deficit of $41,682,583 and working capital of $2,432,159 as of June 30, 2024. The Company’s operating results for future periods are subject to numerous uncertainties and it is uncertain if the Company will be able to reduce or eliminate its net losses and achieve profitability for the foreseeable future. These conditions raise substantial doubt about the Company’s ability to continue as a going concern.   The Company has financed the operations primarily through cash flow from operations, loans from banks, and proceeds from equity instrument financing, where necessary. On July 22, 2022, the Company entered into an At The Market Offering Agreement (the “ATM Agreement”) with H.C. Wainwright & Co., LLC (the “Sales Agent”), acting as its sales agent, pursuant to which the Company may offer and sell, from time to time, to or through the Sales Agent, ordinary shares having an aggregate gross offering price of up to $20,000,000. The ATM Agreement was amended on March 22, 2024 (“ATM Amendment No.1”), pursuant to which the Company may sell ordinary shares with an aggregate gross offering price of up to $9,600,000. The Company received net proceeds of $323,934 through issuance of ordinary shares by such ATM offering as of June 30, 2024. See Note 14 for information on additional funds raised via the ATM Agreement.   As of October 24, 2024, the Company had approximately $5.61 million of cash which is placed with financial institutions and is unrestricted as to withdrawal or use. Management’s plan for mitigating the conditions of substantial doubt about the Company’s ability to continue as a going concern includes a combination of improving operational efficiency, cost reductions, debt and equity. In June 2024, new 3D seismic exploratory operations at the Company’s 63,000 acre Kruh Block commenced. Importantly, the Company anticipates that the results of this seismic work will allow it to drill one new production well at Kruh Block in early 2025, with the remaining 13 wells to be drilled between 2025 and 2028, subject to the availability of funding necessary to conduct such activity. The Company currently does not have any outstanding short-term or long-term bank borrowings balance. Management expects that it will be able to obtain new bank loans based on past experience and the Company’s good credit history. The Company intends to meet its cash requirements for the 12 months following the date of the issuance of the condensed consolidated financial statements through operations and the foregoing potential funding opportunities.   The Company believes that the Company’s current cash and cash equivalents and anticipated cash flows from operating and financing activities will be sufficient to meet its anticipated working capital requirements and commitments for at least the next 12 months after the issuance of the Company’s unaudited condensed consolidated financial statements. The Company has prepared the condensed consolidated financial statements on a going concern basis. If the Company encounters unforeseen circumstances that place constraints on its capital resources, management will be required to take various measures to conserve liquidity. Management cannot provide any assurance that the Company will be able to raise additional capital if needed.

SUBSEQUENT EVENTS	6 Months Ended
	Jun. 30, 2024
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 14 – SUBSEQUENT EVENTS   The Company evaluated all events that occurred up to October 24, 2024 and determined that no events that would have required adjustment or disclosure in the condensed consolidated financial statements except the following.   On August 22, 2024, 60,000 restricted ordinary shares that were issued to Frank Ingriselli, the Company’s President, as compensation became unrestricted.   As of the date of these interim condensed financial statements, a total of 2,981,253 ordinary shares have been issued through ATM and the Company has received aggregate net proceeds of $7,794,843 from January to September 2024   through issuance of ordinary shares through the ATM offering. A significant majority of these ordinary shares were issued subsequent to June 30, 2024. As such, as of October 24, 2024, the Company has approximately $5.61 million in cash and cash equivalents.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Jun. 30, 2024
Accounting Policies [Abstract]
Basis of presentation and consolidation	Basis of presentation and consolidation   The unaudited condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) for interim financial statements. Accordingly, they may not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The interim financial information should be read in conjunction with the consolidated financial statements and footnotes in the Company’s financial statements for the fiscal year ended December 31, 2023 included in the Company’s Form 20-F filed with the SEC on April 26, 2024.   In the opinion of management, all adjustments (which include normal recurring adjustments) necessary to present a fair presentation of the Company’s condensed consolidated balance sheet as of June 30, 2024, condensed consolidated statements of operations, changes in equity and cash flows for the six months ended June 30, 2024 and 2023, as applicable, have been made. Operating results for the six months ended June 30, 2024 are not necessarily indicative of the operating results that may be expected for the fiscal year ending December 31, 2024 or any future periods.   The unaudited condensed consolidated financial statements include the financial statements of the Company and all its majority-owned subsidiaries from the dates they were acquired or incorporated. All intercompany balances and transactions have been eliminated in consolidation.
Recently issued accounting standards	Recently issued accounting standards   The Company is an “emerging growth company,” as defined in the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). Under the JOBS Act, emerging growth companies (“EGCs”) can delay adopting new or revised accounting standards issued subsequent to the enactment of the JOBS Act until such time as those standards apply to private companies. The Company will cease its status as an emerging growth company as of January 1, 2025.   In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. This ASU updates reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses and information used to assess segment performance. The amendments in this ASU are effective for public entities for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The Group is still evaluating the effect of the adoption of this guidance.   In December 2023, the FASB issued Accounting Standards Update (ASU) 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which enhances the transparency and decision usefulness of income tax disclosures. The amendments address more transparency about income tax information through improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid information. The ASU also includes certain other amendments to improve the effectiveness of income tax disclosures. The amendments in this ASU are effective for public business entities for annual periods beginning after December 15, 2024 on a prospective basis. Early adoption is permitted. The Company is still evaluating the effect of the adoption of this guidance.   On March 6, 2024, the SEC approved a rule that will require registrants to provide certain climate-related information in their registration statements and annual reports, beginning with annual reports for the year ending December 31, 2025, for calendar-year-end large accelerated filers. The rule requires information about a registrant’s climate-related risks that are reasonably likely to have a material impact on its business, results of operations, or financial condition. The required information about climate-related risks also includes disclosure of a registrant’s greenhouse gas emissions. In addition, the rules will require registrants to present certain climate-related financial metrics in their audited financial statements. The Company is evaluating the potential impact of this rule on the consolidated financial statements and related disclosures, although implementation of the rule has been stayed due to legal challenges, and as a non-accelerated filer and an EGC, the Company believes this rule is currently inapplicable to the Company.   Other accounting pronouncements that have been issued or proposed by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Company’s condensed consolidated financial statements upon adoption.
Warrant Liabilities	Warrant Liabilities   The Company accounts for the warrants issued in connection with its January 2022 convertible note financing (see Note 7) in accordance with the guidance contained in Accounting Standards Codification (“ASC”) 815-40 Derivatives and Hedging - Contracts in Entity’s Own Equity (“ASC 815”) under which the warrants do not meet the criteria for equity treatment and must be recorded as liabilities. Accordingly, the Company classifies such warrants as liabilities at their fair value and adjusts the warrants to fair value at each reporting period. This liability is subject to re-measurement at each balance sheet date until exercised, and any change in fair value is recognized in the condensed consolidated statements of operations. Such warrants are valued using the Black-Scholes option-pricing model as no observable traded price was available for such warrants. See Note 7 for further information.
Fair Value of Financial Instruments	Fair Value of Financial Instruments   The Company records certain of its financial assets and liabilities at fair value on a recurring basis. Fair value is considered to be the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and considers assumptions that market participants would use when pricing the asset or liability. The established fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The three levels of inputs may be used to measure fair value include:   Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities.     Level 2 applies to assets or liabilities for which there are inputs other than quoted prices included within Level 1 that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data.     Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.   The carrying values of the Company’s financial instruments, including cash and cash equivalents, restricted cash, accounts receivable, other current assets, accounts payables, other current liabilities, accrued expenses and tax payables, approximate their fair values due to the short-term nature of these instruments.
Net Loss per Ordinary Share	Net Loss per Ordinary Share   Basic net loss per share is determined by dividing net loss by the weighted average number of the Company’s ordinary shares, par value $0.00267 per share (the “Ordinary Shares”), outstanding during the period, without consideration of potentially dilutive securities, except for those Ordinary Shares that are issuable for little or no cash consideration. Diluted net loss per share is determined by dividing net loss by diluted weighted average Ordinary Shares outstanding. Diluted weighted average shares reflect the dilutive effect, if any, of potentially dilutive Ordinary Shares, such as stock options and warrants calculated using the “treasury stock” and/or “if converted” methods, as applicable. In periods with reported net operating losses, all potential dilutive securities are generally deemed anti-dilutive such that basic net loss per share and diluted net loss per share are equal.     For six months ended June 30, 2024 and 2023, the following potentially dilutive securities were excluded from the computation of diluted earnings per share because their effects would be anti-dilutive:       June 30,     June 30,       2024     2023   Warrants issued to L1 Capital (see NOTE 6)     442,240       442,240   Convertible note issued to L1 Capital (see NOTE 6) (i)     -       16,667   Share options granted to the executive management     -       200,000   Total     442,240       658,907     (i) Convertible note is assumed to be converted at the exercise price of $6.00 per share (subject to adjustment) as disclosed in Note 6.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	6 Months Ended
	Jun. 30, 2024
Accounting Policies [Abstract]
SCHEDULE OF ANTI DILUTIVE EARNING PER SHARE	For six months ended June 30, 2024 and 2023, the following potentially dilutive securities were excluded from the computation of diluted earnings per share because their effects would be anti-dilutive:       June 30,     June 30,       2024     2023   Warrants issued to L1 Capital (see NOTE 6)     442,240       442,240   Convertible note issued to L1 Capital (see NOTE 6) (i)     -       16,667   Share options granted to the executive management     -       200,000   Total     442,240       658,907     (i) Convertible note is assumed to be converted at the exercise price of $6.00 per share (subject to adjustment) as disclosed in Note 6.

PREPAYMENT AND OTHER ASSETS (Tables)	6 Months Ended
	Jun. 30, 2024
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
SCHEDULE OF OTHER ASSETS	June 30,     December 31,       2024     2023       (Unaudited)     (Audited)   Prepaid VAT taxes   $ 1,483,892     $ 1,442,517   Prepaid expenses     742,456       21,983   Other receivables     82,227       307,700   Consumables and spare parts     139,266       148,376   Prepayment and other current assets   $ 2,447,841     $ 1,920,576                     Other receivable from well equipment   $ 609,602     $ 609,604   Deposit and others     132,542       134,836   Durable spare parts     127,128       128,107   Advanced to venders     5,806       -   Other assets - non current     875,078       872,547   Less: allowance on doubtful receivables     (59,604 )     (59,604 ) Other non-current assets, net   $ 815,474     $ 812,943

OIL AND GAS PROPERTY, NET (Tables)	6 Months Ended
	Jun. 30, 2024
Extractive Industries [Abstract]
SCHEDULE OF OIL AND GAS ACTIVITIES	The following tables summarize the Company’s oil and gas activities by classification.       June 30, 2024     December 31, 2023       (Unaudited)     (Audited)   Oil and gas property - subject to amortization   $ 29,243,303     $ 28,035,019   Accumulated depletion     (9,323,062 )     (9,064,212 ) Accumulated impairment     (11,859,183 )     (11,859,183 ) Oil and gas property - subject to amortization, net   $ 8,061,058     $ 7,111,624                     Oil and gas property - not subject to amortization   $ 1,155,439     $ 1,155,439   Accumulated impairment     -       -   Oil and gas property - not subject to amortization, net   $ 1,155,439     $ 1,155,439
SCHEDULE OF MOVEMENT OF THE OIL AND GAS PROPERTY	The following shows the movement of the oil and gas property - subject to amortization balance.       Oil & Gas Property – Kruh   December 31, 2023   $ 7,111,624   Additional capitalization     1,208,284   Depletion     (258,850 ) June 30, 2024 (Unaudited)   $ 8,061,058

PROPERTY AND EQUIPMENT, NET (Tables)	6 Months Ended
	Jun. 30, 2024
Property, Plant and Equipment [Abstract]
SCHEDULE OF PROPERTY AND EQUIPMENT, NET	June 30, 2024     December 31, 2023       (Unaudited)     (Audited)   Drilling and production tools   $ 1,499,535     $ 1,499,535   Leasehold improvement     323,675       323,675   Production facilities     93,049       93,049   Computer and software     5,605       5,605   Housing and welfare     4,312       4,312   Furniture and office equipment     4,013       4,013   Equipment     1,650       1,650   Total     1,931,839       1,931,839               Less: accumulated depreciation     (1,869,062 )     (1,822,822 ) Property and equipment, net   $ 62,777     $ 109,017

FINANCIAL LIABILITY (Tables)	6 Months Ended
	Jun. 30, 2024
Investments, All Other Investments [Abstract]
SCHEDULE OF FINANCIAL LIABILITY	SCHEDULE OF FINANCIAL LIABILITY     June 30, 2024     December 31, 2023                 Warrant liabilities, net of debt issuance costs   $ 626,788     $ 482,219
SCHEDULE OF CONVERTIBLE DEBT	Convertible note   First Tranche     Second Tranche     Total   Initial recognition   $ 3,438,933     $ -     $ 3,438,933   Amortization of insurance cost     358,155       288,095     $ 646,250   Conversion to ordinary shares     (3,797,088 )     (235,952 )     (4,033,040 ) Balance as of December 31, 2022   $ -     $ 52,143     $ 52,143   Amortization of insurance cost     -       47,857       47,857   Repayment     -       (100,000 )     (100,000 ) Balance as of December 31, 2023   $ -     $ -     $ -
SCHEDULE OF WARRANTS VALUATION ASSUMPTIONS	The following reflects the inputs and assumptions used:       January 24, 2022     May 23, 2022     December 31, 2022     December 31, 2023     June 30, 2024   Exercise price   $ 6.00     $ 6.00     $ 6.00     $ 6.00     $ 6.00   Share price   $ 3.64     $ 14.94     $ 4.66     $ 2.71     $ 2.75   Expected term from grant date (in years)     5.00       5.00       4.10 for Initial Warrant and 4.50 for Second Warrant       3.10 for Initial Warrant and 3.40 for Second Warrant       2.60 for Initial Warrant and 2.90 for Second Warrant   Expected volatility     96.32 %     95.90 %     96.03 %     82.40 %     107.43 % Risk-free interest rate     1.53 %     2.88 %     3.99 %     4.01 %     4.52 % Dividend yield (per share)     -       -       -       -       -
SCHEDULE OF WARRANT LIABILITIES	The movement of warrant liabilities is summarized as follows:   Balance as of January 1, 2022   $ -   Issuance of Initial Warrant as of January 24, 2022     915,644   Issuance of Second Warrant as of May 23, 2022     4,833,325         50,000 warrant shares exercised on June 16, 2022     (119,343 ) 185,000 warrant shares exercised on August 18, 2022     (915,799 ) 90,000 warrant shares exercised on August 29, 2022     (445,524 )       Change in fair value of warrant liabilities     (2,878,660 ) Balance as of December 31, 2022   $ 1,389,643   Change in fair value of warrant liabilities for the year     (907,425 ) Balance as of December 31, 2023   $ 482,219   Change in fair value of warrant liabilities     144,569   Balance as of June 30, 2024   $ 626,788

OPERATING LEASES (Tables)	6 Months Ended
	Jun. 30, 2024
Operating Leases
SCHEDULE OF LEASE EXPENSE	The components of lease expense were as follows for each of the periods presented:       June 30, 2024     June 30, 2023       (Unaudited)     (Unaudited )   Operating lease expense   $ 442,648       202,680   Short-term lease expense     17,988       553,107   Total operating lease costs     460,636       755,787   Other information                 Operating cash flows used in operating leases     136,016       179,661   Weighted average remaining lease term (in years)     1.87       1.30   Weighted average discount rate     10 %     10 %
SCHEDULE OF OPERATING FUTURE LEASE PAYMENTS	Future lease payments included in the measurement of operating lease liabilities as of June 30, 2024 is as follows:       June 30, 2024   2024   $ 322,326   2025     489,435   2026     210,739   2027     13,648       1,036,148   Less: discount on operating lease liabilities     (87,542 ) Present value of operating lease liabilities     948,606   Less: Current portion of operating lease liabilities     (568,317 ) Non-current portion of operating lease liabilities     380,289

COMMITMENTS AND CONTINGENCIES (Tables)	6 Months Ended
	Jun. 30, 2024
Commitments and Contingencies Disclosure [Abstract]
SCHEDULE OF FUTURE COMMITMENTS AMOUNTS ON AN UNDISCOUNTED FOR ALL THE PLANNED EXPENDITURES	Future commitments (Unaudited)       Nature of commitments     Remaining of 2024     2025     2026 and beyond   Citarum Block PSC                                 Geological and geophysical (G&G) studies     (a)     $ -     $ 150,000     $ 950,000   2D seismic     (a)       -       -       6,050,000   3D seismic     (a)       -       -       2,100,000   Drilling     (b)(c)       -       -       30,000,000   Total commitments - Citarum PSC           $ -     $ 150,000     $ 39,100,000   Kruh Block KSO                             -   Lease commitments     (d)     $ 774,297     $ 2,021,236     $ 72,649,378   Production facility             -       -       1,300,000   G&G studies     (a)       100,000       100,000       350,000   2D seismic     (a)       -       -       1,250,000   3D seismic     (a)       1,177,633       -       -   Drilling     (a)(c)       -       1,500,000       19,500,000   Workover             -       -       -   Certification             -       -       250,000   Abandonment and Site Restoration     (a)       26,263       52,526       525,264   Total commitments - Kruh KSO           $ 2,078,193     $ 3,672,762     $ 95,824,642   Total Commitments           $ 2,078,193     $ 3,823,762     $ 134,924,642     Nature of commitments:      (a) Both firm commitments and a 5-year work program according to the Company’s economic model are included in the estimate. Firm capital commitments represent legally binding obligations with respect to the KSO for Kruh Block or the PSC for Citarum Block in which the contract specifies the minimum exploration or development work to be performed by us within the first three years of the contract. In certain cases where we execute contracts requiring commitments to a work scope, those commitments have been included to the extent that the amounts and timing of payments can be reliably estimated.         (b) Includes one exploration and two delineation wells.         (c) Abandonment and site restoration are primarily upstream asset removal costs at the drilling completion of a field life related to or associated with site clearance, site restoration, and site remediation, based on Indonesian government rules.         (d) Lease commitments are contracts that allow for the use of an asset but does not convey rights of ownership of the asset. The Company accounts for leases in accordance with ASC Topic 842, Leases (“ASC 842”). Right of use assets and lease liabilities for the Company’s operating leases are recorded in the condensed consolidated balance sheet except for the short-term lease exemption. An operating lease represents a rental agreement for an asset from a lessor under the terms. Most of our operating leases are related to the equipment and machinery used in oil production. All of the Company’s operating lease agreements with third parties can be cancelled or terminated at any time by the Company.

ORGANIZATION AND PRINCIPAL ACTIVITIES (Details Narrative)	Jun. 30, 2024 a
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Area of Land	63,000

SCHEDULE OF ANTI DILUTIVE EARNING PER SHARE (Details) - shares		6 Months Ended
		Jun. 30, 2024	Jun. 30, 2023
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive securities		442,240	658,907
Warrant [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive securities		442,240	442,240
Convertible Debt Securities [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive securities	[1]		16,667
Share-Based Payment Arrangement, Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive securities			200,000
[1] Convertible note is assumed to be converted at the exercise price of $

SCHEDULE OF ANTI DILUTIVE EARNING PER SHARE (Details) (Parenthetical) - $ / shares	Jun. 30, 2024	Dec. 31, 2023	Dec. 31, 2022	May 23, 2022	Jan. 24, 2022
Accounting Policies [Abstract]
Class of Warrant or Right, Exercise Price of Warrants or Rights	$ 6.00	$ 6.00	$ 6.00	$ 6.00	$ 6.00

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - $ / shares	Jun. 30, 2024	Dec. 31, 2023
Accounting Policies [Abstract]
Ordinary shares, par value	$ 0.00267	$ 0.00267

SCHEDULE OF OTHER ASSETS (Details) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Prepaid VAT taxes	$ 1,483,892	$ 1,442,517
Prepaid expenses	742,456	21,983
Other receivables	82,227	307,700
Consumables and spare parts	139,266	148,376
Prepayment and other current assets	2,447,841	1,920,576
Other receivable from well equipment	609,602	609,604
Deposit and others	132,542	134,836
Durable spare parts	127,128	128,107
Advanced to venders	5,806
Other assets - non current	875,078	872,547
Less: allowance on doubtful receivables	(59,604)	(59,604)
Other non-current assets, net	$ 815,474	$ 812,943

PREPAYMENT AND OTHER ASSETS (Details Narrative) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Prepaid to rig equipment		$ 550,000
Accounts Receivable, Allowance for Credit Loss	$ 0	$ 59,604

SCHEDULE OF OIL AND GAS ACTIVITIES (Details) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Extractive Industries [Abstract]
Oil and gas property - subject to amortization	$ 29,243,303	$ 28,035,019
Accumulated depletion	(9,323,062)	(9,064,212)
Accumulated impairment	(11,859,183)	(11,859,183)
Oil and gas property - subject to amortization, net	8,061,058	7,111,624
Oil and gas property - not subject to amortization	1,155,439	1,155,439
Accumulated impairment
Oil and gas property - not subject to amortization, net	$ 1,155,439	$ 1,155,439

SCHEDULE OF MOVEMENT OF THE OIL AND GAS PROPERTY (Details) - USD ($)	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Extractive Industries [Abstract]
Beginning Balance	$ 7,111,624
Additional capitalization	1,208,284
Depletion	(258,850)	$ (551,225)
Ending Balance	$ 8,061,058

OIL AND GAS PROPERTY, NET (Details Narrative) - USD ($)	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Extractive Industries [Abstract]
Costs capitalized to oil and gas property	$ 1,208,284
Depletion to oil and gas property	$ 258,850	$ 551,225

SCHEDULE OF PROPERTY AND EQUIPMENT, NET (Details) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 1,931,839	$ 1,931,839
Less: accumulated depreciation	(1,869,062)	(1,822,822)
Property and equipment, net	62,777	109,017
Tools, Dies and Molds [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	1,499,535	1,499,535
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	323,675	323,675
Support Equipment and Facilities [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	93,049	93,049
Computer Software, Intangible Asset [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	5,605	5,605
Housing and Welfare [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	4,312	4,312
Furniture And Office Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	4,013	4,013
Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 1,650	$ 1,650

PROPERTY AND EQUIPMENT, NET (Details Narrative) - USD ($)	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Property, Plant and Equipment [Abstract]
Depreciation	$ 46,240	$ 46,239

WORKING CAPITAL LOAN (Details Narrative) - USD ($)	May 10, 2024	Jun. 30, 2024	Dec. 31, 2023
Short-Term Debt [Line Items]
Loan amount	$ 248,447
Maturity date	Nov. 09, 2024
Interest rate	12.00%
Other current liabilities		$ 283,295	$ 17,941
Loans [Member]
Short-Term Debt [Line Items]
Other current liabilities		$ 283,295

SCHEDULE OF FINANCIAL LIABILITY (Details) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Investments, All Other Investments [Abstract]
Warrant liabilities, net of debt issuance costs	$ 626,788	$ 482,219

SCHEDULE OF CONVERTIBLE DEBT (Details) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Convertible note, beginning balance	$ 52,143	$ 3,438,933
Amortization of insurance cost	47,857	646,250
Conversion to ordinary shares		(4,033,040)
Repayment	(100,000)
Convertible note, ending balance		52,143
First Tranche [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Convertible note, beginning balance		3,438,933
Amortization of insurance cost		358,155
Conversion to ordinary shares		(3,797,088)
Repayment
Convertible note, ending balance
Second Tranche [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Convertible note, beginning balance	52,143
Amortization of insurance cost	47,857	288,095
Conversion to ordinary shares		(235,952)
Repayment	(100,000)
Convertible note, ending balance		$ 52,143

SCHEDULE OF WARRANTS VALUATION ASSUMPTIONS (Details)	Jun. 30, 2024 $ / shares	Dec. 31, 2023 $ / shares	Dec. 31, 2022 $ / shares	May 23, 2022 $ / shares	Jan. 24, 2022 $ / shares
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Exercise price	$ 6.00	$ 6.00	$ 6.00	$ 6.00	$ 6.00
Share price	$ 2.75	$ 2.71	$ 4.66	$ 14.94	$ 3.64
Measurement Input, Expected Term [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Expected term from grant date (in years)				5 years	5 years
Measurement Input, Expected Term [Member] | Initial Warrant [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Expected term from grant date (in years)	2 years 7 months 6 days	3 years 1 month 6 days	4 years 1 month 6 days
Measurement Input, Expected Term [Member] | Second Warrent [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Expected term from grant date (in years)	2 years 10 months 24 days	3 years 4 months 24 days	4 years 6 months
Measurement Input, Price Volatility [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Warrants valuation assumptions	107.43	82.40	96.03	95.90	96.32
Measurement Input, Risk Free Interest Rate [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Warrants valuation assumptions	4.52	4.01	3.99	2.88	1.53
Measurement Input, Expected Dividend Rate [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Warrants valuation assumptions

SCHEDULE OF WARRANT LIABILITIES (Details) - USD ($)				6 Months Ended	12 Months Ended
	Aug. 29, 2022	Aug. 18, 2022	Jun. 16, 2022	Jun. 30, 2024	Dec. 31, 2023	Dec. 31, 2022	May 23, 2022	Jan. 24, 2022
Issuance of warrant				$ 626,788	$ 482,219
Warrant [Member]
Warrant liabilities, beginning balance				482,219	1,389,643
Warrant shares exercised	$ (445,524)	$ (915,799)	$ (119,343)
Change in fair value of warrant liabilities				144,569	(907,425)	(2,878,660)
Warrant liabilities, ending balance				$ 626,788	$ 482,219	$ 1,389,643
Warrant [Member] | Initial Warrant [Member]
Issuance of warrant								$ 915,644
Warrant [Member] | Second Warrant [Member]
Issuance of warrant							$ 4,833,325

SCHEDULE OF WARRANT LIABILITIES (Details) (Parenthetical) - shares	Aug. 29, 2022	Aug. 18, 2022	Jun. 16, 2022
Warrant [Member]
Warrant exercised, shares	90,000	185,000	50,000

FINANCIAL LIABILITY (Details Narrative)						6 Months Ended	12 Months Ended
	Jul. 21, 2023 USD ($)	Aug. 29, 2022 shares	Aug. 18, 2022 shares	Jun. 16, 2022 shares	Jan. 21, 2022 USD ($) d $ / shares shares	Jun. 30, 2024 USD ($) $ / shares shares	Dec. 31, 2023 USD ($) $ / shares shares	Dec. 31, 2022 USD ($) $ / shares shares	May 10, 2024 USD ($)	May 23, 2022 USD ($) $ / shares	Mar. 04, 2022 USD ($) $ / shares shares	Jan. 24, 2022 USD ($) $ / shares
Warrant exercise price | $ / shares						$ 6.00	$ 6.00	$ 6.00		$ 6.00		$ 6.00
Loan facility principal amount									$ 248,447
Debt issuance costs						$ 811,000
Warrant liabilities						626,788	$ 482,219
Warrants exercised						$ 0		$ 1,950,000
Warrants issued | shares						442,240	442,240
Warrants outstanding | shares						442,240	442,240
Warrant [Member]
Warrant exercised | shares		90,000	185,000	50,000
Warrant [Member] | Initial Warrant [Member]
Warrant liabilities												$ 915,644
Warrant [Member] | Second Warrant [Member]
Warrant liabilities										$ 4,833,325
L1 Capital Global Opportunities Master Fund Ltd [Member] | Initial Warrant [Member]
Warrant exercised | shares								325,000
Securities Purchase Agreement [Member]
Warrant exercise price | $ / shares						$ 6.00		$ 6.00
Securities Purchase Agreement [Member] | L1 Capital Global Opportunities Master Fund Ltd [Member]
Loan facility principal amount								$ 10,000,000
Consecutive trading days | d					10
Floor price | $ / shares					$ 1.20
Debt converted amount						$ 0	$ 0	$ 9,900,000
Repayments of debt	$ 100,000
Securities Purchase Agreement [Member] | First Tranche [Member]
Proceeds from initial public offering					$ 5,000,000
Securities Purchase Agreement [Member] | First Tranche [Member] | L1 Capital Global Opportunities Master Fund Ltd [Member]
Original issuance discount rate					6.00%
Purchase of warrants, shares | shares					383,620
Warrant exercise price | $ / shares					$ 6.00
Securities Purchase Agreement [Member] | First Tranche [Member] | L1 Capital Global Opportunities Master Fund Ltd [Member] | Maximum [Member]
Proceeds from notes					$ 7,000,000
Securities Purchase Agreement [Member] | First Tranche [Member] | L1 Capital Global Opportunities Master Fund Ltd [Member] | Private Placement [Member]
Proceeds from private placement					$ 7,000,000
Securities Purchase Agreement [Member] | Second Tranche [Member]
Warrant fair value										4,833,325
Insurance loss										$ 133,325
Securities Purchase Agreement [Member] | Second Tranche [Member] | L1 Capital Global Opportunities Master Fund Ltd [Member]
Original issuance discount rate					6.00%
Purchase of warrants, shares | shares											383,620
Warrant exercise price | $ / shares											$ 6.00
Loan facility principal amount					$ 2,000,000
Average lowest closing prices percentage					90.00%
Percentage of principal amount obligated to pay					120.00%
Debt conversion price | $ / shares								$ 6.00
Securities Purchase Agreement [Member] | Second Tranche [Member] | L1 Capital Global Opportunities Master Fund Ltd [Member] | Maximum [Member]
Loan facility principal amount											$ 5,000,000
Securities Purchase Agreement [Member] | Second Tranche [Member] | L1 Capital Global Opportunities Master Fund Ltd [Member] | Minimum [Member]
Loan facility principal amount											$ 2,000,000

SCHEDULE OF LEASE EXPENSE (Details) - USD ($)	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Operating Leases
Operating lease expense	$ 442,648	$ 202,680
Short-term lease expense	17,988	553,107
Total operating lease costs	460,636	755,787
Operating cash flows used in operating leases	$ 136,016	$ 179,661
Weighted average remaining lease term (in years)	1 year 10 months 13 days	1 year 3 months 18 days
Weighted average discount rate	10.00%	10.00%

SCHEDULE OF OPERATING FUTURE LEASE PAYMENTS (Details) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Operating Leases
2024	$ 322,326
2025	489,435
2026	210,739
2027	13,648
Total	1,036,148
Less: discount on operating lease liabilities	(87,542)
Present value of operating lease liabilities	948,606
Less: Current portion of operating lease liabilities	(568,317)	$ (629,325)
Non-current portion of operating lease liabilities	$ 380,289	$ 467,843

OPERATING LEASES (Details Narrative)	6 Months Ended
	Jun. 30, 2024
Operating Leases
Borrowing rate	10.00%
Incremental borrowing rate term	3 years

TAXES (Details Narrative)	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Income Tax Disclosure [Abstract]
Effective tax rates	0.00%	0.00%

SHARE BASED COMPENSATION EXPENSES (Details Narrative) - Frank Ingriselli [Member] - $ / shares	Jan. 01, 2025	Aug. 22, 2024	Jul. 01, 2024	Jan. 30, 2024
Subsequent Event [Member]
Number of restricted stock, shares		60,000
Employment Agreement [Member]
Number of restricted stock, shares				60,000
Closing price				$ 2.70
Employment Agreement [Member] | Forecast [Member]
Vested options exercised	30,000
Employment Agreement [Member] | Subsequent Event [Member]
Vested options exercised			30,000

EQUITY (Details Narrative) - $ / shares	Jun. 30, 2024	Dec. 31, 2023
Equity [Abstract]
Ordinary shares, shares issued	10,349,266	10,142,694
Ordinary shares, shares outstanding	10,349,266	10,142,694
Ordinary shares, par value	$ 0.00267	$ 0.00267

SCHEDULE OF FUTURE COMMITMENTS AMOUNTS ON AN UNDISCOUNTED FOR ALL THE PLANNED EXPENDITURES (Details)	Jun. 30, 2024 USD ($)
Future commitments, Remaining of 2024	$ 2,078,193
Future commitments, 2025	3,823,762
Future commitments, 2026 and beyond	134,924,642
Citarum Block PSC [Member]
Future commitments, Remaining of 2024
Future commitments, 2025	150,000	[1]
Future commitments, 2026 and beyond	39,100,000	[1]
Citarum Block PSC [Member] | Geological and Geophysical (G&G) Studies [Member]
Future commitments, Remaining of 2024		[1]
Future commitments, 2025	150,000	[1]
Future commitments, 2026 and beyond	950,000	[1]
Citarum Block PSC [Member] | 2D Seismic [Member]
Future commitments, Remaining of 2024		[1]
Future commitments, 2025		[1]
Future commitments, 2026 and beyond	6,050,000	[1]
Citarum Block PSC [Member] | 3D Seismic [Member]
Future commitments, Remaining of 2024		[1]
Future commitments, 2025		[1]
Future commitments, 2026 and beyond	2,100,000	[1]
Citarum Block PSC [Member] | Drilling [Member]
Future commitments, Remaining of 2024		[2],[3]
Future commitments, 2025		[2],[3]
Future commitments, 2026 and beyond	30,000,000	[2],[3]
Kruh Block KSO [Member]
Future commitments, Remaining of 2024	2,078,193
Future commitments, 2025	3,672,762
Future commitments, 2026 and beyond	95,824,642
Kruh Block KSO [Member] | 2D Seismic [Member]
Future commitments, Remaining of 2024		[1]
Future commitments, 2025		[1]
Future commitments, 2026 and beyond	1,250,000	[1]
Kruh Block KSO [Member] | 3D Seismic [Member]
Future commitments, Remaining of 2024	1,177,633	[1]
Future commitments, 2025		[1]
Future commitments, 2026 and beyond		[1]
Kruh Block KSO [Member] | Drilling [Member]
Future commitments, Remaining of 2024		[1],[2]
Future commitments, 2025	1,500,000	[1],[2]
Future commitments, 2026 and beyond	19,500,000	[1],[2]
Kruh Block KSO [Member] | Lease Commitments [Member]
Future commitments, Remaining of 2024	774,297	[4]
Future commitments, 2025	2,021,236	[4]
Future commitments, 2026 and beyond	72,649,378	[4]
Kruh Block KSO [Member] | Production Facility [Member]
Future commitments, Remaining of 2024
Future commitments, 2025
Future commitments, 2026 and beyond	1,300,000
Kruh Block KSO [Member] | G & G studies [Member]
Future commitments, Remaining of 2024	100,000	[1]
Future commitments, 2025	100,000	[1]
Future commitments, 2026 and beyond	350,000	[1]
Kruh Block KSO [Member] | Workover [Member]
Future commitments, Remaining of 2024
Future commitments, 2025
Future commitments, 2026 and beyond
Kruh Block KSO [Member] | Certification [Member]
Future commitments, Remaining of 2024
Future commitments, 2025
Future commitments, 2026 and beyond	250,000
Kruh Block KSO [Member] | Abandonment And Site Restoration [Member]
Future commitments, Remaining of 2024	26,263	[1]
Future commitments, 2025	52,526	[1]
Future commitments, 2026 and beyond	$ 525,264	[1]
[1] Both firm commitments and a 5-year work program according to the Company’s economic model are included in the estimate. Firm capital commitments represent legally binding obligations with respect to the KSO for Kruh Block or the PSC for Citarum Block in which the contract specifies the minimum exploration or development work to be performed by us within the first three years of the contract. In certain cases where we execute contracts requiring commitments to a work scope, those commitments have been included to the extent that the amounts and timing of payments can be reliably estimated. [2] Abandonment and site restoration are primarily upstream asset removal costs at the drilling completion of a field life related to or associated with site clearance, site restoration, and site remediation, based on Indonesian government rules. [3] Includes one exploration and two delineation wells. [4] Lease commitments are contracts that allow for the use of an asset but does not convey rights of ownership of the asset. The Company accounts for leases in accordance with ASC Topic 842, Leases (“ASC 842”). Right of use assets and lease liabilities for the Company’s operating leases are recorded in the condensed consolidated balance sheet except for the short-term lease exemption. An operating lease represents a rental agreement for an asset from a lessor under the terms. Most of our operating leases are related to the equipment and machinery used in oil production. All of the Company’s operating lease agreements with third parties can be cancelled or terminated at any time by the Company.

LIQUIDITY AND GOING CONCERN (Details Narrative)			6 Months Ended
	Mar. 22, 2024 USD ($)	Jul. 22, 2022 USD ($)	Jun. 30, 2024 USD ($) a	Jun. 30, 2023 USD ($)	Oct. 24, 2024 USD ($)	Dec. 31, 2023 USD ($)
Net loss			$ 2,099,146	$ 1,621,164
Net cash used in operating activities			700,941	$ 1,331,575
Accumulated deficits			41,682,583			$ 39,583,437
Working capital			2,432,159
Net proceeds			323,934
Cash			$ 716,724			$ 2,009,687
Area of land | a			63,000
Subsequent Event [Member]
Cash					$ 5,610,000
Maximum [Member]
Aggregate gross offering price	$ 9,600,000	$ 20,000,000

SUBSEQUENT EVENTS (Details Narrative) - USD ($)		6 Months Ended	9 Months Ended
	Aug. 22, 2024	Jun. 30, 2024	Sep. 30, 2024	Oct. 24, 2024
Subsequent Event [Line Items]
Net proceeds		$ 323,934
Subsequent Event [Member]
Subsequent Event [Line Items]
Cash and cash equivalents				$ 5,610,000
Subsequent Event [Member] | ATM Offering [Member]
Subsequent Event [Line Items]
Shares issued			2,981,253
Net proceeds			$ 7,794,843
Frank Ingriselli [Member] | Subsequent Event [Member]
Subsequent Event [Line Items]
Shares issued	60,000

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