re: Ann: PVE commits to drill Gradizza-1 well... A little bit of...

re: Ann: PVE commits to drill Gradizza-1 well... A little bit of local coverage

http://www.proactiveinvestors.com.au/companies/news/43048/po-valley-energy-commits-to-drilling-gradizza-1-gas-exploration-well-in-italy-43048.html


Po Valley Energy commits to drilling Gradizza-1 gas exploration well in Italy
Thursday, May 09, 2013 by Bevis Yeo

Po Valley Energy commits to drilling Gradizza-1 gas exploration well in Italy

Po Valley Energy (ASX: PVE) has committed to drilling the Gradizza-1 exploration well in the La Prospera licence in northern Italy and has executed a second farm-in agreement for the licence.

“The approval to drill Gradizza-1 and the new farmin agreements are significant steps towards achieving our near-term development strategy, which aims to confirm Resources by drilling low risk assets,” managing director Giovanni Catalano said.

“In 2013 the company continues to seek farmin partners in order to accelerate development of its exploration portfolio.”

Gradizza-1 targets the Quaternary sands at a depth of 1,000 metres that has Prospective Best Estimate gas Resources of 9 billion cubic feet of gas.

Po Valley has already ordered long lead items and recently commenced civil works for the well, which is expected to spud by the end of June 2013.

La Prospera, located in the Ferrara province north of Bologna, was awarded in September 2008.

The Gradizza prospect was identified from an interpretation of 68 kilometres of 2D seismic acquired by Eni. It has a 27% probability of success.

Farm-in Agreement

Po Valley has executed a farm-in agreement that allows Delaware-based AleAnna Resources to earn 10% interest in La Prospera in return for a promote in the drilling of Gradizza-1.

This is in addition to Po Valley’s agreement to farm-out a 15% working interest to Petrorep, leaving it with a 75% operating interest in the permit.

The farmout agreements with both partners are subject to regulatory approvals by the Italian Ministry of Economic Development.

AleAnna is also focused on Italian oil and gas. It holds seven exploration permits and two exploration permit applications in the Po Valley region and one exploration permit and one application in the Bradano Basin, southern Italy.

Po Valley Energy has had €1.3 million (A$1.68 million) in cash as of 31 March 2013.

It has also secured this week a €20 million five-year reserve based lending (RBL) facility with Nedbank Group that replaces the current debt facility with Lloyds Bank, which matures this November.

The company had a drawn balance of €4 million on the Lloyds facility.