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Po Valley Energy commencing gas production from Bezzecca well

The company recently extended its offtake contract with Shell Energy Italia.
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Production target of 30,000-35,000 cubic meters of gas per day

Po Valley Energy (ASX:PVE) is starting commercial gas production from the Bezzecca well east of Milan in Italy, following the testing of the primary production layers.

The company is planning to start production at 20,000-25,000 cubic meters per day up to the end of June, with production levels increasing to 30,000-35,000 from early July.

The Bezzecca gas field is within the prolific gas producing Po Valley region in northern Italy.

Gas from the now-producing Bezzecca 1 well is processed at the Vitalba processing plant and directly connected to the national grid.

Po Valley’s Italian subsidiary Saffron Energy (LON:SRON) recently extended its offtake contract with Shell Energy Italia to supply natural gas from Saffron’s Italian gas fields.

Saffron has been supplying Shell Energy Italia with natural gas for the last four years.

The new contract has been extended to October 2018, with an option to extend it for a further year to October 2019.

Po Valley had spun out its northern Italian gas assets to Saffron Energy by listing it on the London Stock Exchange Alternative Investment Market (LSE AIM).

Po Valley had a cash balance of $1.63 million as at 31 March 2017. Subsequently, it raised $1.18 million from a private placement in April.

The company’s share price increased circa 30% in the past one month, last trading at $0.03.

 



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Investors were impressed by the progress sending the shares up by 37% at one point, before they settled back down to a 14% rise to 3.45p

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