Po Valley Applies for License in the Adriatic Sea

Emerging Australian gas producer, Po Valley Energy has made its first proposed move into offshore projects, with the Italian Ministry confirming the Company's application for a 526 square kilometer oil and gas license application in the Adriatic Sea.

The license area is 50 kilometers offshore from Po Valley's main operation base in Northern Italy; where the Company has an evolving footprint of successful onshore gas developments, with first production from mid next year.

"Our application fro the area (Application No: AR 168-PY) marks the Company's first step in potentially extending our onshore exploration focus on proven but underdeveloped fields, to the larger gas target opportunities in the Northern Adriatic," Po Valley's Chief Executive Officer, Mr. Michael Masterman, said.

"The Ministry's confirmation of our application is a welcoming milestone and while early days yet, could soon add to what is becoming an increasingly solid base for Po Valley of exploration, development and production gas assets able to feed into Italy's heavily import-dependent gas market," Mr. Masterman said.

Similar to PVE's on-shore developments, the Adriatic license application area covers three gas targets that were successfully drilled but undeveloped by ENI in the 1990s. As part of the application, the target structures will be further analyzed through the purchasing and re-evaluation of a 3D seismic dataset, run by ENI in the 80's and 90's. Recoverable reserves are expected to be in the order of 45bcf.

Mr. Masterman said there was only one competing application for the same area from an applicant. The application is expected to be reviewed at the next Hydrocarbon Commission meeting where it is anticipated that a 'preliminary award' (i.e., awarded subject to environmental clearance) to the successful applicant.

In addition to this new license area application, Po Valley Energy currently has three production applications, 3 awarded exploration licenses, six exploration licenses with preliminary award and one application pending award in the Po Valley.