RH Petrogas Limited: Key Update on Karim-1 Exploration Well in Kepala Burung PSC, Indonesia

Summary of Key Points

• RH Petrogas Limited (“RHP”) announced the completion of drilling operations at the Karim-1 exploration well, located onshore in the Kepala Burung Production Sharing Contract (PSC), Southwest Papua, Indonesia.
• The well was spudded on 21 November 2025 using Petrogas Rig #3 and reached a total measured depth of 4,293 feet.
• The primary target was the Middle Miocene Kais limestone, known as the main oil and gas reservoir in the Salawati Basin. The secondary target was the Klaili Limestone, a Late Pliocene carbonate reservoir in the Klasaman formation.
• Challenges were encountered during drilling through the Klaili Limestone, but intermediate wireline logging indicated trace to moderate oil shows, supported by gas chromatography data, suggesting the presence of hydrocarbons in that interval.
• The primary Kais Limestone target, however, was found to be water-bearing, with only trace oil shows in the cuttings and core samples. Log and pressure data confirmed the lack of commercial hydrocarbons in this main target.
• Based on the technical evaluation, the Group will permanently plug and abandon (P&A) the Karim-1 well in compliance with regulatory requirements.
• Despite the disappointing result for the primary target, the hydrocarbon indications in the Klaili Limestone provide valuable geological and subsurface insights for future exploration.
• The Karim-1 well cost the Group an estimated US\$4.7 million, which will be expensed in the financial year ending 31 December 2025.
• The drilling rig will now be moved to the Northwest Klagagi-1 well site, where preparations for the next exploration well will commence in the coming weeks.

What Shareholders Must Know

• Negative Exploration Result: The main objective of the well—the Kais Limestone—did not yield a commercial hydrocarbon discovery. This is a setback and illustrates the high-risk nature of oil and gas exploration. The permanent abandonment of the well means there will be no immediate production or reserves addition from Karim-1.
• Exploration Expense: The entire cost of the Karim-1 well (US\$4.7 million net to RHP) will be expensed in 2025, which could impact the company’s financials and profitability for the year.
• Subsurface Data Value: While the well was not a commercial success, hydrocarbon shows in the Klaili Limestone could inform future exploration plans and help guide the Group’s ongoing technical evaluation in the Arar area.
• Forward Exploration Plans: The company is quickly moving forward by relocating the rig to the Northwest Klagagi-1 well site for the next exploration attempt. The outcome of this well could be significant for future asset value and share price.
• Company Positioning: RH Petrogas is undertaking a strategic renewal of its asset portfolio, currently holding two producing assets in Indonesia, and remains focused on expanding its presence in the ASEAN region.

Potential Implications for Share Price

• The lack of a commercial discovery at Karim-1 could be viewed negatively by the market, especially given the expensing of US\$4.7 million in 2025, potentially pressuring the share price in the short term.
• However, the company’s proactive approach in moving to the next exploration target and the value of new geological insights may help restore confidence if future drilling proves successful.
• Investors should closely monitor updates from the Northwest Klagagi-1 well, as a positive result there could quickly change sentiment.

Management Commentary

“It is disappointing that Karim-1 did not discover oil in the target Kais zone, illustrating the inherent risks and challenges of exploration drillings. Nevertheless, the data acquired from Karim-1 will contribute to a refined understanding of the play potential and to support future exploration evaluation in the Arar area. We will now move the rig to the Northwest Klagagi-1 well site and commence preparations for exploration drilling there in the coming weeks.”
– Mr. Francis Chang, Group CEO & Executive Director

Background on RH Petrogas

RH Petrogas Limited is an independent upstream oil and gas company headquartered in Singapore and listed on the mainboard of the Singapore Stock Exchange. The company is focused on exploration, development, and production of oil and gas resources, with a strategic focus on the ASEAN region and two producing assets in Indonesia. The company aims to be a leading independent energy company in the region.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own due diligence and consult with their financial advisors before making any investment decisions. The information is based on the latest company announcements as of 30 December 2025 and may be subject to change.

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