September 26, 2012
Valley Energy (ASX:PVE) the Northern Italy focused oil and gas E&P
company has been awarded a preliminarily production concession on its
Bezzecca gas field by the Italian Ministry of Economic Development.
The preliminary award of the concession follows the completion of a
technical and economic evaluation of the project by the Ministry. The
final award is expected around the end of the calendar year once the
Environmental Impact Assessment (EIA), which was submitted in February
2012, has been fully reviewed by the Lombardy Region.
Bezzecca is located in Po Valley’s 100% owned Cascina Castello
concession area, east of Milan, which also contains the Castello
production field. The field was successfully drilled in 2009 resulting
in a commercial gas discovery. With the award of the production
concession, the gas field’s independently estimated Resources will be
reclassified as Reserves; Specifically:
- Proven = 0.7 bcf,
- Proven+Probable = 4.1 bcf,
- Proven+Probable+Possible = 6.7 bcf.
With this preliminary award, Po Valley has commenced preparation to
implement a two-phase development programme. The first phase involves a
connection of the already drilled and completed Bezzecca-1 well to the
existing Castello surface gas plant via a seven kilometre gathering
line. The second phase, following the start-up of gas production,
includes a second development well, Bezzecca-2, to be drilled in 2014.
The Castello surface gas plant has sufficient capacity to process
production from the single Castello well and both Bezzecca wells.
Giovanni Catalano, Managing Director
of Po Valley commented: “We
are delighted to have reached this milestone on Bezzecca, which will
become our third producing field. Notably, the ability to utilise the
existing Castello surface gas plant makes the commercialisation of the
Bezzecca field particularly attractive. Furthermore, the addition of
this third production field will increase Po Valley’s total Proven
Reserves by 10% to 8 bcf and Proven+Probable by 46% to 13 bcf”.
Po Valley Energy
+39 06 4201 62 75
About Po Valley Energy
Po Valley Energy (ASX: PVE) is an oil and gas producer 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 square kilometres 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
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, MD
& 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 30 years experience in Exploration and Development in
the Oil and Gas Industry. He is a member of SEAPEX and AAPG and holds a
master degree in Geology from the University of Ferrara, Italy.
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