Neon Energy Ltd

Neon Energy Ltd

SC - Neon Energy Ltd

www.neonenergy.com

 ASX-NEN

Ground Floor, 88 Colin Street
West Perth 6005
Western Australia

 +61 8 94811176

The Oilbarrel View

The first half of 2013 was difficult for ASX-quoted Neon Energy, which has heavy oil operations in California and exploration acreage offshore Vietnam. The share price plummeted from A30 cents in February to a low of A18 cents in late May as its Californian projects ran into difficulties, with a challenging testing programme in the Paloma Deep discovery and water /steam handling issues at the North San Ardo heavy oilfield.  Output of 236 bopd dwindled to a dribble.

The share price began to rebound after May over mounting excitement about Vietnam. Neon holds two blocks in Vietnamese waters, both of which could hold company-making discoveries.  Wildcat drilling got underway in August 2013 with the spudding of the Cua Lo-1 well in Block 105.