News & ASX Releases

June Quarter Production Report

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 feet.

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 recoverable volume.

Gas prices 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 customers.

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 performance.

* 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 certified reserves.

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 months.”

Giovanni Catalano
Po Valley Energy
+39 06 42 01 26 675

Michael Mullane
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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