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Energy Milestone as Australia's Largest Investor in Italy Celebrates Gas Plant Inauguration

January 13, 2010

Australia’s largest investor in Italy - resource focused Po Valley Energy Limited - has marked its maiden production of one million cubic metres of gas with a formal plant inauguration ceremony overnight led by Australia’s Ambassador to Italy, Ms Amanda Vanstone.

Po Valley’s (ASX” “PVE”) new 100%-owned Castello gas plant east of Milan is currently outputting at 50,000 cubic metres of gas per day.

This volume will be incrementally increased to around 70,000 cubic metres over the next two months as the plant moves to post commissioning operations.

“The one million cubic metres maiden production milestone, and the strengthening production profile going forward for full year 2010, are now welcome reward for a vision we set in place almost five years ago,” Po Valley’s Chief Executive Officer, Mr Michael Masterman, said today.

“The inauguration (overnight Australian time) of the Castello plant represents the first new hydrocarbon production plant in northern Italy’s Po Valley region since the end in 1998 of the country’s energy monopoly by ENI-AGIP and the liberalisation of the Italian gas market,” Mr Masterman said.

“We are now strongly positioned to add to our production, appraisal and development schedule in northern Italy with our second production field - the also wholly owned Sillaro field east of Bologna - which is on track to commence commissioning from mid February.”

The additional flows from Sillaro are expected to double the saleable gas volumes for the new Australian producer, which operates in Italy through its subsidiary, Northsun Italia Spa.

The Castello plant commenced production early last month, marking a successful four year transition to a producing asset from the drilling of the first well, Vitalba-1d - in 2005.

The high quality natural gas output from the Castello field is sourced from hydrocarbon structures at depths of around 1,500 metres.

“Po Valley is proud to be a pioneer in delivering new sources of secure domestic supplies to the Italian gas market - which is still largely dependent on imported gas - and becoming a new actor in Italy’s production of national energy resources,” Mr Masterman said.

Joining Ms Vanstone at the inauguration were senior personnel from Italy’s Ministry of Economic Development and a delegation of local authorities, including the Major of Rivolta d’Adda town and the President of Cremona Province.


Michael Masterman
Po Valley Energy
(0039) 333 1961061

Kevin Skinner
Field Public Relations
(08) 8234 9555 / 0414 822 631

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