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Test Results Set Up Po Valley For 2006 Production

December 29, 2005

Po Valley Energy Limited (“ASX : PVE”) has capped off 2005 with an exceptional final test flow rates on its Sillaro well in Northern Italy — delivering an aggregate test flow rates of 12.9 million cubic feet per day and setting the company on route for production in 2006

The Company today announced that the PL2C zone in the Sillaro-1d well had flowed 5.4 million cubic feet per day on a 5/16” choke — the highest gas flow from the levels tested to date.

The latest test result is in addition to equally strong “above expectation” gas flows reported yesterday (Wednesday 28 December) by Po Valley from the well’s two other gas bearing levels.

These included a flow of 4 million cubic feet per day on a ΒΌ inch choke from Sillaro-1d’s newly discovered PL2A level, and 3.5 million cubic feet per day on a 5/16 inch choke from the target level, PL2B.

“Today’s results from the third zone of Sillaro-1d deliver a total flow output for the well of 12.9 million cubic feet per day from 25 metres of perforation within an overall 100 metre interval between 2160 metres and 2257 metres depth,” Po Valley’s Chief Executive Officer, Mr Michael Masterman, said today from Italy. “We were expecting one gas bearing level producing about 1 million cubic feet per day. The Sillaro deviation well has delivered three gas bearing levels with combined flow rates over 10 times that targeted level,” he said.

“At Italian gas prices this aggregate flow rate is equivalent to AUD3.8m in revenue per month.

“The well is clearly economic and we will proceed forward with the objective to put this well in production in 2006,” Mr Masterman said.

In other Po Valley developments, Mr Masterman said successful confirmatory production test run on the Santa Maddalena field — also in northern Italy near Bologna - had confirmed production flow rates and good pressure recovery.

“Following discussions with the Ministry of Productive Activities, our confirmatory test was completed over 9 days at the well site 25 km north of Bologna in November, with results evaluated during December,” he said.

“The well was tested at a constrained rate of 1.8 million standard cubic feet per day which is the initial planned production rate for the field.

“The detailed test information will be incorporated into the Production Concession application which we will submit early in the new year with our 50% joint venture partner, Edison Gas.

“Going into 2006, both Sillaro and Santa Maddalena should be able to tap into the exceptionally strong European gas prices “

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

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