www.povalley.com
Po Valley Energy is a leading independent Oil and Gas enterprise growing rapidly from quiet, results-driven beginnings. The Company currently operates exclusively in northern Italy exploiting the large hydrocarbon system, and it is now a gas producer in the fast-growing Italian market as it brings its first 2 fields into production - with more to come. 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 Energy gas production up 69% in second half 2010 from Italian fields
A 69% jump in gas production was recorded in the second half of 2010 by Po Valley Energy (ASX: PVE) at the company's north Italian gas fields.
Total production for the six months to December 2010 was 16.84 million cubic metres of gas, equivalent to 595 million cubic feet, and an increase from 9.94 million cubic metres for the six months to June 2010.
Po Valley said the higher production included the full September and December quarterly production from the wholly owned Sillaro field, and was achieved despite significant reduced production from Castello.
The domestic Italian gas market remains very attractive for the company, as the country currently imports 85% of its gas requirements.
In the last three months of 2010, gas prices remained around €0.30 per cubic metre, equivalent to US$11.3 per thousand cubic feet.
The gas price and the increased production boosted Po Valley's revenue 75% to €4.52 million for the second half of 2010, up from the €2.59 million in the first half.
Total revenue for the year was €7.1 million, or A$9.2 million, with the December quarter providing an increase from €2.09 million, or A$2.7 million.
The 2011 strategic plan for Po Valley is to focus on steady production from Sillaro, while drilling a new Castello field well to re-start production.
The company is also seeking a partner to drill the Fantuzza well.
Development approval is also being sought for two additional fields, Sant’Alberto and Bezzecca.
