October 19, 2015
Po Valley Energy (ASX: PVE) the Italian based oil & gas exploration, development and production company is pleased to announce that it has entered into an agreement with Joint Venture partner AleAnna Resources LLC (“AleAnna”) to sell PVE’s 75% interest in the fully awarded exploration license La Prospera. The license also includes a preliminary production concession for the Gradizza gas discovery located within the licence. AleAnna will also acquire the Company’s share of the preliminarily awarded adjacent exploration license Zanza.
Consideration will be Euro 1,850,000 with a further amount of Euro 200,000 to be paid if the final production concession for Gradizza is received by August 2016. Completion of the transaction is subject to formal approval by the Ministry of Economic Development which is expected to be received in coming weeks.
AleAnna is an upstream oil and gas exploration and production company operating in Italy with interests in nine exploration permits, five exploration applications and one production concession application in the Po Valley and Bradano basins, encompassing more than 823,904 acres (3,334 sq km). Two experienced oil and gas exploration and production companies, including BRS, own AleAnna.
Sara Edmonson, Chief Executive of PVE commented: “Po Valley has enjoyed working with AleAnna in this joint venture and would welcome opportunities to work together in the future. This sale is in line with our corporate objective to strengthen the Company’s balance sheet whilst focusing on selected strategic projects. The proceeds from the sale will be used to pay down the Company’s outstanding debt on its reserve based lending facility with the Nedbank Group reducing outstanding debt to less than Euro 1 million. The Company advises that the sale of the La Prospera and Zanza interests will result in a book loss on the carrying value of the asset as part of finalisation of the FY15 results.”
Sioux Sinnot, President of AleAnna Resources said: “The acquisition of these assets compliments AleAnna’s existing portfolio of onshore natural gas prospects. The opportunity to bring the Gradizza concession into production is an important growth step for AleAnna. AleAnna looks forward to continuing to identify opportunities for our team to work with Po Valley’s team of professionals.”
Po Valley Energy
+39 06 4201 62 75
About Po Valley Energy:
Po Valley Energy (ASX: PVE) is an oil and gas production and exploration company listed on the Australian Stock Exchange. It has an expanding portfolio of hydrocarbon assets in northern Italy. Po Valley now holds 10 license areas, encompassing 1,895 km2 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
About AleAnna Resources:
AleAnna Resources, LLC, (“AleAnna”) is a Delaware (U.S.) limited liability company. The Company has an Italian branch office in Matera, Italy, and an operative office in Rome, Italy. AleAnna’s interest is in Italy, where the company is building a presence with interests in nine exploration permits, five exploration applications and one production concession application in the Po Valley and Bradano basins, encompassing more than 823,904 acres (3,334 sq km). Two experienced oil and gas exploration and production companies, including BRS, own AleAnna.
Background on La Prospera Permit:
The La Prospera licence, located in the Ferrara province north of Bologna, was awarded in September 2008. A subsequent seismic interpretation of 68km of ENI 2D seismic lines identified the Gradizza prospect within the quaternary sequence. Gradizza-1 well was drilled and tested in August 2013 and after reaching a Total Depth of 1,030 metres, the Company confirmed the identification of a gas bearing zone in the primary target of the quaternary sand level. The well intersected 10 metres of net gas sand and no Gas Water Contact was detected (GDT). In November, the Company carried out additional rigless testing of the well in order to complete the clean-up and perform further production tests. In November 2014, the company was awarded a Preliminary Production Concession and the environmental impact study was lodged with the Ministry of Environment in June 2015. Zanza is an application for an exploration license filed in conjunction with its joint venture partners in an area directly south of La Prospera that contains the possible extension of the same gas play discovered in Gradizza. The application for Zanza was filed with the Ministry of Economic Development in November 2013 and in April 2015 the application was preliminarily approved. The Environmental Impact Study is under preparation.
For more information on La Prospera, Gradizza or Zanza please refer to Po Valley Energy website www.povalley.com or Annual Report 2014
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