P.Gallina (Selva)

The Podere Gallina licence measures 331 km2 and it is situated in the eastern part of the Po Plain, south of the Po Delta, among the Ferrara and Bologna provinces, in the Emilia Romagna Region. The exploration licence licence was awarded in 2008.

During 2012, the Company carried out the Geological and Geophysical work to assess the Selva residual gas potential and the technical team identified a new low risk prospect named "Selva Stratigraphic” and a second exploration target (East Selva) on the pinch out edge to the east of the main Selva field.

Approximately 70km of 2D seismic was purchased from ENI and internally rerpocessed, to further evaluate the exploration potential. Contingent Resources for the Podere Gallina exploration licence were independently evaluated in 2013 by the geological and petroleum reservoir consultancy UK firm CGG Services Ltd. CGG has certified 2C Contingent Resources of 17 bcf of gas for the prospect.

Podere Maiar 1 dir well,in the former Selva gas field, was spudded on Tuesday 21 November 2017. The drilling program intersected two identified gas reservoirs, C1 and C2, in the Medium-Upper Pliocene sands of the Porto Garibaldi Formation.

The strong flow rates from two gas bearing levels, high quality 99.1% methane gas content and the well’s 600 m proximity to the Italian national gas grid pipeline connection, clearly make the Podere Maiar 1dir well a commercial discovery. As Operator, Po Valley will now prepare and submit a production concession application to the Italian Ministry, in the first half of 2018.

The log and well test results will be analysed during the current March quarter with Po Valley expecting to provide revised contingent resource and reserve estimates in the June quarter of 2018. This work will include reservoir engineering to optimize production from the two gas levels over the field life.

Following the successful farm out of the well to United Oil and Gas 20% and Prospex Oil and Gas Plc 17%, PVE holds a 63% share of the Podere Gallina licence containing this well and the ENI Selva gas field.

PVE is the Operator and owns 63% of Podere Gallina Licence, United Oil & Gas Plc 20%, Prospex Oil & Gas Plc 17%.