July 28, 2011
- 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 Energy Ltd. (ASX:PVE) said gas production for the
June quarter was steady at 7.7 million cubic metres (273 million cubic
feet) on higher average prices, and noted it had completed its first
year of production at the Sillaro gas field in Northern Italy.
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
Po Valley Energy
+39 06 42 01 26 675
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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