Po Valley Energy Limited · ASX:PVE
Po Valley Energy — Investor Presentation (March 2008)
42 slides from Po Valley Energy's investor presentation, Mar 20, 2008
Slide 1: Investor Presentation March 2008
For personal use only Investor Presentation March 2008
Slide 2: Summary and Recent Highlights
SUMMARY AND RECENT HIGHLIGHTS For personal use only 3 fields moving into production; production plant for Sillaro and Castello 30% complete and pipeline connections agreed and contracted 2 large development targets prepared for drilling 10 new high priority gas exploration targets added to por
Slide 3: Expanding Resource Base
EXPANDING RESOURCE BASE For personal use only Po Valley – core projects 3 Production fields 2 Appraisal fields 10 Gas Exploration targets Contested Contested 2 Oil targets 1 Storage field application Page 2
Slide 4: Project Pipeline — IPO 2004
PROJECT PIPELINE — IPO 2004 For personal use only Exploration Appraisal Development Production • Castrocaro • Bezzecca • Castello • Sant’Alberto • Clodo • Sillaro • Malerba Page 3
Slide 5: Expanded Project Pipeline and Operations — 2008
EXPANDED PROJECT PIPELINE AND OPERATIONS — 2008 For personal use only Applications Exploration/ Development Production Storage Appraisal Appraisal 1 offshore gas 6 new licence 2 development 3 fields Preparing to bid & 2 onshore areas targets moving into for new gas gas production storage licences •
Slide 6: Expanded Project Pipeline and Operations — 2008
EXPANDED PROJECT PIPELINE AND OPERATIONS — 2008 For personal use only Applications Exploration/ Development Production Storage Appraisal Appraisal 1 offshore gas 6 new licence 2 development 3 fields Preparing to bid & 2 onshore areas targets moving into for new gas gas production storage licences •
Slide 7: Sillaro – 1P Reserves 10.4 Bcf, 3.8 Million cf/day Production
SILLARO – 1P RESERVES 10.4 BCF, 3.8 MILLION CF/DAY PRODUCTION For personal use only Top of Anticline Multipool gas bearing stack 3.8 million cf/day =A$54k/day (A$20m p.a) Page 6
Slide 8: Sillaro – Located 300m from Italian Gas Grid
SILLARO – LOCATED 300m FROM ITALIAN GAS GRID For personal use only Page 7
Slide 9: Sillaro – Updated Geological Structure
SILLARO – UPDATED GEOLOGICAL STRUCTURE For personal use only Page 8
Slide 10: Sillaro – Production Test Results
SILLARO – PRODUCTION TEST RESULTS For personal use only 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: 0.15 mcm/day (5/16“choke) PL2 B: 0.10 mcm/day (5/16“choke) PL2 A:
Slide 11: Castello – 2P 6.3 Bcf, 2.7 Million cf/day Production
CASTELLO – 2P 6.3 BCF, 2.7 MILLION CF/DAY PRODUCTION For personal use only Pinch out structure Agnadello 1 drilled by ENI produced 12.6 bcf of gas PVE successfully drilled Vitalba 1 updip San A1 and San A2 tested positive 2.7 million cf/day = A$34k/day ($13m p.a) Page 10
Slide 12: Castello – Located 500m from Italian Gas Grid
CASTELLO – LOCATED 500m FROM ITALIAN GAS GRID For personal use only Page 11
Slide 13: Castello – Updated Geological Structure
CASTELLO – UPDATED GEOLOGICAL STRUCTURE For personal use only Page 12
Slide 14: Castello – Production Test Results
CASTELLO – PRODUCTION TEST RESULTS For personal use only 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 0.08 mcm/day on ¼” choke Good
Slide 15: Gas Quality
GAS QUALITY For personal use only Delivery range QUALITY IN PLACE into SNAM grid ELEMENT SILLARO % CASTELLO % SNAM Methane 98.98 99.06 Wobbe Index Nitrogen 0.5 0.8 47.31 - 52.33 49 - 50 Carbon Monoxide <0.01 <0.01 MJ/Sm3 MJ/Sm3 Hydrogen <2 <2 Oxygen 0.05 0.08 ≤ 0.6 Carbon Dioxide 0.03 0.02 ≤3 H2O -
Slide 16: Sant'Alberto – Test Results
SANT’ ALBERTO – TEST RESULTS For personal use only Logs identify two gas bearing levels Flow of 0.08mcm / day on ¼” choke – this is the restricted flow for initial operations Good pressure recovery Production concession application previously in hands of operator (Edison), now under direct c
Slide 17: Surface Plant Construction on Schedule
SURFACE PLANT CONSTRUCTION ON SCHEDULE For personal use only Overall Progress versus Schedule Equipment Schedule 100% complete Progress 90% on skids 80% “Installation ready” 70% 60% 50% 40% 30% 20% 10% 0% Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar- Apr- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- 07 07 07 0
Slide 18: Significant Revenue from Three Fields Alone
SIGNIFICANT REVENUE FROM THREE FIELDS ALONE For personal use only Commercial gasflows from wells entering production will have an annualised production rate of 7.5 million cf/day (when in full production) Sillaro 1dir = 1.3 million cf/day (1 prod. level only) ……………drilled & tested Sillaro 2 =
Slide 19: Expanded Project Pipeline and Operations — 2008
EXPANDED PROJECT PIPELINE AND OPERATIONS — 2008 For personal use only Applications Exploration/ Development Production Storage Appraisal Appraisal 1 offshore gas 6 new licence 2 development 3 fields Preparing to bid & 2 onshore areas targets moving into for new gas gas production storage licences •
Slide 20: Development — Fantuzza
DEVELOPMENT — FANTUZZA For personal use only Targeting 2,600m Miocene structure ~40bcf / 1.15 bcm (70% of entire field reserves) Previously drilled and tested by ENI 50km of seismic acquired and processed Fantuzza 1 site selected, drilling approvals in process, equipment purchased and drilli
Slide 21: Development — Bezzecca
DEVELOPMENT — BEZZECCA For personal use only Targeting 45bcf / 1.27 bcm 50km of seismic acquired Equipment purchased, structure and processed confirmed drilling contract under structure and drill site negotiation Previously successfully drilled and tested by ENI in 1950s; Drilling approval
Slide 22: Expanded Project Pipeline and Operations — 2008
EXPANDED PROJECT PIPELINE AND OPERATIONS — 2008 For personal use only Applications Exploration/ Development Production Storage Appraisal Appraisal 1 offshore gas 6 new licence 2 development 3 fields Preparing to bid & 2 onshore areas targets moving into for new gas gas production storage licences •
Slide 23: Leading Gas/Oil Targets — North Po Valley
LEADING GAS/OIL TARGETS — NORTH PO VALLEY For personal use only Page 22
Slide 24: Project Pipeline of Unrisked Resources
PROJECT PIPELINE OF UNRISKED RESOURCES > 363 BCF / 10.3 BCM + For personal use only Resource Estimates Gas P50 bcf Depth (m) Licence Area Casa Rossa 77 4,300 Podere Gallina Ariano 53 2,500 La Risorta Fondo Perino 45 2,700 Podere Gallina Donnino 45 2,200 Opera D. Delle Anime 42 2,600 La Risorta Corre
Slide 25: Oil Prospects
OIL PROSPECTS For personal use only The Po Valley and Adriatic extension is a prolific hydrocarbon province, with a number of significant commercial oil/condensate discoveries. In the past year the company has progressively extended its Italian gas portfolio to include a number of significant oi
Slide 26: History of Ossola License Application
HISTORY OF OSSOLA LICENSE APPLICATION For personal use only PVE and Edison filed in competition when released by ENI PVE awarded 100%; Edison legally challenged Ministry’s decision Court found Ministry had made an administrative oversight in not providing sufficient explanation for its decisio
Slide 27: Ossola / Rovegnatta — Million bbl Prospect
OSSOLA / ROVEGNATTA — 200 MILLION BBL PROSPECT For personal use only ENI’s Villa Fortuna field – 30km west of Milan – has produced (to date) 188millionbbls of condensate and 70bcf of gas. Po Valley Energy has defined a 200 million bbl condensate/gas prospect in its Ossola licence (50% PVE) 50k
Slide 28: Rovagnate Prospect
ROVAGNATE PROSPECT For personal use only ROVAGNATE TIME MAP Page 27
Slide 29: ENI's Trecate-Villafortuna — Example
ENI’S TRECATE-VILLAFORTUNA — EXAMPLE For personal use only Location: 30km west of Milan (50km from Rovagnate) Discovery: 1984 Original Oil in Place: 300 million bbls Production to Date: 188 million bbls of condensate + 70bcf of gas Production: Initial Rate 82,000bbls per day Current Produc
Slide 30: Expanded Project Pipeline and Operations — 2008
EXPANDED PROJECT PIPELINE AND OPERATIONS — 2008 For personal use only Applications Exploration/ Development Production Storage Appraisal Appraisal 1 offshore gas 6 new licence 2 development 3 fields Preparing to bid & 2 onshore areas targets moving into for new gas gas production storage licences •
Slide 31: Gas Storage — New Strategic Initiative of Business
GAS STORAGE — NEW STRATEGIC INITIATIVE OF BUSINESS For personal use only Italian gas storage market Leader STOGIT (ENI subsidiary) Becoming a critical asset in a constrained supply market Government pushing new development; 5 new storage licenses being released Po Valley + Star Energy JV
Slide 32: Italian Market Remains in Tight Supply
ITALIAN MARKET REMAINS IN TIGHT SUPPLY For personal use only EUR/ Dec 07 Prices USD or AUD/ cubic metre ’000 cubic feet EUR = 0.28/cm 0.30 AUD = $13.05/’000cf 16.00 USD = $ 11.35/’000cf 0.25 EUR prices 12.00 0.20 AUD prices 0.15 USD prices 8.00 0.10 4.00 0.05 0.00 0.00 Dec-07 Dec-06 Dec-05 Mar-07 De
Slide 33: Net Well Head Price to Entry Point — Castello
NET WELL HEAD PRICE TO ENTRY POINT — CASTELLO For personal use only EUR cents per cubic Metre 31.8 0.2 (0.4) 31.6 32 1.8 Gas Pipeline 30.0 Storage entry 30 Allocation Entry Point charges Tarvisio SNAM 28 Transport & Premium 26 24 22 20 18 ENI Gas Price Wellhead Release price normalised for price Tra
Slide 34: Summary: 2008 Targets Cashflow and Reserve Growth
SUMMARY: 2008 TARGETS “CASHFLOW AND RESERVE GROWTH” For personal use only Commencement of Castello and Sillaro gas sales Drilling of one production and two exploration wells Full grant of 9 new licences Promote resources to reserves with drilling program Feasibility studies on new gas and
Slide 35: Appendices
APPENDICES For personal use only APPENDICES Page 34
Slide 36: Gas Reserve Summary — Bcf / Bcm 2P Reserves
GAS RESERVE SUMMARY — 105 BCF / 3 BCM 2P RESERVES For personal use only Remaining Recoverable Reserves Field Names Exploration Permit PVE PVE Interest Proven 1P Probable 2P Possible 3P Total 1. Sant’ Alberto San Vincenzo 50% 6.4 7.1 8.6 22.1 2. Sillaro Crocetta 100% 10.4 30.0 16.3 56.7 3. Castello C
Slide 37: Balance Sheet
BALANCE SHEET For personal use only Balance Sheet (unaudited) 31 Dec 07 (A$) Current Assets Cash on Hand 5.97 Clean balance sheet Receivables 2.96 Total Current Assets 8.93 Solid cash position Non Current Assets Resources Property 34.10 Plant and Equipment 3.53 €25m Bank of Scotland “Reservoir
Slide 38: Valuation Multiple Comparison
VALUATION MULTIPLE COMPARISON For personal use only RESERVE BASED VALUATION MULTIPLES Enterprise Value AUD million / 2P (Proven and Probable billion cubic feet Equivalent) Enterprise BCFE Value A$’m Eastern Star 4.7 55 259 Aust Worldwide 4.6 342 1,583 Salinas Energy 4.0 31 123 Beach Petroleum 3.2 50
Slide 39: Share Register
SHARE REGISTER For personal use only Shareholders Shares (m) % Michael Masterman 21.5 23.8 Harbinger Capital 16.2 17.9 Hunter Hall 13.9 15.4 Byron Pirola 12.0 13.3 John Hancock Mutual Fund 3.5 3.9 Other Investors 23.3 25.7 TOTAL 90.4m 100.0 Share Price (29/2/2008) A$1.65 Market Capitalisation A$149m
Slide 40: Board & Senior Management
BOARD & SENIOR MANAGEMENT For personal use only Mr Graham Bradley • Former CEO - Perpetual, Mr Doug Colkin • 17 years with Enterprise Oil Non-executive Blake Dawson Waldron Chief Operating Officer including GM for Italy Chairman • Director – Singtel • Senior roles with Getty Oil, • Chairman – HSBC,
Slide 41: Summary of Gas Play Trap Types
SUMMARY OF GAS PLAY TRAP TYPES For personal use only APPENDICES Page 40
Slide 42: 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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