Australia's Po Valley Energy Limited ("Po Valley" or "The Company") is pleased to provide its
Quarterly Activities Report for the period ending 31 March 2025, covering the Company's gas exploration,
development and production outcomes across its onshore and offshore assets in northern Italy.
Highlights
Selva Malvezzi Production Concession – PVE (operator) 63% Interest
Podere Maiar-1 (PM-1) Production Results March 2025
Quarter
Avg. daily production (scm) (Gross) 77,292
Quarterly production ('000 scm) (NET) 4,236
Weighted average price (per scm) € 0.50
Revenue ('000) (NET] €2,103
Field Operating costs ('000)1 (NET] €196
Quarterly Cashflow from production ('000)2 [NET] €2,001
• Steady gas production from PM-1 for the quarter continuing to meet predicted levels of production
• Robust gas prices with the average weighted gas sales price for the quarter at €0.50/scm due to
strong market conditions
• Quarterly production was 6,724k scm of gas (on a 100% basis) with PVE share at 63% 4,236k scm
and revenue for the quarter was €3.33 million (on a 100% basis) with PVE share at 63% €2.10 million
Broader Selva Development Program - multi-well drilling program and 3D geophysical survey
• Drilling applications for four new wells in the Selva Malvezzi production concession and
Environmental Impact Studies were submitted in 2024 with relevant departments. The Company
awaits the outcome of these and expects further interaction with the relevant departments within
the Ministry will be required as is standard in these processes.
• Preparation for the 3D geophysical survey acquisition on the Selva Malvezzi Production Concession
progressed during the quarter. Regional INTESA approving works to commence was received along
with MASE final authorisation for the geophysical campaign received post quarter end.
• Field activities including the seismic acquisition and campaign are planned for the end of September,
beginning of October 2025 as per guidance received from the landowners and relevant Farmer’s
associations to accommodate the late summer harvest.
Financial Performance
• Operating cashflow for the quarter was €1.705 million (net to PVE)
• Expenditure on exploration and development for the quarter was €124k (net to PVE)
• Cash at 31 March 2025 was €6.567 million (~A$11.327 million).
Kevin Bailey AM, (Chairman), commenting on the quarter said “we are pleased with the continued
progress made during the period, marked by another strong quarter of production with robust realised
prices. We are steadily advancing our targeted exploration and development plans and expect these
efforts to yield positive results over the course of the year. The Company remains in a strong financial
position, with cash reserves available to support the progression of our work program on the new wells
and 3D geophysical survey.”
Operational Overview
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 (in production) and the gas prospects Selva
Malvezzi (East Selva), Casale Guida (Selva North), Ronchi (Selva South) and Bagnarola (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 Group ”) holding 37% (17% Prospex Energy, 20% UOG Italia).
1. PM-1 gas production and well management
Production has been consistent through the quarter averaging ~77,000 scm per day, excluding days during
which slick line operations were undertaken in February and a brief production halt scheduled for the
replacement of alumina needed for plant maintenance. The routine slick line operations in February reconfirmed well pressure evolution as per expectations. No sand or water was detected and there were
also no unexpected readings on the surface sand detection equipment during the period. Three and a
half days were allowed for pressure buildup during this shutdown operation with the well re-opening on
the February 11 and production resuming at ~80,000 scm/day. The current production rate is expected
to continue for the foreseeable future
Total revenue for the quarter was €3,338,692 (100%) with PVE share at 63% €2,103,376. PM-1 gas
continues to be supplied to BP Gas Marketing.
2. Casale Guida 1d, Ronchi 1d, Bagnarola 1d, Selva Malvezzi 1d wells
The Selva Malvezzi Production Concession is the key area of focus for the Company with the next stages
of development at Casale Guida 1d (Selva North), Ronchi 1d (South Selva), Selva Malvezzi (East Selva)
and Bagnarola 1d (Riccardina) prospects.
The drilling programs for the four new drilling projects were submitted to the UNMIG department of the
Italian Ministry of Environment and Energy Security (MASE) for drilling authorisation in September 2024.
The Environmental Impact Study covering the drilling, development and production phases of the four
wells was filed in December 2024. These submissions are now undergoing the Ministry’s due process for
review and approval, and the Company is currently awaiting the outcome.
Planning and permitting for the 3D geophysical campaign across the entire Production Concession
continued to progress during the period. Regional approval (INTESA) from the Emilia Romagna Regional
Council was granted in late January 2025, with a revised version received on the 1St April2025. Final
authorisation from the Ministry of Environment and Energy Security (MASE) has been obtained in April
2025. Following the end of the quarter, negotiations with all landowner associations were held on April
15. Based on these discussions, the field activities including the seismic acquisition are planned to
commence between the end September and early October as per the guidance received from the
landowner’s associations which will allow farmers to complete their late summer harvest.
Expenditure for the quarter in relation to the above progression of work programs on the Selva prospects
was €124k (net to PVE).
Teodorico
Following the administrative court ruling (TAR) in 2024 on the case raised by an environmental protection
group against the Ministry, the Company met the Ministry of Environment and Energy Security (MASE) in
March to clarify the position on the Environmental Impact Assessment (EIA) for Teodorico. MASE
Environmental Direction have recommended the submission of a revised EIA including an evaluation of
the potential impacts on two new environmentally protected areas. The Company has already
commenced preliminary works on outlining the scope of work and costs associated with the preparation
of this revised EIA which it intends to complete and submit as soon as possible.
Other Assets
In addition, the company is reviewing optimal development paths for its other exploration assets
(Cadelbosco di Sopra, Grattasasso and Torre del Moro) including the potential for introduction of thirdparty 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.
Following meetings with MASE in February 2025 and further to the 2024 Environmental Decree
repealing the previous plan of suitable hydrocarbon exploitation areas ‘PITESAI’ , it has been clarified
that activities regarding oil exploration may resume. Accordingly, the Cadelbosco and Grattasasso oil
contingent resources and Torre del Moro oil prospective resources can be restated to Po Valley’s
Resources and Reserves, as originally reported in the April 2019 CGG CPR.
Financial performance
Cash flow
Net operating cashflows for the quarter were €1,705k. Net operating cashflows included receipts from
gas sales of €2,197k, and production operating costs of €196k. Receipts from gas sales have a one-month
lag due to normal trading terms with BP Gas Marketing. Revenue receipts and production costs are net of
any Joint Venture Partner contribution and/or distributions of 37%.
Work programs for other fields within the Selva Malvezzi Production Concession are on track with costs
incurred in the quarter of €124k.
The Group’s cash balance at 31 March 2025 was €6,567k (~A$11,327k).
Regarding Section 6.1 of the Appendix 5B amounts paid to related parties and their associates totalled
€40k, 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 other than as already disclosed in the
relevant sections above. 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.
This announcement was approved for release by the Board of Directors of Po Valley Energy Limited