Saka Indonesia Pangkah Limited

The company's principal activity is, and will continue to be, the exploration for and the production of oil, natural gas and natural gas liquids in Indonesia. The company has a 65% interest in the Ujung Pangkah field, which is being developed in a staged manner with initial gas production followed by liquids development. The onshore facilities have been completed with the first gas sales achieved in April 2007, first oil in December 2008 and first Liquefied Petroleum Gas (LPG) in March 2009. One offshore platform (namely WHP A) has been in service since first production and a total of 15 wells have been drilled from this platform. Construction of the second well platform (namely WHP B) was completed and installed in January 2010. The drilling program from this platform commenced in October 2010 and at the end of 2020, a total of 19 production wells and 1 water injection well had been drilled. In 2021, the company completed to drill 1 development well (WPA-1). SIPL has continued to drill 1 development well (WPA-04), completing 3 well services (UPB11-ST2, SID-4V Re-Entry, Sid-3ST1 Re-Entry). In 2022 the company completed on development drilling WPA-04 Well. Throughout 2023 SIPL has continued to work over 2 wells (UPB-12 and UPB 11), completing 4 development wells (SID 02, SID 03, WPA 05 and WPA 06). As a result of a previous restructuring, the company was acquired by Saka Indonesia Pangkah B.V., the loan from the immediate parent undertaking amounting to $537,333,000 was novated from Hess Oil and Gas Holdings Inc. to PT Saka Energi Indonesia. At 31 December 2024, the balance on the loan was $144,547,321 (principal $93,600,000; accrued interest $50,947,321). During the year, the directors reviewed the carrying value of tangible fixed assets and this led to an impairment of $5,894,210 (2023: $nil). The recoverable amount has been calculated after considering future discounted cash flows of the producing fields over the next 23 years (2023: 24 years), using a WACC of 10% (2023: 8.51%). The expected future cash flows are estimated using management's best estimate of future oil, natural gas and LPG prices and reserves volumes. Throughout 2022 and 2023, SIPL continued to improve and optimized operations to support the company’s organic growth, namely financial, operational and strategic development. SIPL continued to workover the UPA 11ST2 well, completed development on the WPA 06 well and was undertaking exploration drilling at RGL-3.