September 14, 2009
As part of the company’s progress to production at both its Castello and Sillaro fields, and with the current and planned development evaluations of the Bezzecca and Fantuzza discoveries, Po Valley Energy Limited (PVE) has taken steps to upgrade its reserves and resources reporting by adopting a revised Hydrocarbon Reserves Policy. The new policy conforms with the principles recommended by Society of Petroleum Engineers/World Petroleum Congress guidelines.
Under the revised Policy:
- Projects will be split between Discovered and Undiscovered categories. Sillaro, Castello, Sant’ Alberto, Bezzecca, Fantuzza, Correggio, Carola and Ravizza are in the Discovered catergory.
- Within the Discovered category, reserves will be assessed and reported based on estimated recoveries from wells planned under approved development plans. As part of this process Sillaro reserves will be reassessed to incorporate the results of the recently drilled second production well, Sillaro 2.
- Discovered resources without approved development plans will be classified as Contingent Resourcesuntil final development plans are approved. For example Bezzecca and Fantuzza will now be categorised as Contingent Resources until development plans are finalised and approved, as will Correggio, Carola and Ravizza. Evaluation and development planning work underway on Bezzecca indicate that contingent resources will be lower than pre drilling target levels.
- PVE will progressively move to probabilistic rather than deterministic reserve and resource assessment and reporting. All parameters being the same, a shift from deterministic to probabilistic reporting will tend to increase the 3P reserves and high range estimates of resources, and reduce the 1P and low range estimates.
Under the revised Policy, all projects with reserves will be reviewed by a recognised, independent consultant at least every four years and these reviews reflected in the Company’s annual Review Summary published in its Annual Report.
Implementation of this new Hydrocarbon Reserves Policy will lead to more granular and consistent estimates of recoverable reserves and resources and better reflect the transition of the Company from an exploration and development focus to a production and development focus.
Changes under the revised Policy will be progressively announced as reserve assessments and development studies are completed.
A copy of the company’s Hydrocarbon Reserves Policy can be found on the Po Valley website.
The chart below summarises the current categorisation of the Company’s major projects and prospects under the revised Policy.
Po Valley Energy Reserve and Resource categorization: September 2009MEDIA CONTACTS:
Po Valley Energy
0417 851 303
Field Public Relations
(08) 8234 9555 / 0414 822 631
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