Neon: Evacuated Rigs in Vietnam to Shortly Return to Operations

Neon Energy Limited has provided following update regarding drilling of the Cua Lo-1 and Ca Ngu-1 exploration wells, located in Block 105-110/04 (“Block 105”) and Block 120, offshore Vietnam.

Since the last update regarding Cua Lo-1 on 22 October 2013, drilling has reached the 9 5/8” casing point at a depth of 2,509 metres, having redrilled the upper three reservoir objectives in the sidetracked hole. Wireline logging has been completed and casing has been set, ready for Eni (the Operator) to drill onwards to the lower two objectives and final proposed TD of 2,826 metres. All three reservoir objectives intersected in the sidetracked well exhibit good gas shows and comparable reservoir characteristics to those encountered in the original hole.
“Based on analysis of the data received to date, Neon Energy remains encouraged by results and considers that production testing is warranted. Further details will be released once the well is at TD and wireline logging operations have been completed. 
At the time of writing both the Ensco 107 and Songa Mercur rigs are anticipated to shortly resume operations, having been evacuated due to Typhoon Haiyan. Ca Ngu-1 operations have been affected by additional delays due to greater than anticipated sub-surface currents at the rig location, and the Joint Venture is reviewing what steps may be taken to resolve this situation,” Neon said.
The Company expects that the weather delays will add to the previously reported cost estimates for both wells. Neon is working closely with Operator Eni to quantify updated cost estimates on the basis of revised operational schedules, and will inform the market as soon as possible.”
The respective working interests of the joint venture parties in the Block 105 and Block 120

PSCs are as follows
Neon Energy (Song Hong) Pty Ltd 25%
Eni Vietnam B.V. (Operator) 50%
KrisEnergy (Song Hong 105) Ltd 25%

[mappress]
Press Release, November 12, 2013