Po Valley Energy Limited · ASX:PVE
Po Valley Energy — Shareholder Meeting (May 2011)
25 slides from Po Valley Energy's shareholder meeting presentation, May 13, 2011
Slide 1: AGM Presentation May 2011
For personal use only AGM PRESENTATION May 2011
Slide 2: 2010 at Glance: Key Milestones
2010 AT GLANCE KEY MILESTONES For personal use only 2,000 sq kilometers (494,200 € 7.1m (AUD 9.2m) operating acres) revenue 100% licences area in Italy 2 producing gas fields € 2.2m (AUD 2.8m) positive EBITDA 2 development projects 5 gas discoveries for appraisal 11 gas exploration prospects € 4.3m
Slide 3: AGM 2010 vs AGM 2011: Milestones Achieved
AGM 2010 vs AGM 2011 MILESTONES ACHIEVED – COMPARING RESULTS For personal use only Stable average production at 83,000scm/d, AS Ramp up production from Sillaro in line with its contracted production gas rates Resolve Castello production issues and Reserves review finalised, authorisation to reassess
Slide 4: Reserves and Resources: Results of Independent Review
RESERVES AND RESOURCES RESULTS OF INDEPENDENT REVIEW For personal use only LAST UPDATE ANNUAL REPORT 2010 LICENCE/PROJECT (SEPT 2010) (APRIL 2011) RESERVES REVIEWED BY 1P: 0.1 1P: 0.1 DREAM Castello - Vitalba 2P: 3.7 2P: 3.6 1P: 8.1 1P: 7.5 DREAM Sillaro - Sillaro 2P: 8.8 2P: 8.2 RESOURCES 1C: 8.0 1
Slide 5: Why Invest in Gas in Italy
WHY INVEST IN GAS IN ITALY PREMIUM MARKET For personal use only NATURAL GAS GRID MARKET PROFILE 8th highest consumer of gas in the world, with a consumer base of around 60 million Highly (90%) import dependent - 2010 gas consumption of 78.12 bscm (2.8 tcf) with domestic production at 7.9 bscm (0.28
Slide 6: Italian Gas Market
ITALIAN GAS MARKET HIGH PRICES, UPWARD TREND, NOTEWORTHY OPERATING NETBACK For personal use only HISTORIC & FORECASTED 2010 AVERAGE PRICE OF DRY NATURAL GAS ITALIAN GAS PRICE TREND 12.00 10.00 8.00 6.00 4.00 2.00 0.00 €/mcf 2009 2010 2011 2012 €/mcf OPERATING NETBACK: HIGH COMPARED TO WORLD STANDARD
Slide 7: Management Team
MANAGEMENT TEAM MORE THAN 250 YEARS EXPERIENCE For personal use only Mr Giovanni has more than 33 years Mr Diego Diego joined the company in March 2011 Giovanni experience in the upstream oil and gas Balistreri with over 33 years of experience in Catalano industry. His most recent position was Produ
Slide 8: Portfolio of Assets
PORTFOLIO OF ASSETS BALANCED MIX OF ASSETS For personal use only Exploration & Production Assets Overall area: 2,000km2 2 Producing gas fields Sillaro, Castello 2 Development projects Bezzecca, Sant’Alberto 5 Gas discoveries for appraisal Fantuzza, Canolo, Zini, Carola/Irma, Azzurra/Ginevra 11 Gas e
Slide 9: Sillaro Producing Gas Field
SILLARO PRODUCING GAS FIELD ONE YEAR OF STEADY PRODUCTION For personal use only Production commenced in May 2010 Producing approximately 3 mmcf/day 7 reservoir levels confirmed and 4 in production 2 new previously untested levels Reserves: 1P: 7.5 bcf 2P: 8.2 bcf Sillaro surface plant and pipeline s
Slide 10: Castello Producing Gas Field
CASTELLO PRODUCING GAS FIELD DRILL VITALBA-1dirA AND RESTART PRODUCTION For personal use only Production started December 2009 Produced intermittently in May and June 2010 with present production from existing Vitalba- 1dir well limited to 3,000scm/day Extensive static & dynamic reservoir studies co
Slide 11: Development Assets: Sant'Alberto Gas Development
DEVELOPMENT ASSETS PROGRESS SANT’ALBERTO GAS DEVELOPMENT For personal use only Sant’Alberto Located in the San Vincenzo permit (near Bologna) Santa Maddalena-1 well drilled and tested (1.8 mmcf/day) Well completed on 3 levels (2 tested, 1 upside) 2D seismic survey acquired in March 2011 (first seism
Slide 12: Development Assets Cont: Bezzecca and Fantuzza
DEVELOPMENT ASSETS CONT BEZZECCA GAS DEVELOPMENT AND FANTUZZA APPRAISAL For personal use only Bezzecca (Cascina San Pietro permit, Milan) Fantuzza (Crocetta permit, Bologna) Bezzecca-1 well drilled and 3 levels tested (total 3.9 Expected to feed into Sillaro plant 2 km away mmcf/day), completed on 3
Slide 13: Cadelbosco and Grattasasso
CADELBOSCO AND GRATTASASSO PROMISING EXPLORATION/APPRAISAL OPPORTUNITIES For personal use only Targeting the former ENI producing Correggio gas field Past production ~250 bcf Full grant of the licences awarded in March 2011 Purchased 111km of 2D seismic data from ENI 2 shallow Quaternary prospects a
Slide 14: Exploration Prospects
EXPLORATION PROSPECTS MULTIPLE OPTIONS FOR UPSIDE VALUE For personal use only GRADIZZA CEMBALINA La Prospera exploration permit Podere Gallina exploration permit Target depth 1,000m Target depth 1,200m Drilling approval pending Preliminary evaluation of Prospective Resources Prospective Resources (u
Slide 15: Financial Highlights
FINANCIAL HIGHLIGHTS 2010 OPERATING PERFORMANCE AND KEY FINANCIALS For personal use only OPERATING PERFORMANCE FOR THE 12 MONTHS ENDED 31 DECEMBER 2010 Million m3 bcf Notes Sillaro Production 18.5 0.66 Steady production in 2010 Castello Production 8.3 0.29 New well to be drilled in 2H 2011 Total 26.
Slide 16: Conservative Balance Sheet
CONSERVATIVE BALANCE SHEET FUNDS FOR GROWTH For personal use only €20m Bank of Scotland facility used to finance FINANCIAL KPI (as at 31 Mar 2011) AUD$ construction of Sillaro and Castello production Share Price 0.23 plants Cash at Bank 2.2m Market Cap (at AUD$0.23) 25.4m Full 2010 year reduction in
Slide 17: Strategy: Sustainable Growth
STRATEGY SUSTAINABLE GROWTH For personal use only Continue gas production and advance development assets with strong commitment to HS&E Sustainable Deliver Maximise progress in value to our exploration shareholders Shareholder and Wealth expand portfolio Increase profit earnings while maintaining co
Slide 18: Strategy in Action: 12 Months Work Program
STRATEGY IN ACTION 12 MONTHS WORK PROGRAM For personal use only Production Produce steadily from Sillaro D. ANIME/CORCREVA’ CASTELLO Sillaro 2010 production 0.66 bcf GRADIZZA BEZZECCA Drill new Vitalba-1 dirA well and increase SANT’ALBERTO AR168PY SILLARO production rates CORREGGIO CEMBALINA FANTUZZ
Slide 19: Future Developments
FUTURE DEVELOPMENTS SOLID FOUNDATION FOR GROWTH For personal use only CANOLO+ZINI FANTUZZA PRODUCTION / CASHFLOW BEZZECCA SANT’ALBERTO PRODUCTION / CASHFLOW CASTELLO SILLARO TIME Strong Exploration Cash generating Established And Development Business Position To Pursue Portfolio To Support New Oppor
Slide 20: Disclaimer
DISCLAIMER For personal use only This presentation is for informational purpose only and should not be considered as an invitation or recommendation to purchase securities in Po Valley Energy Limited. This presentation may contain forward looking statements that are subject to risk factors associate
Slide 21: Appendix
APPENDIX For personal use only Exploration & Production highlights Board of Directors Health, Safety & Environmental activity in Italy Reserves & Resources Statement 21
Slide 22: Italy: Exploration & Production
ITALY: EXPLORATION & PRODUCTION INVESTMENT BACKGROUND For personal use only Stable government Italy Gas Production 1989 - 2009 Effective corporate tax rate around 34% ONSHORE OFFSHORE TOTAL EU and G8 member country Favourable royalty regimes – 10% (royalty exemption on first 25 Mm3 (~0.9 Bcf) produc
Slide 23: Board of Directors
BOARD OF DIRECTORS EXCELLENT MIX OF SKILLS, EXPERTISE AND EXPERIENCE For personal use only Mr Graham joined PVE as a director and Mr David David joined PVE as a Director in Graham Chairman in September 2004 and is McEvoy September 2004 and is based in Bradley based in Sydney. He is currently Non Syd
Slide 24: HS&E High Standards
HS&E HIGH STANDARDS 5 YEARS OF HEALTH, SAFETY AND ENVIRONMENTAL STATS For personal use only TOTAL MAN-HOURS PER OPERATION TOTAL MAN-HOURS PER YEAR CUMULATIVE LTIF & LTIG 12000 40.0 60000 LTIF 35.0 10000 50000 30.0 8000 Cumulative LTIG 40000 25.0 Cumulative LTIF LTIG man-hours 6000 20.0 30000 15.0 40
Slide 25: Reserves & Resources Statement
RESERVES & RESOURCES STATEMENT COMPARATIVE REVIEW For personal use only During the past year the Company commissioned a thorough, independent review of its reserves and resources by Dedicated Reservoir Engineering and Management (DREAM) and UK based RPS Group Plc, resulting in some adjustments to pr