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  • Po Valley Energy Makes Maiden Profit Before Tax In 2012 0 comments
    Mar 17, 2013 8:14 PM

    Po Valley Energy (ASX: PVE) has posted a maiden profit before income tax of €201,570 for the year ended 31 December 2012 due to a strong gas price and improved operating efficiencies.

    This compares with a loss before income tax of €4.89 million (A$6.1 million) in 2011. Net profit after tax was €2.37 million after recognising a deferred tax asset of €2.23 million for the first time.

    Net cash flow from operating activities was up 33% over the previous year to €4.34 million despite a drop in revenue to €8.2 million from €9.11 million.

    While production was down 15% to 0.85 billion cubic feet of gas due primarily to the suspension of Sillaro's main producing level, Po Valley expects this to increase once production at the field rises from the 1.9 million cubic feet per day in 2012 following installation of a new condensate separator.

    "The construction of the new condensate separator is almost complete and the field is expected to return to the previous daily production rates of 80,000 standard cubic metres (2.8MMcfd) in early April 2013," managing director Giovanni Catalano said.

    The company has also continued to pay down its debt, with €2 million paid down on its Lloyds Commercial Loan Facility, reducing borrowings to €4 million.

    Po Valley had cash of €1.22 million as of 31 December 2012.

    Bezzecca

    Further production increases are expected once the company brings the Bezecca gas field in northern Italy into production.

    Po Valley has already secured a preliminary production concession from the Italian Ministry of Economic Development, allowing it add 4.1Bcf of gas to its proved and probable reserves.

    The final award of the production licence is subject to the results of the related Environmental Impact Assessment (NYSEMKT:EIA), which has already been completed and lodged with the Lombardy Region.

    The first hearing was held in November 2012 and the local authorities visited the site at the beginning of December.

    Once the production licence has been granted, the company will initiate activity on the field development plan, which primarily includes the construction of a 2 inch pipeline 7 kilometre in length needed to connect Bezecca with the existing Castello surface gas plant from which it will be produced through.

    Bezzecca was discovered in 2009 with the Bezzecca-1 well flowing gas at a combined rate of 3.9 million cubic feet per day during testing.

    Forward drilling program

    Po Valley expects to drill in the next 24 months the Gradizza-1 exploration well in the La Prospera permit, where it has finalised and executed two farm-in agreements with Petrorep Italiana S.p.a. and Aleanna Resources Ltd.

    It will also appraise three Quaternary/Pliocene gas prospects in Cadelbosco di Sopra subject to ongoing regulatory approvals and available finances.

    Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX "Small and Mid-cap" stocks with distribution in Australia, UK, North America and Hong Kong / China.

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