Po Valley Energy Limited · ASX:PVE
Po Valley Energy — Investor Presentation (February 2006)
27 slides from Po Valley Energy's investor presentation, Feb 21, 2006
Slide 1: Australian Investors Presentation
a ee . 90 valley Australian Investors Presentation 21-24 February 2006
Slide 2: Po Valley Energy company overview
Q Q Po Valley Energy was established in 2002 to acquire, explore and develop hydrocarbon prospects in the Po Valley hydrocarbon province in Northern Italy The Po Valley, between the Alps and the Apennines, is the main gas production zone in Italy and has produced more gas than Australia’s Northwest
Slide 3: Value creation / risk reduction since IPO
Value creation / risk reduction since IPO. At IPO (Dec 04) Current (Feb 06) Production fields 1 3 Development fields 3 4 1P reserves 10.1 bef 36.6 bef (+360%) 105 bef (+70%) Italian gas prices (well head) EUR 0.14/cm EUR 0.25/cm AUD 8/'000cf AUD 11/000cf (+44%) Cash at bank AUD18m AUD10.4m (Dec Qtr)
Slide 4: Oo Vita ba
Oo Vita ba | pandine : Santa Mai 4 Page 3
Slide 5: Po Valley natural gas output compared with North West Shelf
UC) The Po Valley's natural gas output 20,000 to date is three times that of the Australian North West Shelf UC} While in decline, the Po Valley still has similar gas production levels to Cumulative production Billions of cubic ft L 2 S @ 1953 1957 1961 1965 1973 1977 1981 1985 1989 1993 1897 , Nort
Slide 6: Development Field Reserves
Development Field Reserves (as estimated by consulting geologists, Ecopetrol) Gas Reserve Summary—bef Remaining Recoverable R Exploration PVE eserves PVE Field Names Permit Interest Proven Probable Possible Total 1. Santa San Vincenzo 50% 6.4 7.1 8.6 22.1 Maddalena 2. Sillaro Crocetta 100% 10.4 30.0
Slide 7: Highlights to date
_— Highlightstodate 3 out of 3 gasfields successfully drilled and tested to date; overall 70% increase in 2P reserves since IPO Successfully drilled Sillaro gasfield (2P reserves = 40.4 bcf) « Discovered 2 new productive levels in Pliocene; +26% 3P reserves (to 15.8 bcf) « Flow rates 10 times expect
Slide 8: Drilling Sillaro
Drilling Sillaro Rig-up June 2004 povalley sage?
Slide 9: Sillaro logs identify three gas bearing levels
Ll Logs identify three gas bearing levels over 100m gross interval # PL2C: 2,160 -2,176m # PL2B: 2,218 - 2,239m » PL2 A: 2,239 - 2,257m LJ Strong flow test results =» PL2C: 5.4 mcfiday (5/16“choke) = PL2 B: 3.5 mcfiday (5/16“choke) » PL2C: 4.0 mcfiday (“*choke) LI Very good pressure recovery Q Produ
Slide 10: Sillaro updated geological structure
RUDRIO 2 eed SILLARO 4 De {SURFACE STARTING POINT SHLLAROY) iam _ illaro — updated geological structure | SHLLARO 4 3200 aan || 2008 m @ 3 w 2 ¢6 8 i Hg & = & 8 2 2 Paien Ein ae “ 8 z F| a wf Bh 3 “Fir 226 a magnets 20 i ees asa [sae essen a= 2884 2 ABR m Eb 81.3
Slide 11: Drilling Vitalba
Drilling Vitalba Rig on site in May 2005 ny Well head, June 2005 Network connection cc eT Tranegort pipeline from well head povalley sage 1
Slide 12: Vitalba levels
levels = D 2 oO ES&EEEE S 2 BSOSAS § 3 oO ON S a 2 OO OoOwnr A ge Ko n 2 OeEo » ~ Orvrrvr S$ .c¢ 2 BF Dir 11 6 LSE YO EG 3 gtrmor~+ 2 > 6 oF SE ©-nnwo F& -H GO E€ an &OoOnmra & nz 2 ze ® FoHonoo 8 eS © =5 OD oococe £& SF go Es arTrTt < E€ = Se po 4 — — > Q io BON 6 SB c<G RB CF B : etgced o BN 55 oO
Slide 13: tice
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Slide 14: Vitalba updated geological structure
-Vitalba — updated geolog ical structure 800 m WTALBAIDIR, oe wTALOA 4 inv. . ponane..0 4 og = soo 1200 10. ie EE fel wl i : | “ra Desa 8 Betsames nce Be he esritsash ‘SERGNANG GRAVES +00 4200 = 4808 4900 9500 i 1800 pavalley Page 13
Slide 15: Santa Maddalena successfully tested
Santa Maddalena — successfully tested Rig on site in June 2004 Transport pipeline 800n: from well head i povalley rae
Slide 16: Santa Maddalena results
msresults © Santa Maddalena — conf L] Logs identify two gas bearing levels U] Flow of 1.8m on %” choke — this is the restricted flow for initial operations LC] Good pressure recovery LC} Production concession application in preparation by operator (Edison) Production test (Nov 2005) @eeyalley nage 5
Slide 17: Italian gas price in EUR and AUD
EUR/cubic metre Price change: Last Quarter = +15% Same Qtr Last Year = +54% AUD/'000 cubic feet Price change: Last Quarter = +14% 0.25 Same Qtr Last Year = +44% 11.27 7.12 0.14 , j Jun Sep Dec Mar Jun Sep Dec Jun Sep Dec Mar Jun Sep Dec 04 04 04 05 05 «(05 05 0404 04 405 O05 05 05 Source: Blugas, Eu
Slide 18: Italy is 7th largest economy and largest in Europe
CI Italy is 7" overall largest economy and 34 largest in Europe C Declining domestic supply (>80% import) UC) High demand (4-6% p.a.); gas fired power, strong consumer demand and large industrial base Q) Import capacity highly constrained (2) Amongst the highest gas prices in Europe (well above Aust
Slide 19: Italian gas market supply
Molinn gee market cuppl a . . Domestic Natural Gas Production © Decline in domestic natural gas production commenced in mid 1990's 800 Q Imported gas accounts for >80% of supply, 808 and growing €) Import capacity constrained ~ only 5 access points « 3 operating at 100% capacity « 1 approaching 98%
Slide 20: Expansion and production program
— _ Expansion and productio n prog ram . . CI Priority No. 1 — put Sillaro into production = Production concession application = Pipeline connection and surface plant installation = Environmental approval (J Follow on with production from Vitalba and Santa Maddalena — initial flows >3.5 mef/day (com
Slide 21: Bezzecca (formerly Pandino) 45bcf
__Bezzecea 1 - (formerly Pandino) — 45bcf LAG i Joie Management and : Directors imspecting |. Pandino drill site oo. dune 2005. isn: Riese Bae ied seco oes meen Fah, IK tenia ie Hie ft Beealt Ce VALE BMG LTT Tor WET. Bepth Stricture kas Beosrstdieves Plesked bssroreevesrtt 9 Tyan povalley nage 2
Slide 22: Value recognition
- Maluerecognition —_. LC} Commercial gasflows from existing tested wells set to commence in late 2006, with annualised production rates of 9 mcfiday = Siltdir = 5.4 mcf/day (PLC level only) = Vitidir = 2.8 mcfiday =» SM1dir = 0.9 mef/day (PVE share) (J Strong cashflows to kick in 2007; at prevailin
Slide 23: Valuation multiple comparisons
Hardman Beach Petroleum ROC Oil Arc Energy Anzon Australia Petsec Stuart Petroleum Cooper Energy Aust Worldwide Tap Oil Mosaic Oil Horizon Oil Po Valley Energy _ Valuation multiple comparisons RESERVE BASED VALUATION MULTIPLES AUD million / 2P million BOE 62.9 70 Page 22
Slide 24: Balance Sheet
Balance Sheet _ CJ Clean balance sheet Current Assets Cash on Hand 12.68 Receivables 4.80 CJ Substantial cash backing Other oe Totai Current Assets 15.10 2 ’ . Non Current Assets LC] Access to reserve financing if needed Resources Property 20.42 Plant & Equipment 0.03 _ . . . Other UJ Sufficient cap
Slide 25: Board and management
Mr Graham Bradley Non-executive Chairman Mr David McEvoy Non-executive Director Mr Byron Pirola Non-executive Director Mr Michael Masterman Chief Executive Officer & Managing Director Mr Dietmar Greil Technical Director — Mr Franco Benelli Consulting Geologist Mr Dom Del Borrello Company Secretary F
Slide 26: Shareholders
Shareholders Shares (m) % Michael Masterman 21.4 25.9 Harbert 12.5 15.1 Byron Pirola 12.0 14.5 Hunter Hall 9.8 11.9 Other Investors 26.8 32.6 TOTAL 82.5m 100.0 Share Price (16/2/2006) $1.27 Market Capitalisation $105m @aoualiey nos
Slide 27: Disclaimer
| Disclai mer 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 p
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