News & ASX Releases

Strong Gas Flows For Po Valley's Sillaro Well

December 26, 2005

Strong gas flows significantly above expectations have been announced by Australian explorer, Po Valley Energy Limited, from flow test results on its Sillaro deviation well in northern Italy.

The results are from tests of two of three gas zones encountered in the deviation well during recent drilling, with the third zone to be tested today.

Po Valley (“PVE”) announced today that flow testing of Sillaro-1d, 25 kilometres east of Bologna, had reported:
  • A gas flow of 4 million cubic feet per day on a ΒΌ inch choke from the newly discovered level, PL2A
  • A gas flow of 3.5 million cubic feet per day on a 5/16 inch choke from the target level, PL2B
  • This is nearly three times higher than the historic flow rates tested by ENI in the PL2B level in the nearby Budrio-2 well.
  • Results from testing of the third level — PL2C — are due this week

“This is an outstanding result for Po Valley on what was the flagship project as outlined in our prospectus 12 months ago,” the Company’s Chief Executive Officer, Mr Michael Masterman, said today.

“The target level, PL2B, is flowing at significantly higher rates than expected, and supported by a very strong contribution from the deeper PL2A level - with the third zone yet to be tested,” Mr Masterman said.

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

Po Valley elected earlier this month to flow test the three zones following positive petrophysical evaluation of well log results.

These showed a series of thick and thin bed sands over nearly 100 metres, between the 2160m to 2257m (measured depth) interval.

The gas bearing zones covered the target zone - PL2B from 2218m to 2238m, an immediately deeper zone - PL2A — from 2239m to 2257m and a shallower zone — PL2C from 2160m down to potentially to 2197m.

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

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