February 22, 2011
Valley Energy Limited (ASX:PVE) has achieved a 38% increase in the area
of its gas exploration rights in northern Italy - including licences
located in one of the country’s former largest onshore gas fields in the
The Company announced today it has been awarded two adjacent gas
exploration licences, Cadelbosco di Sopra and Grattasasso, located
between Modena and Parma, as shown in the attached map. The two new
licences are for initial exploration terms of six years.
The new licences enlarge Po Valley’s gas exploration footprint in
northern Italy by 547 square kilometres to a total of nearly 2,000
The award of these two new licences is consistent with the Company’s
strategy of growing its gas production base by bringing promising new
targets into its exploration portfolio.
Commenting on the award of the new exploration permits, Po Valley’s Chief Executive Officer, Mr Giovanni Catalano, said:
||“The award of the Cadelbosco di Sopra and Grattasasso
permits adds a number of promising well-defined opportunities to our
existing diversified portfolio of assets. We are accelerating the final
technical and evaluation work on the Quaternary prospects and anticipate
submitting a formal application for drilling by the third quarter of
this year. With drilling success, development planning would proceed
“The pursuit of new exploration permits demonstrates the Company’s
ability to identify and capture quality new opportunities in the Po
Valley and its commitment to enhancing its long term growth prospects”.
The new combined licences cover the Correggio structure, a former ENI
gas field discovered in the 1950s. During ENI’s ownership, the field
produced more than 253 billion cubic feet (bcf) of gas from a stacked
multipool reservoir - one of the largest onshore gas fields in the Po
A re-evaluation of the Correggio field is underway, with the support of
ENI’s past production data, in order to assess the potential for
additional reserves within the Quaternary and Pliocene reservoirs in the
Cadelbosco di Sopra and Grattasasso licence areas.
Following thorough geological studies and seismic interpretation of
existing data in the Correggio gas field, Po Valley has identified two
priority gas prospects in the Quaternary reservoirs, Zini and Canolo.
The Zini prospect is located in the Cadelbosco di Sopra area while
Canolo straddles both licences. The Company’s technical team is also
finalising evaluation of the Pliocene gas potential. It is anticipated
that plans for a drilling campaign will be finalised later this year.
The two new blocks also include the former ENI oil discoveries, Ravizza
in the Grattasasso permit and Bagnolo-in-Piano within the area of
Cadelbosco di Sopra.
An evaluation is underway to assess the development potential of both discoveries.
Dedicated Reservoir Engineering and Management (DREAM, University of
Turin) is finalising a static and dynamic reservoir study on the
Quaternary and Pliocene targets using ENI seismic, well log and
production data and technical reports.
The work programme for the permits may require commissioning a seismic
3D survey, with the aim of confirming the size of the potential of
additional gas reserves within the former Correggio gas field, assessing
the development potential of the Ravizza and Bagnolo-in-Piano oil
discoveries and identifying new prospects and leads.
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 has 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.
Po Valley Energy
+39 06 4201 62 75
Field Public Relations
(08) 8234 9555 / 0414 822 631
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