PVE - Po Valley Energy

Thought I start a new thread on PVE as there does not appear to be one.

Background info:
PVE has gas and oil exploration permits in Italy (Po Valley). The same valley as the winter olympics were held (Turin). They managed to obtain permits when the Italian government mandated that the monopoly ENI had to release 60% of the acreage due to EU rules about government monopolies.

I believe this happened in 2002 since then PVE has explored and appraised 130BCF in 3P reserves and are now waiting for the government to give production licenses on several gas fields. The Italian government is extremely slow. It is now a year between applications and as yet to be announced approvals.

The reason for the slowness comes down to the fact that until post 2002 they had to deal with one semi government institution ENI. Now they have to set up new frameworks/ publically scrutinised criteria ect. to ensure that everything is correct.

This is why PVE has been in a very broad sideways channel for at least a year.

Two reasons why it can be a good investment

1) Italian gas prices are if not the highest in Europe close to it
11.50AUD/mcf while companies such as QGC here in Australia are selling at 3.00AUD/mcf. Also Po Valley region is the major consumer of gas in Italy which results in low transportation cost

Gas fields are within 50KM of either Milan or Bologna. QGC,AOE,SHG are 300-400 KM from Brisbane

(somone is sure to point out that the above comparisons are with CBM producers compared to PVE conventional plays but in the end both are selling natural gas. CBM is just another way of getting gas)

The point here is that farm gates are 4 times that of Australian producers which means that the forecast production of 7.5mmcfd for PVE is equivalant revenue of 30mmcfd in Oz

PVE are forecasting approx 26million in operating cashflow (does not allow for depreciation, overheads, tax, interest, exploration)


2) Tight shareholder registry 90 million shares with approx 18 million held outside substantial shareholders. This is a two edged sword. Very illiquid which means it is hard to get a position and even harder to exit in an emergency but the upside is upward movements can and do move very quickly. That is why it has had such a large trading range.

This will do for now

Cheers Icharus

Please do your own research I am but a poor sighted bunny swimming in a tank of sharks

Po Valley announced, confirming receipt of initial production licenses with only the environmental approvals to go.

Production is now targeted at June/July next year for the Sillaro and Castello fields.

cheers Icharus

A lot of interest has been going into the Po Valley where a number of licences have recently been granted. Italians would much rather get their gas from within Italy rather than rely on Russia and they are supporting the explorers in this region. Another Oz company (OEL) has recently acquired a JV with Ascent Resources plc (AIM listed) and will be drilling there in Jan.

PVE is extremely thinly traded which is a problem, but I agree with you that it seems to have a lot of upside potential. Recent announcements are all about the Italian govt granting them licences which means that they can now proceed to the next step. Hopefully this will make the stock more liquid.

I notice that Macquarie small companies fund had 1.17% of PVE. Not sure if they still do though.

Haven't bought into PVE as yet, just watching with interest at the moment.

Hi,

I'm new to PVE but I was wondering if someone can give any thoughts on the likely outcome of the russia/ukraine gas dispute.

Is PVE large in the scale of potential gas producers in western europe? Any other companies I should be looking at?

Thanks

mancini said:

Hi,

I'm new to PVE but I was wondering if someone can give any thoughts on the likely outcome of the russia/ukraine gas dispute.

Is PVE large in the scale of potential gas producers in western europe? Any other companies I should be looking at?

Thanks

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Have a look at EPG and OEL for other European producers/explorers.

Be warned - somewhat painful ride as Aussie investors seem to be favouring Aussie-domiciled assets. It should slowly change as the POG in Europe is ten-times that in Australia and the infrastructure as there already. Also much larger population.

Bought a handful of PVE this morning after SP drop on news of Castello field downgrade possible as reduced flow rates are occuring

The maiden production from its Sillaro field east of Bologna is due end of April but more likely May 2010, will this be enough to give it a bounce, the field is significantly larger than Castello and gas in Italy is a lot more expesive to buy than the USA so profit margins are greater.

Just my thoughts, it was a spec buy with a low portfolio percentage, the next 3 weeks might be interesting for the SP if it isn't an insider bailing out.

After yesterdays massive drop with approx 30 million shares traded and a finish at .37c the SP appears to be clawing it's way back slowly today with buyers coming back in, SP at .41c at time of writing.

There were no surprises in the quarterly cashflow released this morning so unless Sillaro coming into production (due any day) is behind schedule the only drawback is the smaller Castello field losing bore pressure, hardly worth the SP halving imho. Increased my holding this morning.

Po Valley Awarded Torre del Moro Preliminary Exploration Permit


Po Valley Energy Limited (ASXVE), the Northern Italy focused gas and oil exploration and production company, has been awarded a preliminary exploration permit for a new offshore licence - Torre del Moro - by the Italian Ministry for Economic Development.
The exploration permit is located in Emilia-Romagna adjacent to Po Valley’s 100% owned Terra del Sole exploration permit, around 55 km south east of Bologna, and covers an area of 111 square kilometers.
Po Valley has been invited to submit the necessary environmental impact study that, on acceptance, will lead to the final award of the permit.
The area contains large structures with similarities to the Western Po Valley Villafortuna-Trecate oil field (circa 220 mmbbls of oil produced to date plus associated gas production) and to nearby Pliocene gas fields.
Po Valley intends to conduct geological and geophysical studies on the new permit area, once awarded, to fully evaluate a number of leads already identified and, assuming positive results, will then prepare plans for an exploration well.
Commenting on the award, Giovanni Catalano, Managing Director of Po Valley said: “This project increases the Company’s exploration targets in an attractive area adjacent to our Terra del Sole permit. It will allow the Company to fully evaluate structures within the two contiguous blocks and will help progress potentially attractive leads to drillable status.”

Po Valley Half Year Results

Financial Results
The Company continued to perform well during the first 6 months of the year. Cashflow from operations was €4.1 million (up 87% compared to same half last year), EBITDA was €2.6 million (up 17%) and net profit after tax was €0.3 million (down 17%); mainly due to the increase in depreciation from the Castello gas field since restarting production in February. The Company ended the period with cash at bank of €2.0 million. Borrowings were unchanged at €6.0 million.

Operating Highlights
● Production restarted at the Castello field in February, with total Company production for the six months at 12.3 million standard cubic metres (434 million cubic feet).
● Plans are well advanced to install the condensate separator in order to bring the field back to full production of 77,500 standard cubic metres per day. The field continues to produce at reduced rates and is successfully managing the marginal condensate production. At the end of July the field was producing stably at 52,000 standard cubic metres per day.
● Total production for the second half is expected to be slightly lower than the first half due to the reduced production rate, and a short shutdown to allow for separator installation at the SIllaro field.
● Reserves and Resources were certified by the independent auditors Fugro Robertson, confirming inter alia Sillaro reserves and confirming the significant upside value of the Company's portfolio.
● First offshore exploration permit - AR94PY (previously AR168PY) was awarded in July. Located in the shallow waters of the Adriatic Sea the permit contains two connected gas discoveries, Carola and Irma (best estimate Contingent Resources 2C of 24.8 bcf).
● Joint Venture with Petrorep Italiana for a farm-in agreement on the Cadelbosco di Sopra exploration licence and an option agreement on La Prospera exploration licence was signed.

Po Valley Energy announced today that strong gas flows on test have confirmed a significant commercial discovery at its new Selva gas field in northern Italy.

The Podere Maiar 1dir exploration well drill program intersected two identified gas reservoirs, C1 and C2, in the Medium-Upper Pliocene sands of the Porto Garibaldi Formation.

PVE up 3.7c to 7.7c so far today on the back of the news. Looking good.

Being keeping an eye on this especially since the Russia oil and gas hit the news in Feb 2022. This is my stock pick for the Feb 2023 tipping comp.

Link to and the main page from the Po Valley Energy website.

Advancing toward production to meet Italy’s domestic supply challenges.​

Po Valley Energy was the first E&P company to bring new production to the Po Valley region since the end of the ENI-Agip monopoly and the liberalisation of the Italian gas market in 1998.

The company is an now focussed on advancing the Selva Malvezzi project to production and becoming a meaningful domestic supplier of energy in Italy.

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Sticking with PVE for the Mar 2023 Tipping Comp.
Take off agreement with BP Marketing starts soon.

Picking PVE again for the Apr 2023 Tipping Comp. PVE is holding a webinar tomorrow which may fuel some interest.

Picking PVE again, this time for the May 2023 Tipping Comp.
From PVE Twitter

At our Podere Maiar #gas plant, construction is in full swing, with the team working hard to deliver first gas this quarter.

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Sticking with PVE for the June 2023 Tipping Comp.

Progress in being made as from the PVE site dated 16th May 2023:

Po Valley Energy completes Podere Maiar gas plant construction; connects to Italian gas grid
Highlights

• Podere Maiar-1 (PM-1) gas plant development is complete and ready for commissioning
• SNAM connections are complete, enabling delivery of PM-1 gas to the SNAM grid in Italy
• Commercial arrangements complete, allowing PM-1 gas to be delivered under the gas supply agreement (refer to ASX announcement 14/02/23)
• With SNAM connection and transmission arrangements finalised, Po Valley Operations (PVO) has initiated the process of recovering €757,000 performance bond funds (100% basis - €476,910 net to PVO), previously deposited with SNAM
• PM-1 gas plant construction and development achieved with only minor cost increases. This result is particularly noteworthy given the current inflationary environment and supply chain issues
• First gas supply from PM-1 is contingent upon final operation and safety inspection. PVE expects this prior to the end of the month

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Staying with PVE for the July 2023 Tipping Comp.

Project delayed as from the PVE site dated 29th May 2023:

Po Valley Energy Successfully Recovers €757,000 Performance Bond Funds
Highlights
• Po Valley Energy strengthens its cash position having successfully recovered €757,000 performance bond funds (100% basis - €476,910 net to PVO) previously deposited with the Italian national Transmission System Operator SNAM
• The return of the bond follows the completion of the SNAM pipeline tie in connection, Gas Sales Agreement and transportation arrangements
• First gas supply from Podere Maiar – 1 is contingent upon final Ministry approval after final operation and safety inspection of the completed gas treatment plant
Po Valley Energy Limited (ASX: PVE) is pleased to announce that the process to recover the performance bond funds deposited with SNAM has been finalised. The amount reimbursed from SNAM is €757,000 (100% basis) with €476,910 net to PVO. This follows the completion of the pipeline tie in connection to the newly built Podere Maiar – 1 (PM-1) gas treatment facility in the Selva Malvezzi Production Concession, located in the Emilia Romagna region (Po River Valley area in the north of Italy).
The return of the bond deposited with SNAM was conditional on completion of the SNAM grid connection and the Gas Sales Agreement, announced on February 13th, 2023.
Initial production of PM-1 gas is contingent on Ministry final approval after the sign-off of the final operation and safety inspection. The final inspection has been delayed due to severe flooding throughout the Emilia Romagna region. Po Valley Energy has been informed that the inspection will take place as soon as the Fire Department has attended to urgent priorities. The gas treatment facility and preparatory activities for first gas have not been affected by the flooding.
Po Valley Chairman Kevin Bailey said: “The return of the bond, in such a timely manner, is a testament to the relationship the PVO team has built with SNAM throughout this process. Additionally, it reflects that the facility is now ready for commissioning and delivery of first gas.
The delay of the final operation and safety inspection due to the flooding is entirely beyond the control of our team. Currently the fire department are quite appropriately attending more urgent matters in the Emilia Romagna region, however, we are assured that the inspections will take place as soon as resources become available.”

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Sticking with PVE for the August 2023.

From PVE ASX announements and in part:

5th July 2023

Po Valley’s Podere Maiar-1 Commences Gas Production in Italy
Highlights
• Podere Maiar – 1 commences gas production in Italy, delivering first gas on the 4th July 2023
• First gas will provide Po Valley Energy with its maiden revenue from the Selva Malvezzi Production Concession
• Podere Maiar – 1 will provide gas directly to the domestic Italian market under an 18-month supply agreement with BP Gas Marketing
• Po Valley Energy intends to advance other projects within the Selva Malvezzi Production Concession

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Am enjoying the roller coaster this stock provides in the tipping comp so again, is my stock tip for Sep 2023 tipping comp.

From PVE ASX announcement 7 Aug 2023

Successful ramp-up and commissioning at Po Valley’s Podere Maiar-1 gas production facility in Italy

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Yep, you got it. Staying with PVE for the October 2023 Tipping Comp.

I may have blinkers on but I like what I've read in the 6 Sep 2023 ASX annoucement. Besides that, who doesn't like a roller coaster ride, lol.

Not much in the way of announcements apart from Half Year accounts but am sticking with PVE for the Nov 2023 tipping comp. Keeps me either at one end of the spectrum, lol.