Po Valley Energy Limited · ASX:PVE
Po Valley Energy — Investor Presentation (April 2021)
25 slides from Po Valley Energy's investor presentation, Apr 26, 2021
Slide 1: Investor Presentation
INVESTOR PRESENTATION For personal use only April 2021
Slide 2: Disclaimer
1 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 associa
Slide 3: Contents
2 Contents For personal use only Overview 1 Why Italy? 2 Selva: Low Cost Large Scale Onshore Gas Development 3 Teodorico: Large Offshore Gas Development 4 Bagnolo / Ravizza: Large Scale Proven Oil Discovery 5 Torre Del Moro: Exploration Upside 6 Why Invest? 7
Slide 4: Company Snapshot
3 Company Snapshot For personal use only Po Valley Energy Limited (ASX:PVE) is an Italian focused, oil & gas exploration and development company Company Overview Portfolio of Assets Current Market Cap (15 April 2021) A$22.7m Current shares on issue 647m Ticker ASX:PVE Website www.povalley.com Signif
Slide 5: Four Assets: Gas Development & Large Scale Exploration Upside
4 Four Assets: Gas Development & Large Scale Exploration Upside For personal use only 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 Prospective4 91.5 Bcf 2P Reserves 36.5 B
Slide 6: Portfolio Location
5 Portfolio Location For personal use only April 2021
Slide 7: Italian Market Oil & Gas Overview
6 Italian Market Oil & Gas Overview For personal use only 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 Kingdo
Slide 8: Favourable Market Dynamics
7 Favourable Market Dynamics For personal use only 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
Slide 9: Selva Malvezzi - Overview
8 Selva Malvezzi - Overview For personal use only 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) approv
Slide 10: Selva Malvezzi – Located Among Large Discoveries
9 Selva Malvezzi – Located Among Large Discoveries For personal use only Minerbio Dosso Degli (gas) Angeli 80MMboe (gas) 200MMboe BOLOGNA Selva Malvezzi Spilamber to Podere Gallina (gas) RAVENNA 68MMboe Ravenna (gas) Alfonsine 135MMboe (gas) 52MMboe Torre Del Moro
Slide 11: Selva Malvezzi - Development
10 Selva Malvezzi - Development Tie-in to pipeline 1,000 m away from Podere Maiar well site; production tested up to 5.0 For personal use only 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 ski
Slide 12: Selva Malvezzi within Production Concession
11 – 100 Bcf –+100Bcf Selva Malvezzi within + Production All WithinConcession Production Concession For personal use only 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
Slide 13: Robust cashflows and return on investment
12 – 100 Bcf –+Robust Selva Malvezzi within cashflows Productionand Concession return on investment For personal use only 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.
Slide 14: Teodorico - Overview
13 Teodorico - Overview For personal use only 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 −
Slide 15: Teodorico – Located Among Large Discoveries
14 Teodorico – Located Among Large Discoveries For personal use only d.40 AC-PY Porto Garibaldi- AR 94 PY 12km Agostini (gas) Naomi Pandora 600MMboe Porto Corsini Mare Est (gas) 140MMboe Ravenna Mare (gas) 42MMboe Ravenna
Slide 16: Teodorico – Development Concept
15 Teodorico – Development Concept For personal use only 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
Slide 17: Significant Upside with Large Onshore Oil Prospects
16 Significant Upside with Large Onshore Oil Prospects For personal use only 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
Slide 18: Torre Del Moro: Large Scale Oil and Condensate Exploration
17 Torre Del Moro: Large Scale Oil and Condensate Exploration For personal use only Maiden Prospective Resource Estimate of 106 MMbbls recoverable from an Original Oil- In-Place (OOIP) of 312 MMbbls Overview • 100% owned by PVO • Prospective Resource (Best) of 106 MMbbls from a mid-case OOIP assessm
Slide 19: Villafortuna: Analogous to Torre Del Moro
18 Villafortuna: Analogous to Torre Del Moro For personal use only 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
Slide 20: Proposed Development Schedule
19 Proposed Development Schedule For personal use only 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 INTESA approval Production Concession approval Construction
Slide 21: The Team
20 The Team For personal use only 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 •
Slide 22: Why Invest?
21 Why Invest? For personal use only 1 Balanced portfolio of gas near-term development and large prospects located in Northern Italy • 44.9 Bcf in net 2P Reserve, development ready • 25.8 Bcf in net 2C Contingent Resource • 74.7 Bcf in net Best Case Prospective Resource 2 63%-owned Selva onshore gas
Slide 23: Appendix
For personal use only Appendix
Slide 24: Reserves, Resources and Prospects (Net)
23 Reserves, Resources and Prospects (Net) For personal use only 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 S
Slide 25: Portfolio Overview
24 Portfolio Overview For personal use only 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
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