Po Valley Energy (ASX: PVE) is a leading independent Oil and Gas enterprise that currently operates exclusively in northern Italy exploiting the large hydrocarbon system, and it is now a gas producer in the fast-growing Italian market.
All of the Po Valley Energy's fields are in very close proximity to the pipeline grid and major consumers in the north of Italy.
Po Valley Energy gas production from Italian fields boosts first quarter revenues
North Italy-focused Po Valley Energy (ASX: PVE) has had a strong start to 2011 with stable gas production of 85,000 cubic metres per day providing solid revenue generation during the first quarter.
The company entered into its first gas thermal year on 1 October 2010 that runs through to 30 September 2011. Revenue for the first quarter was about €2.2 million (A$3.1m), an increase of 8% compared to the fourth quarter 2010 due to a slightly higher gas price.
The 2011 March quarter production amounted to 7.78 million cubic metres (275 million cubic feet), with Sillaro field contributing 7.50 million cubic metres (265 million cubic feet) and Castello field 280 thousand cubic metres (10 million cubic feet).
Giovanni Catalano, chief executive officer, said “the steady production performance of PVE’s fields has continued and the gas production from one of the three producing strings at Sillaro field has exceeded our performance expectations.
"The company has achieved additional improvements related to operating efficiencies, namely the operating netback for the Sillaro field which has reached 90%,” he added.
Gas prices during the March quarter increased slightly to an average of €0.31 per cubic metre (USD11.86 per thousand cubic feet).
Po Valley`s total gas production amounts to 34.56 million cubic metres (1.2 billion cubic feet) in which the Sillaro field contributed 25.99 million cubic metres (918 million cubic feet), while Castello field contributed 8.56 million cubic metres (302 million cubic feet).
Sillaro production averaged 83,200 cubic metres/day (2.9 million cubic feet/day) during the quarter with stable plant and reservoir pressure performance.
The company stated "the amount of gas originally estimated for the short string E of Sillaro 2dir well has already reached the total predicted recoverable volume nonetheless it is still producing at operating rates."
Po Valley is planning a bottom hole pressure test in July 2011 in order to better evaluate the potential upside reserves of the field.
During the quarter Castello was still producing at limited rates. The 4Vitalba-1dirA well will be deviated from the current Castello plant location and connected to the existing Castello plant to recommence production.
