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Expanded Italian Gas Footprint For Po Valley After New Government Approvals

January 29, 2009

An expanded gas exploration footprint has been secured by Australia’s Po Valley Energy Limited (ASX: “PVE”) in its northern Italian province as the Company continues to ready for its maiden production from later this year.

Po Valley announced today it had been formally granted a six year exploration licence for its Podere Gallina licence near Bologna.

In addition, the Company has also been granted a preliminary award of the Grattasasso exploration permit near Modena.

The awards are in addition to 20-year production concessions won by the Australian gas developer late last year and which have cleared the way for first gas flows from the Company’s Sillaro and Castello fields.

The new Podere Gallina licence expires in 2014 and covers an area of 506 square kilometres.

Following extensive geological studies and seismic interpretation, the Company has defined three priority gas targets in Podere Gallina - Fondo Perino, Cembalina and Casa Rossa.

The most advanced of these is Fondo Perino, a faulted anticlinal structure at a depth of approximately 1500 metres and which contains estimated P50 resources of about 22 billion cubic feet (bcf) of gas.

The Cembalina structure, which has the potential to be of similar size, will be the subject of further geological and geophysical study, including possible seismic acquisition, during 2009.

“Based on the positive results of our geological work, we aim to bring either Fondo Perino or Cembalina into a position of being drilled in mid 2010,” Po Valley’s Chief Executive Office, Mr Michael Masterman, said today.

“Podere Gallina is a robust addition to our portfolio, with the potential of three significant exploration targets,” Mr Masterman said.

“Like our Sillaro, Castello and Bezzecca projects, the prospects in the Podere Gallina licence are expected to benefit from high quality gas, close proximity to the pipeline grid, and the relative strength of Italian gas prices,” Mr Masterman said.

The preliminary award of the Grattasasso permit also consolidates Po Valley’s position in the central region of the Po Valley.

Adjacent to the Company’s recently awarded Cadelbosco di Sopra permit, Grattasasso contains the Ravizza oilfield which is estimated to contain P50 reserves of 5 million barrels of oil (mmbbl).

“The addition of the Grattasasso preliminary award enhances our presence in the oil play of the southern flank of the Po Valley, already marked by the presence of the Bagnolo- in-Piano oilfield in our Cadelbosco di Sopra licence,” he said.

MEDIA CONTACTS:

Michael Masterman
Po Valley Energy
0417 851 303 (08)

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

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