February 3, 2014
Po Valley Energy Limited (ASX:PVE) wishes to provide a revised version
of the release lodged on 30 January 2014. This revised version contains
some additional details in a reformatted summary in accordance with the
new ASX Listing Rules (Chapter 5) applicable to the reporting of oil and
gas activities and contingent resources for oil and gas projects.
For further information please contact:
Sara Edmonson - Acting Chief Executive Officer: +39 06 4201 6275
ASX / MEDIA RELEASE
30 January 2014
Gradizza-1 Contingent Resource Assessment
Po 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, subject to a preliminary Production
Concession being awarded by Italian regulatory authorities.
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) 100%
||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
In accordance with the new ASX Listing Rules (Chapter 5) applicable to
the reporting of oil and gas activities and contingent resources for oil
and gas projects, additional detailed information is provided in the
Bcf: Billion standard cubic feet
||Provide explanation as to the method used to prepare the estimates of contingent resources
||With the Gradizza-1 well results in hand, the
method used to prepare the estimates of contingent resources is
deterministic. The gas discovery can be exploited by the single
existing well (Gradizza-1).
||Type of permit held in respect of the reported estimates of Contingent Resources
||The 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 prospect.
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
||Basis for confirming the existence of a significant quantity of potentially moveable hydrocarbons
||The existence of a significant quantity of
potentially moveable hydrocarbons is confirmed based on (i) the
drilling results including logs which confirmed the presence of
hydrocarbons followed by (ii) the results of the rigless testing
carried out in November / December 2013 which after having been
incorporated in a static model confirmed commercial flow rates from
||A brief description of (i) the analytical
procedures used to estimate contingent resources; (ii) key contingencies
; and (iii) any further appraisal drilling and evaluation work
||1) 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
The production test results, together with the reservoir static model, confirmed commercial viability of Gradizza-1.
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 contingencies.
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.
2) the key contingencies that prevent the contingent resources from being classified as reserves:
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 Development).
3) No further appraisal drilling and
evaluation work will be undertaken to assess the potential for
commercial recovery of the field.
||A brief explanation of contingent resources that are contingent on technology under development
||The reported estimates of contingent resources are not contingent on technology under development.
||Further details regarding land area and number of wells for unconventional resources
||The reported estimates of contingent resources do not relate to unconventional petroleum resources.
||For first time reporting, an explanation of the
new data and information, how it has affected the resource estimates and
any changes or additions
||Gradizza volumes estimates are reported in
accordance with SPE/WPC/AAPG/SPEE Petroleum Resource Management System.
Resources related to the La Prospera License as disclosed in the
Company’s Annual Report 2012 were classified as Prospective as the
undiscovered accumulation of moveable hydrocarbons had not yet been
penetrated by a well.
Subsequent to drilling Gradizza-1 and the related log and
production test results, Prospective Resources can now be
reclassified as Contingent Resources.
New data and information:
The well Gradizza-1 is located on the top of the crest and
intersected 10 metres of net gas sand. No Gas Water Contact was
Impact of the new data and information on the estimates of contingent resources:
The fact that the discovered reservoir has been penetrated by
a well which clearly demonstrated the existence of moveable
hydrocarbons in that reservoir by flow to surface constitutes a
reclassification of estimated recoverable quantities as Contingent
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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