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
Slide 1: Gas Production
For personal use only Gas Production
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. 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
Slide 3: PVE January 2005 portfolio status
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
Slide 4: PVE January 2009 portfolio status
PVE January 2009 For personal use only 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% Preliminar
Slide 5: PVE May 2010 portfolio status
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 Invested Capital Sant’Alberto 100% 1 well drilled + Production concession appl. €35m/AU
Slide 6: 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 Nov 2009 Page 5
Slide 7: Prices rising due to falling EUR and rising oil prices
PRICES RISING DUE TO FALLING EUR AND RISING OIL PRICES For personal use only 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 Releas
Slide 8: PVE Reserve & Resource Categorization
PVE RESERVE & RESOURCE CATEGORIZATION For personal use only Page 7
Slide 9: Resources Management Assessment
RESOURCES MANAGEMENT ASSESSMENT For personal use only 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
Slide 10: Resource Management Assessment
RESOURCE MANAGEMENT ASSESSMENT For personal use only 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
Slide 11: Po Valley Assets Review
PO VALLEY ASSETS REVIEW For personal use only - 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 reserve
Slide 12: Castello Plant Inauguration: January 2010
CASTELLO PLANT INAUGURATION: 12 JANUARY 2010 For personal use only Page 11
Slide 13: Castello Production Summary: Dec 2009 - April 2010
CASTELLO PRODUCTION SUMMARY: 17 DEC 2009 - 30 APRIL 2010 For personal use only 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 15,000 10
Slide 14: Castello Structure
CASTELLO STRUCTURE For personal use only Page 13
Slide 15: Po Valley Assets Review
PO VALLEY ASSETS REVIEW For personal use only - 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
Slide 16: Sillaro Successfully Drilled and Tested
SILLARO SUCCESSFULLY DRILLED AND TESTED For personal use only 6 reservoir levels confirmed 2 new previously untested levels Well completed safely on schedule on budget Page 15
Slide 17: 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
Slide 18: Fantuzza Can Feed into Sillaro
FANTUZZA CAN FEED INTO SILLARO For personal use only 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 Sillar
Slide 19: Po Valley Assets Review
PO VALLEY ASSETS REVIEW For personal use only - 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
Slide 20: Sant'Alberto – Seismic to be Acquired in May
SANT’ALBERTO – SEISMIC TO BE ACQUIRED IN MAY For personal use only Block 5 Page 19
Slide 21: Po Valley Assets Review
PO VALLEY ASSETS REVIEW For personal use only - 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 reserve
Slide 22: Bezzecca Interpretation
BEZZECCA INTERPRETATION For personal use only 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 As
Slide 23: Bezzecca (Cascina S.Pietro Permit)
BEZZECCA 2 (CASCINA S.PIETRO PERMIT) For personal use only a a’ a Target depth 2000m da inserire Pliocene - Miocene Contingent Resources 2.4Bcf a’ Page 22
Slide 24: Bezzecca Can Feed into Castello
BEZZECCA CAN FEED INTO CASTELLO For personal use only Page 23
Slide 25: Po Valley Assets Review
PO VALLEY ASSETS REVIEW For personal use only - 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
Slide 26: Correggio: Strong Addition to the Portfolio
CORREGGIO: STRONG ADDITION TO THE PORTFOLIO For personal use only Production to date ~240 bcf Potential P50 gas discoveries ~ 35 bcf Planned 3D seismic coverage Page 25
Slide 27: Expansion Offshore: Azzurra (AR168PY)
EXPANSION OFFSHORE: AZZURRA (AR168PY) For personal use only 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
Slide 28: New Prospects
12 NEW PROSPECTS For personal use only Page 27
Slide 29: 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, Innamincka Petro
Slide 30: Po Valley Capital Structure
PO VALLEY CAPITAL STRUCTURE For personal use only 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
Slide 31: Bank of Scotland - Reservoir Facility
BANK OF SCOTLAND - RESERVOIR FACILITY For personal use only 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
Slide 32: Key Objectives for Next Months
KEY OBJECTIVES FOR NEXT 12 MONTHS For personal use only 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
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