January 10, 2011
Po Valley Energy Limited (ASX: “PVE”) lifted gas production 69% from its
north Italy gas fields in the six months to 31 December 2010 and backed
the improved performance with a significant lift in revenue.
The Company — which reports on a calendar year basis - today reported
total production for the second half of 16.84 million cubic metres of
gas (595 million cubic feet) compared to 9.94 million cubic metres in
the first six months to June 30, 2010 (351 million cubic feet).
The higher production included the full September and December quarterly
production from the wholly owned Sillaro field and was achieved despite
significant reduced production from Po Valley’s first producing field,
Gas sales saw revenue climb 75% to €4.52 million for the six months to
the end of December, compared to €2.59 million in the opening period.
Total revenue for the year was €7.1m (AUD$9.2m), including a final
December quarter contribution of approximately €2.09m (AUD$2.7m).
Gas prices remained on an average of €0.30 per cubic metre in the December quarter (US$11.3 per thousand cubic feet).
Commenting on the production result Po Valley Chief Executive Officer, Mr. Giovanni Catalano, said:
“Italy remains a highly attractive gas market as it is
more than 85% import dependent. That means for a local producer good
prices, and strong demand for our output.”
“Our 2011 work program will now focus on maintaining steady production
from Sillaro and drilling a new Castello field well to get that field
back into production. We will also seek to drill a new Fantuzza well
with a suitable partner.
We also hope to gain development approval for two additional fields —
Sant’Alberto and Bezzecca while pushing ahead with our broader
exploration program as well.”
In October 1, 2010, Po Valley entered into its first gas thermal year
(from 1 October 2010 to 30 September 2011) with an average daily gas
production rate of 85,000 scbm/day.
The year’s production summary is as follows:
The 2010 December quarter production amounted to 7.92 million cubic
metres (280 million cubic feet), with the Sillaro field contributing
7.64 million cubic metres (270 million cubic feet) and the Castello
field, 283 thousand cubic metres (10 million cubic feet).
Total 2010 Po Valley’s gas production amounted to 26.78 million cubic
metres (946 million cubic feet), with the Sillaro field contributing
18.50 million cubic metres (653 million cubic feet) and Castello field,
8.28 million cubic metres (292 million cubic feet).
Sillaro averaged 83,000 cubic metres/day (2.9 million cubic feet/day)
during the December quarter with stable plant and reservoir pressure
performance in line with the Company’s production plan.
Castello produced at limited rates during the quarter while plans were
advanced to proceed with a deviation of the well — Vitalba 1dirA.
Vitalba-1dirA, will be deviated from the current Castello plant location
and connected to the existing Castello plant. Subject to drilling
success, production is scheduled to recommence in the June quarter of
Po Valley Energy
+39 366 3241562
Field Public Relations
(08) 8234 9555 / 0414 822 631
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