Neon in Vietnam farmout plan

News - Australia-based Neon Energy has continued its farmout of a stake in two blocks offshore Vietnam after accepting an offer from another company it did not name.

Neon farmed out a 50% stake in block 120 and block 105-110/04 to Singapore-based KrisEnergy last year , saying at the time that it hoped to reduce its remaining 50% stake to between 20% and 30% to help reduce the cost and risk of drilling.

In an announcement, Neon it would retain a material working interest in the blocks while the farmout would deliver an expanded work programme in both blocks with no substantive cost to the company.

The deal, which was subject to approvals from PetroVietnam and the Vietnamese government, was expected to be executed during the first quarter, Neon said.