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Po Valley Energy Limited
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Po Valley Energy Limited
All rights reserved.
News & ASX Releases
Po Valley Reports Steady Gas Production in June Quarter; Sillaro Completes First Year of Production; and Reserves Confirmed
July 28, 2011
Key Points:- June quarter gas production steady at 7.7 million cubic metres (273 million cubic feet)
- Sillaro gas field completes first year of production and reserves confirmed
Po Valley CEO Mr Giovanni Catalano said, “The first year of production at Sillaro achieved 33.4 million cubic metres (1.2 billion cubic feet), with the June quarter steady at 7.4 million cubic metres (262 million cubic feet). Sillaro averaged 84,430 cubic metres/day (3.0 million cubic feet/day) from its two production wells”.
The operating netback per unit of production at Sillaro averaged 90 per cent.
“Importantly, data from our planned three-day shutdown at Sillaro in May for pressure readings confirmed Sillaro’s previously certified Proven (1P) reserves of 7.5 billion cubic feet and Proven+Probable (2P) of 8.2 billion cubic feet”, said Mr Catalano.
During the quarter, the Company had also executed all contracts and service agreements to drill a new well at its Vitalba gas field, east of Milan, with the spud expected around the end of September 2011 and production in the fourth quarter. The current Vitalba well within the Cascina Castello license continued to produce at a limited rate.
During the quarter, Po Valley also appointed Moyes & Co., a global energy advisor with offices in the US and UK, to facilitate the farm-out process of a selected number of the Company’s assets.
Po Valley’s revenue for the quarter was €2.1m (AUD 2.8m), with the Company’s EBITDA margin continuing to improve. The average Eni gas release price for the quarter firmed up to €/cent 32.92 per cubic metre and it is expected to rise in both July and August, based on market-based forwards of gasoil, crude and fuel oil.
Po Valley is now in the process of closing its half-year accounts. “We expect to report continued positive EBITDA and a net profit for the half year”, said Mr Catalano.
For more detailed information please refer to the June 2011 Quarterly Activities Report.
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 hydro carbon assets in northern Italy. Po Valley holds 11 license areas, encompassing 2,000 square kilometers 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 www.povalley.com
MEDIA CONTACTS:
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.