Neon Energy Limited : Cua Lo Production Testing Result

ANNOUNCEMENT TO THE AUSTRALIAN SECURITIES EXCHANGE: 10 January 2014

Cua Lo Production Testing Result

Neon Energy (ASX:NEN) advises that testing of the Cua Lo-1 exploration well, located in
Block 105-110/04 ("Block 105"), offshore Vietnam, has been completed.
The drill stem test was conducted over a period of five days across an interval between 2,397 metres and 2,435 metres in the 4.5 Ma sandstone reservoir, chosen as it offered the greatest resource potential at this location. The presence of gas was confirmed with a peak flow rate of
400,000 scf/d through a 16/64" choke. Although gas flowed during the test, poor reservoir deliverability combined with high carbon dioxide content suggests development of the reservoir at this location is unlikely.
The Cua Lo-1 well has confirmed the existence of a petroleum system in Block 105 and provides valuable data for deciding the Joint Venture's future exploration strategy in the block. Incorporation of the newly acquired data into the subsurface interpretation will determine if the additional prospectivity in the block warrants further exploration.
The Cua Lo-1 well was drilled in 76 meters water depth and reached a total depth of 2,867 metres (measured depth). Operator Eni is now proceeding to plug and abandon the well.
The respective working interests of the Joint Venture parties in the Block 105 PSC are as follows:

Eni Vietnam B.V. (Operator)	50%
Neon Energy (Song Hong) Pty Ltd	25%
KrisEnergy (Song Hong 105) Ltd	25%

____________________________________________________________________ Enquiries:

Managing Director: Ken Charsinsky Chief Financial Officer: Ben Newton Telephone: [phone]
Website: www.neonenergy.com

Neon Energy Ltd, ABN: 49 002 796 974, Ground Floor, 88 Colin Street, West Perth, 6005 Ph: [phone] Fax: [phone]

PO Box 1789, West Perth, 6872 Website: www.neonenergy.comE-mail: [e-mail]