Po Valley wins more exploration rights in Italy

Po Valley Energy Ltd., Perth, will expand its exploration footprint in northern Italy following the formal grant of a 6-year exploration licence in the Podere Gallina permit near Bologna.

Rick Wilkinson
OGJ Correspondent

MELBOURNE, Jan. 29 -- Po Valley Energy Ltd., Perth, will expand its exploration footprint in northern Italy following the formal grant of a 6-year exploration licence in the Podere Gallina permit near Bologna.

Po Valley has already defined three priority gas targets in the 506 sq km region: Fondo Perino, Cambalina, and Casa Rossa.

The most advanced of these regions, Fondo Perino, is delineated as a faulted anticline with a target depth of 1,500 m. It could contain about 22 million bcf of gas on P50 estimates.

All three prospects are expected to have high-quality gas and benefit from close proximity to the Italian pipeline grid as well as from strong Italian gas prices.

The first well is scheduled for mid-2010.

Po Valley has also been granted a preliminary award of the Grattasasso exploration permit near Modena in the central region of the Po Valley. This permit lies next to the company's recently awarded Cadelbosco di Sopra permit and contains the existing Ravizza oil field, which has a P50 estimate of 5 million bbl.

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