Po Valley (ASX: PVE) releases March 2023 Quarterly Report, mentions agreement with BP

Highlights

• Po Valley and BP have signed an 18-month contract (effective 1 April 2023), with potential of extension
• The total exploration permit for the Po Plain located Selva onshore natural gas field measures over 500 sq. km
• During the quarter, PVE raised AU$100,000 from the exercise of options (exercise price AU$0.05)

Po Valley Energy Limited (ASX: PVE), an Australian listed company developing its natural gas fields in Italy, recently released its Quarterly Activities Report for the March 2023 period. One of the biggest highlights is Po Valley Energy's offtake agreement with BP Gas Marketing. This relates to PVE's Selva Malvezzi Production Concession (over 80 sq. km) located in the Emilia Romagna Region.

Po Valley issued shares during the March 2023 quarter upon exercise of options. Below are more details on these two aspects and other key events included in PVE's Quarterly Report.

Source: Company update

Podere Maiar plant and pipeline construction

Podere Maiar well, which is part of the Selva Malvezzi Concession, is in development stage following the successful well test and flow rates. During the reporting quarter, the joint venture operator PVO (Po Valley Energy's wholly owned subsidiary) duly abided by all the obligations of the contract with TESI (constructor). As per PVE, the construction program is on track, and first gas from the well is expected in the second quarter of CY2023.

Source: PVE ASX Investor Presentation

Agreement with BP Gas Marketing

PVO signed a Gas Sales Agreement in February this year with BP Gas Marketing. The latter company is an indirect, wholly owned subsidiary company of BP International. Under the agreement -- made with respect to impending gas production from the Podere Maiar – 1 facility -- PVO and its partners will provide approximately 37 million standard cubic metres of gas. The price of this gas supply will be linked to “Heren PSC day ahead mid” price assessment (Italy).

Issue of shares

In the March 2023 quarter, PVE issued two million shares upon the exercise of options at an exercise price of AU$0.05 expiring 21 July 2023. The exercise of the options resulted in proceeds of AU$100,000 during the quarter. Also, post the quarter the company issued a further two million shares resulting in additional AU$100,000.

Source: Company update

The company's cash reserves as at the last day of the quarter amounted to over AU$1.4 million. PVE's ASX-listed shares traded at AU$0.078 at the time of writing on 5 May 2023.