Highlights
Selva Malvezzi Production Concession – PVE (operator) 63% Interest
Production from Podere Maiar-1 – strong and steady results
• Steady gas production from PM-1 for the quarter averaging approximately ~80,000 scm/day
continuing to meet predicted levels of production
• Strong gas prices with the average weighted gas sales price for the quarter at €0.39/scm
reflecting an increase on last quarter
• Quarterly production was 7,018k scm of gas (on a 100% basis) and revenue for the quarter was
€2.8 million (on a 100% basis).
• Routine slick line operation carried out in September with results in line with expectations and
confirming an average daily production rate of 80,000 scm/day for the foreseeable future
Broader Selva Development Program - multi-well drilling program milestones being met
• Key development milestone met end of September with the filing of 4 new drilling applications
with the Ministry of Environment and Energy Security. All four wells are located within the Selva
Malvezzi Production Concession.
• Environmental Impact Studies for these 4 new wells are well advanced and on track for
submission in 4Q24. Upon submission, the Ministry of Environment and Energy Security will
commence their formal assessment.
• Preparation for the 3D geophysical survey acquisition on the Selva Malvezzi Production
Concession was significantly progressed during the quarter. All environmental approvals have
been received. Geophysical campaign will commence once final sign off from the Region is
received which is expected after the regional elections scheduled for the second half of
November.
Teodorico – New Decree supports natural gas supply security
• As recently disclosed in the ASX released dated 21 October 2024, a new Environmental Decree
published during the quarter has provided further regulatory certainty for Po Valley’s largest gas
development – Teodorico – located in the shallow waters of the Northern Adriatic. Once
formalised into law in mid-December, this new legislation (along with the existing Energy Decree
introduced in 2023) will further enhance the potential for and value of Teodorico.
Corporate
• Operating cashflow for the quarter was €1.2 million (net to PVE), with a one-month lag between
revenue and cash receipts due to normal trading terms with BP Gas Marketing.
• Expenditure on exploration for the quarter was €156k (net to PVE)
• Cash at 30 September 2024 was €4,159k (~A$6,698k).
Australia's Po Valley Energy Limited ("Po Valley" or "The Company") is pleased to provide its
Quarterly Activities Report for the period ending 30 September 2024, covering the Company's gas
exploration, development and production outcomes across its onshore and offshore assets in northern
Italy.
Selva Malvezzi
Selva is an onshore natural gas field located in the eastern part of the Po Plain, in the Bologna province of
the Emilia Romagna Region. The Selva Malvezzi Production Concession was awarded in July 2022 and
measures 80.68km2
. It includes the Podere Maiar Gas field (PM-1) (in production) and the gas prospects
at East Selva, Selva North and South and Riccardina carved out from the former Podere Gallina Exploration
Permit.
Po Valley Operations (100% subsidiary of the Company, “PVO”) is the operator under a Joint Operating
Agreement (“JOA”) and holds a 63% interest in the Selva Malvezzi Production Concession with Prospex
Energy plc (“Prospex”) holding 37% (includes 20% held by Prospex subsidiary UOG Italia S.r.l).
PM-1 gas production and well management
PM-1 gas is being supplied to BP Gas Marketing. The original 18-month supply agreement was extended
during the quarter for an additional 12 months to 30 September 2025.
Production has been consistent through the quarter averaging ~78,000 scm to ~80,000 scm per day, with
exception of days during which slick line operations were undertaken. Total revenue for the quarter to
30 September 2024 was €2,757,732 (100%) with PVE share at 63% €1,737,371.
The routine slick line operation in late September re-confirmed the pressure evolution as per expectations
and no sand or water detected. There were also no unexpected readings during the period on the surface
sand detection equipment that is now operational on site. Three and a half days were allowed for pressure
buildup during this shutdown operation with the well re-opening on 25th September and production
recommencing at ~80,000 scm/day. The current production rate is expected to continue for the
foreseeable future. PVO took advantage of the September slick line shutdown to undertake routine
maintenance of the production plant and successfully replacing aluminium in the plant regeneration
columns.
Other Selva projects
The Selva Malvezzi Production Concession is the key area of focus for the Company with the next stages
of development at Selva North, South, Selva East and Riccardina prospects.
Drilling program applications for the 4 new wells (renamed as per Ministry topographical convention)
Casale Guida 1d (North Selva), Ronchi 1d (South Selva), Selva Malvezzi 1d (East Selva) and Bagnarola 1d
(Riccardina) were filed with the Italian Ministry of Environment and Energy Security in September 2024.
During the quarter, the Company made significant progress on the Environmental Impact Assessment
(EIA) study for the new drilling programs. These are expected to be submitted in Q4 2024, on submission
the Ministry will commence their assessment of the EIA.
Additionally, planning and permitting from the 3D geophysical campaign across the entire Production
Concession continued to advance smoothly. The geophysical campaign will commence once the final signoff from the Region is obtained which anticipated after the regional elections in late November.
Expenditure for the quarter in relation to the above progression of work programs on the Selva prospects
was $156k (net to PVE).
Teodorico
In a positive development reported in the ASX released dated 21 October 2024, a new Environmental
Decree 2024 was published on 17 October 2024. The area defined as suitable for gas production by the
Decree includes where Po Valley’s 100%-owned Teodorico (d.40.AC-PY) off-shore asset is located. The
Decree is due to be converted into law by mid-December 2024. Po Valley continues to investigate both
the 2023 Energy Decree and the new Environmental Decree in consultation with its legal advisers and the
relevant Ministry, MASE, to determine its implications for Teodorico. Although the formalisation of the
Environmental Decree into law is still pending, and details of the Energy Decree are still being worked
through from an operational perspective, the Teodorico field is well positioned within this updated
regulatory framework. This bodes extremely well for maximising the value of the Teodorico asset via a
joint venture or sale
Other Assets
In addition, the company is reviewing optimal development paths for its residual assets (Cadelbosco di
Sopra, Grattasasso and Torre del Moro) including the potential for introduction of third-party investors /
partners who have interest in participating in their development.
Cadelbosco di Sopra and Grattasasso are shallow gas opportunities which fit neatly with the Company’s
proven exploration and development capabilities whilst Torre del Moro is a large deep gas prospect.
CORPORATE
Cash flow
Net operating cashflows for the quarter were €1,223k, which included receipts from gas sales of €1,690k
and production operating costs of €179k. Costs on the production well at PM-1 in this quarter were for
minor additions to the plant. Revenue receipts and costs are net of any Joint Venture Partner contribution
or distributions.
Work programs for other fields within the Selva Malvezzi Production concession are on track with costs
incurred in the quarter of €156k. As the work programme is further developed additional costs will be
added.
The Group’s cash balance at 30 September 2024 was €4,159k (~A$6,698k).
Regarding Section 6.1 of the Appendix 5B amounts paid to related parties and their associates totalled
€67k, consisting of director remuneration and consulting fees.
Information Provided in Accordance with ASX Listing Rules 5.4.1 and 5.4.2
In accordance with ASX Listing Rule 5.4.1, the Company confirms that there have been no material
developments or changes to its exploration or production activities. The focus in this quarter was gas
production at the Podere Maiar-1 and progression of the work program on the development plan of the
new wells in the Selva Malvezzi Production Concession.
In accordance with ASX Listing Rule 5.4.2, the Company advises that the development, production and
exploration activities undertaken, and costs incurred are as described in the relevant sections above.
