Block 105-110/04 ("Block 105") is located in the central Song Hong Basin and covers an area of some 7,192 km2 in water depths of 20 to 50 80 metres. Although there are a number discoveries nearby within the same sedimentary basin, Block 105 has seen very little exploration activity. A widely spaced grid of 2D seismic data has been acquired but there has been no exploration drilling.
The producing Dongfang and LeDong gas fields lie approximately 35 kms from the block’s eastern boundary, in Chinese territorial waters. These fields are estimated to contain ultimate recoverable reserves of 1.5 Tcf and 0.9 Tcf respectively. Block 105 is also located on trend with the three recent discoveries made by Vietgazprom to the south, two of which are believed to be commercial.
The data currently available over the block demonstrates the presence of a very thick sedimentary basin which has proven to be capable of generating hydrocarbons within the region. A variety of trapping styles are present including analogues of the Chinese gas fields to the east. The basin clearly has the potential to host commercially significant gas reserves however Neon’s geoscientists believe there may also be an interesting oil play in the western portion of the block. Several of the prospective features identified by Neon on the existing seismic data appear to have anomalous seismic attribute characteristics, which might be indicative of the presence of hydrocarbons. These anomalous seismic characteristics, commonly referred to as Direct Hydrocarbon Indicators (or “DHI’s”) are routinely used to identify and high-grade exploration prospects. Neon will reprocess existing seismic data and has recently acquired 1,807km of new 2D seismic using acquisition and processing parameters specifically tuned to illuminate potential DHI’s.
The Block 105 Production Sharing Contract has an intial term of 4 years during which the remaining work commitment is to drill at least one exploration well.
Subject to the pending approval of the Vietnamese authorities to the recent farmout, participants in Block 105-110/04 are:
Neon Energy (Song Hong) Pty Ltd 50%(Operator)
KrisEnergy (Song Hong 105) Ltd 40%
Enovation Resources Ltd 10%