Shares in Neon Energy Limited (ASX:NEN) have plunged in morning trade after the oil and gas explorer updated the market on drilling developments offshore Vietnam.
Drilling and evaluation at the Ca Ngu-1 exploration well, located in Block 120, have not shown commercial potential and as a result the location will be abandoned as an oil and gas discovery well.
However, the company believes the presence of a combined gas and oil column in the Miocene highlights potential for significant discoveries elsewhere in Block 120.
Managing Director Ken Charsinsky says Ca Ngu-1 provided valuable new information which will influence the forward exploration program within the block. Mr Charsinsky says the company is now eagerly anticipating the results of production testing of the Cua Lo-1 gas discovery well.
Shares in Neon Energy had fallen more than 24 per cent in morning trade to $0.29.
Neon Energy booked a net loss of $2.6 million in the first half of the 2013 calendar year.
