January 30, 2014
Valley Energy Ltd (ASX: PVE) drilled Gradizza-1 in the La Prospera
exploration permit in early September 2013 and carried out additional
rigless testing in November.
The production test results, together with the reservoir static model, confirmed its commercial viability.
Gradizza-1 is located on the top of the crest and intersected 10 metres
of net gas sand. No Gas Water Contact was detected (GDT).
The well intersected less net pay than pre drilling estimates resulting
in a decrease of the 2C Contingent Resources compared to previously
reported Prospective Resources.
Prospective Resources are now reclassified as Contingent Resources and are summarised as follows:
Notes to the table:
|Contingent Resource Category
||Contingent Resource Estimate - (Bcf)
|Contingent Resource Estimate - (Bcf)
PVE 75% equity interest
- Contingent resource assessments are estimated in accordance with SPE-PRMS standards.
- Further detail on the Contingent Resource assessment is outlined in the additional information contained on page 2
As previously announced, the Company and its partners have agreed to
apply for a production concession which will be filed with the Ministry
of Economic Development in February.
Po Valley Energy
+39 06 4201 62 75
Additional information on the field:
La Prospera exploration licence, located in the Ferrara province north
of Bologna, was awarded in September 2008. A subsequent seismic
interpretation of 68km of ENI seismic lines identified the Gradizza
The Gradizza structure consists of a sandstone Quaternary target (Asti
sands Fm.) at a total measured depth of 856 metres. The Company holds a
75% equity interest and operatorship, in Joint Venture with Petrorep
Italiana Spa (15%) and AleAnna Resources LLC (10%).
Basis for assessment of the contingent resource range at Gradizza:
Gradizza volumes estimates are reported in accordance with SPE/WPC/AAPG/SPEE Petroleum Resource Management System.
Contingent Resources are indicated as those quantities of gas estimated,
as of a given date, to be potentially recoverable from known
accumulations by application of development projects, but which are not
currently considered to be commercially recoverable due to one or more
Within the context of the Italian regulatory framework, Contingent
Resources can be re-classified as Reserves once a preliminary Production
Concession is granted by the relevant Authority (Ministry of Economic
1C- Denotes low case estimate scenario of contingent resources- When
applied to Gradizza, they include the gas volume limited to the GDT and
the petro-physical features deriving from the electrical logs and the
surrounding wells drilled in the past.
2C- Denotes best estimate scenario of contingent resources. When applied
to Gradizza, the 2C includes1C plus the volume limited to the
structural closures of the fault block tested by the well.
3C — Denotes high estimate scenario of Contingent Resources. When
applied to Gradizza, the 3C resource includes the 2C resource plus
the volume limited to the spill point.
Bcf: Billion standard cubic feet
GDT: Gas Down To
Qualified petroleum reserves and resources evaluator:
The information in this announcement that relates to Hydrocarbon
Resources is based on, and fairly represents, information and supporting
documentation prepared under the supervision of the Qualified Petroleum
Reserves and Resources Evaluator, Mr. Greg Short. Mr Short is a
Non-Executive Director of Po Valley Energy Limited, a geologist with
over 40 years of oil and gas industry experience and a member of AAPG.
He has consented to the form and context in which the Contingent
Resources/Prospective Resources and the supporting information are
presented in this announcement
About Po Valley Energy:
Po Valley Energy (ASX: PVE) is an oil and gas production and exploration
company listed on the Australian Stock Exchange. It has an expanding
portfolio of hydrocarbon assets in northern Italy. Po Valley holds 11
license areas, encompassing 2,000 km2 and owns and operates two gas
treatment plants. The Po Valley region is the main gas production zone
in Italy. The Company’s web site is http://www.povalley.com
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