News & ASX Releases

Drill Rig Secured For New 2008 Gas Program In Northern Italy

October 23, 2007

ASX-listed gas explorer and developer, Po Valley Energy (ASX code “PVE”) is pleased today to announce that the Company has signed a contract with Hydrodrilling International SpA to secure the Ideco 1200 drill rig to drill Sillaro 2, Bezzecca 1 and Fantuzza 1 in northern Italy starting in April 2008.

HydroDrilling previously contracted successfully for Po Valley’s initial Sillaro and Castello well programs over 2005/2006.

“The rig contract is critical for drilling the second production well in Sillaro and appraisal wells in the large Bezzecca and Fantuzza structures,” Mr Masterman said. “Significantly, we will now enter the first half of 2008 being active on the production, appraisal and exploration fronts,” Mr Masterman said.

Sillaro is the Company’s largest natural gas field discovered to date and the 2008 drilling program will include a second Sillaro well to increase overall production rates, optimize total well reservoir field recovery and increase reserves.

Sillaro-2 will be drilled from the existing Sillaro-1d drill site and prior to maiden field production commencing.

The deeper Miocene structure in the field, near Bologna, will be targeted in 2008 with the first half drilling also of the 2.6 kilometers deep Fantuzza-1 well, located two kilometers from the existing Sillaro wellhead site.

The Company’s first gas production will be from the Castello (near Milan) and Sillaro (near Bologna) fields.

Po Valley has an existing reserve base within its northern Italian acreage of Proven and Probable (2P) reserves of 105 billion cubic feet of gas. The Company has entitlements to 3P reserves from its three fields of 130 bcf.

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

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