Po Valley Energy Advances Selva Malvezzi Drilling with Record August Gas Revenue

Regulatory Progress on Selva Malvezzi Drilling

Po Valley Energy (ASX:PVE) has cleared a significant hurdle in its plan to expand production at the Selva Malvezzi gas field in Italy, with the Ministry of Environment and Energy Security (MASE) confirming the Environmental Impact Assessment (EIA) for its four-well drilling program is admissible. This triggers a 60-day public consultation period starting 1 September, during which stakeholders can raise observations. The company submitted the EIA documentation before the end of June and is preparing to address any queries that arise.

Record Gas Sales Revenue in August

August marked a milestone for Po Valley, with the Podere Maiar well producing approximately 2.5 million standard cubic metres (scm) of gas at an average realised price of €0.67 per scm. This generated gross revenue of around €1.67 million for the month, the highest monthly revenue since production began over three years ago. Po Valley's share of this was about €1.05 million from 1.58 million scm of gas. The strong prices reflect supportive European gas market fundamentals, benefiting the company’s cash flow ahead of its planned drilling campaign.

Securing Local Gas Supply with Hera Trading

Po Valley has also locked in a new 12-month gas sales agreement with Hera Trading S.r.l, effective 1 October 2026. This contract follows last year’s successful agreement and commits the joint venture partners; including Po Valley Operations Pty Ltd, PXOG Marshall Limited, and UOG Italia Srl; to supply approximately 28.2 million scm of gas over the thermal year ending 1 October 2027. Pricing remains linked to the Italian Gas Index (IG INDEX GME), ensuring market-aligned revenues. The contract does not include an automatic extension but requires discussions at least 30 days before expiry.

Implications for Po Valley’s Growth Strategy

Chairman and CEO Kevin Bailey highlighted the importance of August’s revenue boost in funding the upcoming drilling campaign, which is contingent on the successful completion of the EIA process. The renewal of the gas sales agreement with a reputable local offtake partner underscores Po Valley’s commitment to supporting the regional economy in Bologna and surrounding areas. While the 60-day consultation introduces some uncertainty around project timing, the company remains on track to commence drilling in 2027, aiming to expand production capacity and capitalise on strong gas prices.