KrisEnergy pursues new target on Block 120 offshore Vietnam

By Amy McLellan

Block 120 offshore Vietnam may have been a catalyst for the troubles that overwhelmed ASX-quoted Neon Energy two years ago but it’s clear the partners that took over Neon’s equity are still committed to the block. Operator Eni and Singapore’s KrisEnergy have digested the results of the over-budget Ca Ngu-1 well of 2013, which along with the Cua Lo-1 well in Block 105, proved so disastrous for Neon, and are now busy shooting 3D seismic over Block 120.

The CGG Amadeus vessel has commenced a 570 sq km 3D survey over the 6,869 sq km block, focusing on the Quang Ngai Graben and the Tri Ton Horst where water depths range from 50 to 650 metres. The graben connects the Song Hong and Qiongdongnan Basins in the north to the Phu Khanh Basin in the south.

The survey, which is expected to take 23 days, is designed to image the carbonate and basement sections of the Ca Lang prospect and associated leads
on the Tri Ton Horst.

It will be tied into a 502 sq km 3D data set acquired in 2012. Previous wells here, including the 1993 120-CS-1X exploration well, which encountered good oil shows, and the Ca Ngu-1 well of 2013, which intersected a 20 metre oil and gas column, confirming the existence of a petroleum system in the area. The Ca Lang prospect lies about 25 km to the southeast of the Ca Ngu-1.

“In the last 14 months, we have undertaken detailed analysis of our geological model for Block 120, incorporating the data from the Ca Ngu-1 well,” said
KrisEnergy’s director of exploration and production Chris Gibson. “Now our attention is focused on the Ca Lang area and we look forward to being able to more clearly map and further de-risk the prospect, which we believe has a
high chance of intersecting hydrocarbons in multiple objectives.”

KrisEnergy holds a 33.33 per cent working interest in Block 120, with operator Eni holding a 66.67 per cent working interest. Earlier this month KrisEnergy increased its working interest in Block 105 and took over operatorship after Eni walked away and transferred its 66.67 per cent working interest to the Singapore-listed group.

The first exploration period on the block has been extended by 12 months to February 2016, giving KrisEnergy time to investigate the prospectivity of several play types on the Block. Gibson said the faulted Tertiary plays on the western margin of the contract area were of particular interest.

The company is looking for partners to help explore the block, where in 2013, Eni, KrisEnergy and Neon drilled the Cua Lo-1 wildcat, the only well on the block, which confirmed the existence of a petroleum system on the block. Gibson said the company was already in discussions with other parties. The block covers 7,192 sq km in the Gulf of Tonkin, overlying the shallow water central Song Hong Basin.