Investor Presentation

March 2008

SUMMARY AND RECENT HIGHLIGHTS

3 fields moving into production; production plant for Sillaro and Castello 30% complete and
pipeline connections agreed and contracted
2 large development targets prepared for drilling
10 new high priority gas exploration targets added to portfolio
Agreement with Edison to joint (50/50) ownership of Ossola license;
adds 2 large oil/condensate exploration prospects

Agreement with Edison to hand back 50% of SAlberta/SVincenzo license

(as part consideration of Ossola agreement)
Strategic initiative in Gas Storage (50% JV with Star Energy) established

Applications submitted for three new license areas:

Offshore Adriatic (AR 168-PY); contested

Cadelbosco di Sopra; contested
Grattasasso; uncontested

20m (A$34m) reservoir finance facility (BOS) in place

Continued strong Italian gas prices (A$13/000cf)
First commercial gas sales in 2008
Page 1

EXPANDING RESOURCE BASE

Po Valley core projects

3 Production
fields

2 Appraisal fields
10 Gas
Exploration
targets

Contested
Contested

2 Oil targets
1 Storage field
application

Page 2

PROJECT PIPELINE IPO 2004

Exploration

Castrocaro

Clodo

Malerba

Appraisal

Bezzecca

Development

Castello

Sillaro

Page 3

Production

SantAlberto

EXPANDED PROJECT PIPELINE AND OPERATIONS 2008

Applications

1 offshore gas
& 2 onshore
gas

AR 168-PY
(contested)

Cadelbosco
di Sopra

Exploration/
Appraisal

Development
Appraisal

Production

6 new licence
areas

2 development
targets

3 fields
moving into
production

Bezzecca
10 Gas targets
Gas - 2009 Wells

Castello
Sillaro
Fantuzza
(Sillaro
Miocene)
Bezzecca

(contested)

Grattasasso

Pioppette (16bcf)
F. Perino (45bcf)
Donnino (45bcf)

2 Oil targets

Rovagnate (200 mbbl res.)

Negrino (40 mbbl res.)

Page 4

SantAlberto
Castello
Sillaro
(Pliocene)

Storage

Preparing to bid
for new gas
storage licences
JV with Star

Energy Plc
(Bagnolo Mella bid)
Existing Storage
(Castello residual)

EXPANDED PROJECT PIPELINE AND OPERATIONS 2008

Applications

1 offshore gas
& 2 onshore
gas

AR 168-PY
(contested)

Exploration/
Appraisal

Development
Appraisal

Production

6 new licence
areas

2 development
targets

3 fields
moving into
production

10 Gas targets
Gas - 2009 Wells

Fantuzza
(Sillaro
Miocene)
Bezzecca

Cadelbosco
di Sopra

(contested)

Pioppette (16bcf)
F. Perino (45bcf)
Donnino (45bcf)

2 Oil targets

Rovagnate (200 mbbl res.)

Negrino (40 mbbl res.)

Grattasasso

Page 5

SantAlberto
Castello
Sillaro
(Pliocene)

Storage

Preparing to bid
for new gas
storage licences

JV with Star
Energy Plc
Bagnolo Mella bid
Existing Storage

SILLARO 1P RESERVES 10.4 BCF, 3.8 MILLION CF/DAY PRODUCTION

Top of Anticline
Multipool gas bearing
stack
3.8 million cf/day
=A$54k/day (A$20m p.a)

Page 6

SILLARO LOCATED 300m FROM ITALIAN GAS GRID

Page 7

SILLARO UPDATED GEOLOGICAL STRUCTURE

Page 8

SILLARO PRODUCTION TEST RESULTS

Logs identify three gas bearing levels
over 100m gross interval
PL2 C: 2,160 - 2,176m
PL2 B: 2,218 - 2,239m
PL2 A: 2,239 - 2,257m

Strong flow test results

PL2 C: 0.15 mcm/day (5/16choke)
PL2 B: 0.10 mcm/day (5/16choke)
PL2 A: 0.11 mcm/day (choke)

Very good pressure recovery

Gas quality >99.00% C1
(pure methane & dry)
Production test (Dec 2005)
Page 9

CASTELLO 2P 6.3 BCF, 2.7 MILLION CF/DAY PRODUCTION

Pinch out structure

Agnadello 1 drilled by
ENI produced 12.6 bcf
of gas
PVE successfully
drilled Vitalba 1 updip
San A1 and San A2
tested positive
2.7 million cf/day
= A$34k/day ($13m p.a)

Page 10

CASTELLO LOCATED 500m FROM ITALIAN GAS GRID

Page 11

CASTELLO UPDATED GEOLOGICAL STRUCTURE

Page 12

CASTELLO PRODUCTION TEST RESULTS

Logs identified three gas bearing levels
San A1: 1,561.4 - 1,565.0m
San A2: 1,577.5 - 1,580.0m
San A3: 1,612.3 - 1,613.2m
1,618.4 - 1,620.0m

San A3 test inconclusive

Strong San 1 & 2 tests:
flow of 0.08 mcm/day on choke

Good pressure recovery

Gas quality >99.00% C1
(pure methane & dry)

Attractive storage field

Production test (Jan 2006)

Page 13

GAS QUALITY
Delivery range
into SNAM grid

QUALITY IN PLACE
ELEMENT

SILLARO % CASTELLO %

Methane

98.98

99.06

Nitrogen

0.5

0.8

Carbon Monoxide

SNAM
Wobbe
Index
49 - 50
MJ/Sm3

47.31 - 52.33
MJ/Sm3

<0.01

<0.01

Hydrogen

<2

<2

Oxygen

0.05

0.08

0.6

Carbon Dioxide

0.03

0.02

H2O

Page 14

SANT ALBERTO TEST RESULTS

Logs identify two gas bearing levels

Flow of 0.08mcm / day on choke
this is the restricted flow for initial
operations

Good pressure recovery

Production concession application
previously in hands of operator
(Edison), now under direct control of
PVE as operator

Gas quality >99.00% C1

(pure methane & dry)
Production test (Nov 2005)
Page 15

SURFACE PLANT CONSTRUCTION ON SCHEDULE

Overall Progress versus Schedule

100%
90%

Schedule
Progress

Equipment
complete
on skids

80%

Installation ready

70%
60%
50%
40%
30%
20%
10%

0%
Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar- Apr- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec07
07
07
07
07
08
08
08
08
08
08
08
08
08
08 08
08

Page 16

SIGNIFICANT REVENUE FROM THREE FIELDS ALONE

Commercial gasflows from wells entering production will have an
annualised production rate of 7.5 million cf/day (when in full production)
Sillaro 1dir

= 1.3 million cf/day (1 prod. level only) drilled & tested

Sillaro 2

= 2.5 million cf/day (2 more prod. levels) ...to be drilled

Castello 1d = 2.7 million cf/day ..drilled & tested

S. Alberto 1d = 2.0 million cf/day 2009 targeted prod. start ..drilled & tested

Cashflows to commence in 2008. When all are in full annual production

(8.5 million cf/day), at prevailing prices =
AUD ~38 million annualised gross revenue
AUD ~35 million EBITDA

Page 17

EXPANDED PROJECT PIPELINE AND OPERATIONS 2008

Exploration/
Appraisal

Applications

6 new licence
areas

1 offshore gas
& 2 onshore
gas

AR 168-PY
(contested)

10 Gas targets
Gas - 2009 Wells

Development
Appraisal
2 development
targets

Fantuzza
(Sillaro
Miocene)
Bezzecca

Cadelbosco
di Sopra

(contested)

Pioppette (16bcf)
F. Perino (45bcf)
Donnino (45bcf)

2 Oil targets

Rovagnate (200 mbbl res.)

Negrino (40 mbbl res.)

Grattasasso

Page 18

Production

3 fields
moving into
production
SantAlberto
Castello
Sillaro
(Pliocene)

Storage

Preparing to bid
for new gas
storage licences
JV with Star
Energy Plc
Bagnolo Mella bid
Existing Storage

DEVELOPMENT FANTUZZA
Targeting 2,600m Miocene
structure ~40bcf / 1.15 bcm
(70% of entire field reserves)

Previously drilled and

tested by ENI

50km of seismic acquired

and processed

Fantuzza 1 site selected,

drilling approvals in process,
equipment purchased and
drilling rig under negotiation

Expected to spud in
late 2008

Sillaro surface plant and

pipeline sized to process
Fantuzza (2km away)

Page 19

DEVELOPMENT BEZZECCA
Targeting 45bcf / 1.27 bcm
structure

Previously successfully drilled

and tested by ENI in 1950s;
produced 5bcf/0.14bcm gas

50km of seismic acquired

Equipment purchased,

and processed confirmed

structure and drill site

drilling contract under

negotiation

Drilling approvals submitted, Expected to spud in

expected mid 2008
GRAPHIC UNDER REVIEW

Page 20

Q3 2008

EXPANDED PROJECT PIPELINE AND OPERATIONS 2008

Exploration/
Appraisal

Applications

6 new licence
areas

1 offshore gas
& 2 onshore
gas

AR 168-PY
(contested)

10 Gas targets
Gas - 2009 Wells

Development
Appraisal
2 development
targets

Fantuzza
(Sillaro
Miocene)
Bezzecca

Cadelbosco
di Sopra

(contested)

Pioppette (16bcf)
F. Perino (45bcf)
Donnino (45bcf)

2 Oil targets

Rovagnate (200 mbbl res.)

Negrino (40 mbbl res.)

Grattasasso

Page 21

Production

3 fields
moving into
production
SantAlberto
Castello
Sillaro
(Pliocene)

Storage

Preparing to bid
for new gas
storage licences
JV with Star
Energy Plc
Bagnolo Mella bid
Existing Storage

LEADING GAS/OIL TARGETS NORTH PO VALLEY

Page 22

PROJECT PIPELINE OF UNRISKED RESOURCES > 363 BCF / 10.3 BCM +

Resource Estimates

Gas P50 bcf

Depth (m)

Licence Area

Casa Rossa

77

4,300

Podere Gallina

Ariano

53

2,500

La Risorta

Fondo Perino

45

2,700

Podere Gallina

Donnino

45

2,200

Opera

D. Delle Anime

42

2,600

La Risorta

Correggio "Flanks"

30

1,500

Cadelbosco Di Sopra

Channel system

25

1,500-2,500

Cadelbosco Di Sopra

Pioppette

16

1,100

La Prospera

Corcreva

12

1,250

La Prospera

Cembalina

10

1,200

Podere Gallina

Barona

2,600

Opera

Terra del Sole

1,100

Terra Del Sole

Total: 363

Page 23

OIL PROSPECTS
The Po Valley and Adriatic extension is a prolific hydrocarbon province, with a
number of significant commercial oil/condensate discoveries.
In the past year the company has progressively extended its Italian gas
portfolio to include a number of significant oil prospects:
Smaller proven but undeveloped former ENI discoveries
(4 ranging from 1 -10 million bbl); some still contested applications
Larger prospective exploration targets
These prospects represent a significant value enhancing opportunity for the
company, made possible by the
Ongoing licence releases by ENI following the 1997 deregulation
the industry
Managements deep understanding of the Po Valley regions prospectivity.

Page 24

HISTORY OF OSSOLA LICENSE APPLICATION

PVE and Edison filed in competition when released by ENI
PVE awarded 100%; Edison legally challenged Ministrys decision
Court found Ministry had made an administrative oversight in not providing
sufficient explanation for its decision

However, to prevent prolonged litigation between the two companies, PVE and
Edison have agreed to a 50/50 sharing of the licence
Field owned 50/50
PVE is initial operator; operatorship switches to Edison at first drilling
As part consideration, Edison has released its 50% of SVincenzo licence (and
operatorship) back to PVE. Edison retains a 2.5% royalty interest only

Agreement now being processed by Ministry (1-2 months)

Page 25

OSSOLA / ROVEGNATTA 200 MILLION BBL PROSPECT

ENIs Villa Fortuna field 30km west of Milan has produced (to date)
188millionbbls of condensate and 70bcf of gas.
Po Valley Energy has defined a 200 million bbl condensate/gas prospect in its
Ossola licence (50% PVE)
50km from Villa Fortuna
4,500m depth
Surface area 10-12km2
Clear seismic foot print
Outcropping section to the north (Alps thrust wedge)
Also defined in Ossola license is a 40 million bbl oil/condensate prospect in Ossola
licence at 6,000m depth

Page 26

ROVAGNATE PROSPECT

ROVAGNATE TIME MAP

Page 27

ENIS TRECATE-VILLAFORTUNA EXAMPLE

Location:

30km west of Milan (50km from Rovagnate)

Discovery:

1984

Original Oil in Place:

300 million bbls

Production to Date:

188 million bbls of condensate + 70bcf of gas

Production:

Initial Rate 82,000bbls per day

Current Production 6,000bbls per day

Oil Gravity:

42 - 45 API

Transport Costs:

US$ ~ 1/bbl

Page 28

EXPANDED PROJECT PIPELINE AND OPERATIONS 2008

Exploration/
Appraisal

Applications

6 new licence
areas

1 offshore gas
& 2 onshore
gas

AR 168-PY
(contested)

10 Gas targets
Gas - 2009 Wells

Development
Appraisal
2 development
targets

Fantuzza
(Sillaro
Miocene)
Bezzecca

Cadelbosco
di Sopra

(contested)

Pioppette (16bcf)
F. Perino (45bcf)
Donnino (45bcf)

2 Oil targets

Rovagnate (200 mbbl res.)

Negrino (40 mbbl res.)

Grattasasso

Page 29

Production

3 fields
moving into
production
SantAlberto
Castello
Sillaro
(Pliocene)

Storage

Preparing to bid
for new gas
storage licences
JV with Star
Energy Plc
Bagnolo Mella bid
Existing Storage

GAS STORAGE NEW STRATEGIC INITIATIVE OF BUSINESS

Italian gas storage market
Leader STOGIT (ENI subsidiary)
Becoming a critical asset in a constrained supply market
Government pushing new development; 5 new storage licenses being released

Po Valley + Star Energy JV

Star Energy subsidiary of Petronas (post 400m takeover)

Specialist UK storage operator; expanding into continental UK
One operating and two storage fields
50 / 50 JV Star Energy contributes equal to PVEs historic costs on storage
Completed detailed technical review of all 5 available licences
Application submitted for Bagnolo Mella storage field

Po Valley Energys Castello field is capable of being developed as a gas storage

field (post production of existing reserves)

Page 30

ITALIAN MARKET REMAINS IN TIGHT SUPPLY

USD or AUD/
000 cubic feet

Dec 07 Prices

EUR/
cubic metre

EUR = 0.28/cm
AUD = $13.05/000cf
USD = $ 11.35/000cf

0.30
0.25

16.00

EUR prices

0.20

12.00
AUD prices

0.15

8.00

USD prices

0.10
4.00
0.05

Dec-07

Sep-07

Jun-07

Mar-07

Dec-06

Sep-06

Jun-06

Mar-06

Dec-05

Sep-05

Jun-05

Mar-05

Dec-04

Sep-04

0.00
Jun-04

0.00

Source: ENI gas price release, European Central Bank and Reserve Bank of Australia average monthly exchange rates

Page 31

NET WELL HEAD PRICE TO ENTRY POINT CASTELLO

EUR cents per cubic Metre
31.8

32
30

30.0

1.8
Entry Point
Tarvisio
Transport
& Premium

28

0.2

(0.4)

Gas
Storage
Allocation

Pipeline
entry
charges
SNAM

31.6

26
24
22
20
18
ENI Gas
Release price

Price
normalised for
Transport

Page 32

Wellhead
price

SUMMARY: 2008 TARGETS CASHFLOW AND RESERVE GROWTH

Commencement of Castello and Sillaro gas sales
Drilling of one production and two exploration wells
Full grant of 9 new licences
Promote resources to reserves with drilling program
Feasibility studies on new gas and oil/condensate targets
Expansion of storage portfolio

Page 33

APPENDICES

APPENDICES

Page 34

GAS RESERVE SUMMARY 105 BCF / 3 BCM 2P RESERVES

Field Names

Exploration Permit

1. Sant Alberto

San Vincenzo

2. Sillaro

PVE
Interest

Remaining Recoverable Reserves

Proven 1P

Probable 2P

Possible 3P

PVE
Total

50%

6.4

7.1

8.6

22.1

Crocetta

100%

10.4

30.0

16.3

56.7

3. Castello

Cascina san Pietro

100%

4.6

1.7

0.0

6.3

4. Bezzecca

Cascina san Pietro

100%

15.2

29.2

0.9

45.3

36.6

68.0

25.8

130.4

Total Development

Development Field Reserves and Resources (as estimated by consulting geologists, Ecopetrol)

Undiscovered Resources

GAS

OIL

P50 bcf

P50 mbbl

2009 New Gas Prospects

Other Gas
Rovagnate Oil
Other Oil

106
202

Total Development

308

75
25

Page 35

100

BALANCE SHEET
Balance Sheet (unaudited)

31 Dec 07 (A$)

Current Assets

Clean balance sheet

Solid cash position

Cash on Hand

5.97

Receivables

2.96

Total Current Assets

8.93

Non Current Assets

25m Bank of Scotland Reservoir finance

facility completed

Cash inflows expected end 2008

Resources Property

34.10

Plant and Equipment

3.53

Receivables

1.62

Other

0.04

Total Non Current Assets

39.30

Total Assets

48.23

Current Liabilities
Payables

3.43

Provisions

0.23

Total Current Liabilities

3.66

Total Liabilities

3.66

Net Assets

44.57

Equity
Issued Capital
Reserves

Page 36

52.12
0.69

Accumulated Losses

-8.24

Total Equity

44.57

VALUATION MULTIPLE COMPARISON

RESERVE BASED VALUATION MULTIPLES
Enterprise Value AUD million / 2P (Proven and Probable billion cubic feet Equivalent)
Enterprise
BCFE Value A$m
Eastern Star

4.7

Aust Worldwide

4.6

Salinas Energy

4.0

Beach Petroleum

3.2

Arc Energy

Avg
= 2.93

2.1

Po Valley

1.5

Marion Energy

1.1

Odyssey

0.8
0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

55

259

342

1,583

31

123

505

1,603

162

344

105

152

290

319

29

23

Avg 202

5.0

Avg 608

Source: Foster Stockbroking estimates 16/1/08; IRESS

Page 37

SHARE REGISTER
Shareholders

Shares (m)

Michael Masterman

21.5

23.8

Harbinger Capital

16.2

17.9

Hunter Hall

13.9

15.4

Byron Pirola

12.0

13.3

3.5

3.9

23.3

25.7

90.4m

100.0

John Hancock Mutual Fund

Other Investors
TOTAL
Share Price (29/2/2008)
Market Capitalisation

A$1.65
A$149m

Page 38

BOARD & SENIOR MANAGEMENT

Mr Graham Bradley
Non-executive
Chairman

Former CEO - Perpetual,

Blake Dawson Waldron
Director Singtel
Chairman HSBC,
Stockland, Boart
Longyear

Mr Doug Colkin
Chief Operating Officer

17 years with Enterprise Oil

including GM for Italy
Senior roles with Getty Oil,
Ranger Oil, BP
Petroleum Geologist with 34
years experience

Mr David McEvoy
Non-executive
Director

33 years Exxon/Esso
Director - Woodside
Petroleum, AWE,
Innamincka Petroleum

Mr Franco Benelli
Consulting Geologist

35 years with ENI

Over 300 successful wells
Former ENI VP Exploration

Dr Byron Pirola
Non-executive
Director

20 years McKinsey/Port
Jackson Partners Limited
Founder and major
shareholder

Dr Pierluigi Vecchia
Program Manager,
Geologist

10 years with NorthSun/PVE

Senior consulting geologist
for E&P operators in Italy

Mr Michael
Masterman
Chief Executive &
Managing Director

8 years McKinsey
7 years CFO Anaconda
Nickel
Executive Chairman
Caspian Holdings Plc
Founder and major
shareholder

Mr Dom Del Borrello

Chief Financial Officer &
Company Secretary

15 years in Finance
Treasurer Iluka Resources
& Anaconda Nickel
Goldman Sachs (London)

Mr Gianluca De Rosa
Geophysicist

Page 39

10 years with ENI

Exploration & Asset
appraisal

SUMMARY OF GAS PLAY TRAP TYPES

APPENDICES

Page 40

Disclaimer

This presentation should not be considered as an invitation or recommendation to purchase

securities in PVE.
PVE has not audited or investigated the accuracy or completeness of the information,
statements and opinions contained in this presentation. Accordingly, to the maximum extent
permitted by applicable laws, PVE makes no representation and can give no assurance,
guarantee or warranty, express or implied, as to, and take no responsibility and assume no
liability for, the authenticity, validity, accuracy, suitability or completeness of, or any errors in
or omission, from any information, statement or opinion contained in this presentation.
You should not act or refrain from acting in reliance on this presentation material. This
overview of PVE does not purport to be all inclusive or to contain all information which its
recipients may require in order to make an informed assessment of PVEs prospects. You
should conduct your own investigation and perform your own analysis in order to satisfy
yourself as to the accuracy and completeness of the information, statements and opinions
contained in this presentation and making any investment decision.
The contents of this presentation are confidential. This presentation is being provided to
you on the condition that you do not reproduce or communicate it or disclose it to, or discuss
it with, any other person without the prior written permission of PVE.

Page 41