Italian gas developer, Po Valley Energy (ASX: PVE) has had one of its best quarters on record - on the verge of becoming a gas producer in the under-supplied Italian market.
Po Valley will bring its first Italian gas fields into production and is on track to connect its first production wells to Italy’s national pipeline grid during 2009.
The equation for Po Valley investors is attractive: low production costs, easy connection to an extensive pipeline grid and the historically strong price for gas in Italy.
For the June 2009 quarter, Sillaro and Castello Installation of surface plant commences at Castello Castello pipeline grid connection nears completion. Sillaro-2 was successfully drilled to target depth – well completion underway.
Bezzecca-1 well was successfully drilled and completed with downhole production equipment. Combined 3.9 million cubic feet per day flow rate was achieved across three levels.
New exploration licences were gained. Geological work is advancing on the Grattasasso and CadelBo-sco di Sopra licences. AR168PY (Azzurra) is proceeding towards grant Gradizza drilling application under preparation.
Italian gas market (Euro-denominated) prices eased from €0.29 per cubic metre at end of March to €0.21 at 30 June.
€5m of existing debt was converted to senior long term debt at attractive rates. Cash at bank at 30 June was A$7.8 million.