ANNOUNCEMENT TO THE AUSTRALIAN SECURITIES EXCHANGE: 25 March 2014

Tanjung Aru 3D Seismic Program

Neon Energy Limited (ASX: NEN) is pleased to advise that the Tanjung Aru 3D seismic program commenced on 24 March 2014. The 500km2 survey is being acquired by WesternGeco's Western Monarch seismic vessel.
The 3D seismic program will fulfil the remaining work commitment of the current term of the PSC, and the results will help the Joint Venture decide whether to proceed in to the next phase, which requires a single exploration well. Based on existing 2D and 3D seismic data the Joint Venture has identified multiple petroleum plays in both shallow and deep water, each with the potential for commercial accumulations of hydrocarbons. The 3D seismic program is designed to highlight prospectivity in the shallow water shelfal area in the north- western portion of the block, where a number of seismic amplitude-supported exploration leads have been identified but not adequately delineated by the legacy 3D volume.
The Tanjung Aru block covers an area of 4,200 km2, offshore Kalimantan, in water depths ranging from 20 metres to over 1,000 metres. The block is located in a relatively underexplored area of the Kutei Basin, one of Indonesia's most prolific hydrocarbon provinces. Two existing gas discoveries are located within the block, both drilled by Amerada Hess in 2002. The minimum economic field size within the block is considered to be relatively low due to favourable "frontier" PSC terms, very strong local gas prices, and proximity to existing infrastructure.
Joint Venture partners in the Tanjung Aru PSC are as follows: Neon Energy (Indonesia) Pty Ltd 42%
KrisEnergy (Tanjung Aru) B.V. 43% (Operator) Natuna Ventures Pte Ltd 15%

_________________________________________________________________________ Enquiries:

Managing Director: Ken Charsinsky Chief Financial Officer: Ben Newton Telephone: 08 94811176
Website: www.neonenergy.com

Neon Energy Ltd, ABN: 49 002 796 974, Ground Floor, 88 Colin Street, West Perth, 6005 Ph: +61 (08) 9481 1176 Fax: +61 (08) 9481 7720

PO Box 1789, West Perth, 6872 Website: www.neonenergy.comE-mail: info@neonenergy.com

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