Italian operator Eni has secured a rig to drill the Cua Lo prospect on Block 105-110/04, off the coast of Vietnam.
Joint venture partner Neon Energy announced on Monday that a contract had been signed for the jack-up drilling rig Ensco-107 which is scheduled to start drilling on the prospect in June.
It added that the final location of the well would be determined by the results of the analysis and interpretation currently being carried out on 3D seismic data covering the Cua Lo prospect.
“We look forward to the drilling of the Cua Lo prospect, which will mark the culmination of a three-year exploration and farm-out programme,” Neon managing director Ken Charsinsky said.
“The new 3D seismic data has confirmed our view regarding the prospectivity of the acreage, and has greatly assisted in locating the well to optimally target multiple potential pay zones in an area of promising reservoir development.”
An independent report by Netherland Sewell & Associates Incorporated (NASI) in 2011 gave the Cua Lo prospect a best estimate gross unrisked prospective recoverable resource of 3.9 trillion cubic feet of gas.
Neon is being free carried through the drilling of the Cua Lo well, up to a gross cost cap of $25 million, under the terms of the farm-out agreement it finalised with Eni earlier this year covering Blocks 105 and 120.
In exchange for a 50% stake in the blocks, Eni agreed to pay the cost of gathering 800 square kilometres of 3D seismic in Block 105 and the cost of a 250 square kilometre shoot over Block 120, as well as the drilling of one exploration well on each block.
Neon holds a 25% share in each of the blocks with Singaporean company KrisEnergy holding the remaining 25% interest.