COMMITMENTS AND CONTINGENCIES

6 Months Ended

Jun. 30, 2026

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 had no significant pending litigation as of June 30, 2026 and December 31, 2025.

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 September, 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, 2026 for all the planned expenditures to be carried out in Kruh Block and Citarum Block (this table takes into account the Company’s updated drilling plans for Kruh Block):

					Future commitments (Unaudited)
		Nature of commitments			Remainder of 2026				2027				2028 and beyond
Citarum Block PSC
Geological and geophysical (G&G) studies		(a)			$	-			$	-			$	950,000
2D seismic		(a)				-				-				6,050,000
3D seismic		(a)				-				-				2,100,000
Drilling		(b)(c)				-				-				30,000,000
Total commitments - Citarum PSC					$	-			$	-			$	39,100,000
Kruh Block KSO
Operating commitments		(d)			$	1,429,905			$	3,763,035			$	81,423,545
Production facility						-				700,000				300,000
G&G studies		(a)				100,000				50,000				-
2D seismic						-				-				-
3D seismic						-				-				-
Drilling		(a)				5,000,000				2,600,000				33,400,000
Workover						-				-				-
Certification						-				-				-
Abandonment and Site Restoration		(c)				38,136				76,272				610,179
Total commitments - Kruh KSO					$	6,568,041			$	7,189,307			$	115,733,724
Total Commitments					$	6,568,041			$	7,189,307			$	154,833,724

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)	Operating commitments are primarily production operation costs related to or associated to the maintenance well work scheduled to be performed on the oil wells with respect to the Kruh Block KSO.