Neon wins Vietnam patch

The block lies in the central Song Hong basin and covers an area of some 7192 square kilometres in water depths ranging from 20 to 50 metres.

Although there are discoveries nearby within the same sedimentary basin, Block 105 has seen very little exploration activity.

A sparse grid of 2D seismic data was previously acquired but there has been no exploration drilling to date.

The Block 105 production sharing contract has an initial term of four years during which time Neon is obliged to shoot 2D seismic data and drill at least one exploration well.

The company plans to seek approval to start 2D seismic sweeps in Blocks 105 and 120 during 2010.

Premier Oil, MOECO and Cnooc hold participating interests in the acreage immediately to the north of the block, and the producing Dongfang and LeDong gas fields lie about 35 kilometres from the block’s eastern boundary, in Chinese waters.

Neon said today that several of the prospective features identified on the existing seismic data appear to have anomalous seismic attribute characteristics, which might indicate the presence of hydrocarbons.

Neon will operate the block with a 90% interest, on behalf of partner Enovation Resources.