News & ASX Releases

Po Valley Half Year Results

August 3, 2012

Po Valley Energy Ltd. (ASX: PVE), the Northern Italy focused oil and gas E&P company announces its half year results for the six months ended 30 June 2012.

Financial Results

The Company continued to perform well during the first 6 months of the year. Cashflow from operations was €4.1 million (up 87% compared to same half last year), EBITDA was €2.6 million (up 17%) and net profit after tax was €0.3 million (down 17%); mainly due to the increase in depreciation from the Castello gas field since restarting production in February. The Company ended the period with cash at bank of €2.0 million. Borrowings were unchanged at €6.0 million.

H1 2012
H1 2011
YoY Change
Total Revenue 4.40 4.35 0.05
EBITDA 2.65 2.26 0.39
Net Profit after Tax 0.30 0.37 (0.07)
Earnings per share (€cents) 0.28 0.33 (0.05)
Cashflow from operations 4.08 2.19 1.89

Operating Highlights
  • Production restarted at the Castello field in February, with total Company production for the six months at 12.3 million standard cubic metres (434 million cubic feet).
  • Plans are well advanced to install the condensate separator in order to bring the field back to full production of 77,500 standard cubic metres per day. The field continues to produce at reduced rates and is successfully managing the marginal condensate production. At the end of July the field was producing stably at 52,000 standard cubic metres per day.
  • Total production for the second half is expected to be slightly lower than the first half due to the reduced production rate, and a short shutdown to allow for separator installation at the SIllaro field.
  • Reserves and Resources were certified by the independent auditors Fugro Robertson, confirming inter alia Sillaro reserves and confirming the significant upside value of the Company’s portfolio.
  • First offshore exploration permit - AR94PY (previously AR168PY) was awarded in July. Located in the shallow waters of the Adriatic Sea the permit contains two connected gas discoveries, Carola and Irma (best estimate Contingent Resources 2C of 24.8 bcf).
  • Joint Venture with Petrorep Italiana for a farm-in agreement on the Cadelbosco di Sopra exploration licence and an option agreement on La Prospera exploration licence was signed.
Commenting on the results Giovanni Catalano, Managing Director of Po Valley, said: “We have made solid progress in the first half of the year with our exploration and development programmes progressing steadily and have continued to strengthen our asset portfolio through the award of our first offshore licence - AR94PY, the farm-out to Petrorep and the preliminary award of a new onshore oil play — Torre del Moro”.


Giovanni Catalano
Po Valley Energy
+39 06 4201 62 75

About Po Valley Energy
The Po Valley region is the main gas production zone in Italy. 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, Silllaro and Castello which provide the Company with steady cash flow.
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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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