Neon Prepares to Drill Vietnam Gas Block

Neon Energy Limited has contracted the Ensco 107 jack-up rig to drill the Cua Lo prospect in offshore Vietnam Block 105-110/04 (Block 105). Drilling is scheduled to commence in June 2013.

“Pursuant to the terms of the farmout agreement with Eni Vietnam B.V., Neon will be carried through the drilling of the Cua Lo well up to a gross cost cap of $25 million,” Neon Energy said.

Neon owns 25% stake in the block, Eni owns 50% interest which KrisEnergy holds the remaining 25%.

The company said that Cua Lo has excellent potential for gas pay at multiple levels within an extensive submarine clastic depositional system. As per a study by Netherland Sewell & Associates Inc, the block is estimated to hold 3.9 TCF gas (best estimate) to 13.9 TCF gas (high estimate).