News & ASX Releases

Further International Backing For Emerging Australian Gas Producer

June 19, 2007

Blue chip international and domestic investors continue to back the progress to date by listed Australian petroleum explorer, Po Valley Energy Limited, (ASX code “PVE”) to supply gas into northern Italy’s energy grid from early next year. Po Valley announced today it had completed a placement of a total of 4,325,000 shares at A$1.65 per share to raise A$7.136 million dollars.

The placement - to Boston based John Hancock Mutual Funds and two Australian Funds — followed a similarly successful placement totaling A$5.85 million dollars to equity markets late last year.

The latest proceeds will be used to move Po Valley’s current three lead gas fields in northern Italy to maiden production by early next year and to expand the Company’s recently announced additional exploration initiatives and its proposed first move into gas storage opportunities in Europe.

In the placement announced today, Po Valley has agreed to issue 3.5 million ordinary shares to John Hancock Mutual Funds — a United States pension and insurance company.

The balance of the shares is to be issued to the Australian hedge fund, Cranport Pty Ltd and current major shareholder, Hunter Hall Investment Management. The latest capital raising takes to 89.88 million, the number of ordinary Po Valley shares on issue, capitalising the Australian explorer at A$161.7 million, based on the closing shares of $1.80 on Monday, 18th June 2007.

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

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