Po Valley Energy's (ASX: PVE) Selva (PM-1) Project advancing towards production - Kalkine Media

Highlights

• PVE's asset Selva Malvezzi Production Concession is set to add to the domestic gas supply of Italy, says Po Valley Limited
• Construction of the Podere Maiar-1 gas facility is complete, with the facility ready to deliver gas to the SNAM grid
• Po Valley Energy has recently recovered €757,000 performance bond funds that it had deposited with SNAM

Po Valley Energy (ASX: PVE) -- an Australian listed gas explorer that is advancing towards adding to domestic gas production in Italy -- has its Selva Malvezzi Production Concession in the Po Valley area. The area -- north of Italy -- has the potential to provide a major boost to the domestic gas supply of the country, which is heavily reliant on energy imports.

There have been many recent developments -- including the completion of the Selva Malvezzi Production Concession and the recovery of performance bond funds -- at the Selva Malvezzi Project. Let us take a quick look.

Selva Malvezzi Production Concession

The asset, which is an onshore natural gas field, would add to the domestic gas supply of Italy, PVE highlights. The total exploration permit spans more than 500 sq km, out of which over 80 sq km falls in the Selva Malvezzi production concession (PVE holds the majority interest). The company has stated bringing the Podere Maiar-1 (PM-1) well into production as its immediate goal.

Source: Company update

Gas plant construction

The construction of the PM-1 gas facility is now complete, which was announced by Po Valley Energy last month. The announcement also stated that PM-1 is prepared for commissioning and first gas delivery. SNAM connections are fully achieved and the facility is ready to deliver gas to the SNAM grid (Italy).

Po Valley also highlighted that the construction of the facility and the grid connection activity was largely completed in line with the predetermined duration and budget. The company's board lauded this achievement in the view of global supply chain concerns.

Source: Company update

Recovery of bonds

In late May 2023, Po Valley Energy recovered €757,000 performance bond funds from SNAM. This was enabled by successful completion of the pipeline tie in connection, besides other elements like the Gas Sales Agreement and transportation arrangements. Alongside this development, PVE also informed that final Ministry approval after final operation and safety inspection is awaited for the first gas supply.

It was also noted that the approval was delayed due to external factors which included flooding throughout the Emilia Romagna region. That said, the company asserted that its gas treatment facility for first gas is unaffected by flooding.

PVE shares, listed on the ASX, traded at A$0.060 at the time of writing on 16 June 2023.