News & ASX Releases

Test Confirms High Quality Dry Gas At Po Valley's Sillaro And Vitalba Wells

March 28, 2006

Tests on gas from two successful development wells drilled by ASX-listed Po Valley Energy Limited, have shown the gas to be dry and of high quality. Po Valley announced the results today of analysis of gas samples from the Sillaro-1 and Vitalba-1 wells located in the Company’s northern Italy gas field projects.

“Results from these tests provide the Company with a commercial advantage over the most producing gas fields,” Po Valley’s Chief Executive Officer, Mr Michael Masterman, said today.

“This is very pure, clean dry gas and as such, can be delivered to the nearby pipeline grid with very limited surface plant requirements, keeping the next stage of capital development costs to a minimum,” Mr Masterman said.

“This is the strategic advantage of focusing in exploration and development in Northern Italy — when you find gas it is almost pure market ready methane and the market is next door”

The gas sample analysis results are as follows:

Last month, Po Valley announced a 45% increase in its Proven reserves in northern Italy to 36.6 billion cubic feet (bcf) from 25.3 bcf previously, following a review of the Company’s exploration outcomes by Italian-based consulting geologist, Ecopetrol. The review reported total 2P (Proven and Probable) reserves steady at 104.6 bcf and 3P reserves (Proven, Probable and Possible) equally steady at 130.4 bcf.

Sillaro (located east of Bologna) and Vitalba (located east of Milan) are the first two of the three fields currently being developed by Po Valley and which are planned to supply the Company’s first sales into the Italian gas market at the end of this year or early 2007.

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

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