Neon Energy (ASX: NEN) and Eni have contracted a rig to drill in June 2013, the Cua Lo prospect in Block 105-110/04 offshore Vietnam.
Significantly, Neon will be carried through the drilling of the Cua Lo well up to a gross cost cap of US$25 million.
Exact timing of drilling is subject to release of the Ensco 107 jack-up rig by Mitra Energy.
Interpretation and analysis of the 3D seismic data over the Cua Lo prospect is nearly complete, and the joint venture is finalising the precise location of the exploration well based on the results.
Cua Lo has excellent potential for gas pay at multiple levels within an extensive submarine clastic depositional system.
The seismic data exhibits attribute characteristics, commonly referred to as Direct Hydrocarbon Indicators (DHIs), which are often indicative of the presence of hydrocarbons. These include anomalous seismic amplitudes and Amplitude vs Offset (AVO) anomalies.
Cua Lo has been previously assessed to contain best estimate gross unrisked prospective recoverable resources of 3.9 trillion cubic feet of gas by Netherland Sewell & Associates.
The joint venture had earlier this month contracted the Songa Mercur semisubmersible rig to drill in August this year, a second offshore exploration well in Block 120.
Neon has a 25% interest in Block 105 while Eni holds 50%. The remaining 25% is owned by Singapore’s KrisEnergy, which is led by former Pearl Energy executives.
Neon had US$23.3 million as of 31 March 2013.
Source: proactiveinvestors
