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Former ENI Gasfield Added To Po Valley's Expanding Italian Exploration And Production Assets

July 23, 2008

A gas field in northern Italy formerly owned by European energy giant, ENI, has been added to the expanding oil and gas exploration and development assets of Australia’s Po Valley Energy Limited.

The preliminary award (subject to environmental clearance) of the 513 km² Cadelbosco di Sopra exploration licence within Po Valley’s (ASX “PVE”) portfolio is the second significant asset addition in Italy in as many weeks for the emerging Australian gas producer.

The Company last week was preliminary awarded, subject to environmental clearance, its first offshore Italian gas licence, the 526 km² AR-168PY (“Azzurra”) block in shallow waters of the Adriatic Sea on Italy’s east coast.

The latest acreage addition is between Parma and Modena and about 80 km west of Po Valley’s imminent maiden producer, the Sillaro field.

Cadelbosco di Sopra hosts a number of former oil and gas discoveries and fields, including ENI’s Correggio gas field which produced a total of 247 billion cubic feet of gas (bcf) in its initial life.

“This licence award significantly increases the size and quality of our oil and gas portfolio,” Po Valley’s Chief Executive Officer, Mr Michael Masterman, said today. “The prospectivity of the licence is reflected in its initial production history, as well as one drilled and tested oil discovery, and at least two high quality exploration gas targets,” Mr Masterman said.

“Based on our work to date, we believe there is strong scope to bring the Correggio field back into production and exploit remaining producible reserves.” “This will enable Po Valley to take further advantage of high Italian gas prices which currently exceed US$19 per one thousand cubic feet of gas.”

Mr Masterman said Po Valley would immediately commence environmental clearance work, the main pre-requisite for final licence award.

The Company also intends to purchase and review seismic data covering the Cadelbosco di Sopra block.

As a result of the expansion, Po Valley now holds in granted exploration licences and licence applications with no competition, more than 3,152 km2 of petroleum licences across northern Italy.

In total, these licences contain 18 gas exploration prospects and 4 oil exploration prospects.

Of these prospects, 5 of the gas prospects and 2 of the oil prospects have been previously drilled and positively tested for gas or oil flows.

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

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