Sydney, Sep 25, 2008 (ABN Newswire) - Po Valley Energy Limited (ASX:PVE) CEO Michael Masterman audio interview from Rome after recently returning from the Oil Barrel Conference in London.
The PO Valley Energy presentation was well received with a lot of understanding in Europe about the increasingly acute shortages of gas supply to the major European markets including the UK and Italy, and a lot of interest in PO Valley as a future supplier.
Listen to the Audio cast:
http://abnnewswire.net/alnk/MM1D8KE1
Po Valley's activity is in the North Eastern area of Italy, with two gas fields, Sillaro and Castello moved decisively closer to production.
All equipment has been assembled and waiting in Italy for installation and pipelines to be connected later this year for 2nd quarter 2009 production output.
Value of the two fields in revenue per annum at current oil prices is AU$60M in revenue and approximately AU$40-45M in net cash flow.
Currently Po Valley has 17 gas and 4 oil exploration wells on target, with next significant news from the company on the materially larger 45bcf Bezzecca well.
In terms of gas sales contracts, PVE is down to the last 4 companies in final stages of negotiation with exceptionally strong response from local Italian gas consumers and confident for offtake contracts signing in early October at a very strong pricing base.
Long term gas price will remain strong in Italy and Western Europe. Markets are structurally short of gas supply and 3-5 year time frame will see gas shortages affecting the European market.
Commenting on recent downturns in both resources and financial markets Michael remarked that the volatile environments mean that companies with cash flow will be in a stronger position, and once production starts at both wells as quickly as the Italian authorities allow, a huge difference in how investors view the company will result.
Contact
Michael Masterman
Po Valley Energy
Mob: +61-417-851-303
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