Block 120 is regarded by Neon as highly prospective for large accumulations of oil.  The Block 120 Contract Area covers an area of 8,469 square kilometres in water depths of 50m to 1,100m.  Over the most prospective parts of the basin sediment thickness is up to 6,500m and water depths are in the range 50m to 500m.  The block overlies an approximately north-south trend of Tertiary‑aged sedimentary basins that comprises the Quang Ngai Graben in the north and central parts which passes into the Phu Khanh Basin in the south.

The area was previously explored by BHP Petroleum Limited who acquired an extensive 2D seismic survey in 1991 and drilled one well in 1993.  The well targeted a Miocene reef complex and encountered a 32 metre section of oil shows (including a 6metre oil column), demonstrating the presence of an active petroleum system.

The relative timing of the petroleum system in the area is considered to be very favourable, with reservoirs, seals and traps formed prior to peak oil generation (with only minor gas expulsion).  In addition to well documented Miocene reef plays, Neon has identified a variety of other play systems.  These include Oligocene and Miocene clastic plays with both structural and stratigraphic trapping mechanisms.

To fully evaluate and expand upon the existing prospect inventory Neon has acquired some 2,000 line kms of 2D seismic data, and is currently awaiting processing of that data.  Subsequent analysis and interpretation is expected to support high-grading of prospects for drilling.

Block 120 offers a diversity of play types with varying levels of exploration risk. It is considered highly likely that the proposed work program will identify new prospects and plays, and refine the risk factors associated with at least some of the existing prospects.