Neon Energy Limited (ASX: NEN) is pleased to announce that the Company has been awarded the WA-503-P offshore petroleum exploration permit, as Operator and 100% working interest holder, having successfully bid in the 2013 Australian Offshore Petroleum Exploration Acreage Gazettal.

Block WA-503-P is located offshore Western Australia within the Dampier Sub-basin, inboard of the giant Northwest Shelf gas field complex and on trend with numerous oil and gas discoveries, including the Legendre and Hurricane fields. Water depths within the block range from 50 metres to 70 metres, within the depth capability of jack up drilling rigs.

Neon Energy is confident that the application of new technology – in particular “Broadband” 3D seismic – will generate renewed exploration interest in the area. “Broadband” 3D seismic is an emerging technology that enables the recording of a much wider range of seismic frequencies than traditional 3D seismic, resulting in a high-resolution dataset that can be accurately correlated to regional well data and geology. This enables detailed mapping of subtle structural, and complex stratigraphic features not readily identifiable on conventional 3D seismic data.

Two wells have been drilled within WA-503-P to date, with the Janus-1 well confirming the presence of a working oil system within the block, having discovered a 4 metre oil column. The Hoss-1 well, located immediately to the northeast of the block, encountered encouraging oil shows. The primary exploration focus in WA-503-P will be the hydrocarbon potential of Lower Cretaceous to Upper Jurassic basin margin fan deposits within the oil rich Legendre Trend, situated along the eastern flank of the Lewis Trough. The Legendre field (now decommissioned) is located approximately 20 km to the northeast, and produced over 40 MMbbls of oil from excellent quality reservoirs that yielded a superior oil recovery rate of over 50%.

The most recent discovery in the area, Hurricane, is believed to contain over 100 MMbbls of oil in place (plus associated gas and condensate) within a subtle structural/stratigraphic combination trap. This is one of the play types being targeted by Neon Energy in WA-503-P.

The Company has already identified four exploration leads based on existing 3D seismic data, the largest of which has potential for over 100 MMbbls oil in place within a series of stacked sandstone reservoirs.

For more information, please visit: Neon Energy Limited

To access over 3,500 of the latest oil projects from across the world visit Projects OGP for free trial today