Eni Hits Gas Offshore Vietnam

Neon Energy Limited has announced that gas has been discovered at its Cua Lo-1 exploration well, located in Block 105-110/04 (“Block 105”) offshore Vietnam.

Since the last update on 26 August 2013 the 12 ¼” hole has encountered gas shows within each of the upper three objectives, prior to experiencing a “kick” due to an over-pressured gas bearing formation at a depth of 2,568m.

Eni, the 0perator, has worked diligently to stabilise the well and has plugged back to below the 13 3/8” casing shoe, at a depth of 1,800m. The well will now be sidetracked and drilled to a revised 9 5/8” casing point located just above the over-pressured zone. This will allow for wireline log data, including reservoir fluid samples, to be collected across the upper reservoirs before setting casing and drilling ahead to the deeper two objectives.

Neon Energy said it was encouraged by the presence of gas encountered in the zones drilled to date.

The presence of hydrocarbon gas bearing formations will be confirmed after collection of reservoir samples during wireline operations, while reservoir deliverability will only be determined by production testing. A decision regarding production testing will be made after reaching the proposed Total Depth (TD) and evaluation of wireline data and retrieved fluid samples is complete.

The Cua Lo-1 well is designed to test the Cua Lo gas prospect, which comprises five clastic reservoir targets ranging in age from Lower Pliocene to Upper Miocene. The well is being drilled by the Ensco 107 jack-up rig in a water depth of 76 metres, to a planned TD of 2,826 metres.

The respective working interests of the joint venture parties in the Block 105 PSC are as follows:

Neon Energy (Song Hong) Pty Ltd 25%

Eni Vietnam B.V. (Operator) 50%

KrisEnergy (Song Hong 105) Ltd 25%

September 24, 2013

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