A group led by Eni Vietnam BV has spudded the Ca Ngu-1 exploratory well on Block 120 offshore Vietnam.
The well is designed to test the Ca Ngu oil and gas prospect, which is comprised of Pliocene clastic and Miocene carbonate reservoir targets. The Songa Mercur semisubmersible is to take the well to 1,500 m in 270 m of water.
The cost of the well is estimated at as much as $39 million, but if dry is likely to be substantially less due to a simplified casing profile and associated reduction in drilling time, said Neon Energy (Song Hong) Pty. Ltd., Perth.
Pursuant to a farmout agreement with Eni, Neon Energy will be carried through the drilling up to a gross cost cap of $20 million. Any costs in excess of the cost cap will be borne by the parties as per their respective working interests.
Eni Vietnam has 50% interest in the well, and Neon Energy and KrisEnergy (Song Hong 105) Ltd. have 25% each.