Po Valley starts production at Italian gas well

ASX-listed Po Valley Energy on July 5 announced the commencement of gas production at its 63% owned Podere Maiar-1 (PM-1) gas facility in the Selva Malvezzi production concession, located in the Po Valley plains of northern Italy. This marks a significant milestone for the company as it transitions from an exploration company to a gas producer.

Under an 18-month gas supply agreement, PM-1 is supplying the gas produced to BP. The successful sign-off from UNMIG (Unione Nazionale Miniera Idrocarburi Gassiferi), the governing body responsible for monitoring and regulating hydrocarbon activities in Italy, and the fire department ensured compliance with all necessary safety and operational requirements.

Earlier this month, the construction and grid connection of PM-1 to the SNAM grid in Italy were successfully completed. These activities were accomplished on schedule and within a 3% budget variance, Po Valley said.

“This is a major milestone for Po Valley, and marks our successful transition from an exploration company to a gas producer. The realisation of this goal is a culmination of the team’s hard work and the vision of the company. Following this crucial milestone of first gas from PM-1, we are well-positioned to pursue the exploration of nearby lookalike wells,” said Po Valley chairman Kevin Bailey.

The Selva Malvezzi concession is owned by joint venture partners Po Valley (63%) and Prospex Energy (37%). Po Valley in August 2022 announced it had received firm commitments to raise A$4.5mn ($3.13mn) via a share placement to develop the Podere Maiar gas field.