breaking out, page-26

Today's afr

After four years in the making, Neon Energy has finally got everything in place for its long-awaited drilling campaign in Vietnam, targeting giant oil and gas prospects with the potential to transform the junior if they hit the bullseye.
Shareholders have had little to cheer in recent times, seeing the stock price slide from its December 2011 high of 59¢ to a low last month of 17.5¢. But two drill rigs are now locked in for the campaign and drilling is to start on the first well in the South China Sea in late June.
Neon’s success last year in attracting Italian oil major Eni to lead the venture was mostly overlooked in the market but is indicative of the potential of the prospects. The third partner, private group KrisEnergy, is no slouch either, having been founded by the people who built up then sold Pearl Energy to United Arab Emirates’ interests for $US833?million.
The first target to be tested with the drill bit, Cua Lo, is a huge gas and condensates prospect in Block 105, with the potential for between 3.9?trillion and 13.9?trillion cubic feet of recoverable gas.
With large Chinese fields nearby fed from the same source “kitchen”, managing director Ken Charsinsky is confident of striking gas.