Po Valley Energy Limited · ASX:PVE

Po Valley Energy — Shareholder Meeting (May 2010)

33 slides from Po Valley Energy's shareholder meeting presentation, May 19, 2010

  1. Slide 1: AGM Presentation 19 May 2010

    OVAIE fE NE R G Y] @pavale AGM PRESENTATION 19 MAY 2010

  2. Slide 2: Italy and Po Valley

    ITALY AND PO VALLEY  Gas Consumption 3 tcf p.a.  Growing at 2-3% p.a.  Gas Production 27 tcf to date  Europe’s 2nd largest Po Valley onshore gas province  Europe’s largest Val D’Agri onshore oil field  Po Valley/Northern Adriatic was monopoly of ENI/Agip for 50 years Page 1

  3. Slide 3: PVE January 2005

    PVE January 2005 ITALIAN GAS PRICE: EUR14cents/cubic metre Castello 100% Undrilled Sillaro 100% Undrilled Sant’Alberto 50% 1 well drilled Page 2

  4. Slide 4: PVE January 2009

    PVE January 2009 ITALIAN GAS PRICE: EUR22 cents/cubic metre Castello 100% 1 well drilled Sillaro 100% 1 well drilled Sant’Alberto 100% 1 well drilled + Production concession appl. Bezzecca 100% Undrilled Fantuzza 100% Drilling planned for 2nd half 2010 Correggio 100% Preliminary award Offshore 100%

  5. Slide 5: PVE May 2010

    PVE MAY 2010 ITALIAN GAS PRICE: EUR27cents/cubic metre Castello 100% 1 well drilled + Surface plant installed + Production Sillaro 100% 2 wells drilled + Surface plant installed + Production Invested Capital Sant’Alberto 100% 1 well drilled + Production concession appl. €35m/AUD50m Bezzecca 100% 1 w

  6. Slide 6: Resource Base

    RESOURCE BASE Po Valley Assets  11 License areas  2 Production projects  Sillaro  Castello  2 Drilling projects  Sant’ Alberto  Bezzecca  5 Gas Discoveries for appraisal  12 Gas Exploration prospects  2 Oil opportunities Nov 2009 Page 5

  7. Slide 7: Prices rising due to falling EUR and rising oil prices

    PRICES RISING DUE TO FALLING EUR AND RISING OIL PRICES ITALIAN ENI GAS RELEASE PRICE: APRIL UPDATE Summary €cent/m3 USD/Mcf AUD/Mcf Apr. 10 Month 28.35 10.57 11.40 May 10 Forecast 29.50 11.00 11.86 2010 Average 29.86 11.26 12.10 2011 Cal 34.90 12.93 13.81 Source: ENI Gas Release and forecast sourced

  8. Slide 8: PVE Reserve & Resource Categorization

    PVE RESERVE & RESOURCE CATEGORIZATION Page 7

  9. Slide 9: Resources Management Assessment

    RESOURCES MANAGEMENT ASSESSMENT PROJECT CURRENT KEY RISKS / REVIEW PLAN TIMING OF RESERVES / ASSESSMENT (BCF) UNCERTAINTIES RESOURCES REVIEW 1P 2P RESERVES  Pressure Decline Independent, external review of new CASTELLO 4.6 6.3 pressure data May / June 2010  Reservoir Description Independent, exter

  10. Slide 10: Resource Management Assessment

    RESOURCE MANAGEMENT ASSESSMENT PROJECT CURRENT KEY RISKS / UNCERTAINTIES REVIEW PLAN TIMING OF ASSESSMENT RESERVES / (BCF) RESOURCES REVIEW 1C 2C  DEVELOPMENT UNCLARIFIED / LICENCE AWARD PENDING CORREGGIO - 35.0  Reservoir Model  Independent, external review of Stage 31 July 2010  Production Per

  11. Slide 11: Po Valley Assets Review

    PO VALLEY ASSETS REVIEW - CASTELLO  Production start 17 Dec 2009  Pressure decline being investigated  Sillaro-2 drilled August 2009 - SILLARO  Plant installed and production started - SANT’ALBERTO  New Seismic being acquired - BEZZECCA  Bezzecca-1 drilled April 2009  Reservoir study reduces

  12. Slide 12: Castello Plant Inauguration: January 2010

    CASTELLO PLANT INAUGURATION: 12 JANUARY 2010 Page 11

  13. Slide 13: Castello Production Summary: Dec 2009 - April 2010

    CASTELLO PRODUCTION SUMMARY: 17 DEC 2009 - 30 APRIL 2010 Castello Production Summary 80,000 8,000,000 75,000 70,000 7,000,000 65,000 60,000 6,000,000 55,000 Cumulative Gas Production (m3) 50,000 5,000,000 Daily Prod (m3/day) 45,000 40,000 4,000,000 35,000 30,000 3,000,000 25,000 20,000 2,000,000 15,

  14. Slide 14: Castello Structure

    CASTELLO STRUCTURE Vitalba#1d A Agnadello#1 A IGWC 1317m Dec07 GWC 1334m DecO7, | 4] Saree Original “GWE 1351 dA ye v Qpovalle nage 1 NE RG Y

  15. Slide 15: Po Valley Assets Review

    PO VALLEY ASSETS REVIEW - CASTELLO  Production start 17 Dec 2009  Pressure decline being investigated  Sillaro-2 drilled August 2009 - SILLARO  Plant installed and production started - SANT’ALBERTO  New Seismic being acquired - BEZZECCA  Bezzecca-1 drilled April 2009  Reservoir study reduces

  16. Slide 16: Sillaro Successfully Drilled and Tested

    SILLARO SUCCESSFULLY DRILLED AND TESTED  6 reservoir levels confirmed  2 new previously untested levels  Well completed safely on schedule on budget Page 15

  17. Slide 17: Sillaro Plant 100% Complete and in Production

    SILLARO PLANT 100% COMPLETE AND IN PRODUCTION On the left side the Major of Medicina town visiting the plant with Po Valley Chairman ON THE LEFT SIDE THE REPRESENTATIVE OF BOLOGNA MINISTRY MR . GIACCHETTA AND THE MAJOR OF THE MEDICINA TOWN MR. RAMBALDI VISITING SILLARO PLANT Page 16

  18. Slide 18: Fantuzza Can Feed into Sillaro

    FANTUZZA CAN FEED INTO SILLARO  Targeting 2,600m Miocene structure  Previously drilled and tested by ENI  50km of seismic acquired and processed  Fantuzza 1 site selected, drilling approvals in process, equipment purchased and drilling rig contracted  Expected to spud in 2010  Sillaro surface

  19. Slide 19: Po Valley Assets Review

    PO VALLEY ASSETS REVIEW - CASTELLO  Production start 17 Dec 2009  Pressure decline being investigated  Sillaro-2 drilled August 2009 - SILLARO  Plant installed and production started - SANT’ALBERTO  New Seismic being acquired - BEZZECCA  Bezzecca-1 drilled April 2009  Reservoir study reduces

  20. Slide 20: Sant'Alberto – Seismic to be Acquired in May

    SANT’ALBERTO – SEISMIC TO BE ACQUIRED IN MAY Block 5 Page 19

  21. Slide 21: Po Valley Assets Review

    PO VALLEY ASSETS REVIEW - CASTELLO  Production start 17 Dec 2009  Pressure decline being investigated  Sillaro-2 drilled August 2009 - SILLARO  Plant start up underway - SANT’ALBERTO  New Seismic being acquired - BEZZECCA  Bezzecca-1 drilled April 2009  Reservoir study reduces reserves  Deve

  22. Slide 22: Bezzecca Interpretation

    BEZZECCA INTERPRETATION BEZZECCA SCHEMATIC CROSS-SECTION PRE BEZZECCA-1. BEZZECCA SCHEMATIC CROSS-SECTION POST BEZZECCA-1.  Remaining gas in place 70bcf  Remaining gas in place significantly reduced  Continuous sand reservoir model  Discontinuous / complex reservoir distribution  Assumed 57% re

  23. Slide 23: Bezzecca (Cascina S.Pietro Permit)

    BEZZECCA 2 (CASCINA S.PIETRO PERMIT) a a’ a  Target depth 2000m da inserire  Pliocene - Miocene  Contingent Resources 2.4Bcf a’ Page 22

  24. Slide 24: Bezzecca Can Feed into Castello

    BEZZECCA CAN FEED INTO CASTELLO Page 23

  25. Slide 25: Po Valley Assets Review

    PO VALLEY ASSETS REVIEW - CASTELLO  Production start 17 Dec 2009  Pressure decline being investigated  Sillaro-2 drilled August 2009 - SILLARO  Plant installed and production started - SANT’ALBERTO  New Seismic being acquired - BEZZECCA  Bezzecca-1 drilled April 2009  Reservoir study reduces

  26. Slide 26: Correggio: Strong Addition to the Portfolio

    CORREGGIO: STRONG ADDITION TO THE PORTFOLIO  Production to date ~240 bcf  Potential P50 gas discoveries ~ 35 bcf  Planned 3D seismic coverage Page 25

  27. Slide 27: Expansion Offshore: Azzurra (AR168PY)

    EXPANSION OFFSHORE: AZZURRA (AR168PY)  Major gas production zone in Italy  Shallow water depth ~20m  Full 3D seismic coverage  4 drilled and tested prospects  Azzurra  Ginevra  Adele  Irma/Carola  Preliminary award to Po Valley: July 2008  G&G work underway  Pipeline connection through li

  28. Slide 28: 12 New Prospects

    12 NEW PROSPECTS Additional possible drilling candidates C.ROSSA DONNINO CORCREVA' RAVIZZA T.DELSOLE PIOPPETTE CAPITELLO AA AA A A A F. PERINO ARIANO D. DELLE ANIME A , 7~ > oT! —+4— —F— + _- 800m P1100 J a 1300m ee ee | i H i 4500m 2700m 2500m 2600m povalley _ (Ea NEMEC RES)

  29. Slide 29: Board of Directors

    BOARD OF DIRECTORS Mr Graham Bradley  Former CEO - Perpetual, Blake Dawson Waldron Non-executive Chairman  Director – Singtel  Chairman – HSBC, Stockland, Boart Longyear Mr David McEvoy  33 years Exxon/Esso Non-executive Director  Director - Woodside Petroleum, AWE, Innamincka Petroleum Dr Byro

  30. Slide 30: Po Valley Capital Structure

    PO VALLEY CAPITAL STRUCTURE Shares (m) held Substantial Shareholders % as at 30 April 2010 Michael Masterman 23.9 21.7% Hunter Hall 19.5 17.7% Beronia Investments 7.1 6.5% Other Investors 59.6 54.1% TOTAL SHARES 110.1 Market Capitalization (at A$0.37*) (€28.9m) A$41.3m Cash at Bank (Apr 10) (€3.6m)

  31. Slide 31: Bank of Scotland - Reservoir Facility

    BANK OF SCOTLAND - RESERVOIR FACILITY Facility Size: €20 million (Current Borrowing base EUR13.8m) Use of Funds: Put Castello in production (EUR3m) Drill Sillaro 2 and Install Surface plant (EUR7m) Term: 5 years expiring 15 November 2013 Borrowing base limit set on semi annual basis Interest Rate: -

  32. Slide 32: Key Objectives for Next 12 Months

    KEY OBJECTIVES FOR NEXT 12 MONTHS  Ramp up production from Sillaro to 110,000 cm per day  Resolve Castello production issues and reassess field size and production life  Generate free cashflows and EBITDA  Reduce debt levels  Secure full award of Cadelbosco di Sopra (Correggio) and AR168PY (Azz

  33. Slide 33: Disclaimer

    Disclaimer This presentation should not be considered as an invitation or recommendation to purchase securities in PVE. PVE has not audited or investigated the accuracy or completeness of the information, statements and opinions contained in this presentation. Accordingly, to the maximum extent perm

Po Valley Energy — Shareholder Meeting (May 2010) on 6ix