Neon’s subsidiary and Petrovietnam have signed a production sharing contract under which Neon will operate the 105-110/4 block and own a 90% participating stake, while Enovation Resources will own 10%.
The block, which is spread over 7,192km² in 20-50m water depths, has remained largely unexplored to date.
Neon’s regional data from its geoscience database reveals the presence of a thick sedimentary basin that can produce hydrocarbons within the region.
Neon said the basin contains potential significant gas reserves.
The initial term of the contract is four years, during which time Neon is entitled to gather 2D seismic data and carry out drilling on at least one exploration well.