Drilling Commenced at Neon's San Ardo Field

Neon Energy is pleased to announce commencement of a two well development drilling program on it's 100% owned North San Ardo oil field, onshore California.

The Lombardi 20-27H and Lombardi 21-27H horizontal production wells will be drilled back to back, targeting the southern lobe of the field. These wells are anticipated to significantly increase production at a time of strong oil prices.

The two well program is budgeted at US $1.6 million, and the wells are each expected to take two weeks to drill, complete and commence production. The Company will provide further information as and when initial production rates become available

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