- Indonesia Energy (INDO) stock has retreated after hurtling higher earlier this year.
- Since it’s not “just a meme stock” anymore, investors can now focus on the company’s advantages.
- Investors should consider adding Indonesia Energy to their commodities-focused holdings.
Indonesia Energy (NYSEAMERICAN:INDO) is a fossil fuel driller located in the country of Indonesia. Even though the energy sector might seem risky, INDO stock definitely deserves your attention and possibly even your investment capital.
Inflation hasn’t been transitory, especially when it comes to oil and gas. As the U.S. and Europe seek energy independence from Russia, they may have to turn to unexpected petroleum and gas providers – and Indonesia Energy could benefit from this.
A month ago, you might have heard some skeptics label INDO stock as a “meme stock.” Yet, as we’ll see, there are perfectly valid reasons to invest in Indonesia Energy that have nothing to do with memes.
| INDO | Indonesia Energy | $21.75 |
What’s Happening with INDO Stock?
The meme-stock reputation came about when Indonesia Energy shares soared from $2.85 at the start of 2022, to $86.99 on March 7. At this time, a number of stocks were behaving much like they did a year earlier, when meme-stock mania was in full effect.
As it turned out, chasing INDO stock in the $80s was only asking for trouble. By the end of March, the stock retraced back to $22 and change. This represents a healthy pullback and could lead to a more sustainable long-term rally.
Meanwhile, the meme-stock trend isn’t really the headline story of 2022. Instead of being distracted by memes, investors should focus on major events that are impacting stock prices. Certain companies can benefit from the main themes of 2022 so far: inflation, and geopolitical conflict.
Indonesia Energy is a great example of this. It’s an international, investable business that can step up to the plate as nations strive to achieve independence from Russian oil and gas.
Operating out of Jakarta, Indonesia, Indonesia Energy has two notable oil-and-gas assets. These are the 63,000-acre Kruh Block, and the 1 million-acre Citarum Block.
On the Kruh Block, Indonesia Energy announced plans to drill on three wells. These are known as Kruh 27, Kruh 28 and Kruh 29. If everything goes according to plan, Indonesia anticipated its production to reach 450 barrels of oil per day after the first two wells’ completion.
A World-Class Asset
Plus, there’s even more positive news coming from Indonesia Energy. Just recently, the company mobilized a drilling rig to drill two back-to-back producing wells at the Kruh Block.
Those wells are called K-27 and K-28. While it’s not stated in the press release, it’s possible that these are the same as Kruh 27 and Kruh 28.
Again, Indonesia Energy reiterated its plans to commence drilling of a third new well at Kruh Block before the end of the second quarter. Perhaps this will be Kruh 29, or K-29 — we’ll have to wait and see.
The company also stated that Indonesia Energy will likely start on a fourth new well sometime in 2022. Indonesia Energy’s drilling campaign involves a total of 18 new production wells in the Kruh Block by the end of 2024.
Clearly, Indonesia Energy is an ambitious driller. The company’s president, called Kruh Block is “a world class asset.” Only time will tell, but this asset could prove to be highly productive, and therefore quite valuable.
It’s possible that K-27 and K-28 could generate $2.6 million each in net revenue in their first 12 months. With that, INDO stock has the potential to move back toward its prior high. Moreover, this time it could happen without any help from the meme-stock trend.
What You Can Do Now
There’s always risk involved with energy market investing. Yet, the rewards can be substantial if you pick the right companies.
Indonesia Energy has oil/gas assets that could generate millions of revenue dollars within a year. Inflation and geopolitical conflict are problematic, but INDO stock could benefit from these issues. Therefore, it’s a worthy addition to your energy market watch list.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.
