Po Valley Energy intends supplying gas to large Italian market
Wednesday, 13 March 2019 Po Valley Energy Limited (ASX:PVE) is progressing towards supplying in-demand natural gas to the large Italian market through development of three projects in the country’s north. CEO Michael Masterman informed investors at this week’s Proactive CEO Sessions in Sydney and Melbourne that only 10% of Italy’s natural gas demand is met by local supplies. With a market twice the size of Australia’s, he said the shortage was resulting in high prices and in 2018 these surged more than 50%. Development path of assets Masterman said the company had a market cap of $25 million and an individual valuation of around $75 million but had a development path of assets which each had a value of around $100 million. The onshore Selva Malvezzi field near Bologna is the most advanced and with estimated capex of $4.7 million, has potential to results in annual EBITDA of around $6.4 million. Teodorico in gas producing region Teodorico is an offshore project in the middle of Italy’s most prolific gas producing regions with the added benefit of being in shallow water and close to processing facilities. The CEO said for an estimated capex of $82 million, Teodorico had potential for annual EBITDA of $31 million. Po Valley’s third potential project, Torre Del Moro, provides further potential upside with a prospective oil target of 150-250 mmboe. Why invest? Masterman told investors that there are four strong reasons for investing in Po Valley: Highly economic projects; Market dynamics; Large-scale potential; and Strong resource upside. READ: Po Valley Energy posts milestone maiden gas reserves for Selva Malvezzi field in Italy The company recently posted maiden gas reserves of 13.3 billion cubic feet at Selva Malvezzi field. This equates to 8.38 billion cubic feet of net 2P reserves attributable to the company’s 63% ownership. The maiden reserve estimate was prepared by France-based geophysical services consultancy CGG from previously reported gross contingent resources and includes results from new drilling on the field last year. First gas expected in 2020 At the time Masterman said: “We are totally focused on progressing Selva toward first gas in 2020 at a gross rate of up to 150,000 cubic metres per day. “At this rate, Selva will be generating significant cash flow for Po Valley with longer-term upside from the licence’s additional prospectivity.” Earlier this year, the Italian Government granted the Selva field a preliminary award for the Production Concession and Selva remains on course to begin first production in 2020. Selva is 63%-owned by Po Valley. The remainder is owned 20% by United Oil & Gas PLC and 17% by Prospex Oil & Gas.
According to Reuters, shares of Pinterest surged 25 percent in their debut on Thursday, giving the online scrapbook company a market capitalization of $15.8 billion. The successful debut bodes well for..
Volunteer firefighters responded to a leaking gas pipe that was belching meter-long flames onto a residential street in Bottrop, Germany, on April 17.The firefighters said that they did not immediately..