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.
Neon Energy (ASX: NEN) has received Vietnamese Government approval to farm out its two offshore blocks to Italian major Eni.
Eni will be assigned a 25% working interest in both blocks 120 and 105-110/04 from Neon and another 25% from Singapore’s KrisEnergy. Neon and KrisEnergy will each retain a 25% interest.
In return, Eni will carry both companies on 800 square kilometres of 3D seismic and one exploration well in Block 105 and 250 square kilometres of 3D seismic and one exploration well in Block 120.
The new 3D will help de-risk prospects in both blocks, allowing better targeting of the wells to be drilled this year.
Netherland Sewell & Associates had estimated that Block 120 could host between 633 million and almost 8 billion barrels of oil within 12 leads while Block 105 could contain between 1.7 trillion cubic feet (Tcf) and 21.4Tcf of gas in seven leads.
Block 120 is close to Block 118 where ExxonMobil (NYSE: XOM) made a major gas find recently while Block 105 is adjacent to Chinese producing gas fields.
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