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Neon Energy Limited (ASX:NEN) Vietnam Block 105 Competent Persons Report

 
VIETNAMBLOCK 105 COMPETENT PERSONS REPORT
 
HIGHLIGHTS
- Netherland, Sewell & Associates, Inc. completes independent assessment of Block 105, offshore Vietnam
- Assessment confirms significant potential for both gas and oil
- Best estimate of total unrisked prospective resources 6.3 Tcf gas, with high case of 21.4 Tcf gas
- Oil play best estimate unrisked prospective resources 155 MMbbls, and high case 487 MMbbls
- Joint venture preparing to drill up to two wells in Block 105, commencing early 2012
 
Neon Energy Limited (NEN) is pleased to announce completion of an independent prospective resources assessment of offshore Vietnam Block 105-110/04 (“Block 105”) by Netherland, Sewell & Associates, Inc.* (NSAI). NSAI have reviewed the seven gas/condensate leads identified by Neon, and estimate the total unrisked prospective resources for those seven leads are contained in the ASX announcement.
 
Of the seven leads, three are located within a potential oil fairway on the western side of the block and therefore there is a possibility that these leads may contain oil instead of gas. In that case, NSAI estimate the total unrisked prospective resources for Block 105 are contained in the ASX announcement.
 
The Block 105 joint venture is preparing to drill up to two exploration wells during 2012, each testing an independent hydrocarbon play with multiple targets.
 
The Cua Lo gas prospect (Lead 4) is a large structural/stratigraphic drilling opportunity supported by strong Amplitude vs Offset (“AVO”) anomalies in stacked Pliocene to Late Miocene age sandstone reservoirs. NSAI estimate unrisked prospective resources ranging from 1.0 Tcf (low case) to 3.9 Tcf gas (best estimate) to 13.9 Tcf gas (high case).
 
The Song Ca-1 oil prospect (Lead 1) is a structural three-way dip closure trapped against a hinge line fault system located on the western side of the block. This multiple target opportunity is supported by seismic amplitude anomalies that appear to conform to structure. The prospect has potential for either oil or gas, and NSAI estimate unrisked prospective resources for the oil case that ranges from 26.6 MMbbls (low case) to 129.8 MMbbls (best estimate) to 408.6 MMbbls (high case).
 
NSAI are currently completing an assessment of offshore Vietnam Block 120, and Neon will provide an update regarding prospective resources for that block during May 2011.
 
Neon’s Managing Director Ken Charsinsky commented, “This independent assessment confirms Neon’s long held view that Block 105 has the potential to host extremely significant resources of both gas and oil. Block 105 offers a unique combination of significant resource potential, seismiccharacteristics often associated with hydrocarbons, shallow water depths and proximity to currently producing fields with multiple Tcf reserves.”
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