Neon Energy (ASX: NEN) has attracted some investor interest today with the stock trading over five million shares to finish 7.4% higher at $0.29.
While Neon hasn't made any major announcements in the past week-and-a-half, the company's forthcoming exploration drilling program in the offshore Vietnam blocks 105-110/04 (Block 105) and 120 is no doubt creating some interest.
Building on Neon's announcement in May, Petrovietnam have granted approval for the joint venture to drill the Cua Lo prospect, which targets 3.9 trillion cubic feet of gas, and have approved the specific well location.
The Ensco 107 jack-up rig is expected to arrive on location at Block 105 in late July.
Once on location at the Cua Lo prospect, drilling operations are expected to take around 45 days, plus additional time required for production testing if warranted.
Cua Lo has excellent potential for gas pay at multiple levels within an extensive submarine clastic depositional system.
The seismic data exhibits attribute characteristics, commonly referred to as Direct Hydrocarbon Indicators (DHIs), which are often indicative of the presence of hydrocarbons. These include anomalous seismic amplitudes and Amplitude vs Offset (AVO) anomalies.
Cua Lo has been previously assessed to contain best estimate gross unrisked prospective recoverable resources of 3.9 trillion cubic feet of gas by Netherland Sewell & Associates.
Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.
NEN Price at posting:
29.0¢ Sentiment: Buy Disclosure: Held
