The company is disputing the validity of operator Eni Vietnam's actions leading up to the issuance of notices of withdrawal to the company.

The notices were issued after Neon failed to pay cash-calls to Eni of $US22.1 million ($A23.5 million), primarily stemming from recent drilling of the Ca Ngu-1 and Cua-Lo-1 exploration wells.

Neon is in negotiations with joint venture partners Eni and KrisEnergy over the dispute.

The interests in both blocks amounted to 50% for Eni, and 25% for Neon and Kris Energy before the issuance of the notices.