Po Valley Energy Progresses Selva Malvezzi Permitting and Signs New GSA

Po Valley Energy (ASX: PVE) has moved its planned four-well Selva Malvezzi drilling program into the public consultation stage after Italy’s Ministry of Environment and Energy Security (MASE) confirmed the admissibility of its environmental impact assessment (EIA).

The company also recorded its highest monthly gas sales revenue in more than three years of continuous production during August, when gross production was measured in standard cubic metres (scm) and the average realised price reached €0.67/scm.

Gross production from the Podere Maiar well reached about 2,500,000scm for the month, generating approximately €1.67 million in gross revenue, of which Po Valley’s 63% share was about 1,575,000scm and €1.0521m.

Po Valley has additionally signed a new 12-month gas sales agreement (GSA) with Hera Trading from 1 October 2026, extending the existing local offtake relationship for another year.

Permitting Consultation Phase

The 60-day public observation period for the Selva Malvezzi EIA began on 1 September after Po Valley submitted the required documentation before the end of June.

MASE’s confirmation allows the process to move into consultation, with Po Valley’s technical team prepared to respond to queries that may arise during the observation period.

The company is seeking approvals for four additional wells at Selva Malvezzi and hopes to commence the drilling campaign in 2027 once the permitting process has been completed.

“The record month of August has been a welcome addition to our treasury as we accumulate cash to fund our drilling campaign for four additional wells that we hope to commence in 2027 after we have received permitting from MASE,” chief executive officer Kevin Bailey said.

“Renewing the GSA with a local offtake partner of Hera's standing, based in Bologna, continues to demonstrate our commitment to the local economy."

New Gas Sale Agreement

The new GSA has been signed through wholly owned subsidiary Po Valley Operations (PVO), acting as operator alongside project partners PXOG Marshall and UOG Italia, with Hera Trading as the buyer.

Running from 1 October 2026 to 1 October 2027, the contract covers an estimated 28,185,300scm of gas over the 12-month thermal year, with no automatic extension right.

Gas pricing will be linked to the specified Day-Ahead Italian Gas Index mechanism, while PVO will manage contractual matters including nominations, transportation costs, pricing and revenue calculations.

PVO must provide provisional monthly, weekly, and daily supply nominations, with actual binding nominations due by 5pm Rome time on any day and subject to a tolerance of plus or minus 10%.

The GSA includes a detailed invoicing and settlement process for gas sales and transport costs, with payment completed 20 days after month-end, while the parties are required to begin any extension discussions at least 30 days before 30 September 2027.