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Po Valley Energy Limited
All rights reserved.
Po Valley Energy Limited
All rights reserved.
News & ASX Releases
2010 September Quarter Gas Production Update
October 13, 2010
Po Valley Energy Limited (ASX: “PVE”) achieved strong production and revenue from the Company’s north Italy gas fields during the 2010 September quarter.The higher production in the September quarter reflected the first full quarter of production from the 100% owned Sillaro field, which more that off-set the unexpected decline of production from the Castello field during the June quarter.
The 2010 September quarter production comprised 8.92 million cubic metres (315 million cubic feet), up 95.8% on the preceding June quarter, with the Sillaro field contributing 8.59 million cubic metres (308 million cubic feet) and the Castello field, 336 thousand cubic metres (12 million cubic feet).
The Sillaro field averaged 94,500 cubic metres/day (3.3 million cubic feet/day) from its two production wells during the quarter with stable plant and pressure performance.
Production from the Sillaro gas field commenced during the June quarter after being brought on stream on the Pliocene PL2-A and PL2-E levels in the Sillaro-2 well on May 16. The rate of production from the Sillaro field has been gradually increased since the successful commissioning of Sillaro-2. Following the completion of coil tubing work, the Sillaro-1 well also commenced production in mid-June on level PL2 C1/C2.
Castello produced at limited rates during the quarter while planning to proceed with a deviation of the well - Vitalba-1dirA continues as a priority. Vitalba-1dirA, will be deviated from the current Castello plant location and connected to the existing Castello plant to recommence production.
Subject to drilling success, production is planned to recommence at levels of around in the June quarter of 2011 and is expected to produce at 50-70,000 cubic metres/day.
In another milestone Sillaro passed the Bank of Scotland (BOS) 90 days completion test. As a result the borrowing costs will drop from 300 basis points over EURLIBOR to 180 basis points - a significant reduction in interest costs.
Revenue for the September quarter was approximately €2.43m (AUD$3.2m), reflecting the higher production. Gas prices remained on an average of €0.30 per cubic metre in the September quarter (USD11.3 per thousand cubic feet).
Cash at Bank at the end of the quarter was €2.0m (AUD$2.9m) and the drawing on the Bank of Scotland facility remained unchanged at €7.0m.
MEDIA CONTACTS:
Giovanni Catalano
Po Valley Energy
+39 366 3241562
Kevin Skinner
Field Public Relations
(08) 8234 9555 / 0414 822 631