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 celebrates maiden production of one million cubic metres of gas in Italy
Italy–resource focused Po Valley Energy (ASX: PVE) has celebrated another key milestone with the maiden production of one million cubic metres of gas in Italy.
The company's new 100%-owned Castello gas plant east of Milan is currently outputting at 50,000 cubic metres of gas per day, with the volume scheduled to be incrementally increased to around 70,000 cubic metres over the next two months as the plant moves to post commissioning operations.
The company marked the occasian with a formal plant inauguration ceremony, led by Australia’s Ambassador to Italy Amanda Vanstone Vanstone.
Po Valley’s Chief Executive Michael Masterman said the company was strengthening its reputation in Italy's gas market.
“The one million cubic metres maiden production milestone, and the strengthening production profile going forward for full year 2010, are now welcome reward for a vision we set in place almost five years ago,” Mr Masterman said.
“The inauguration of the Castello plant represents the first new hydrocarbon production plant in northern Italy’s Po Valley region since the end in 1998 of the country’s energy monopoly by ENI-AGIP and the liberalisation of the Italian gas market.
“We are now strongly positioned to add to our production, appraisal and development schedule in northern Italy with our second production field – the also wholly owned Sillaro field east of Bologna – which is on track to commence commissioning from mid February.”
The additional flows from Sillaro are expected to double the saleable gas volumes for the new Australian producer, which operates in Italy through its subsidiary in Northsun Italia Spa.
The Castello plant commenced production early last month, marking a successful four year transition to a producing asset from the drilling of the first well, Vitalba-1d – in 2005. The high quality natural gas output from the Castello field is sourced from hydrocarbon structures at depths of around 1,500 metres.
Mr Masterman said the company was proud to be a pioneer in delivering new sources of secure domestic supplies to the Italian gas market - which was still largely dependent on imported gas – and becoming a new actor in Italy’s production of national energy resources.
As well as Ms Vandstone, senior personnel from Italy’s Ministry of Economic Development and a delegation of local authorities, including the Major of Rivolta d’Adda town and the President of Cremona Province, also attended the ceremony.
