Neon Energy Limited says that the Ensco 107 jack-up rig has been contracted to drill the Cua Lo prospect in the Company's offshore Vietnam Block 105-110/04 ('Block 105').

Drilling is scheduled to commence during June 2013, with exact timing subject to rig release by the previous Operator, Mitra Energy. Pursuant to the terms of the farmout agreement with Eni Vietnam B.V., Neon will be carried through the drilling of the Cua Lo well up to a gross cost cap of US$25 million. Any costs in excess of the cost cap will be paid by the parties in accordance with their respective working interests.

Interpretation and analysis of the 3D seismic data over the Cua Lo prospect is nearly complete, and the joint venture is finalising the precise location of the exploration well based on the results.

Tags: Neon Energy Limited