Adelaide, May 30, 2006 (ABN Newswire) - Successful Australian gas explorer, Po Valley Energy Limited (ASX: PVE), is seeking additional exploration acreage in northern Italy as the ASX-listed company readies for its first commercial production from the province by early next year.
Details of eight new exploration licence applications over new gas targets were outlined today by Po Valley's Chairman, Mr Graham Bradley at the Company's annual general meeting in Sydney.
The licence areas are in and around Po Valley's existing project areas (see attached map) where the Company made several commercial gas discoveries from successful drilling in 2004 and 2005 near Bologna and Milan.
"Three of the best applications are for uncontested areas, and hosting what Po Valley believes are attractive gas exploration targets," Mr Bradley said.
"The proposed expansion of our Italian exploration assets is timely, as the likely final grant of the first licences, will coincide with our pending gas production in the first half of 2007" he said.
"If approved, all eight licences should be granted progressively through 2007, assisting Po Valley to build on our successful exploration drilling programs in northern Italy in 2004-2005.
"Our focus remains northern Italy - we know the geology and regulatory processes applying to the province.
"Acquisition by application for the region is very cost effective and if at least 3-4 applications are approved, I am confident that Po Valley will find its next generation of successful gas field discoveries on this expanded acreage opportunity".
Mr Bradley said the licence applications submitted to the Italian Ministry, covered an area of 2,005 square kilometers or almost twice Po Valleys current licence area. There is extensive seismic and well data that can be used as the base for geological investigations which are underway.
"In the three uncontested applications- Opera, La Prospera, and La Risorta - there is more than one target of potential gas development," he said.
La Prospera and La Risorta are located in the eastern part of northern Italy near Po Valley's successful Sillaro development field. Four targets have been identified in these two licences with geological and geophysical studies underway.
Opera is located south of Milan and Po Valley's successful Vitalba gasfield and has two target fields.
The applications are expected to be reviewed by mid year by Italy's Hydrocarbon Commission followed by environmental clearance reviews prior to full granting of the licences.
"Five of the eight applications have competing bids. This may present an opportunity to work with other competing applicants in joint venturing, and discussions towards this end have commenced with a number of bidders," Mr Bradley said.
Source: Kevin Skinner Senior Consultant FIELD PUBLIC RELATIONS
231 South Road MILE END SA 5031 Tel: (08) 8234 9555 Fax: (08) 8234 9566 Mob: 0414 822 631 kevin@fieldpr.com.au
About PO VALLEY ENERGY LIMITED
Po Valley Energy Limited (PVE) is engaged in the exploration for gas in the Po Valley region in Italy, and appraisal and development of gas properties. During the year ended December 31, 2006, the Company prepared and submitted production concession applications for Sillaro, Castello (aka Vitalba) and Sant Alberto (aka Santa Maddalena) fields. During 2006, eight new license area applications were submitted, of which PVE was awarded with the rights to proceed forward for five gas and oil exploration licenses applications in Italy. The additional licenses cover a total area of 1,610 square kilometers and are all contained within the petroleum provinces in northern Italy where the Company has focused its development options. The five license applications are Ossola and Opera located near Milan and La Prospera, Podere Gallina and La Risorta located near Bologna. The license areas contain eight new gas prospects and two new oil exploration targets.
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