April 14, 2011
Po Valley Energy Limited (ASX: “PVE”) started 2011 with stable gas
production and strong revenue generation during the first quarter.
Starting from October 1, 2010 the Company entered into its first gas
thermal year (from 1 October 2010 to 30 September 2011) with a committed
daily gas production rate of 85,000 scbm/day.
The 2011 March quarter production amounted to 7.78 million cubic metres
(275 million cubic feet), with Sillaro field contributing 7.50 million
cubic metres (265 million cubic feet) and Castello field 280 thousand
cubic metres (10 million cubic feet).
Gas prices during the March quarter increased slightly to an average of
€0.31 per cubic metre (USD11.86 per thousand cubic feet). Revenue for 1Q
2011 was approximately €2.2m (AUD$3.1m), an increase of 8% compared to
4Q 2010.
To date Po Valley’s total gas production amounts to 34.56 million cubic
metres (1.2 billion cubic feet), which can be split as follows: Sillaro
field contributed 25.99 million cubic metres (918 million cubic feet)
while Castello field contributed 8.56 million cubic metres (302 million
cubic feet).
Sillaro production averaged 83,200 cubic metres/day (2.9 million cubic
feet/day) during the quarter with stable plant and reservoir pressure
performance.
Additionally, the gas production from one of the three producing strings
has exceeded our performance expectations. Specifically, the amount of
gas originally estimated for the short string E of Sillaro 2dir well has
already reached the total predicted recoverable volume nonetheless it
is still producing at operating rates. For this reason and in order to
better evaluate the potential upside reserves of the field, a bottom
hole pressure test is planned for July 2011.
During the quarter Castello was still producing at limited rates while
plans were advanced to proceed with a deviation of the well —
Vitalba-1dirA. Vitalba-1dirA well will be deviated from the current
Castello plant location and connected to the existing Castello plant to
recommence production.
Comment by Po Valley Chief Executive Officer, Mr. Giovanni Catalano:
“I am pleased to report that the steady production performance of PVE’s
fields has continued and that the gas production from one of the three
producing strings at Sillaro field has exceeded our performance
expectations. Revenues for the quarter increased compared to 4Q 2010 due
to a slightly higher gas price. Moreover, the Company has achieved
additional improvements related to operating efficiencies, namely the
operating netback for the Sillaro field which has reached 90%.”
MEDIA CONTACTS:
Giovanni Catalano
Po Valley Energy
+39 06 42 01 26 675
Kevin Skinner
Field Public Relations
(08) 8234 9555 / 0414 822 631
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