Po Valley Energy Finds Gas At Gradizza-1 Exploration Well

Aug. 28, 2013 8:10 PM ET
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Po Valley Energy (ASX: PVE) shares could rise today after logging operations at its Gradizza-1 gas exploration well in the La Prospera licence north of Bologna, Italy, returned positive results.

Given the strong demand for gas in Italy, the greenfields discovery will find a ready market if proven commercial.

Gradizza-1 intersected a 10 metre gross gas column with 9 metres of net gas sand in the primary target area of the quaternary sand level.

The company has elected to run casing, complete the well and start the production test. Upon evaluation of the test results, production rates will be finalised.

It will report results of the testing once completed, which is expected to take about one week.

Gradizza

The Gradizza structure is located in the Ferrara province north of Bologna and consists in a sandstone Quaternary target at a total measured depth of 1,000 metres.

It is estimated to host Prospective Best Estimate (2C) Resources of 9 billion cubic feet of gas.

Drilling was de-risked through farm-outs to AleAnna Resources and Petrorep Italiana, who are paying a disproportional share of costs for drilling the well to earn their 10% and 15% interests respectively. Po Valley retains a 75% stake in La Prospera.

Analysis

With Italy dependent on imports for 90% of its gas needs, confirmation that the Gradizza-1 discovery is commercial would find a ready market.

The gas discovery could drive growth in Po Valley's share price today.

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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