Overview

The Company’s operations are located entirely in the north of Italy, in the Lombardy and Emilia Romagna regions. The Company’s core portfolio includes a total of 14 onshore assets and 1 offshore license. Total acreage position of the Company is circa 2,000 km2. For an illustration of each asset’s location please refer to the map and table below. As at 31 December 2014 all tenements are 100% owned with exception of Cascina Castello Bezzecca (90%), Cadelbosco (85%), La Prospera (75%) and Zanza (75%).

Zanza can be considered the possible extension towards the south of the same play discovered in Gradizza.

The following table summarises the status of the Company’s Reserves & Resources as at 31 December 2014.

With the exception of Gradizza and Vitalba, these figures were independently evaluated by the geological and petroleum reservoir consultancy UK firm Robertson CGG during 2013 and as regards Sillaro and Bezzecca in 2014 and are based upon independent evaluations in accordance with SPE/WPC/AAPG/SPEE Petroleum Resource Management System. We note that the Contingent Resource assessment for the Gradizza-1 well (drilled in August 2013) reported in the 2013 Annual Report and unchanged in 2014 was internally evaluated under the supervision of the qualified petroleum reserves and resources evaluator, Mr. Greg Short.

Qualified Petroleum Reserves and Resources Evaluator:

Statements regarding estimates of petroleum Reserves and Contingent and Prospective Resources and the Reserves statement are based on and fairly represent information and supporting documentation prepared under the supervision of Mr Gregory Short, a non-executive director of Po Valley Energy Limited. Mr Short is a geologist with over 40 years of oil and gas industry experience and a member of AAPG. Mr Short has approved the Reserves statement as a whole and has consented to: (a) the inclusion of the estimated petroleum Reserves and Contingent and Prospective Resources and supporting information in this Annual Report in the form and context in which they are presented; and (b) the inclusion of the Reserves statement in this Annual Report in the form and context in which it appears.

RESERVES are those quantities of hydrocarbon anticipated to be commercially recoverable by application of development projects to known accumulations from a given date forward under defined conditions.

Proved Reserves are those quantities of hydrocarbon, which, by analysis of geoscience and engineering data, can be estimated with reasonable certainty to be commercially recoverable, from a given date forward, from known reservoirs and under defined economic conditions, operating methods, and government regulations (1P).

Probable Reserves are those additional reserves which analysis of geoscience and engineering data indicate are less likely to be recovered than proved reserves but more certain to be recovered than possible reserves. It is equally likely that actual remaining quantities recovered will be greater than or less than the sum of the estimated Proved plus Probable Reserves (2P).

Possible Reserves are those additional reserves which analysis of geoscience and engineering data suggest are less likely to be recoverable than probable reserves. The total quantities ultimately recovered from the project have a low probability to exceed the sum of proved plus probable plus possible (3P) Reserves, which is equivalent to the high estimate scenario.

CONTINGENT RESOURCES are those quantities of hydrocarbon estimated, as of a given date, to be potentially recoverable from known accumulations, but the applied project(s) are not yet considered mature enough for commercial development due to one or more contingencies.

PROSPECTIVE RESOURCES are those quantities of hydrocarbon that may potentially be recovered by the application of a future development project(s) relate to undiscovered accumulations. These estimates have both an associated risk of discovery and a risk of development. Further exploration appraisal and evaluation is required to determine the existence of a significant quantity of potentially moveable hydrocarbons.

For Contingent Resources, the general cumulative terms low/best/high estimates are denoted as 1C/2C/3C respectively. For Prospective Resources, the general cumulative terms low/best/high estimates still apply. No specific terms are defined for incremental quantities within contingent and Prospective Resources.