Drilling and evaluation at the Ca Ngu-1 exploration well, located in Block 120, have not shown commercial potential and as a result the location will be abandoned as an oil and gas discovery well.

 

However, the company believes the presence of a combined gas and oil column in the Miocene highlights potential for significant discoveries elsewhere in Block 120.

 

Managing Director Ken Charsinsky says Ca Ngu-1 provided valuable new information which will influence the forward exploration program within the block. 

 

Shares in Neon Energy had fallen more than 24 per cent in morning trade to $0.29. 

 

Neon Energy booked a net loss of $2.6 million in the first half of the 2013 calendar year.