cua lo gas discovery

Cua Lo Gas Discovery

Neon Energy Limited (ASX: NEN) is pleased to announce that the Cua Lo-1 ST1 exploration well, located offshore Vietnam, is confirmed as a potentially significant gas
discovery.

Drilling has reached Total Depth (TD) at 2,867
metres (measured depth), and Operator Eni is
presently completing wireline logging operations.
Based on gas shows and initial evaluation of
Logging-While-Drilling (LWD) data, one additional
zone of interest has been encountered; at the
4.7Ma level. This brings the total number of zones
of interest to four. A fifth level (5.5Ma) exhibited
gas shows within a poor quality reservoir that may
have potential for improved reservoir
characteristics elsewhere.

The four reservoirs (4.1Ma, 4.2Ma, 4.5Ma & 4.7Ma)
exhibit good indications of gas over a total gross
interval of approximately 150 metres. While it
would be premature to comment on the potential
size of the Cua Lo resource, it is certainly well
within the range of pre-drill estimates as previously
reported by the Company.

The Joint Venture has unanimously agreed to
production test the well, and the parameters of a
testing program will be finalised after analysis of
the new wireline log data. The program will be
designed to confirm that gas can flow to surface at
commercial rates, and provide critical data
regarding reservoir deliverability and gas
composition; information that is key to determining
commerciality. The test program is expected to
commence within one week and to take a further
week to complete.

Neon Energy Managing Director, Ken Charsinsky
commented, “The forthcoming test program is the
culmination of a four-year effort to realise value
from Block 105. We are of course excited by the
discovery of a potentially significant gas resource
at Cua Lo, and eagerly anticipate the results of
production testing.”

The Company’s next scheduled announcement will
be made upon completion of production testing
operations.