Neon Energy Limited provide the following update on ongoing production testing at the Company's Paloma Deep oil and gas discovery.

Testing of the Lower Stevens 'B' sand in the Paloma Deep-2 vertical appraisal well has recommenced following installation of production tubing, and the addition of further perforations. The planned installation of a pumping unit was postponed in order to assess the potential for the reservoir to flow hydrocarbons unassisted. After a few days of intermittent testing, including swabbing, the well has recovered over 40 barrels of 34?API gravity oil.

Neon is currently installing a downhole jet pump and start-up is expected to commence shortly for an extended flow period with the aim of achieving a stabilised rate.

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