Po Valley Energy Limited · ASX:PVE
Po Valley Energy — Investor Presentation (June 2021)
31 slides from Po Valley Energy's investor presentation, Jun 18, 2021
Slide 1: Equity Capital Raising Presentation
Equity Capital Raising Presentation June 2021
Slide 2: Important Notices and Disclaimer
1 Important Notices and Disclaimer The release, publication or distribution of this presentation in certain jurisdictions may be restricted by law and therefore persons in such jurisdictions into which this presentation is released, published or distributed should inform themselves about and observe
Slide 3: Important Notices and Disclaimer
2 Important Notices and Disclaimer DISCLAIMER This presentation is for informational purposes only and does not constitute an offer to sell, or solicitation to purchase, any securities. Such Offer can be made only through proper subscription documentation and only to investors meeting strict suitabi
Slide 4: Executive Summary
3 Executive Summary Po Valley Energy Limited (ASX:PVE) is pleased to confirm it intends to undertake a A$10.1m equity capital raising to: • Accelerate near term gas production at Selva Malvezzi onshore gas project and progress exploration of offshore gas assets and create shareholder value; and • St
Slide 5: Four Assets: Gas Development & Large Scale Exploration Upside
4 Four Assets: Gas Development & Large Scale Exploration Upside Development Stage2 Gross Unlocks 2P Reserves 13.4 Bcf Capex Daily prod 3.5 MMcfd 1 Gas Selva Onshore 2C Resources 14.1 Bcf €2.3MM (recoverable) EBITDA c. €7.5 MM p.a. 1 Best 91.5 Bcf Prospective4 2P Reserves 36.5 Bcf Capex Daily prod 14
Slide 6: Proposed Development Schedule
5 Proposed Development Schedule Executing on clear development path targeting first gas in Q2 2022 (Selva) and Q2 2023 (Teodorico) 2021 2022 2023 2024 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Selva EIA approval P INTESA approval Production Concession approval Construction approval Construction F
Slide 7: Company Snapshot
6 Company Snapshot Po Valley Energy Limited (ASX:PVE) is an Italian focused, oil & gas exploration and development company Company Overview (Post Transaction) Portfolio of Assets Market Cap (21 June 2021) A$32.07m Shares on issue 1,006.64m Ticker ASX:PVE Website www.povalley.com Balance Sheet (Post
Slide 8: Italian Market Oil & Gas Overview
7 Italian Market Oil & Gas Overview Italy is Europe’s 3rd largest market for natural gas, and has a favourable tax and concessionary system for domestic production Natural Gas Consumption (Bcf/d) Production Germany 8.7 • Italy is the 5th largest producer of oil in United Kingdom 7.6 Europe: Italy It
Slide 9: Favourable Market Dynamics
8 Favourable Market Dynamics 92% of Italian gas consumption needs to be imported Russia Gas Consumption (Bcf) Domestic production Imports 897 Bcf 203, 8% Total 2,470 2267, Supply sourced from 92% bottom quartile countries on the political stability index for the World Bank 600 152 Governance Indicat
Slide 10: Selva Malvezzi - Overview
9 Selva Malvezzi - Overview Selva is a €2.3MM natural gas development project based on historic onshore gas fields formerly operated by Eni Overview • Onshore gas development asset located in the eastern part of the Po Plain, Italy • Environmental Impact Assessment (EIA) approval announced April 202
Slide 11: Selva Malvezzi – Located Among Large Discoveries
10 Selva Malvezzi – Located Among Large Discoveries Dosso Minerbio Degli (gas) Angeli 80MMboe (gas) 200MMboe Spilambe BOLOGNA Selva rto Malvezzi Podere Gallina (gas) 68MMbo RAVENNA e Ravenna (gas) Alfonsine 135MMboe (gas) 52MMboe Torre Del Moro
Slide 12: Selva Malvezzi – Development
11 Selva Malvezzi – Development Tie-in to pipeline 1,000 m away from Podere Maiar well site; production tested up to 5.0 MMcf/day from C1 and C2 sand levels Overview • Successful well test in early 2018 demonstrated good flow rates from C1 and C2 sands • First step: Install skid mounted separation a
Slide 13: Selva Malvezzi: 100 Bcf within Production Concession
12 Selva –Malvezzi 100 Bcf –+100Bcf within + Production All WithinConcession Production Concession Selva levels A+B prospects (2C Contingent Resource: 14,1 Bcf gross) Podere Maiar well • Stratigraphic pinch-out prospects (2P Reserve: 13.4 Bcf gross) proved viable by successful Podere • Development s
Slide 14: Teodorico – Overview
13 Teodorico – Overview Teodorico is Po Valley‘s largest scale asset and is ready for development pending final production concession approvals Overview • Offshore gas development asset located in the shallow waters of the Adriatic Sea (d40 AC PY), 40km north-east of Ravenna − 100%-owned by Po Valle
Slide 15: Teodorico – Located Among Large Discoveries
14 Teodorico – Located Among Large Discoveries d.40 AC-PY Porto Garibaldi- AR 94 PY 12km Agostini (gas) Naomi Pandora 600MMboe Porto Corsini Mare Est (gas) 140MMbo e Ravenna Mare (gas) 42MMboe Ravenna
Slide 16: Significant Upside with Large Onshore Oil Prospects
15 Significant Upside with Large Onshore Oil Prospects Bagnolo Ravizza • 100% owned by PVO • 100% owned by PVO • 2C Contingent Resource of 27.3 MMbbls • 2C Contingent Resource of 16.1 MMbbls • Prospective Resource (Best) of 54.5 MMbbls • Located in the Emilia Romagna region in Northern Italy • Locat
Slide 17: Torre Del Moro: Large Scale Oil and Condensate Exploration
16 Torre Del Moro: Large Scale Oil and Condensate Exploration Maiden Prospective Resource Estimate of 106 MMbbls Overview • 100% owned by PVO • Prospective Resource (Best) of 106 MMbbls from a mid-case OOIP assessment of 312 MMbbls • Located in the Emilia Romagna region (Northern Italy) TORRE DEL MO
Slide 18: Villafortuna: Analogous to Torre Del Moro
17 Villafortuna: Analogous to Torre Del Moro Analogous field geology to Eni S.p.A’s Villafortuna field (230MMbbls already produced) Villafortuna Location 30 km West of Milan Discovery 1984 Recoverable Reserves 290MMbbl Production to date 230MMbbls1 Production Peak 80,000 boepd 1 – by end of 2017
Slide 19: The Team
18 The Team The Po Valley team is based in Australia (corporate) and Italy (technical), with deep industry links in country with local operators Board Michael Masterman Kevin Bailey Sara Edmonson Chairman & Chief Executive Officer Non-executive Director Non-executive Director • 30 years of experienc
Slide 20: Equity Capital Raising Overview
19 Equity Capital Raising Overview • Equity capital raising of $10.1m comprising: Offer structure • Placement of $1m within the Company’s capacity under ASX Listing Rule 7.1 (Placement); and • Underwritten 1 for 2 accelerated non-renounceable entitlement offer of $9.1m (Entitlement Offer)1 • All sha
Slide 21: Sources and Uses of Funds
20 Sources and Uses of Funds Sources Amount (A$m) Uses Amount (A$m)1 Placement 1.0 Bond 1.61 (€1.0) Accelerated Non Renounceable Selva Malvezzi project development 2.41 (€1.5) 9.1 Entitlement Offer Convertible notes repayment 0.6 Shareholder loan and interest repayment (including convertible note 4.
Slide 22: Equity Capital Raising Timetable
21 Equity Capital Raising Timetable Event Date Trading Halt Request, Placement and Institutional Entitlement Offer Opens 17 June 2021 Announcement of Equity Capital Raising (Pre-Market) 18 June 2021 Firm Bids Due - Institutional Entitlement Offer and Placement Closes 4pm AEST 18 June 2021 Announceme
Slide 23: Key Risks – Specific
22 Key Risks – Specific 1. INTRODUCTION There are various risks associated with an investment in New Shares or the Company generally, as with any securities market investment. This section summarises the following key risks: (a) Risks specific to the equity capital raising and an investment in the C
Slide 24: Key Risks – General
23 Key Risks – General Oil and gas exploration and appraisal involves significant risk. The future profitability of the Company and the value of its shares are directly related to the results of exploration and appraisal activities. There are inherentrisks in these activities. No assurances can be g
Slide 25: International Offer Restrictions
24 International Offer Restrictions This document does not constitute an offer of new ordinary shares (“New Shares”) of the Company in any jurisdiction in which it would be unlawful. New Shares may not be offered or sold in any country outside Australia except to the extent permitted below. Canada (
Slide 26: International Offer Restrictions
25 International Offer Restrictions This document does not constitute an offer of new ordinary shares (“New Shares”) of the Company in any jurisdiction in which it would be unlawful. New Shares may not be offered or sold in any country outside Australia except to the extent permitted below. United K
Slide 27: Appendix
Appendix
Slide 28: Reserves, Resources and Prospects (Net)
27 Reserves, Resources and Prospects (Net) Gas (net Bcf) Reserves Contingent Resources Prospective Resources Licence Project 1P 2P 3P 1C 2C 3C Low Best High AR94PY Teodorico (out 12m zone) 26.7 36.5 47.5 Teodorico (in 12m zone) 7.4 10.6 14.0 PL3-C 7.9 15.9 25.0 Podere Gallina Selva 2.6 8.4 18.8 Leve
Slide 29: Portfolio Overview
28 Portfolio Overview Selva Malvezzi Onshore gas Development Large onshore oil discoveries − 63%-owned − Net 2P Reserves of 8.4 Bcf and 2C Resource of 8.9 Bcf • 2C 43.4 MMbbls recoverable − Net Prospective Resource (Best) of 57.6 Bcf • Prospective (Best) 160MMbbls − Locate 1km from the Italian Natio
Slide 30: Selva Malvezzi: Robust Cashflows
29 Selva –Malvezzi 100 Bcf –+Robust within cashflows Productionand Concession return on investment Net to PVE, Free Cash Flow Sensitivity Analysis (1st five years) EUR m 6.0 Eur 0.10 / scm 5.5 5.4 5.1 5.2 Eur 0.20 / scm Eur 0.30 / scm 4.0 3.6 3.6 3.4 3.5 2.0 1.7 1.7 1.6 1.7 0.0 -1.5 -1.5 -1.5 -2.0 2
Slide 31: Teodorico – Development Concept
30 Teodorico – Development Concept Future Development Plan • Developed with 2 production wells in 30m water depth − Located 12 miles offshore from Ravenna • First production is expected to commence in 2Q 2023 • Competitive capex total (€53.7m) • Option for tie-in to the nearby Naomi-Pandora platform