News & ASX Releases

Adriatic Application Takes Po Valley's Gas Expansion Offshore For First Time

November 12, 2007

Emerging Australian gas producer, Po Valley Energy has made its first proposed move into offshore projects, with the Italian Ministry today confirming the Company’s application for a 526km2 oil and gas licence application in the Adriatic Sea.

The licence area is 50km offshore from Po Valley’s main operating base in Northern Italy; where the Company has an evolving footprint of successful onshore gas developments, with first production from mid next year.

“Our application for the area (Application No: AR 168-PY) marks the Company’s first step in potentially extending our onshore exploration focus on proven but undeveloped fields, to the larger gas target opportunities in the Northern Adriatic,” Po Valley’s Chief Executive Officer, Mr Michael Masterman, said today. “The Ministry’s confirmation of our application is a welcome milestone and while early days yet, could soon add to what is becoming an increasingly solid base for Po Valley of exploration, development and production gas assets able to feed into Italy’s heavily import-dependent gas market,” Mr Masterman said Similar to PVE’s on-shore developments, the Adriatic licence application area covers three gas targets that were successfully drilled but undeveloped by ENI in the 1990s. As part of the application, the target structures will be further analysed through the purchasing and re-evaluation of a 3D seismic dataset, run by ENI in the 80’s and 90’s. Recoverable reserves are expected to be in the order of 45bcf. Mr Masterman said there was only one competing application for the same area from an applicant. The application is expected to be reviewed at the next Hydrocarbon Commission meeting where it is anticipated that a ‘preliminary award’ (i.e., awarded subject to environmental clearance) to the successful applicant.

In addition to this new licence area application, Po Valley Energy currently has three production applications, 3 awarded exploration licences, six exploration licences with preliminary award and one applications pending award in the 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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