Neon flows gas from third Paloma well

Set to shine: Neon Energy has signed a gas sales agreement to commercialise its Paloma Deep project in California

AP PHOTO/SCANPIX

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Danica Newnham

 29 August 2012 06:37 GMT

Australia-listed Neon Energy has flowed gas at a rate of 2.2 million cubic feet per day from its Paloma-3 well in California’s onshore San Joaquin basin.

This maximum, unassisted flow rate occurred as a result of ongoing production testing of the shallow gas sand in the well.

Two additional shallow gas sands remain to be tested.

Neon expected to commercialise the gas on the back of a greater Paloma development and has signed a gas sales agreement with a local purchaser.

The company is currently preparing to test the extended section of the Fruitvale formation and the Lower Stevens B sandstone in the Paloma Deep-2 well.

At its Paloma Deep-1 well, the extended test of the Lower Antelope recovered 131 barrels…

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