Po Valley Energy Limited · ASX:PVE
Po Valley Energy — HiAlpha Energy Investment Conference 2012
20 slides from Po Valley Energy's conference presentation, Apr 27, 2012
Slide 1: Italy Based Profitable Gas Producer
For personal use only Italy Based Profitable Gas Producer With a Balanced Portfolio of “Low Risk” Oil & Gas Projects HiAlpha Energy Investment Conference Presentation TM New York City, April 2012
Slide 2: Disclaimer
Disclaimer 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. For personal use only This presentation may contain forward looking statements that are subject to risk factors associate
Slide 3: Presentation Outline
For personal use only Presentation Outline Po Valley Energy Overview 2011 Operational Performance 2011 Financial Headlines Why invest in Italy Italy E&P investment background Italian gas market Company portfolio Work program & funding Why invest in Po Valley Energy Contacts Technical Appendix 3
Slide 4: Company Overview
Company Overview Listed on ASX: since 2004 Substantial shareholders For personal use only Shares on issue: 111.1 m as at 31 March 2012 Market cap*: AUD 15.5 m* (USD** 16.1 m) Name Shares (‘m) % Extensive 100% owned and Michael Masterman 27.8 25.0% operated assets base: ~2,000km2 (~0.5 million acres)
Slide 5: 2011 Operational Performance
2011 Operational Performance Performance 2011 Variation from 2010 For personal use only 28.9 million cubic metres Total Production 8% (1.02 bcf) gas 28.2 million cubic metres Sillaro Production 52% (1.0 bcf) gas Average Operating Netback ~ 90% 10% per Unit of production 2P Proved + Probable 252 mill
Slide 6: 2011 Financial Headlines
2011 Financial Headlines Results 2011 Variation from 2010 For personal use only Revenue € 9.1 m (USD 12.1 m) 27% EBITDA € 4.4 m (USD 5.9 m) 100% Consolidated Loss After € 5.1 m (USD 6.8 m) 118% Income Tax Consolidated After Tax Profit € 861 k (USD 1.1 m) 169% (before Impairment) Operating cashflow €
Slide 7: Why Invest in Italy
Why Invest in Italy NATURAL GAS GRID For personal use only 3rd largest European gas market – population of 60 million Highly import dependent - (90% gas, 85% oil) Po Valley basin is Europe's 2nd largest gas onshore province Remaining best estimated unrisked resources - 4.3 trillion cubic feet of gas
Slide 8: Italy: E&P Investment Background
Italy: E&P Investment Background OIL&GAS REGIME: ITALY VS “PEER” COUNTRIES For personal use only More than 60 E&P companies present including majors ENI, Shell, Total, Exxon, BG 118 Onshore and 66 Offshore production concessions Annual production: Oil ~ 35 mmbbls Gas ~ 2.8 tcf Approximately € 800 m
Slide 9: Italian Gas Market
Italian Gas Market Amongst the highest gas prices in the world Upward Italian gas price trend For personal use only High operating netback per MScf 2011 AVERAGE PRICE OF DRY NATURAL GAS HISTORIC & FORECASTED ITALIAN GAS PRICE TREND €/mscf USD/mscf Po Valley Energy* UK National Average US National Av
Slide 10: Company Portfolio
Company Portfolio Balanced portfolio of “low risk” assets For personal use only 100% PVE owned and operated Overall area: ~2,000km2 (~ 0.5 million acres) 4 assets drilled - 4 commercial gas discoveries 2 Producing gas fields Production: 2.7 mmscf/day Reserves: 2P of 8.9 bcf 1 2 Development gas proje
Slide 11: Target Program and Funding
Target Program and Funding 3Y plan to “unlock value” and shorten “time to market”: Move 2C resources of 44.1 bcf of gas and 10 mmbbls of oil into 2P For personal use only Unlock 144.3 bcf of gas from best estimate prospective resources (unrisked) Revenue in US$m NPV(10) in US$m* IRR** 2012 2013 2014
Slide 12: Why Invest in PVE
Why Invest in PVE PVE Today: 2 years production track record For personal use only High operating netback and profitable business operations Balanced portfolio of “low risk” assets New structured italian based technical and support team 2012 Outlook: Maximise value of Sillaro and Castello producing
Slide 13: Contacts
For personal use only PVE “Strong Italian gas prices underpin excellent production margins, while near-term developments plus ‘low-risk’ appraisals and exploration projects offer value upside”. CONTACTS: Giovanni Catalano Chief Executive Officer ROME OFFICE Via Boncompagni, 47 +39 06 4201 62 75 Rome
Slide 14: Appendix
For personal use only Appendix Italy Based Profitable Gas Producer With a Balanced Portfolio of “Low Risk” Oil & Gas Projects HiAlpha Energy Investment Conference Presentation TM New York City, April 2012
Slide 15: Producing Gas Fields
Producing Gas Fields CASTELLO For personal use only Production started December 2009 Produced intermittently in May and June 2010 then production from existing Vitalba1dir well limited to 3,000 scm/day until July 2011 New Vitalba1dirA well was deviated from the current Castello gas plant location an
Slide 16: Development Assets
Development Assets BEZZECCA Located in the Cascina San Pietro permit (near Milan) BEZZECCA-1 PROJ 400M For personal use only Bezzecca-1 well drilled and 3 levels tested (total 3.9 MScf/day) Well completed on 3 levels Application for production concession lodged in January 2011 Phased development pla
Slide 17: Cadelbosco & Grattasasso
Cadelbosco & Grattasasso Well Canolo 1 Targeting the former ENI producing Correggio gas field Past production ~250 bcf For personal use only @633m Qu/A Full grant of the licences awarded in March 2011 Purchased 111km of 2D seismic data from ENI @1080m PL2/A 2 shallow Quaternary prospects (Canolo-1 a
Slide 18: Oil Discoveries
Oil Discoveries BAGNOLO IN PIANO (Cadelbosco Di Sopra) - RAVIZZA (Grattasasso) For personal use only BAGNOLO IN PIANO Discoveries drilled between 1970 and “Deep” lower Cretaceous fractured limestone play 1982 3 wells drilled & tested oil (19.7°API, 200bbls/day) Commercial proven oil targets RAVIZZA
Slide 19: Expansion Offshore: AR168PY
Expansion Offshore: AR168PY Northern Adriatic sea: offshore extension of Po Valley For personal use only Exploration licence preliminarly granted, full award expected shortly Major gas production zone in Italy Shallow water depth ~ 30/50m Full 3D seismic coverage already available 4 drilled and test
Slide 20: Exploration Projects
Exploration Projects GRADIZZA PODERE GALLINA For personal use only La Prospera exploration Cembalina prospect’s permit interpretation with seismic Target depth 1,000m acquired in 2011 – finalised Drilling approval - pending Target depths 500/2,000m Prospective Resources Fondo Perino prospect – (unri
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