Po Valley Energy Limited · ASX:PVE
Po Valley Energy — Investor Presentation (May 2015)
23 slides from Po Valley Energy's investor presentation, May 13, 2015
Slide 1: For personal use only
For personal use only
Slide 2: Po Valley Overview
PO VALLEY OVERVIEW For personal use only • 5 fields: two currently in production and three under development (cumulative onshore 2P reserves + 2C resources of 40.3 bcf)* • Significant gas flow and earnings growth in 2015-2016. Work program ready for Sillaro and Bezzecca development. Production capab
Slide 3: Po Valley Portfolio
PO VALLEY PORTFOLIO For personal use only Company: Po Valley Energy Ltd (ASX:PVE) Overall portfolio area: 2,000 km2 in 15 licences 2P reserves: 13 bcf 2C resources: 91 bcf PVE strategic action plan: 1. Significant production boost in 2015 (Bezzecca production and Sillaro recompletion, regulatory app
Slide 4: Italy: Large Demand and Highly Import Dependent
ITALY: LARGE DEMAND AND HIGHLY IMPORT DEPENDANT For personal use only • 2013 gas consumption was 2.42 tcf* with domestic production covering only 11% at 0.28 tcf* • Northern Italy is one of the Europe's largest onshore gas provinces* • Central government is supporting domestic production (through th
Slide 5: Italy: Large Market and High Gas Prices
ITALY: LARGE MARKET AND HIGH GAS PRICES For personal use only Brent vs Italian Gas price (6 months) Gas market price comparison € 90 0.35 € 80 0.3 US $cents / cf 1.20 € 70 Brent: € per barrel 0.25 PB Gas: €/scm 1.08 1.09 1.00 € 60 0.80 € 50 0.2 0.60 € 40 Gas Price 2013 – Italy vs UK and USA 0.15 € 3
Slide 6: Italy Hydrocarbon Provinces
ITALY HYDROCARBON PROVINCES For personal use only Gas Oil Bezzecca Sillaro/Selva PO PLAIN Teodorico PO PLAIN Torre del Moro NORTHERN ADRIATIC CENTRAL ADRIATIC CENTRAL ADRIATIC SOUTH ADRIATIC SOUTH ADRIATIC VAL D’AGRI CALABRIAN ARC NUMIDIAN NILDE IBLEAN PLATEAU IBLEAN PLATEAU Biogenic Gas Thermogenic
Slide 7: PVE Projects
For personal use only PVE PROJECTS 7
Slide 8: Production and Near Term Development
PRODUCTION AND NEAR TERM DEVELOPMENT For personal use only SILLARO BEZZECCA SANT’ALBERTO GRADIZZA Status: Producing First gas: 3Q2015 First gas:2Q 2016 First gas: 1Q 2017 NPV: €9.0m NPV [gross]: € 4.3m NPV:€ 4.3m NPV[gross]: € 3.3m Reserves: 2P: 4.1 bcf Reserves: 2P: 3.7 bcf Resources:2C: 2.1 bcf Re
Slide 9: Sillaro – 2015 Work Program
SILLARO – 2015 WORK PROGRAM For personal use only Sillaro production concession (PVE 100%): • Sillaro 1 Side track Proven production capability (approximately 4 bcf produced to date from 2 wells) • Historically, PVE invested €15 million and generated over €30 million in revenue in 5 years. Miocene m
Slide 10: Bezzecca – Development Plan
BEZZECCA – DEVELOPMENT PLAN For personal use only Castello/Bezzecca production concession (PVE 90%): • Bezzecca-1 successfully drilled and tested in 2009. Showed excellent gas indications on logs and tested up to 62,900 scm/day • Certified 2P reserves: 4.2 bcf • Authorised to drill second developmen
Slide 11: Large high value projects to follow
For personal use only Large high value projects to follow • Teodorico: offshore gas (47.3 bcf – 2C) • Selva: onshore gas (17 bcf – 2C) • Torre del Moro: onshore oil 11
Slide 12: Po Valley Years Work Program
PO VALLEY 3 YEARS WORK PROGRAM For personal use only Net Capex* Δ Production Δ Revenue (€ million) (Scm/day) (€m/year) 2015 work plan 1 Recomplete sillaro 2 1.8 50,000 4.9 2 Install Bezzecca pipeline 2.2 15,000 1.5 3 Drill Bezzecca 2 well 3.9 30,000 2.9 Subtotal 2015 7.9 95,000 9.2 2016 work plan 4
Slide 13: Offshore Licence Near All Major ENI Discoveries
OFFSHORE LICENCE NEAR ALL MAJOR ENI DISCOVERIES For personal use only 13
Slide 14: Teodorico: Drilled with Full 3D Seismic
TEODORICO: DRILLED WITH FULL 3D SEISMIC For personal use only • Contingent Resources certified at: 1C : 34.6 bcf Offshore gas plant pic 2C : 47.3 bcf 3C : 62.2 bcf • 120 km2 of 3D seismic purchased • 2 wells completed and tested POTENTIAL NEAR-TERM PRODUCTION CONCESSION, WITHOUT FURTHER EXPLORATION
Slide 15: Offshore Licence with 3D Seismic and ENI Well Data
OFFSHORE LICENCE WITH 3D SEISMIC AND ENI WELL DATA For personal use only PVE holds the attractive AR94PY licence (Exploration licence awarded in July 2012) which is host to: • 1 gas field “Carola / Irma (Teodorico)” – 47 bcf (2C) • 2 ENI discoveries - Adele - Azzurra / Ginevra • 1 Exploration potent
Slide 16: Next Development: High IRR Onshore Selva Field
NEXT DEVELOPMENT : HIGH IRR ONSHORE SELVA FIELD For personal use only East Selva (exploration target) Selva Stratigraphic Development target • 2C Resources: 17 Bcf • Development NPV: €28.6m • Development IRR*: 65% * As audited by Robertson CGC May 2013. 16
Slide 17: Next Development: High IRR Onshore Selva Field
NEXT DEVELOPMENT : HIGH IRR ONSHORE SELVA FIELD For personal use only • G&G work carried out in 2012 to assess the residual potential of the Selva gas field (84 bcf already produced) • License holds two targets: a low risk volume up dip of abandoned producers (named “Selva Stratigraphic”) and a seco
Slide 18: Large Scale Oil Exploration Licence
LARGE SCALE OIL EXPLORATION LICENCE For personal use only • The “Torre del Moro” oil exploration licence (100% PVE) is a Mesozoic carbonate structure with analogy to ENI Villa Fortuna field (230 MM BBLS) • 1 well drilled (Sarsina-1) with oil shows at a 15km distance in the same formation • Relativel
Slide 19: Torre del Moro G&G
For personal use only TORRE DEL MORO G&G 19
Slide 20: ENI's Trecate - Villa Fortuna (Analogous to Torre del Moro)
ENI’S TRECATE - VILLA FORTUNA (ANALOGOUS TO PVE TORRE DEL MORO) For personal use only Location: 30km west of Milan Discovery: 1984 Production to Date: 220 million bbls + 95 bcf of gas Production: Initial Rate 82,000bbls/day Current Production: 5,000bbls/day Oil Gravity: 42 - 45º API Transport Costs:
Slide 21: Summary
SUMMARY For personal use only • Exceptional portfolio: Production + Development + high exploration upside • €20m financing facility in place to finance a portion of future Capex • Major re-evaluation triggers over the next 24 months based on key asset events - 2015 production ramp-up work program -
Slide 22: Information Required by ASX Chapter Listing Rules
INFORMATION REQUIRED BY ASX CHAPTER 5 LISTING RULES For personal use only • All the reserves and resources referred to in this presentation are as reported in the Company’s 2014 Annual Report lodged with ASX on 14 April 2015. Please refer to the Annual Report for full details of the Company’s reserv
Slide 23: Registered Office
For personal use only REGISTERED OFFICE Suite 8, 7 The Esplanade Mt Pleasant, WA 6153 Australia TEL +61 (08) 9316 9100 FAX +61 (08) 9315 5475 ROME OFFICE Via Ludovisi 16 Rome Italy 00187 TEL +39 06 4201 4968 FAX +39 06 4890 5824 This presentation is for informational purpose only and should not be c