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Strong Gas Flows At Vitalba Sets Po Valley On Track For A Third Production Field

January 30, 2006

Strong gas flows were announced today by Australian explorer, Po Valley Energy Limited, from successful test results on yet another of the Company’s northern Italy gas field projects.

Po Valley (“PVE”) said the latest strong gas flows — from the Vitalba 1d deviation well 25 kilometres east of Milan — were higher than expected.

The Vitalba success makes it a three-out-of three strike rate for Po Valley which in the past six weeks has also announced positive results from tests on its Sillaro and Maddalena gas fields.

Flow testing of the Vitalba well produced a gas flow of 2.8 million cubic feet per day on a ΒΌ inch choke from the San 1 and San 2 levels.

“The flow rates and pressure recoveries are significantly higher than the 1 to 1.5 million cubic feet per day we expected for the relatively small 9m perforation,” Po Valley’s Chief Executive Officer, Mr Michael Masterman, said today.

“The first well that ENI drilled in this field (Agnadello 1) was a very good producer and these initial results look very good for us,” Mr Masterman said.

“Further reservoir delineation and evaluation is required but these results form a strong base to take our Vitalba gas field into production,” he said.

Mr Masterman said the strong Vitalba gas flow rate - following so closely on the heels of the Sillaro, and Santa Maddalena successes — further validated Po Valley’s approach to exploiting proven but undeveloped gas fields in Northern Italy.

The latest results are from tests of two of three gas zones encountered in the Vitalba 1d deviation well during Po Valley’s mid 2005 drilling program. An initial test of the deepest level San 3 faced technical problems and the Company deferred testing of the proven San 1 and San 2 levels until after the drilling of the recent successful Sillaro well.

Michael Masterman Po Valley Energy 0417 851 303
John Field / Kevin Skinner Field Public Relations (08) 8234 9555 / 0414 822 631

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