Eni Vietnam BV has secured the Ensco 107 jack up to drill the Cua Lo prospect on Block 105 in the Song Hong basin shelf offshore Viet Nam and west-southwest of China's Hainan Island, said Neon Energy Ltd., Perth.
Drilling of the Block 105-110/04 well could begin as early as June 2013 subject to rig release by the previous operator, Mitra Energy Ltd. The well targets a prospective resource of as much as 13.9 tcf of gas, Neon Energy said.
Eni will carry Neon Energy through the drilling to a gross cost cap of $25 million. Eni, operator with 50% working interest, and KrisEnergy Ltd. and Neon Energy with 25% each, will share any costs above the cap in accordance with their working interests.
Interpretation of 3D seismic is nearly complete, and the joint venture is finalizing the precise location of the exploratory well based on the results. Cua Lo has excellent potential for gas pay at multiple levels within an extensive submarine clastic depositional system, Neon Energy said.
The seismic data exhibit direct hydrocarbon indicators known as seismic amplitudes and amplitude versus offset anomalies.