Neon Energy Limited has announced that the Company’s farmout of Vietnamese exploration blocks 120 and 105-110/04 (“105”) to Eni Vietnam B.V. (“Eni”), a wholly owned subsidiary of Eni SpA, has received the full and final approval of Petrovietnam and the Government of Vietnam.
The key commercial terms of the farmout are as follows:
1. Neon assigns a 25% working interest in both blocks to Eni, thereby retaining a 25% working interest
2. Eni carry Neon on 800km2 of 3D seismic and one exploration well in Block 105
3. Eni carry Neon on 250km2 of 3D seismic and one exploration well in Block 120
4. Joint venture partner KrisEnergy assigns a 25% interest in each block to Eni on same terms
5. Eni assumes Operatorship
Eni has initiated the establishment of an operational presence in Ho Chi Minh City and will begin the process of formally assuming operatorship of the Joint Ventures, which are comprised as follows: Eni Vietnam BV 50%, Neon Energy 25%, KrisEnergy 25%.
Neon’s Managing Director Ken Charsinsky commented: “We are pleased to have reached this important stage in exploring our Vietnamese assets, and welcome Eni as Operator of the Block 120 and Block 105 joint ventures. It is clear that the new 3D seismic data will greatly help to de-risk prospects in both blocks, and we look forward to the drilling programme later this year.”
Press Release, January 22, 2013