Indonesia Energy (IEC), an oil and gas exploration and production company focused on high-growth energy assets, has signed a Memorandum of Understanding (MOU) dated August 18, 2025 with Aguila Energia e Participações Ltda. (“AEP”), an affiliate of Rio de Janeiro–based investment firm Aguila Capital, led by energy executive Blener Mayhew.

The MOU establishes a cooperative framework between the parties to jointly identify, evaluate, and pursue potential opportunities to acquire or participate in oil and gas or other energy-related assets and projects located in Brazil, a major global energy market. The cooperation combines IEC’s oil and gas and capital market experience with AEP’s capabilities in local Brazilian transactions, regulatory engagement, and asset development. The MOU reflects IEC and AEP’s shared vision to build a diversified energy portfolio across upstream and downstream segments through disciplined, cross-border cooperation.

Mr. Frank Ingriselli, IEC's President, commented:
“This collaboration marks an exciting first step by IEC to evaluate world-class opportunities beyond Indonesia in Brazil, a market that has become one of the most attractive for upstream investment. Working with Blener Mayhew and his team will give us immediate local insight and access. In addition to opportunities in Brazil, AEP may also assist us in further commercializing our Indonesian assets and identifying new Indonesian domestic growth projects. Together with our planned drilling program at our Kruh Block, this initiative advances our growth strategy to scale production and diversify our portfolio in the final months of 2025 and beyond.”

Commenting on the reasons for IEC’s exploration of opportunities in Brazil, Mr. Ingriselli stated:
“We believe Brazil is experiencing an attractive convergence of market catalysts that create an exceptional entry point for nimble independent oil and gas companies like ours.”

“First, Brazil’s Oferta Permanente bid system allows year-round acquisition opportunities of relinquished and new exploration and production blocks, creating potential faster deal cycles once qualification and bid requirements are met.

Second, it is our understanding that many junior operators in Brazil are divesting producing and near-producing fields at attractive valuations due to capital constraints, creating opportunities for relatively near term brownfield optimization and predictable cash flow profiles.

Third, under concession contracts with the Brazilian government, royalties typically range from 5–10% (with reductions possible for mature or marginal fields), offering the potential for higher after-tax cash flows compared to production-sharing contracts, as well as the potential for enhanced operational flexibility and internal rates of return.

All of these and similar factors have led us to conclude that Brazil is the first jurisdiction outside of Indonesia that our company should explore for growth opportunities,” concluded Mr. Ingriselli.

This announcement comes just a few weeks after IEC announced that it plans to drill two back-to-back wells on its 63,000 acre Kruh Block in Indonesia commencing in the fourth quarter of 2025. This new drilling activities will be supported by the previously announced exploratory seismic work which was undertaken by IEC during 2024 and early 2025 that upgraded IEC’s wellsite prospects and drilling locations with a view towards maximizing production.

In May 2025, IEC reported that investments in Kruh Block and the 3D seismic work completed earlier this year resulted in a 60% increase in proved gross reserves.

The MOU is a non-binding statement of intent. IEC and AEP will seek to enter into appropriate definitive agreements for projects on an opportunity-by-opportunity basis.

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