Po Valley Energy Ltd (ASX:PVE) has had its most successful quarter to date, with exploration and development success and expanding its portfolio of hydrocarbon assets in Italy.
The Company is on the verge of becoming a gas producer in the under-supplied Italian market as it brings its first fields into production – with additional fields brought on-stream. PVE is on track to connect its first production wells to Italy’s national pipeline grid during 2009.
Low production costs, easy connection to an extensive pipeline grid and the historically strong price for gas in Italy intersect to paint an attractive reward profile for PVE’s investors.
March Quarter Highlights
Sillaro and Castello fields
- Sales contracts valued in total at A$150 million, in place over three years
- Full regional approvals issued for Sillaro-2, Sillaro and Castello production installations
- Final approvals to drill Sillaro-2 – Drilling to commence late in June
- Bezzecca-1 successfully drilled and tested
- Combined 3.9 million cubic feet per day flow rate
- Evaluation of commercial development potential underway
New Exploration Licences
- Final award of Podere Gallina licence
- Preliminary award of Grattasasso licence
- Gradizza to proceed forward to drilling application
Italian gas market (Euro-denominated) prices eased from €0.36 per cubic metre at end of December to €0.29 at 31 March.
- Drawdown on €20 million Bank of Scotland facility at 31 March was €5.0 million
- Completed A$10 million capital raising
- Cash at bank at 31 March A$10.6 million