Po Valley Energy Limited · ASX:PVE
Po Valley Energy — Investor Presentation (February 2009)
29 slides from Po Valley Energy's investor presentation, February 2009
Slide 1: Gas production Rapid Growth
“Gas production Rapid Growth” Investor Presentation February 2009
Slide 2: Resource Base: Po Valley core projects
RESOURCE BASE Po Valley – core projects 3 Production Developments Sillaro Castello Sant’ Alberto 7 Gas field Discoveries for appraisal 12 Gas Exploration prospects 4 Oil prospects 1 Storage field application Page 1
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
Slide 4: Expanded Project Pipeline & Operations - 2008
EXPANDED PROJECT PIPELINE & OPERATIONS - 2008 Applications Exploration / Development / Production Storage Appraisal Appraisal Development 1 offshore 6 new licence 7 Discoveries 3 fields Bid for new gas gas & 2 areas moving into storage licences onshore gas production Onshore • Won - AR168PY • 12 Gas
Slide 5: Building Blocks in Place for Gas Production
1. BUILDING BLOCKS IN PLACE FOR GAS PRODUCTION Castello Sillaro 20 year Production Concessions Granted 9 9 Environmental Approvals 9 9 Surface Plant Equipment Fabricated 9 9 Pipeline Grid Connections Underway 9 Offtake Contract 50%* 50%* Drill Production Well N/A Apr 09 Commence Installation Mar 09
Slide 6: Production Field: Sillaro
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 test (Dec 2005) *Based on €0.28/cm Page 5
Slide 7: Production Field: Castello
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 6
Slide 8: Surface Plant Construction on Schedule, Equipment on Skids Complete
SURFACE PLANT CONSTRUCTION ON SCHEDULE, EQUIPMENT ON SKIDS COMPLETE, AWAITING INSTALLATION Overall Progress versus Schedule Schedule Progress Equipment 100% completed 90% on skids 80% 70% “Installation ready” 60% 50% 40% 30% 20% 10% 0% De 7 De 8 Fe 8 08 09 M 8 9 Se 7 07 7 08 08 8 Au 8 08 8 09 9 7 8
Slide 9: Pipeline Connections to National Italian Grid
PIPELINE CONNECTIONS TO NATIONAL ITALIAN GRID Sillaro - Complete Castello - Underway Page 8
Slide 10: Italian Gas Prices Continue to Remain Firm
ITALIAN GAS PRICES CONTINUE TO REMAIN FIRM EUR/ USD or AUD/ cubic metre ’000 cubic feet 0.50 Dec 08 Prices 28.00 EUR = 0.3630/cm 0.45 AUD = $20.95/’000cf USD = $14.48/’000cf 24.00 0.40 0.35 20.00 0.30 EUR prices EUR prices 16.00 0.25 AUD prices 0.20 12.00 USD prices 0.15 8.00 0.10 0.05 4.00 Jun/04 J
Slide 11: Gazprom/Ukraine Crisis: Highlights Need for Reliable Supply
GAZPROM/UKRAINE CRISIS: HIGHLIGHTS NEED FOR RELIABLE SUPPLY EU depends on Russia for 26% Italy only received 10% of it’s of gas supplies (80% via Ukraine) expected supply Italy 60m cubic metre short daily Power stations switch to fuel oil, big industrials told to halt or limit gas use Page 1
Slide 12: €38 Million 3 Year Gas Offtake Contract Awarded and in Place
€38 MILLION GAS 3 YEAR GAS OFFTAKE CONTRACT AWARDED AND IN PLACE 4 year contract covering 2009 commissioning and 3 years from 1 October 2009 to 30 September 2012 Italian “Gas Years” Priced off ENI Gas Release formula = US$14 per ‘000 cf in December 2008 “P0” of US$14 per ‘000 cf with variation
Slide 13: Expansion in Development Appraisals
2. EXPANSION IN DEVELOPMENT APPRAISALS Gas bcf Status Target P50 Production Sant’ Alberto (Drilled) 13.5 PC Approval Oct 2010 Bezzecca 44.4 Spud 1st Qtr 09 4th Qtr 2011 Fantuzza 26.0 Spud 3rd Qtr 09 3th Qtr 2011 + Correggio 35.0 G&G/Grant 2012/3 + 4 Offshore Adriatic Fields ~80.0 G&G Grant 2012/4 Pa
Slide 14: Production Field: Sant' Alberto
PRODUCTION FIELD: SANT’ ALBERTO Now 100% PVE owned and operated 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
Slide 15: Appraisal Field: Bezzecca
APPRAISAL FIELD: BEZZECCA Targeting 45 bcf / 1.27 bcm structure Previously successfully drilled and tested by ENI in 1950s; produced 5bcf/0.14 bcm gas 50km of seismic acquired and processed confirmed structure and drill site Drilling approvals received, civil works complete Equipment purch
Slide 16: Appraisal Field: Fantuzza
APPRAISAL FIELD: FANTUZZA 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 contracted
Slide 17: Gas Targets – First Offshore Licence Azzurra
GAS TARGETS – FIRST OFFSHORE LICENCE “AZZURRA” Plio-Pleistocene structural and stratigraphic traps 4 prospects, potential P50 gas resources ~ 80 bcf Existing 3D seismic coverage Gas bearing Page 16
Slide 18: Correggio Field
CORREGGIO FIELD Plio-Pliocene structural trap Production to date ~240 bcf Potential P50 gas reserves ~ 35 bcf Planned 3D seismic coverage Page 17
Slide 19: Growing Reserve/Resource Base (PVE Share)
3. GROWING RESERVE/RESOURCE BASE (PVE SHARE) Discoveries Gas bcf mmBOE Undiscovered Gas bcf mmBOE P50 P50 (Unrisked) P50 P50 3 Drilled 12 Undiscovered Gas 34.2 6.0 220.6 39.0 development fields Prospects Sillaro 14.4 Pioppette 11.0 Castello 6.3 Gradizza 5.1 Sant ‘Alberto 13.5 Capitello 6.5 Fondo Per
Slide 20: Oil Gas Exploration — North Po Valley
OIL GAS EXPLORATION — NORTH PO VALLEY Page 19
Slide 21: Gas Exploration — East Po Valley
GAS EXPLORATION — EAST PO VALLEY Page 20
Slide 22: Po Valley Energy: Why Invest?
PO VALLEY ENERGY: WHY INVEST? Portfolio 10 Proven Fields - 197.6 bcf gas / 44.7 mmBOE 14 Defined Exploration Prospects - 220.6 bcf gas / 134.0 mmBOE Activity 2 Fields - Castello, Sillaro - going into production mid year with USD 25 million Revenue / USD 20 million EBITDA (full year) 2 Apprai
Slide 23: Appendices
APPENDICES @povalle. valley nage 2
Slide 24: 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 23
Slide 25: Capital Structure
CAPITAL STRUCTURE Shares (‘m) held as at Shareholders % 31 December 2008 Michael Masterman 23.3 24.6 Hunter Hall 17.3 18.2 Harbinger Capital 16.2 17.1 Byron Pirola 7.1 7.5 SG Hiscock & Company 4.2 4.4 John Hancock Mutual Fund 3.5 3.7 Non Executive Directors 1.4 1.5 Other Investors 21.8 23.2 TOTAL SH
Slide 26: €20M Bank of Scotland - Reservoir Facility
€20M BANK OF SCOTLAND - RESERVOIR FACILITY Facility Size: €20 million Term: 5 years expiring 15 Feb 2013 Interest Rate: - Pre Production EURIBOR + 450bp Margin = Currently 7.50% - Post Production EURIBOR +180 bp Margin = Currently 4.80% Drawings: €5 million (31 Dec 2008) Use of Funds: Put Castello a
Slide 27: Board of Directors
BOARD OF DIRECTORS Mr Graham Bradley • Chairman – HSBC Australia, Anglo American Non-executive Chairman Australia, Stockland, Boart Longyear • Director – Singtel • Former CEO - Perpetual, Blake Mr David McEvoy • 33 years Exxon/Esso Non-executive Director • Director - Woodside Petroleum, AWE, Innamin
Slide 28: Senior Management
SENIOR MANAGEMENT Mr Doug Colkin • 17 years with Enterprise Oil including GM for Italy Chief Operating Officer • Senior roles with Getty Oil, Ranger Oil, BP • Petroleum Geologist with 34 years experience Mr Dom Del Borrello • 15 years in Finance Chief Financial Officer • Treasurer Iluka Resources &
Slide 29: 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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