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December 5, 2013

Neon Energy announces gas discovery at Cua Lo-1 ST1 well in Vietnam

Australian oil and gas company Neon Energy has announced a gas discovery at the Cua Lo-1 ST1 exploration well in Block 105 PSC, offshore Vietnam.

offshore

Australian oil and gas company Neon Energy has announced a gas discovery at the Cua Lo-1 ST1 exploration well in Block 105 PSC, offshore Vietnam.

Eni, the operator of Cua Lo-1 ST1, has reached a total depth of 2,867m on the well and is currently completing wireline logging operations over it.

The operator confirmed that an additional zone of interest was discovered at the 4.7Ma level, which brings the total number of zones of interest to four, according to the data of gas shows and initial evaluation of Logging-While-Drilling (LWD).

The four reservoirs, including 4.1Ma, 4.2Ma, 4.5Ma & 4.7Ma exhibit good indications of gas over a total gross interval of approximately 150m.

The data also exhibited a fifth level (5.5Ma) gas shows within a poor quality reservoir which may have potential for improved reservoir characteristics elsewhere.

The company, which previously reported that Cua Lo resource well is within the range of pre-drill estimates, said it is too early to comment on the potential size of the resource.

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Neon Energy (Song Hong) a subsidiary of Neon Energy holds a 25% stake in the Block 105 PSC, while Eni Vietnam (operator) and KrisEnergy own 50% and 25% respectively.

Neon Energy’s managing director Ken Charsinsky said: "The forthcoming test programme 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."

With approval from partner in place for the well’s production test, the operator is expected to commence soon.

The parameters of a testing programme will be finalised after analysis of the new wireline log data to get key details that gas can flow to surface at commercial rates, and provide critical data regarding reservoir deliverability and gas composition, determining commerciality.


Image: Schematic Lithological Log, courtesy of Neon Energy.

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