Neon Energy Limited : Ca Ngu-1 Drilling Update

ANNOUNCEMENT TO THE AUSTRALIAN SECURITIES EXCHANGE: 31 December 2013

Neon Energy Limited (ASX: NEN) is pleased to provide the following update regarding drilling and evaluation of the Ca Ngu-1 exploration well, located in Block 120, offshore Vietnam.
Since the last update on 27 November 2013, drilling has reached Total Depth at 1,290 metres, having drilled through the Pliocene reservoir objectives and some 115 metres in to the Miocene carbonate objective.
Analysis of wireline log data confirms the presence of gas within a number of Pliocene sandstone reservoirs, and the discovery of gas and oil within the Miocene carbonate reservoir. Based on early interpretation of the wireline data the Miocene hydrocarbon column appears to consist of a 10 metre gas column overlying a 5 metre oil column.
As a "play finder" well, Ca Ngu-1 was designed to help determine the future exploration strategy within Block 120. While the intersected hydrocarbon columns do not offer commercial potential at the Ca Ngu-1 location, the presence of a combined gas and oil column in the Miocene further reinforces the potential for significant discoveries elsewhere in Block 120.
Neon Energy Managing Director, Ken Charsinsky, commented, "Ca Ngu-1 represents a technical success which has provided the Block 120 Joint Venture with valuable new information that will influence the forward exploration program within the block. In the meantime we eagerly anticipate the results of production testing of the Cua Lo-1 gas discovery well, located in Block 105."
Operator Eni is plugging and abandoning Ca Ngu-1 as an oil/gas discovery well.
The respective working interests of the joint venture parties in the Block 105 PSC are as follows

Managing Director: Ken Charsinsky Chief Financial Officer: Ben Newton Telephone: 08 9481 1176
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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