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Administrative Court Rules on Italian's Ministry's Preliminary Award of Ossola Licence to Po Valley

June 18, 2007

The Italian Administrative Court (Tribunale Amministrativo Regionale per la Lombardia) in it’s latest judgment has found that the Italian Ministry for Economic Development should have provided more detailed reasons for it’s decision to make a preliminary award of the Ossola licence to Po Valley Energy.

At it’s meeting on12 July 2006, the Italian Hydrocarbon Commission found that Po Valley’s application for the Ossola licence area — just north of Milan and west of Bergamo - was more innovative, more complete and more functional (more clearly defined, better organized and sequenced) than the competing application from Edison - and accordingly made a preliminary award of the licence to Po Valley.

Edison, a subsidiary of EDF, challenged this award in the Administrative Court. The Administrative Court’s judgment was issued on 11 June 2007. The court recognized the full legal authority of the Ministry to evaluate the technical merits of competing applications and found no substantive grounds for overturning the Ministry’s decision. It found, however that the Ministry should have provided a fuller explanation as to why it found the Po Valley application to be superior in terms of innovation, completeness, and the functional logic of its work program. The judgment also confirmed that the Ministry has discretionary powers to select from competing applications.

Po Valley expects that, in the absence of an appeal by the Ministry, the Ossola application will be reconsidered at the next Hydrocarbon Commission meeting. Po Valley remains confident that re-award of the license will be made by the Ministry for Economic Development to Po Valley.

Michael Masterman Po Valley Energy 0417 851 303
Kevin Skinner Field Public Relations (08) 8234 9555 / 0414 822 631

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