Perth, Sep 9, 2008 AEST (ABN Newswire) - The Directors of Po Valley Limited (ASX:PVE) present their report together with the consolidated financial report for the half-year ended 30 June 2008 and the review report thereon.
Directors
The directors of the Company at any time during or since the end of the half-year are:
Name Date of first appointment Date of re-appointment
Non- Executive:
G Bradley (Chairman) 30 September 2004 30 May 2007
B Pirola 10 May 2002 30 May 2008
D McEvoy 30 September 2004 30 May 2007
Executive:
M Masterman 22 June 1999 - Chief Executive Officer
Principal Activities
The principal continuing activity of the group in the course of the year was the development and exploration for gas in the Po Valley region in Italy.
Review and results of operations
Operating Results
The net loss of the consolidated entity after income tax amounted to $ 2,319,202 for the half-year ended 30 June 2008 (2007: Loss $ 1,357,727)
Operating Review
During the half year the Company progressed towards first gas production for Sillaro and Castello fields with the granting of the environmental approvals. Construction of the surface plant equipment for these fields and associated skids were 63% complete at the end of June. The production licence approval process is now at the stage for each of these fields where it is expected that a final inter-governmental meeting, expected to take place in September 2008, is required prior to final grant of production licences by the responsible national government authority.
Also during the period, the Company achieved a commercial agreement with Edison to take over the full operatorship and ownership of the San Vincenzo exploration licence area and associated Sant' Alberto production concession application. As part of this agreement, Edison will participate on a 50/50 basis, in the awarded Ossola licence area, where the Company is pursuing large-scale oil and gas/condensate targets.
Environmental approval was received for the drilling of the Bezzecca-1 appraisal project and Fantuzza-1 is expected in the 2nd half. All drilling equipment (piping, casing and wellheads), drill rig and other critical support contracts are in place for the drilling of Bezzecca-1 and Fantuzza-1 wells.
Work progressed on the new licence applications with the purchase and evaluation of seismic lines on the La Prospera, Opera and Podere Gallina exploration licences. The Company also secured during the period the preliminary award, subject to environmental clearance, of two new licences - the offshore licence area AR- 168-PY ("Azzurra") in the northern Adriatic and Cadelbosco di Sopra in the onshore Po Valley.
The Company closed a $41,120,000 (EURO25,000,000) finance facility with the Bank of Scotland which was drawn to $3,940,940 (EURO2,396,000) as at the end of 30 June 2008. During the six months to 30 June 2008, 1,200,000 options expiring 31 October 2008 were exercised at $1.25. The proceeds received by the Company on exercising these options to shares were a total $1,500,000.
During the six months to 30 June 2008, the Company granted 1,200,000 options to executives and 1,800,000 options to non-executive directors. These options expire on 31 May 2011 and have been granted with an exercise price of $1.75.
The company issued 262,463 shares to employees pursuant to the employees share purchase plan. These shares were issued at a price of $1.85.
Auditor's independence declaration
A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out on page 3 and forms part of the Directors' report for the half-year ended 30 June 2008.
Matters subsequent to balance date
The Directors have not become aware of any other matter or circumstance which may significantly affect the operations of the economic entity, the results of those operations, or the state of affairs of the economic entity in subsequent financial years.
For the full consolidated financial report for the half-year ended 30 June 2008, please visit the following link:
http://abnnewswire.net/lnk/I0NCMEF4
Contact
Michael Masterman
Po Valley Energy
Mob: +61-417-851-303
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