July 15, 2011
Po Valley Energy Limited (ASX:PVE) is pleased to provide the market with
an update on production volumes and revenue for the June quarter 2011:
June quarter production
was 7.72 million cubic metres (273
million cubic feet), with the Sillaro field contributing 7.43 million
cubic metres (262 million cubic feet) and the Castello field
contributing 282 thousand cubic metres (10 million cubic feet).
As planned (and after one-year’s production), the Sillaro field was
stopped for 3 days to record bottom hole pressure readings. The results
are encouraging and confirm previously certified reserves 1P (Proven) of
7.5 billion cubic feet and 2P (Proven+Probable) of 8.2 billion cubic
The short string E of Sillaro-2dir well is still producing at operating
rates despite the fact that it has already reached the total predicted
during the June Quarter continued to rise steadily to an average of €0.33 per cubic metre (USD13.27 per thousand cubic feet).
For 2Q 2011, revenue
was approximately €2.1m (AUD2.8m)*,
decreasing by 5% compared to 1Q 2011. Revenue during the quarter was
impacted by the planned 3 day shut-down at the Sillaro field necessary
to perform pressure readings and a seasonal discount agreed with our gas
To date, Po Valley’s total gas production
amounts to 42.28
million cubic metres (1.5 billion cubic feet), which can be split as
follows: the Sillaro field contributed 33.43 million cubic metres (1.2
billion cubic feet), while the Castello field contributed 8.84 million
cubic metres (312 million cubic feet).
Sillaro production averaged 84,430 cubic metres/day** (3.0 million cubic
feet/day) during the quarter with stable plant and reservoir pressure
* 1€ = 1.355 AUD for the period average (1 April 2011 — 30 June 2011)
** Average production is calculated on 88 days of production, in light of the 3 days shut-down
During the quarter, Castello still produced at limited rates, with plans
advanced to proceed with a deviation of the well — Vitalba-1dirA. The
spud is expected toward the end of September 2011.
Comment by Po Valley Chief Executive Officer, Mr. Giovanni Catalano:
“I am pleased to report that the solid production performance of PVE’s
Sillaro field has continued during the quarter, and reached one year
production with 1.2 billion cubic feet of gas. Also, the results of the
pressure readings are encouraging, thereby confirming previously
In regards to Castello, the Ministry of Economic Development has
forwarded the final authorisation to drill theVitalba-1dirA well and all
contracts and service agreements have been executed. We are therefore
well positioned to advance the development of this field in the upcoming
Po Valley Energy
+39 06 42 01 26 675
Cannings Corporate Communications
(02) 8284 9990
Competent Person’s Statement
Information in this report that relates to Hydrocarbon Reserves and or
Resources is based on information compiled by Mr Giovanni Catalano, CEO
of Po Valley Energy who have consented to the inclusion of that
information in the form and context in which it appears.
Mr Catalano has over 32 years experience in Exploration and Development
in the Oil and Gas Industry. He is member of SEAPEX and AAPG and holds a
masters degree in Geology from the University of Ferrara.
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