Po Valley Energy Limited · ASX:PVE
Po Valley Energy — Shareholder Meeting (May 2012)
25 slides from Po Valley Energy's shareholder meeting presentation, May 28, 2012
Slide 1: Annual General Meeting 28 May 2012
For personal use only Italy based gas producer with operating cashflow and a portfolio of attractive Oil & Gas projects Annual General Meeting 28 May 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: 2011 at a Glance
2011 at a Glance KEY MILESTONES 2,000 sq km ( ~ 0.5m acres), 35.9 €cent/scm (13.77 AUD/mcf) average ENI For personal use only 100% licences area in Italy: gas release price 2 producing gas fields 2 development projects 5 gas discoveries for appraisal 11 gas exploration prospects € 5.1 million (AUD 6
Slide 4: 2011 Operational Performance
For personal use only 2011 Operational Performance Performance 2011 Variation from 2010 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 5: 2011 Financial Headlines
2011 Financial Headlines Results 2011 Variation from 2010 For personal use only Revenue € 9.1 m (AUD 12.2 m) 27% EBITDA € 4.4 m (AUD 6.0 m) 100% Consolidated Loss After € 5.1 m (AUD 6.9 m) 118% Income Tax Consolidated After Tax Profit € 861 k (AUD 1.2 m) 169% (before Impairment) Operating cashflow €
Slide 6: 2012 Year to Date Performance
For personal use only 2012 Year to Date Performance* Results Total production ~ 7.7 million cubic metres (0.27 bcf) Castello Production ~ 1.2 million cubic metres (0.04 bcf) Sillaro Production ~ 6.5 million cubic metres (0.23 bcf) Revenue ~ € 2.8 m (AUD 3.5 m) EBITDA ~ € 1.8 m (AUD 2.3 m) Average re
Slide 7: AGM 2011 vs AGM 2012
AGM 2011 vs AGM 2012 MILESTONES ACHIEVED – COMPARING RESULTS At 30 November 2011 average of 80,000scm/d Produce steadily from Sillaro gas field addressing condensate issues. Reserves confirmed and For personal use only audited by Fugro Robertson Drill new Vitalba-1dirA and increase production Vitalb
Slide 8: Company Portfolio
Company Portfolio Balanced portfolio of “low risk” assets For personal use only 100% PVE owned Overall area: 2,000km2 4 assets drilled - 4 commercial gas discoveries Producing gas Development gas fields projects Production: 2.8 MScf/day Contingent Resources: Reserves: 2P of 8.9 bcf1 2C of 6.2 bcf1 G
Slide 9: 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 10: 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 11: Cadelbosco & Grattasasso
Cadelbosco & Grattasasso Well WellCanolo Canolo -1/-2 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 pros
Slide 12: Oil Discoveries
Oil Discoveries HIGH IMPACT PROJECTS 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
Slide 13: Expansion Offshore: AR168PY
Expansion Offshore: AR168PY HIGH IMPACT PROJECT 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 ~ 30/35m Full 3D seismic coverage already availabl
Slide 14: 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 reserves For personal use only Unlock 144.3 bcf of gas from best estimate prospective resources (unrisked) Revenue in €m up NPV(10) in €m* as IRR** 201
Slide 15: Strategy in Action
Strategy in Action 2012 WORK PROGRAM For personal use only CASTELLO Maintain Vitalba on GRADIZZA-1 stream at ~17,500 Scm/day Grant drilling approval Farmout Preparation for drilling BEZZECCA SANT’ALBERTO end 2012 - 1Q 2013 Grant preliminary award Achieve production Commence development approval work
Slide 16: Road Map to Value Recovery
Road Map to Value Recovery 2012 For personal use only PVE Strategic Today Outlook Direction 2 year production track record Maximise value of Sillaro and Castello Materially progress: producing assets High operating netback and High-value/near-term oil and gas profitable business operations Monetise
Slide 17: Contacts
For personal use only PVE CONTACTS: Giovanni Catalano Chief Executive Officer ROME OFFICE Via Boncompagni, 47 +39 06 4201 62 75 Rome Italy 00187 TEL +39 06 4201 4968 FAX +39 06 4239 1900 Michael Mullane Cannings Corporate Communications (02) 8284 9990 www.povalley.com REGISTERED OFFICE info@povalley
Slide 18: Appendix
For personal use only Appendix Italy based gas producer with operating cashflow and a portfolio of attractive Oil & Gas projects Annual General Meeting 28 May 2012
Slide 19: 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 20: 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 21: 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 AUD/mscf Po Valley Energy* UK National Average US National Av
Slide 22: PVE Recent Research
For personal use only PVE Recent Research 22
Slide 23: HSE High Standards
HSE High Standards 6 YEARS OF HEALTH, SAFETY AND ENVIRONMENTAL STATS TOTAL MAN-HOURS PER OPERATION TOTAL MAN-HOURS PER OPERATION 2005/2011 2011 For personal use only SEISMIC CAMPAIGN 10,410 man hours SEISMIC LTIF= n.injuries* 1.000.000 O&M CAMPAIGN 10,410 man n.manhours 18,974 man hours hours DRILLI
Slide 24: 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
Slide 25: Po Valley Energy Reserves & Resources
Po Valley Energy Reserves & Resources RESERVES, GAS (bcf) Licence Project 1P 2P 3P Sillaro Sillaro 6.3 7.1 - For personal use only Castello Castello 1.0 1.8 2.5 CONTINGENT RESOURCES, GAS (bcf) Licence Project 1C 2C 3C San Vincenzo Sant'Alberto 1.8 2.1 2.8 C. San Pietro Bezzecca 0.7 4.1 6.7 Crocetta