Po Valley Energy Limited · ASX:PVE
Po Valley Energy — Shareholder Meeting (May 2007)
31 slides from Po Valley Energy's shareholder meeting presentation, May 30, 2007
Slide 1: Building Po Valley Energy
Buildin povalley N LEN ECR GY] G 30 May 2007 Sydney
Slide 2: Summary 2006/2007: Growth and Production Progress
SUMMARY— 2006/2007; GROWTH AND PRODUCTION PROGRESS UO) 3 fields moving into production ) 2 large development targets prepared for drilling QO) 7 new high priority gas exploration targets added OQ) 2 large oil/condensate exploration prospects — 200mbbI target is a ‘company maker’ CQ) New strategic in
Slide 3: Summary: Significantly Expanded Resource Base
_SUMMARY— SIGNIFICANTLY EXPANDED RESOURCE BASE _ Haky Parmit Location Licanwes. vere) valley vege
Slide 4: Summary 2007/2008 Target: Cashflow and Reserve Growth
SUMMARY— 2007/2008 TARGET; CASHFLOW AND RESERVE GROWTH LL} Commencement of Castello and Sillaro gas sales C) Drilling of one production and two exploration wells LC) Full grant of 7 new licences C Proving up reserves with drilling program L] Feasibility study on Rovagnate oil/condensate target @R2 v
Slide 5: Project Pipeline - IPO 2005
| PROJECTPIPELINE—IPO2005 Exploration Appraisal Development Production + Castrocaro » Bezzecca + Castello + Sant’Alberto + Clodo + Sillaro + Malerba vere) valley mage
Slide 6: Expanded Project Pipeline and Operations 2007
__ EXPANDED PROJECT PIPELINE AND OPERATIONS — 2007 _ __\ Exploration’ \, Development Appraisal = Appraisal Je Exploration 2 large oll & new gas 2 development 3 fields Preparing to bid exploration targets targets moving into for new gas targets production Storage licences + Rovagnate + beg = + Sant’A
Slide 7: Expanded Project Pipeline and Operations 2007
__ EXPANDED PROJECT PIPELINE AND OPERATIONS — 2007 | \ Exploration! \ Development / Appraisal 7 Appraisal Exploration 2 large oll & new gas 2 development Preparing to bid exploration targets targets for new gas targets torage licences + Rovagnate + Berraccna . (200mbbis) + Casa Rossa’ : > Negrino -
Slide 8: Production Planning
| PRODUCTIONPLANNING = = =——™ Applied Approved Production Sillaro May 06 April 07* Concession Castello Aug 06 April 07* S. Alberto June 06 (July 07) Environmental Sillaro April 07 (Sept 07) Clearance Castello April 07 (Sept 07) S. Alberto Pending Agreement Connection Pipeline Sillaro May 07 Feb 08 C
Slide 9: Significant Revenue from Three Fields Alone
_ SIGNIFICANT REVENUE FROM THREE FIELDS ALONE ——~™ } Commercial gasflows from wells planned to be in production in 2008 will have an annualised production rate of 7.5 million cf/day when in full production. = Sillaro 1dir = 1.3 million cffday (1 PLC level only)............ ..drilled & tested = Silla
Slide 10: Expanded Project Pipeline and Operations 2007
__ EXPANDED PROJECT PIPELINE AND OPERATIONS — 2007 . Exploration’ Exploration / | Appraisal 2 large oil & new gas 3 fields Preparing to bid exploration targets moving into for new gas targets production Storage licences + Rovagnate + Berzecce , + Sant’Alberto (200mbbIs) + Casa Ross (50% PVE) + Negri
Slide 11: Fantuzza targeting Miocene structure
Ll Targeting 2,600m Miocene structure ~40bcf (70% of entire field reserves) LC) Previously drilled and tested by ENI C) 50km of seismic acquired and processed Cl) Fantuzza 1 site selected, drilling approvals in process, equipment purchased and rig scheduled LC} Expected to spud in 1st half CY2008 C)
Slide 12: Bezzecca targeting 45bcf structure
) Targeting 45bef structure C) 50km of seismic acquired and processed confirmed UW Previously successfully structure and drill site drilled and tested by ENI in 1950s; produced 5bcf gas (J Drilling approvals submitted, expected in 2" half CY2007 C} Equipment purchased, drilling contract signed CQ) E
Slide 13: Expanded Project Pipeline and Operations 2007
_EXPANDED PROJECT PIPELINE AND OPERATIONS — 2007 _ Development | _ Appraisal | y Production / _ Exploration — 2 large oil exploration targets 2 development 3 fields Preparing to bid 7 targets moving into for new gas production Storage licences + Rovagnate (200mbbis) + Negrino (35mbbls) + Sant’Albert
Slide 14: Leading Gas Prospects
| LEADINGGASPROSPECTS si | SANTA MADDALENA | vere) valley Page 13
Slide 15: Potential Gas Resources - Bcf
_ POTENTIAL G : AS RESOURCES - 3 00 BOF osiP Unrisked Most Likely Resource Estimates s (bef) — all 100% PVE License Area Depth (m) Casa Rossa + Podere Gallina + 4,300 Ariano - La Risorta + 2,500 FondoPerino | + Podere Gallina + 2,700 Occhia | - Opera + 2,200 Dosso Anime | + La Risorta + 2,600 Pioppe
Slide 16: Expanded Project Pipeline and Operations 2007
EXPANDED PROJECT PIPELINE AND OPERATIONS — 2007 __ \, Exploration’ \, Development _ Appraisal = / Appraisal Soe & new gas 2 development 3 fields Preparing to bid targets targets moving into for new gas production Storage licences Pee 4 oe . + Sant’Alberto - Casa Rossa\ (50% PVE) - Ariano \ + Fantuzz
Slide 17: Rovagnate and Negrino oil prospects
Rovagnate- and Negeind (Po Valley} = Target 200 milion barrels, | CONDENSATE+GAS ENI Reserves as per published accounts
Slide 18: Large Scale Oil Prospects
_ LARGESCALEOILPROSPECTS Q) North Western area of the Po Valley River Plain contains a number of commercial oil/condensate discoveries C) ENl’s Villa Fortuna field — 30km west of Milan — has produced 188mbbls of condensate and 7/0bef of gas. Q) Po Valley Energy has defined a 200mmbblI condensate/gas
Slide 19: Negrino cross section
a a < = wi = - # < 2 2 > 5 4 : / , i CD ag 3 fs we NEGRINO e uu oO oa s we eo = =a =. =< a 2 oss Mio-Plocene .. Mesozoic HB tiassic Page 18 vere) valley
Slide 20: Villa Fortuna field analogue
C) Location: 30km west of Milan (50km from Rovagnate) CI Discovery: 1984 CI Original Oil in Place: 300 million barrels C] Production to Date: 188 million barrels of condensate + 70bcf of gas C} Production: Initial Rate 82,000bbis per day Current Production 6,000bbls per day LJ Oil Gravity: 42 - 45°
Slide 21: Expanded Project Pipeline and Operations 2007
__ EXPANDED PROJECT PIPELINE AND OPERATIONS — 2007 __ Exploration 2 large oil exploration targets + Rovagnate (200mbbis) + Negrino (35mbbls) __\ Exploration!‘ J Appraisal & new gas targets Pee 4 - Casa Rossa\, - Ariano \ + Fondo Perino + Occhia + Dosso Anime + Pioppette + Corcreva + Cembalina Develo
Slide 22: Gas Storage - New Strategic Initiative of Business
_ GASSTORAGE—NEWSTRATEGC INITIATVE OF BUSINESS UI Italian gas storage market is undersupplied « Leader STOGIT (ENI subsidiary) « Becoming a critical asset in a constrained supply market « Government pushing new development; 5 new storage licenses being released LC] Po Valley has one field (Castello)
Slide 23: Italian Market Remains in Tight Supply
_ITALIANMARKETREMAINSINTIGHT SUPPLY = is A$’000 cubic feet Italian gas prices since IPO Current price relativities (Mar Qtr 07) 12.20 11.60 11.50 11.50 40.40 9.60 8.00 i : ~ Mar Qtr Sep Qtr Mar Qtr Sep Qtr Mar Qtr Italy USA Australia 05 05 06 06 07 (Gas Plus) (Petsec) (Energy Quest) @R2 valley nage
Slide 24: Taking Stock
_TAKINGSTOCK.. L] 2006 has been a year of consolidation and building the platform for the next era of corporate development = Production approvals, slower than expected, are now within sight = Major expansion of resource base with new licences awarded; oil play represents an exciting upside opportun
Slide 25: Next months will see
LC) Next 12 months will see: = Continued progress to initial production and revenue « Second production well in Sillaro # Two development appraisal wells; Fantuzza 1 (Sillaro Miocene) & Bezzecca 1 = Continued progress of newly granted exploration/appraisal gas targets ® Priority on advancing oil exp
Slide 26: Valuation Multiple Comparison
] VALUATION’ MULTIPLE = COMPARISON RESERVE BASED VALUATION MULTIPLES Enterprise Value AUD million / 2P (Proven and Probable million Barrel of Oil Equivalent) Enterprise MMBOE Value Cooper Energy ROC Oil Cue Energy Aust Worldwide Stuart Petroleum Tap Oil Anzon Australia Arc Energy Petsec NZ Oil and G
Slide 27: Gas Reserve Summary - 105 Bcf 2P Reserves
GAS RESERVE SUMMARY —105BCF 2P RESERVES _ Development Field Reserves and Resources (as estimated by consulting geologists, Ecopetrol) Remaining Recoverable Reserves Exploration PVE PVE Field Names Permit Interest Proven Probable Possible Total 1. Sant? Alberto San Vincenzo 50% 64 7.1 8.6 22.1 2. Sil
Slide 28: Balance Sheet Dec
Balance Shoot 34 Dec 06 (AS) Cash on Hand 5.08 1 ul Clean balance sheet Rovanies 7 Totai Current Assets 7.32 LI Solid cash position Non Current Assets Resources Property 29.25 2 «gage PI id Ec 0.84 LJ Progress made on “Reservoir” finance facilities —eOTNS Receivables 2.10 Other 0.02 wl Significant c
Slide 29: Shareholders
Shareholders Shares (m) % Michael Masterman 21.5 25.1 Harbinger Capital 15.7 18.4 Hunter Hall 13.5 15.8 Byron Pirola 12.0 14.0 Joan Masterman 4.8 5.6 Other Investors 18.1 21.1 TOTAL 85.6m 100.0 Share Price (25/5/2007) $1.50 Market Capitalisation $130m @R2 valley nage 2
Slide 30: Board and Management
Mr Graham Bradley Non-executive Chairman Mr David McEvoy Non-executive Director Dr Byron Pirola Non-executive Director Mr Michael Masterman Chief Executive Officer & Managing Director Mr Dietmar Greil Consulting Res. Engineer Mr Franco Benelli Consulting Geologist Dr Pierluigi Vecchia Program Mgr, G
Slide 31: 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 permitted by ap