Po Valley Energy Limited · ASX:PVE
Po Valley Energy — Investor Presentation (February 2006)
27 slides from Po Valley Energy's investor presentation, Feb 21, 2006
Slide 1: Australian Investors Presentation
Australian Investors Presentation 21-24 February 2006
Slide 2: Company Overview
Company Overview Po Valley Energy was established in 2002 to acquire, explore and develop hydrocarbon prospects in the Po Valley hydrocarbon province in Northern Italy The Po Valley, between the Alps and the Apennines, is the main gas production zone in Italy and has produced more gas than Austr
Slide 3: Value creation / risk reduction since IPO
Value creation / risk reduction since IPO At IPO (Dec 04) Current (Feb 06) Production fields 1 3 Development fields 3 4 1P reserves 10.1 bcf 36.6 bcf (+360%) 105 bcf 2P reserves 61.2 bcf (+70%) Italian gas prices (well head) EUR 0.14/cm EUR 0.25/cm AUD 8/’000cf AUD 11/’000cf (+44%) Cash at bank AUD1
Slide 4: Development Projects
Development Projects ae ones = Pandino we 72 / Santa Maddalena 0 “4%, cor) Sillaro : % st fi iy r y Pa Ke p% as & raf Mokterranoan Sea italy Say emg cS t Goovalley nage
Slide 5: Po Valley Gas Province in Perspective
Po Valley Gas Province in Perspective Cumulative production Billions of cubic ft 25,000 The Po Valley’s natural gas output 20,000 Po Valley 15,000 to date is three times that of the 22,809 Bcf 10,000 Australian North West Shelf North West 5,000 Shelf 7,386 Bcf While in decline, the Po Valley sti
Slide 6: Gas Reserve Summary — bcf
Gas Reserve Summary — bcf Development Field Reserves (as estimated by consulting geologists, Ecopetrol) Remaining Recoverable Reserves Exploration PVE PVE Field Names Permit Interest Proven Probable Possible Total 1. Santa San Vincenzo 50% 6.4 7.1 8.6 22.1 Maddalena 2. Sillaro Crocetta 100% 10.4 30.
Slide 7: Highlights to date
Highlights to date 3 out of 3 gasfields successfully drilled and tested to date; overall 70% increase in 2P reserves since IPO Successfully drilled Sillaro gasfield (2P reserves = 40.4 bcf) Discovered 2 new productive levels in Pliocene; +26% 3P reserves (to 15.8 bcf) Flow rates 10 times exp
Slide 8: Drilling Sillaro
Drilling Sillaro Rig-up June 2004 Q@eovalley nage? CEES)
Slide 9: Sillaro – results
Sillaro – results Logs identify three gas bearing levels over 100m gross interval PL2 C: 2,160 - 2,176m PL2 B: 2,218 - 2,239m PL2 A: 2,239 - 2,257m Strong flow test results PL2 C: 5.4 mcf/day (5/16“choke) PL2 B: 3.5 mcf/day (5/16“choke) PL2 C: 4.0 mcf/day (¼“choke) Very good pressu
Slide 10: Sillaro – updated geological structure
Sillaro – updated geological structure Page 9
Slide 11: Drilling Vitalba
Drilling Vitalba Rig on site in May 2005 Well head, June 2005 800m Transport pipeline from well head Page 10
Slide 12: Vitalba – results
Vitalba – results Logs identified three gas bearing levels San A1: 1,561.4 - 1,565.0m San A2: 1,577.5 - 1,580.0m San A3: 1,612.3 - 1,613.2m 1,618.4 - 1,620.0m San A3 test inconclusive Strong San 1 & 2 tests: – flow of 2.8mcf/day on ¼” choke Good pressure recovery Production planning
Slide 13: Gas storage has become a strategic issue
Gas storage has become a strategic issue Page 12
Slide 14: Vitalba – updated geological structure
Vitalba – updated geological structure Page 13
Slide 15: Santa Maddalena – successfully tested
Santa Maddalena – successfully tested Page 14
Slide 16: Santa Maddalena – confirms results
Santa Maddalena – confirms results Logs identify two gas bearing levels Flow of 1.8m on ¼” choke – this is the restricted flow for initial operations Good pressure recovery Production concession application in preparation by operator (Edison) Production test (Nov 2005) Page 15
Slide 17: Italian gas prices – up 54% since IPO
Italian gas prices – up 54% since IPO EUR/cubic metre AUD/'000 cubic feet Price change: Price change: Last Quarter = +15% Last Quarter = +14% Same Qtr Last Year = +54% 0.25 Same Qtr Last Year = +44% 11.27 7.12 0.14 Jun Sep Dec Mar Jun Sep Dec Jun Sep Dec Mar Jun Sep Dec 04 04 04 05 05 05 05 04 04 04
Slide 18: Italian gas market
Italian gas market Italy is 7th overall largest economy Natural Gas Consumption – Western Europe 2003 140,000 and 3rd largest in Europe 120,000 Declining domestic supply (>80% 100,000 80,000 GWh import) 60,000 High demand (4-6% p.a.); gas fired 40,000 20,000 power, strong consumer demand and -
Slide 19: Italian gas market – supply
Italian gas market – supply Domestic Natural Gas Production Decline in domestic natural gas production 800 commenced in mid 1990’s Imported gas accounts for >80% of supply, 600 and growing Bcf 400 Import capacity constrained – only 5 access points 200 3 operating at 100% capacity 1 approac
Slide 20: Expansion and production program
Expansion and production program Priority No. 1 – put Sillaro into production Production concession application Pipeline connection and surface plant installation Environmental approval Follow on with production from Vitalba and Santa Maddalena – initial flows >3.5 mcf/day (combined) Dri
Slide 21: Bezzecca 1 – (formerly Pandino) – 45bcf
Bezzecca 1 – (formerly Pandino) – 45bcf Page 20
Slide 22: Value recognition
Value recognition Commercial gasflows from existing tested wells set to commence in late 2006, with annualised production rates of 9 mcf/day Sil 1dir = 5.4 mcf/day (PLC level only) Vit 1dir = 2.8 mcf/day SM 1dir = 0.9 mcf/day (PVE share) Strong cashflows to kick in 2007; at prevailing pric
Slide 23: Valuation multiple comparisons
Valuation multiple comparisons RESERVE BASED VALUATION MULTIPLES AUD million / 2P million BOE Hardman 62.9 Beach Petroleum 55.7 ROC Oil 49.6 Arc Energy 35 Anzon Australia 31.1 Petsec 30.8 Stuart Petroleum 29.7 Cooper Energy 28.9 Aust Worldwide 26.2 Tap Oil 26.1 Mosaic Oil 7.8 Avg Horizon Oil 6.6 5x
Slide 24: Balance Sheet
Balance Sheet 30 Jun Balance Sheet 2005 $`m Clean balance sheet Current Assets Cash on Hand 12.68 Receivables 1.80 Substantial cash backing Other Total Current Assets 0.61 15.10 Access to reserve financing if needed Non Current Assets Resources Property 20.42 Plant & Equipment 0.03 Other Suf
Slide 25: Board and Senior Management
Board and Senior Management Mr Graham Bradley • Former CEO - Perpetual, BDW Non-executive Chairman • Director – Singtel, MBF • Chairman – HSBC Aust., Stockland, Proteome Systems, Film Finance Corp. Aust. Mr David McEvoy • 33 years Exxon/Esso Australia Non-executive Director • Director - Woodside Pet
Slide 26: Share structure
Share structure Shareholders Shares (m) % Michael Masterman 21.4 25.9 Harbert 12.5 15.1 Byron Pirola 12.0 14.5 Hunter Hall 9.8 11.9 Other Investors 26.8 32.6 TOTAL 82.5m 100.0 Share Price (16/2/2006) $1.27 Market Capitalisation $105m Page 25
Slide 27: 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 — Investor Presentation (February 2006) on 6ix