Po Valley Energy Limited · ASX:PVE
Po Valley Energy — Shareholder Meeting (May 2011)
25 slides from Po Valley Energy's shareholder meeting presentation, May 2011
Slide 1: AGM Presentation May 2011
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Slide 2: 2010 at a Glance
2010 AT GLANCE KEY MILESTONES 2,000 sq kilometers (494,200 € 7.1m (AUD 9.2m) operating acres) revenue 100% licences area in Italy 2 producing gas fields € 2.2m (AUD 2.8m) positive EBITDA 2 development projects 5 gas discoveries for appraisal 11 gas exploration prospects € 4.3m (AUD 5.6m) Reduction 2
Slide 3: AGM 2010 vs AGM 2011
AGM 2010 vs AGM 2011 MILESTONES ACHIEVED – COMPARING RESULTS Stable average production at 83,000scm/d, AS Ramp up production from Sillaro in line with its contracted production gas rates Resolve Castello production issues and Reserves review finalised, authorisation to reassess field size and produc
Slide 4: Reserves and Resources
RESERVES AND RESOURCES RESULTS OF INDEPENDENT REVIEW LAST UPDATE ANNUAL REPORT 2010 LICENCE/PROJECT (SEPT 2010) (APRIL 2011) RESERVES REVIEWED BY 1P: 0.1 1P: 0.1 DREAM Castello - Vitalba 2P: 3.7 2P: 3.6 1P: 8.1 1P: 7.5 DREAM Sillaro - Sillaro 2P: 8.8 2P: 8.2 RESOURCES 1C: 8.0 1C: 3.9 S. Vincenzo – S
Slide 5: Why Invest in Gas in Italy
WHY INVEST IN GAS IN ITALY PREMIUM MARKET NATURAL GAS GRID MARKET PROFILE 8th highest consumer of gas in the world, with a consumer base of around 60 million Highly (90%) import dependent - 2010 gas consumption of 78.12 bscm (2.8 tcf) with domestic production at 7.9 bscm (0.28 tcf) Amongst of the hi
Slide 6: Italian Gas Market
ITALIAN GAS MARKET HIGH PRICES, UPWARD TREND, NOTEWORTHY OPERATING NETBACK HISTORIC & FORECASTED 2010 AVERAGE PRICE OF DRY NATURAL GAS ITALIAN GAS PRICE TREND 12.00 10.00 8.00 6.00 4.00 2.00 0.00 €/mcf 2009 2010 2011 2012 €/mcf OPERATING NETBACK: HIGH COMPARED TO WORLD STANDARDS Po Valley Energy* UK
Slide 7: Management Team
MANAGEMENT TEAM MORE THAN 250 YEARS EXPERIENCE Mr Giovanni has more than 33 years Mr Diego Diego joined the company in March 2011 Giovanni experience in the upstream oil and gas Balistreri with over 33 years of experience in Catalano industry. His most recent position was Production & various techni
Slide 8: Portfolio of Assets
PORTFOLIO OF ASSETS BALANCED MIX OF ASSETS Exploration & Production Assets Overall area: 2,000km2 2 Producing gas fields Sillaro, Castello 2 Development projects Bezzecca, Sant’Alberto 5 Gas discoveries for appraisal Fantuzza, Canolo, Zini, Carola/Irma, Azzurra/Ginevra 11 Gas exploration prospects G
Slide 9: Sillaro Producing Gas Field
SILLARO PRODUCING GAS FIELD ONE YEAR OF STEADY PRODUCTION Production commenced in May 2010 Producing approximately 3 mmcf/day 7 reservoir levels confirmed and 4 in production 2 new previously untested levels Reserves: 1P: 7.5 bcf 2P: 8.2 bcf Sillaro surface plant and pipeline sized to process Fantuz
Slide 10: Castello Producing Gas Field
CASTELLO PRODUCING GAS FIELD DRILL VITALBA-1dirA AND RESTART PRODUCTION Production started December 2009 Produced intermittently in May and June 2010 with present production from existing Vitalba- 1dir well limited to 3,000scm/day Extensive static & dynamic reservoir studies completed Revised geolog
Slide 11: Development Assets
DEVELOPMENT ASSETS PROGRESS SANT’ALBERTO GAS DEVELOPMENT Sant’Alberto Located in the San Vincenzo permit (near Bologna) Santa Maddalena-1 well drilled and tested (1.8 mmcf/day) Well completed on 3 levels (2 tested, 1 upside) 2D seismic survey acquired in March 2011 (first seismic acquisition for PVE
Slide 12: Development Assets Cont
DEVELOPMENT ASSETS CONT BEZZECCA GAS DEVELOPMENT AND FANTUZZA APPRAISAL Bezzecca (Cascina San Pietro permit, Milan) Fantuzza (Crocetta permit, Bologna) Bezzecca-1 well drilled and 3 levels tested (total 3.9 mmcf/day), Expected to feed into Sillaro plant 2 km away completed on 3 levels Contingent Res
Slide 13: Cadelbosco and Grattasasso
CADELBOSCO AND GRATTASASSO PROMISING EXPLORATION/APPRAISAL OPPORTUNITIES Targeting the former ENI producing Correggio gas field Past production ~250 bcf Full grant of the licences awarded in March 2011 Purchased 111km of 2D seismic data from ENI 2 shallow Quaternary prospects already identified (Can
Slide 14: Exploration Prospects
EXPLORATION PROSPECTS MULTIPLE OPTIONS FOR UPSIDE VALUE GRADIZZA CEMBALINA La Prospera exploration permit Podere Gallina exploration permit Target depth 1,000m Target depth 1,200m Drilling approval pending Preliminary evaluation of Prospective Resources Prospective Resources (unrisked): (unrisked):
Slide 15: Financial Highlights
FINANCIAL HIGHLIGHTS 2010 OPERATING PERFORMANCE AND KEY FINANCIALS OPERATING PERFORMANCE FOR THE 12 MONTHS ENDED 31 DECEMBER 2010 Million m3 bcf Notes Sillaro Production 18.5 0.66 Steady production in 2010 Castello Production 8.3 0.29 New well to be drilled in 2H 2011 Total 26.8 0.95 Up 69% in 2H 20
Slide 16: Conservative Balance Sheet
CONSERVATIVE BALANCE SHEET FUNDS FOR GROWTH €20m Bank of Scotland facility used to finance FINANCIAL KPI (as at 31 Mar 2011) AUD$ construction of Sillaro and Castello production Share Price 0.23 plants Cash at Bank 2.2m Market Cap (at AUD$0.23) 25.4m Full 2010 year reduction in borrowings with Drawi
Slide 17: Strategy
STRATEGY SUSTAINABLE GROWTH Continue gas production and advance development assets with strong commitment to HS&E Sustainable Deliver Maximise progress in value to our exploration shareholders Shareholder and Wealth expand portfolio Increase profit earnings while maintaining conservative balance she
Slide 18: Strategy in Action
STRATEGY IN ACTION 12 MONTHS WORK PROGRAM Production Produce steadily from Sillaro D. ANIME/CORCREVA’ Sillaro 2010 production 0.66 bcf CASTELLO GRADIZZA Drill new Vitalba-1 dirA well and increase BEZZECCA SANT’ALBERTO AR168PY production rates CORREGGIO SILLARO CEMBALINA FANTUZZA Castello 2010 produc
Slide 19: Future Developments
FUTURE DEVELOPMENTS SOLID FOUNDATION FOR GROWTH CANOLO+ZINI FANTUZZA PRODUCTION / CASHFLOW BEZZECCA SANT’ALBERTO PRODUCTION / CASHFLOW CASTELLO SILLARO TIME Strong Exploration Cash generating Established And Development Business Position To Pursue Portfolio To Support New Opportunities Substantial O
Slide 20: 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. This presentation may contain forward looking statements that are subject to risk factors associated with the oil and gas
Slide 21: Appendix
APPENDIX Exploration & Production highlights Board of Directors Health, Safety & Environmental activity in Italy Reserves & Resources Statement 21
Slide 22: Italy: Exploration & Production
ITALY: EXPLORATION & PRODUCTION INVESTMENT BACKGROUND Stable government Italy Gas Production 1989 - 2009 Effective corporate tax rate around 34% ONSHORE OFFSHORE TOTAL EU and G8 member country Favourable royalty regimes – 10% (royalty exemption on first 25 Mm3 (~0.9 Bcf) produced each year) Gas pric
Slide 23: Board of Directors
BOARD OF DIRECTORS EXCELLENT MIX OF SKILLS, EXPERTISE AND EXPERIENCE Mr Graham joined PVE as a director and Mr David David joined PVE as a Director in Graham Chairman in September 2004 and is McEvoy September 2004 and is based in Bradley based in Sydney. He is currently Non Sydney. He is currently a
Slide 24: HS&E High Standards
HS&E HIGH STANDARDS 5 YEARS OF HEALTH, SAFETY AND ENVIRONMENTAL STATS TOTAL MAN-HOURS PER OPERATION TOTAL MAN-HOURS PER YEAR CUMULATIVE LTIF & LTIG Cumulative LTIF and LTIG 12000 40.0 60000 LTIF 35.0 10000 50000 30.0 8000 Cumulative LTIG 40000 25.0 Cumulative LTIF LTIG man-hours 6000 20.0 30000 15.0
Slide 25: Reserves & Resources Statement
RESERVES & RESOURCES STATEMENT COMPARATIVE REVIEW During the past year the Company commissioned a thorough, independent review of its reserves and resources by Dedicated Reservoir Engineering and Management (DREAM) and UK based RPS Group Plc, resulting in some adjustments to previously estimated res