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Neon Energy www.neonenergy.com/

Neon Energy (ASX: NEN) is a petroleum exploration and production company, headquartered in Perth and with oil and gas interests in Vietnam and California.

NEN holds material operated interests in the Block 120 and 105 exploration blocks, offshore Vietnam, and a portfolio of operated exploration, appraisal and production assets onshore California, including 100% ownership of the producing North San Ardo oil field.

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Neon Energy kicks off appraisal of Paloma oil discovery in California

Neon Energy (ASX: NEN) has spudded the first of 2 new wells in California that will determine the size and commercial value of its Paloma oil discovery.

The Paloma Deep-1 well is currently flowing fluids at rates of between 35 and 120 barrels per day from the Lower Antelope shale reservoir with oil ranging from 10% to 50%. This includes testing fluids, indicating it is still cleaning up.

The Paloma Deep-2 appraisal well will appraise hydrocarbon pay zones already proven in the original well and will also acquire core samples from the target Lower Antelope, Lower Stevens and Fruitvale shale reservoirs.

Paloma Deep-2 will be drilled with a larger diameter borehole than Paloma Deep-1 and will be completed with cemented liner to achieve optimal flow test results.

Neon is also planning to drill the low cost Paloma-3 well to test several shallow targets that were identified as potential bypassed play in Paloma Deep-1.

Paloma-3 will target the Tulare Formation in a small four way dip closure and potential gas zones in stratigraphic traps of the Mya and Etchegoin Formations.

Neon has a 75% stake in the project while Solimar Energy (ASX: SGY) holds 25%.

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