Neon Raises Funds to Develop O&G Projects in the US, Southeast Asia

Australia's Neon Energy will raise $32 million (AUD 30 million) to fund its oil and gas exploration and production projects in the United States and Southeast Asia, up $11 million (AUD 10 million) from its original target of $21 million (AUD 20 million), due to strong interest from institutional investors, the company said in a statement on September 14, 2012.

The first tranche of 66.4 million shares to raise $21 million (AUD 20 million) was issued on September 14, 2012, while the second tranche of 33.6 million shares – raising another $11 million (AUD 10 million) – is subject to shareholder approval at a general meeting to be held on October 24, 2012.

In Southeast Asia, the funds will be used to reprocess existing 3D seismic and acquire 193 square miles (500 square kilometers) of new 3D seismic at the Tanjung Aru Production Sharing Contract (PSC). The Tanjung Aru PSC – a 4,200 square kilometer (1,622 square mile) block sited offshore Kalimantan in the Kutei Basin – is classified as a high impact exploration area with prospective resources to be well in excess of minimum economic field size due to the block's proximity to the Ruby gas field.

The Ruby gas field – a partnership between Pearl Oil (70%), Total E&P Sebuku (15%) and INPEX South Makassar (15%) – lies 68 miles (110 kilometers) from the Tanjung Aru PSC. Gas delivery from the Ruby field is slated to start this month, Indonesia's oil and gas regulator BP Migas said on September 7, 2012. 

The Tanjung Aru PSC is owned by Neon (42%), KrisEnergy (43%) and Natuna Ventures (15%).

 

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