AGM Presentation May 2018 Company Overview Po Valley Energy - - PowerPoint PPT Presentation

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AGM Presentation May 2018 Company Overview Po Valley Energy - - PowerPoint PPT Presentation

Feb 06, 2023 458 likes •704 views

AGM Presentation May 2018 Company Overview Po Valley Energy Limited (PVE) is an Oil & Gas exploration and development company with a portfolio of hydrocarbon assets in northern Italy. Listed on the Australian Stock Exchange Selva Po

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AGM Presentation

May 2018

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Company Overview

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Po Valley Energy Limited (PVE) is an Oil & Gas exploration and development company with a portfolio of hydrocarbon assets in northern Italy.

Selva 2C 17 Bcf Onshore, low cost Teodorico 2P 36 Bcf 2C 11 Bcf Offshore, high potential Torro Del Morro 150 – 200 MMbbls Prospect

Listed on the Australian Stock Exchange Ticker: ASX:PVE Market cap: AUD20m1

Po Valley region, Northern Italy

Michael Masterman – Chairman & CEO

  • Founding shareholder and GM Fortescue Metals Group
  • CEO W Resources, CFO Anaconda Nickel
  • 8 years McKinsey & Company

Kevin Bailey – Non-Executive Director

  • Over 30 years’ corporate finance experience
  • Founder of Shadworth Financial Group
  • Member of the Order of Australia for philanthropy

Byron Pirola – Non-Executive Director

  • 30 years’ experience in strategy consulting
  • Co-Founder of Po Valley Energy
  • Director of Port Jackson Partners Limited

1 – Market cap is ex share distribution of 1 CORO for every 5.9 PVE shares

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Summary of Assets

2 Development AR94PY (Teodorico) 2P 36.5 Bcf 2C 10.6 Bcf Podere Gallina (Selva) 2C 17.0 Bcf Exploration Torre Del Morro (most likely 150-200 bbls)

PVE has three large gas and oil assets - offshore Teodorico and

  • nshore Selva gas developments, and the large Torre del Morro
  • il/gas condensate exploration play
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Competitive Advantages

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Natural gas development in Northern Italy High value, low cost gas portfolio 2P 36.5 Bcf 2C 21.3 Bcf Oil prospect 150 – 200 MMbbls Operating in the region since 1997 Proven track record 91% gas imported, leading to 10% premium gas price Favourable market Deep managerial and technical capability People

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Capital Restructuring

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Successfully spun off Coro Energy plc and distributed shares to PVE shareholders

PVE Shareholders

Ownership structure, post spin-off:

Distributed 1 Coro share for every 5.94 PVE shares owned

Selva Teodorico Torre d. Morro Resource 2C 17.1 Bcf 2C 10.6 Bcf TBD Reserve

  • 2P 36.5 Bcf

TBD SKR Valuation1 AUD23.1M AUD51.7M AUD0.2m Sound Energy Holdings Italy Ltd Northsun Italia S.p.A Equity raising £14m

1 – Independent Specialist Report on the petroleum assets of PVO, SRK Consulting (Feb 2018)

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PVE Team

5 Michael Masterman Chief Executive Officer

‒ GM Fortescue Metals Group ‒ CEO W Resources, CFO Anaconda Nickel ‒ 8 years McKinsey & Company

Daniele Marzorati Engineering & Operations

‒ 30 years’ experience with Italian based oil & gas incumbents, ENI / Stogit

Pierpaolo Poncia Approvals & Geology ‒ 20 years’ experience Giorgio Bertuzzi Exploration & New Projects

‒ 30 years’ experience in international exploration management with ENI

Gianluca De Rosa Senior Geophysicist

‒ 20 years’ experience in the Italian oil & gas industry

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Italy – Favourable Market Dynamics

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7.6 7.1 5.7 27.7 2.6 4.9

Algeria Libya Qatar Russia Norway Netherlands

91% of Italian gas consumption needs to be imported

60.7, 91% 6.1, 9%

Total 68.0 Gas Consumption (Bscm)

€0.20 – 0.22 / scm (AUD9.1 – 10.0 / Mcf)

Favourable domestic prices

Geopolitical disruption, a key risk to supply

Imports Exports

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Teodorico Selva Torre Del Moro Assets

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Teodorico – Large scale offshore

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EXPLORATION PERMIT AREA: 506 sqkm PRODUCTION CONCESSION AREA: 108 sqkm SEISMIC DATA: 118 sqkm 3D purchased and reprocessed

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Development Plan

  • 2 wells will be drilled from “Teodorico”

platform

  • Three legs platform @ about 12 miles
  • ffshore Ravenna; ~ 30 m water depth
  • Gas production sent to Naomi–Pandora

Eni platform through 12 kilometers sealine

  • Water separation on Teodorico platform,

gas treatment and compression in the Eni network

Teodorico - Development Plan

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Gas Production (MMscm)

  • First Gas

3Q 2020

  • Capex

AUD 82.7m

  • Total FCF

AUD 144.6m

  • NPV (10%)

AUD 37.1m1

  • IRR (real)

21%

1 – Based on 2P Reserve only

Source – Independent Specialist Report on the petroleum assets of PVO, SRK Consulting (Feb 2018)

50 100 150 200 2018 2022 2026 2030 2034 2038 MMscm

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Teodorico Development

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Naomi Pandora Teodorico Tripod 12km tie line

Italian National Grid

Pipeline to onshore Italy

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Teodorico Selva Torre Del Moro Assets

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Drilling success at Selva

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Drilling Podere Maiar 1dir

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Selva Production Concession

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Pipeline (1000 mt) SNAM pipeline Tie-in

Selva Development

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Tie-in to 70bar SNAM pipeline 1,000 m away from Podere Maiar well site

Production Well

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Development Plan

  • G&G work carried out in 2012 to assess the

Selva gas field residual potential

  • Podere Maiar 1dir well (2017) resulted gas

bearing in two pliocenic sandy layers

  • Production concession «Selva Malvezzi»

submitted on May 2018

  • Planned acquisition of 3D seismic data for

additional potential (East Selva – Riccardina – South Selva flank)

Selva - Development Plan

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Gas Production (MMscm)

  • First Gas

2Q 2020

  • Capex

AUD 3.7m

  • Total FCF

AUD 86.2m

  • NPV (10%)

AUD 35.2m

  • IRR (real)

120%

Note: Shown on a 100% equity basis Source – Independent Specialist Report on the petroleum assets of PVO, SRK Consulting (Feb 2018); company financial model

25 50 2018 2022 2026 2030 2034 2038 MMscm

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Teodorico Selva Torre Del Moro Assets

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Oil Biogenic Gas Thermogenic gas

PO PLAIN NUMIDIAN CALABRIAN ARC PO PLAIN

Villafortuna Trecate Malossa Cavone Caviaga Settala Vallezza Agostino- P.Garibaldi Emma W Candela Gagliano Sillaro, Selva, S.Alberto Gradizza Bezzecca, Vitalba Teodorico Bagnolo, Ravizza Torre del Moro

Large Hydrocarbon Provinces – holds the two largest oil fields in Europe

Gas Oil

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Luna

NILDE IBLEAN PLATEAU IBLEAN PLATEAU

Ragusa, Noto Gela, Ragusa, Vega

VAL D’AGRI

Monte Alpi Tempa Rossa SOUTH ADRIATIC Aquila Miglianico Pisticci

CENTRAL ADRIATIC

Ombrina

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TORRE DEL MORO LICENCE HOLDS A 150 – 250M BBL OIL PROSPECT

  • The “Torre del Moro” exploration

licence (100% PVE) contain a Mesozoic carbonate structure (oil prospect) with strong analogy to ENI Villa Fortuna field (300m bbls)

  • 1 well drilled (Sarsina-1) with oil

15km distance in the same formation

  • Relatively shallow depth

structure (top at 3,500/4,000mt)

  • Seismic analysis indicates large

structure with clear trap

  • PVE obtained EIA and is currently

expecting the final grant

  • PVE 2D seismic data licence of use:

86,4 sqkm (cost AUD$570k)

Torre del Moro

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Torre del moro licence is a 150 – 250m bbl oil prospect target

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“Torre del Moro” geological sketch

Proj.16km

Location: 30km west of Milan Discovery: 1984 Original Oil in Place: 300 million bbls Production to Date: 220 million bbls of condensate + 70bcf of gas Production: Initial Rate 82,000bbls/day Current Production: 5,000bbls/day Oil Gravity: 42 - 45º API Transport Costs: US$ ~ 1/bbl

Torre del Moro

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Villafortuna Analogous Structure

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Independent Valuation

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Independent Expert Valuation

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SRK Consulting’s Independent Specialist Report values the petroleum assets held by PVE at AUD 75.0m

Project Asset Type Method Low (AUD m) High (AUD m) Preferred (AUD m) Teodorico Development DCF – 2P Reserve 24.5 53.8 37.1 Comparable transaction – 2C 7.2 21.6 14.6 Selva (net attributable) Exploration Comparable transactions – 2C + Prospective Resources 11.8 35.4 23.2 Torre del Moro Exploration Comparable transactions – Ex potential 0.2 0.2 0.2

Total 43.7 110.9 75.0

Source – Independent Specialist Report on the petroleum assets of PVO, SRK Consulting (Feb 2018); valuation undertaken in EURO and converted using EUR-AUD 1.60 exchange rate