Po Valley Energy Limited · ASX:PVE

Po Valley Energy — RIU Good Oil Conference 2010

33 slides from Po Valley Energy's conference presentation, Sep 16, 2010

  1. Slide 1: RIU Good Oil Conference, Fremantle, September 2010

    For personal use only RIU GOOD OIL CONFERENCE FREMANTLE, WA September 2010

  2. Slide 2: Italy and Po Valley

    ITALY AND PO VALLEY For personal use only  Gas Consumption 3 tcf p.a.  Growing at 2-3% p.a  High gas prices USD11/mcf  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

  3. Slide 3: PVE January 2005: Italian gas price and assets

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

  4. Slide 4: PVE May 2010: Italian gas price and assets

    PVE MAY 2010 For personal use only ITALIAN GAS PRICE: EUR27cents/cubic metre Castello 100% 1 well drilled + Surface plant installed + Production Sillaro 100% 2 wells drilled + Surface plant installed + Production Sant’Alberto 100% 1 well drilled + Production concession appl. Bezzecca 100% 1 well dri

  5. Slide 5: Resource Base

    RESOURCE BASE Po Valley Assets For personal use only  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 Page 4

  6. Slide 6: Italian ENI gas release price: September update

    PRICES RISING DUE TO FALLING EUR AND RISING OIL PRICES For personal use only ITALIAN ENI GAS RELEASE PRICE: SEPTEMBER UPDATE Source: ENI Gas Release and forecast sourced from Alba Soluzioni; Driver parameters and forward curves sourced from Bloomberg Page 5

  7. Slide 7: PVE Reserve & Resource Categorization

    PVE RESERVE & RESOURCE CATEGORIZATION For personal use only Page 6

  8. Slide 8: Reserves and Resources Management Assessment

    RESERVES AND RESOURCES MANAGEMENT ASSESSMENT For personal use only TIMING OF RESERVES / PROJECT CURRENT ASSESSMENT (BCF) RESOURCES REVIEW RESERVES 1P 2P CASTELLO 0.1 3.7 Completed SILLARO 8.1 8.8 Completed TOTAL RESERVES 8.2 12.5 CONTINGENT RESOURCES 1C 2C SANT’ ALBERTO 8.0 12.9 4Q 2010 BEZZECCA 0.7

  9. Slide 9: 2010/2011 Game Plan

    2010/2011 GAME PLAN For personal use only  Produce steadily from Sillaro and look to expand through Fantuzza-1  Drill new Castello well and recommence at original target production rates  Achieve preliminary development approval for Sant’Alberto and Bezzecca  Secure full award of Cadelbosco di S

  10. Slide 10: Sillaro successfully drilled and tested

    SILLARO SUCCESSFULLY DRILLED AND TESTED  6 reservoir levels confirmed For personal use only  2 new previously untested levels  Well completed safely on schedule on budget Initial Production Page 9

  11. Slide 11: Sillaro plant 100% complete and in production

    SILLARO PLANT 100% COMPLETE AND IN PRODUCTION For personal use only 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 Pa

  12. Slide 12: Sillaro production summary: May-August 2010

    SILLARO PRODUCTION SUMMARY: 18 MAY- 28 AUGUST 2010 For personal use only Page 11

  13. Slide 13: Fantuzza can feed into Sillaro

    FANTUZZA CAN FEED INTO SILLARO  Targeting 2,600m Miocene For personal use only 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  Sillaro surface plant

  14. Slide 14: 2010/2011 Game Plan

    2010/2011 GAME PLAN For personal use only  Produce steadily from Sillaro and look to expand through Fantuzza-1  Drill new Castello well and recommence at original target production rates  Achieve preliminary development approval for Sant’Alberto and Bezzecca  Secure full award of Cadelbosco di S

  15. Slide 15: Castello plant inauguration: January 2010

    CASTELLO PLANT INAUGURATION: 12 JANUARY 2010 For personal use only Page 14

  16. Slide 16: Castello structure

    CASTELLO STRUCTURE For personal use only Page 15

  17. Slide 17: Castello production scenario

    CASTELLO PRODUCTION SCENARIO For personal use only Action Plan: Acquire key seismic Plan and secure approval to drill new well  Drill Vitalba-1dirA NEW WELL  Connect to Castello plant Page 16

  18. Slide 18: 2010/2011 Game Plan

    2010/2011 GAME PLAN For personal use only  Produce steadily from Sillaro and look to expand through Fantuzza-1  Drill new Castello well and recommence at original target production rates  Achieve preliminary development approval for Sant’Alberto and Bezzecca  Secure full award of Cadelbosco di S

  19. Slide 19: Sant'Alberto: seismic to be acquired 3rd quarter

    SANT’ALBERTO – SEISMIC TO BE ACQUIRED 3rd QRT For personal use only Block 5 Page 18

  20. Slide 20: Bezzecca-2 (Cascina S. Pietro permit)

    BEZZECCA-2 (CASCINA S.PIETRO PERMIT) a a’ For personal use only a  Target depth 2000m da inserire  Pliocene - Miocene  Contingent Resources 3.1Bcf a’ Page 19

  21. Slide 21: Bezzecca can feed into Castello

    BEZZECCA CAN FEED INTO CASTELLO For personal use only Page 20

  22. Slide 22: 2010/2011 Game Plan

    2010/2011 GAME PLAN For personal use only  Produce steadily from Sillaro and look to expand through Fantuzza-1  Drill new Castello well and recommence at original target production rates  Achieve preliminary development approval for Sant’Alberto and Bezzecca  Secure full award of Cadelbosco di S

  23. Slide 23: Correggio: strong addition to the portfolio

    CORREGGIO: STRONG ADDITION TO THE PORTFOLIO For personal use only Quaternary potential Pliocene potential Pliocene potential  Production to date ~240 bcf  Potential P50 gas discoveries ~ 35 bcf  Planned 3D seismic coverage  Quaternary and Pliocene targets Page 22

  24. Slide 24: Expansion offshore: Azzurra (AR168PY)

    EXPANSION OFFSHORE: AZZURRA (AR168PY)  Major gas production zone in Italy For personal use only  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

  25. Slide 25: 2010/2011 Game Plan

    2010/2011 GAME PLAN For personal use only  Produce steadily from Sillaro and look to expand through Fantuzza-1  Drill new Castello well and recommence at original target production rates  Achieve preliminary development approval for Sant’Alberto and Bezzecca  Secure full award of Cadelbosco di S

  26. Slide 26: New Prospects

    12 NEW PROSPECTS For personal use only Page 25

  27. Slide 27: 2010/2011 Game Plan

    2010/2011 GAME PLAN For personal use only  Produce steadily from Sillaro and look to expand through Fantuzza-1  Drill new Castello well and recommence at original target production rates  Achieve preliminary development approval for Sant’Alberto and Bezzecca  Secure full award of Cadelbosco di S

  28. Slide 28: Po Valley Capital Structure

    PO VALLEY CAPITAL STRUCTURE For personal use only Shares (m) held Substantial Shareholders % as at 31 August 2010 Michael Masterman 26.0 23.6% Hunter Hall 13.3 12.1% Beronia Investments 7.1 6.5% Other Investors 63.7 57.8% TOTAL SHARES 110.1 Market Capitalization (at A$0.25*) (€19.5m) A$27.5m Cash at

  29. Slide 29: Bank of Scotland - Reservoir Facility

    BANK OF SCOTLAND - RESERVOIR FACILITY For personal use only Facility Size: €20 million (Current Borrowing base EUR8m) 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 bas

  30. Slide 30: Board of Directors

    BOARD OF DIRECTORS For personal use only 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, Innami

  31. Slide 31: Management Team

    MANAGEMENT TEAM For personal use only Mr Giovanni Catalano  32 years’ experience in the upstream oil and gas industry Deputy Chief Executive Officer  Chief Executive Officer of Mediterranean Oil & Gas plc  Prior Business Manager for Woodside Energy Mr Franco Benelli  35 years with ENI Chairman T

  32. Slide 32: Growth and Profit Outlook

    GROWTH AND PROFIT OUTLOOK For personal use only  Gas Production with strong growth potential  Active appraisal and exploration program funded by farmouts  Completed reserve review – solid base to build  Conservative balance sheet  Profit and earnings growth Page 31

  33. Slide 33: Disclaimer

    Disclaimer For personal use only 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 t

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