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Po Valley Energy Awarded New Gas Exploration Licence In Northern Italy

Po Valley Energy (ASX: PVE) has been awarded a new gas exploration licence in the Bologna and Ravenna provinces in northern Italy.

Notably, the 90 square kilometre Tozzona licence lies on the eastern border of Eni's gas production licence containing the Santerno gas field that has produced about 35 billion cubic feet of gas to date.

The main gas targets are Mio-Pliocene reservoirs within structural traps.

Initial work program for the six year licence includes the purchase of a semi-regional grid of 2D seismic lines from the former operator of the area, Eni.

"Tozzona represents another prospective addition to the Company's exploration portfolio. Now that we have secured the licence, we will commence geological and geophysical studies aimed at evaluating already identified opportunities in similar settings to the Santerno gas field," managing director Giovanni Catalano said.

Po Valley is currently waiting on final approval from Italy's Ministry of Economic Development (UNMIG) to restart production from the main producing level at its Sillaro gas field, where gas production will be boosted to 2.4 million cubic feet per day, up from the average production of 1.7MMcfd it recorded from the field in the March 2013 quarter.

It has identified a new low risk gas prospect at the Podere Gallina licence, where the Selva gas field produced 83 Bcf from 15 wells over a 35-year period and has found a new prospect in the Cascina Castello production concession, which is estimated to hold a 2C prospective resource of 2.4 Bcf of gas.

Revenue for the March quarter was €1.6 million (A$2.1 million). Cash at bank at the end of the quarter amounted to €1.32 million.

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