Neon Energy Signs Vietnam Farmout Agreement with Eni

Neon Energy Limited has signed a farmout agreement with Eni Vietnam B.V., a wholly owned subsidiary of Eni, in relation to Block 120 and Block 105-110/04, offshore Vietnam.

Block 105 covers 7,192 square kilometres in water depths of 20-80 metres over the Song Hong Basin offshore north-central Vietnam, and Block 120 covers 8,469 square kilometres in the northern Phu Khanh Basin, offshore central Vietnam, where water depths range from 50 metres to 1100 metres.

International petroleum consultant Netherland Sewell & Associates had reviewed the 7 gas condensate leads identified in Block 105 and estimated that they hosted total unrisked prospective resources of between 1.7 trillion cubic feet (Tcf) of gas and 21.4Tcf of gas.

Neon and KrisEnergy will each retain a 25% working interest in Block 105 and Block 1220 with KrisEnergy giving up operatorship in favour of Eni.