Neon Energy has signed a farm-out agreement (FOA) with Eni Vietnam, a wholly owned subsidiary of Eni, for Block 120 and Block 105-110/04 ('Block 105'), offshore Vietnam.
Under the terms of the agreement, Neon will retain a 25% working interest and assign a 25% working interest in both blocks to Eni.
Ken Charsinsky, Neon Energy managing director, said: "Further, Eni represents an excellent partner in the blocks, with operational and development capabilities that will be key to early monetisation of the assets, should the exploration programme confirm management's view of the blocks' hydrocarbon potential."
Eni will carry Neon 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.
KrisEnergy will also farm-out a 25% interest in each block to Eni which will become an operator of the new joint ventures. The terms of the agreement remain subject to the usual regulatory approvals.
A two block 3D seismic programme has commenced by the partners and the acquisition of seismic data will take approximately six weeks.
The seismic programme is aimed to identify an optimal drilling location for the Cua Lo prospect in Block 105, and to aid prospect ranking and well location for drilling in Block 120.
Drilling will commence subject to completion of processing and interpretation of the new 3D seismic data and the availability of suitable drilling rigs.