Po Valley Energy Limited · ASX:PVE

Po Valley Energy — Investor Presentation (October 2009)

27 slides from Po Valley Energy's investor presentation, October 2009

  1. Slide 1: Gas Production - Rapid Growth: Investor Presentation October 2009

    “Gas Production - Strong Growth” “Gas Production Rapid Growth” Investor Presentation October 2009

  2. Slide 2: Italy and Po Valley

    ITALY AND PO VALLEY  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

  3. Slide 3: Project Pipeline: Dec 2004 (IPO Price AUD1.00)

    PROJECT PIPELINE: DEC 2004 (IPO Price AUD1.00) Applications Exploration / Development / Production / Appraisal Appraisal Development • Bezzecca • Castello • Sant’Alberto • Sillaro Page 2

  4. Slide 4: Project Pipeline: Start 2008

    PROJECT PIPELINE: START 2008 Applications Exploration / Development / Production / Storage Appraisal Appraisal Development • AR168PY • 10 Gas targets • Castello • Sant’Alberto • Bagnolo Mella Bid • Cadelbosco • 2 Oil targets • Sillaro • Castello • Existing Storage − Rovagnate • Sillaro potential in

  5. Slide 5: Project Pipeline & Operations: October 2009

    PROJECT PIPELINE & OPERATIONS: OCTOBER 2009 Applications Exploration / Development / Production / Storage Appraisal Appraisal Development 2 offshore gas 6 new licence 7 Discoveries 3 fields Bid for new gas & 2 onshore areas moving into storage licences gas production Onshore • Won - AR168PY • 17 Gas

  6. Slide 6: Resource Base

    RESOURCE BASE Po Valley Assets  11 License areas  3 Production Developments  Sillaro  Castello  Sant’ Alberto  7 Gas Discoveries for appraisal  17 Gas Exploration prospects  2 Oil prospects Page 5

  7. Slide 7: Building Blocks in Place for Gas Production

    BUILDING BLOCKS IN PLACE FOR GAS PRODUCTION Castello Sillaro 20 year Production Concessions Granted   Environmental Approvals   Surface Plant Equipment Fabricated   Pipeline Grid Connections   Offtake Contract (100%)   Drill Production Well N/A  Commence Installation   Commence Producti

  8. Slide 8: Pipeline Connected to National Italian Grid

    PIPELINE CONNECTED TO NATIONAL ITALIAN GRID Sillaro - Complete Castello – Complete Page 7

  9. Slide 9: Contracts in Place: Italtrading & Elettrogas

    CONTRACTS IN PLACE: ITALTRADING & ELETTROGAS Italtrading SpA is an established gas, energy and renewable trading & distribution company which is part of AUD 1 billion private AFIN Group Elettrogas SpA distributes gas through 632 delivery points directly to Italian consumers, with annual turnover of

  10. Slide 10: Prices Strong and Rising

    PRICES STRONG AND RISING ITALIAN ENI GAS RELEASE PRICE: SEPTEMBER UPDATE Source: ENI Gas Release and forecast sourced from Alba Soluzioni; Driver parameters and forward curves sourced from Bloomberg Page 9

  11. Slide 11: Maiden Production Field: Castello

    MAIDEN PRODUCTION FIELD: CASTELLO  Pinch out structure  P50 6.3 bcf  2.7 million cf/day  10-12 year field life  USD10 million p.a.* *Based on €0.28/cm Page 10

  12. Slide 12: Castello Commissioning Starts: 1 Month to Gas

    CASTELLO COMMISSIONING STARTS: 1 MONTH TO GAS Page 11

  13. Slide 13: Bezzecca Can Feed into Castello

    BEZZECCA CAN FEED INTO CASTELLO Page 12

  14. Slide 14: Bezzecca: Successfully Drilled and Tested

    BEZZECCA: SUCCESSFULLY DRILLED AND TESTED Seismic section Bezzecca field  Previously successfully drilled and tested by ENI in 1950s; produced NW SE 5bcf/0.14 bcm gas  50km of seismic acquired and processed confirmed structure and drill site  3 gas bearing levels PL1-A Qmax PL2-A  3.9 million cu

  15. Slide 15: Second Production Field: Sillaro

    SECOND PRODUCTION FIELD: SILLARO  Top of Anticline  P50 14.4 bcf  Multiple gas bearing stacked reservoirs  3.8 million cf/day 15-20 year field life  USD15 million p.a.* Production Productiontest test(Dec (Dec2005) 2005) *Based on €0.28/cm Page 14

  16. Slide 16: Sillaro Successfully Drilled and Tested

    SILLARO SUCCESSFULLY DRILLED AND TESTED  6 production levels confirmed  2 new previously untested levels  Well completed safely on schedule on budget Page 15

  17. Slide 17: Fantuzza Can Feed into Sillaro

    FANTUZZA CAN FEED INTO SILLARO  Targeting 2,600m Miocene structure ~40 bcf / 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 drilling rig contra

  18. Slide 18: Growth Program: Production and Exploration Assets

    GROWTH PROGRAM PRODUCTION AND EXPLORATION ASSETS Sillaro and  Castello first gas: November 2009 Castello  Bezzecca can feed into Castello plant: development plan January 2010 Expansion  Sillaro first gas: January 2010  Fantuzza can feed into Sillaro plant: well to spud June Qtr 2010 High impact

  19. Slide 19: PVE Reserve & Resource Categorization

    PVE RESERVE & RESOURCE CATEGORIZATION Page 18

  20. Slide 20: Gas Exploration: East Po Valley/Adriatic Expansion

    GAS EXPLORATION: EAST PO VALLEY/ADRIATIC EXPANSION Page 19

  21. Slide 21: Expansion Offshore: Azzurra (AR168PY)

    EXPANSION OFFSHORE: AZZURRA (AR168PY)  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

  22. Slide 22: Oil and Gas Exploration: North Po Valley

    OIL AND GAS EXPLORATION: NORTH PO VALLEY Page 21

  23. Slide 23: Correggio: Strong Addition to the Portfolio

    CORREGGIO: STRONG ADDITION TO THE PORTFOLIO  Plio-Pliocene structural trap  Production to date ~240 bcf  Potential P50 gas discoveries ~ 35 bcf  Planned 3D seismic coverage Page 22

  24. Slide 24: Board of Directors

    BOARD OF DIRECTORS 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 Petroleum Dr Byro

  25. Slide 25: Po Valley Capital Structure

    PO VALLEY CAPITAL STRUCTURE Shares (m) held Substantial Shareholders % as at 15 Oct 2009 Michael Masterman 23.9 22.0% Hunter Hall 20.4 18.7% Beronia Investments 7.1 6.5% Other Investors 57.4 52.8% TOTAL SHARES 108.8 Market Capitalization (at A$1.55) (€102.8m) A$168.6m Cash at Bank (Oct 09) (€5.1m) A

  26. Slide 26: Summary: 2009/2010

    SUMMARY: 2009/2010 Portfolio  3 Fields moving into production  7 Discovered undeveloped fields  17 Defined gas exploration prospects  2 Oil targets Activity  2 Fields - Castello, Sillaro - going into production mid year with USD 25 million Revenue / USD 20 million EBITDA (full year)  2 Apprais

  27. 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

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