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Po Valley Energy Limited
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Po Valley Energy Limited
All rights reserved.
News & ASX Releases
Restart of Vitalba Gas Production and Temporary Reduction of Sillaro Production
February 8, 2012
Po Valley Energy (ASX:PVE) is pleased to announce that gas production from the Vitalba1dirA well, in its Cascina Castello concession, north of Milan, has started today.Production from the Pliocene SAN A2 sand level has commenced at a rate of about 0.5 million standard cubic feet per day and it will gradually increase to reach the target rate of 0.7 million standard cubic feet per day. The Company is working on a static and dynamic model of the Vitalba field which will incorporate the new production data and update the proven and probable reserves.
Po Valley Energy is also pleased to report that no safety incidents occurred during the workover drilling and reconnection to the gas treatment plant.
The Company also advises that production at its Sillaro field is still impacted by the extreme weather conditions affecting Northern Italy and production stands at 1.6 million standard cubic feet per day.
The Sillaro field normally produces from two separate wells, Sillaro 1 and Sillaro 2. Recently, the gas has been yielding minor quantities of condensate, however, with the colder winter temperatures, condensate production has increased.
As previously advised, production was halted for four days while excess condensate was removed from the processing facility. Production has since recommenced, initially from Sillaro 2 well which is currently producing at 1.6 million standard cubic feet per day. As a precaution, production from the Sillaro 1 well, where the condensate was believed to originate, will be brought back into production gradually while the situation is fully evaluated. As a result production from the Sillaro field is expected to be between 1.6 million standard cubic feet per day and 2.8 million standard cubic feet per day in the interim.
While the condensate levels are low, they may reach a level requiring the installation of standard condensate processing equipment on site. The necessity for this, cost and timing are currently being evaluated. In the meantime the Company is carefully monitoring the situation in order to meet its regulatory and environmental commitments while seeking to maintain maximum production during this time of gas shortage.
“Restarting production at Vitalba was a key objective for Po Valley. The temporary reduction of production from the Sillaro field is disappointing, however, condensate management is a straightforward operational issue and should not impact the long-term economics of the field. While a temporary reduction in revenue is never welcomed, our approach is appropriately cautious in order to properly address this matter while maintaining our excellent operating record in Italy. The Company’s Board and Management reiterate their commitment to focus on unlocking the value of Po Valley’s asset portfolio via direct development and identifying appropriate farm-out partners,” Po Valley Energy CEO Giovanni Catalano said.
MEDIA CONTACTS:
Giovanni Catalano
Po Valley Energy
+39 06 4201 62 75
Michael Mullane
Cannings Corporate Communications
+ 61 2 8284 9990
mmullane@cannings.net.au
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 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
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.