Vietnam: Third prospect, gas potential seen on Block 120

A third prospect has been identified on Eni Vietnam BV-operated Block 120 offshore southeast of Da Nang, Vietnam, from 500 sq km of 3D seismic shot in mid-2012, said partner Neon Energy Ltd., Perth.

The seismic program was designed to delineate prospects near BHP Petroleum’s 1993 120-CS-1X well, which encountered 32 m of oil shows and a 6-m oil column in Miocene reef carbonates, confirming the presence of a working petroleum system.

The 3D seismic data has advanced the joint venture’s understanding of the potential reservoir and hydrocarbon distribution on Block 120 and revealed an additional prospect, Ca Ngu, which together with Rua Bien and Ca Lang is a candidate for drilling of the first exploratory well.

The improvement in seismic data quality reveals an Oligocene synrift section much thicker than previously thought, which potentially increases the volume of mature source rock available to generate hydrocarbons, Neon Energy said.

The associated increase in depth of burial of the prospective Oligocene section also opens up the possibility of local gas generation within the synrift half-graben. The seismic character of shallow objectives with strong amplitude anomalies in Rua Bien and Ca Ngu support the presence of at least some gas in the reservoir.

As such, the three primary prospects within Block 120 are now regarded as prospective for both oil and gas. The Block 120 production sharing contract provides for a higher contractor profit share of gas than for oil.

Seismic interpretation and analysis of the three prospects is nearing completion, and volumetric and risk assessment will lead to prospect selection by the joint venture in July 2013, and drilling is expected to begin in September.

Working interests in Block 120 are Eni Vietnam 50% and Neon Energy (Song Hong) Pty. Ltd. and KrisEnergy (Song Hong 105) Ltd. 25% each.