Adelaide, April 28, 2006 AEST (ABN Newswire) - Po Valley Energy (ASX: PVE) consolidated its position during the March Quarter, completing key geological work on the successful development fields, Sillaro and Vitalba, confirming upgrades in reserves and moving key projects forward towards first gas production in 2007.
Sillaro
- 26% increase in Total reserves
- Good conversion of Probable reserves to Proven - 10.4bcf
- High quality dry gas quality confirmed
- Geological review complete
- Discussions on Pipeline Grid connection underway
- Preparation of Production Concession well advanced
Vitalba
- 28% increase in Proven reserves
- Positive flow test on levels San 1 and San 2 of 2.8m cubic feet per day
- High quality dry gas quality confirmed
Santa Maddalena
- Production concession application complete and ready for submission
Market Conditions
- Italian market gas prices continue to remain strong
- Cash at Bank 31 March 2006 - AUD5.38m
Sillaro - east of Bologna
The major priority for Po Valley is to progress Sillaro to commercial gas sales. Following successful tests late in December, 2005, the Sillaro geological model has been updated and reserves upgraded. As part of this work, well location for a second Pliocene well and a possible third Miocene well have been identified and well design has been progressed.
Tests of gas samples confirm that the Sillaro gas is of very high quality. Work has begun on the production concession application to convert the licence from an exploration licence to a production licence. The final stage of this work including surface plant engineering and pipeline grid connection is underway, as is the environmental approval application.
Vitalba - east of Milan
Vitalba tested positive for gas flows in the San A1 and San A2 levels in January 2006. Well test reports have been conducted on the results. Tests of the gas samples also confirmed dry high quality gas. Work has commenced on the production concession application.
Santa Maddalena - north of Bologna
Joint Venture partner and operator, Edison Gas has completed the production concession application and the environmental approval documentation. The company expects Edison Gas to lodge this approval documentation shortly.
New Development Projects - Bezzecca 1 (aka Pandino) - southeast of Milan
Design of the drilling program for Bezzecca 1 is underway, with the well location identified and orders placed for long lead equipment including casing and tubing.
Italian Gas Market
Prices in the Italian gas market have continued to remain strong in the March Quarter, accelerated by the tightening market conditions and rising oil prices.
Corporate
Cash at bank at the end of the December quarter was AUD5.38m
Source:
Kevin Skinner
Senior Consultant
FIELD PUBLIC RELATIONS
231 South Road
MILE END SA 5031
Tel: (08) 8234 9555
Fax: (08) 8234 9566
Mob: 0414 822 631
kevin@fieldpr.com.au
Contact
Michael Masterman
President & CEO
Po Valley Energy
TEL: +39 33 31961061
www.povalley.com
| ||
|
