Po Valley Energy targets 2027 start for four-well Selva Malvezzi drilling, pending environmental approval

Po Valley Energy (ASX:PVE) says it plans to begin a four-well drilling program at its Selva Malvezzi gas concession in northern Italy in 2027, but only if the Italian environment ministry approves the project's environmental impact assessment (EIA).

The company filed the EIA on 26 June 2026. On 4 September it said the ministry had found the filing admissible, which opened a 60-day public comment period from 1 September. The company has not given a decision date. Chairman and CEO Kevin Bailey said approval "will allow Po Valley Energy to commence an ambitious drilling program in 2027". No more specific timing has been stated.

Why it matters

Selva Malvezzi is the company's producing asset. Po Valley's subsidiary operates it with a 63% working interest; Prospex Energy Group holds the other 37%. The Podere Maiar 1 (PM-1) well has produced since July 2023, at about 80,000 standard cubic metres a day according to the company.

The company's own tables show that the reserves booked at PM-1 are close to exhausted. Cumulative output of 72.9 million standard cubic metres now exceeds the 2022 certified P1 reserves. The tables list 1.07 bcf of remaining 1P reserves, net to Po Valley, so new wells would be needed to sustain output. If the program succeeds, it would add production beyond PM-1. The company has not said how much the wells might add.

The four wells would target gas resources the company lists as contingent or prospective, including Selva Malvezzi 1d with a best estimate of 21.9 bcf and Riccardina at 24.4 bcf. Both figures are prospective and unproven.

Where the company stands

• FY2025 revenue was €7.05m and net profit after tax €2.72m, up from €2.3m.
• June-quarter PM-1 output was 7.02m scm at €0.48/scm; the company reported liquidity of €8.76m.
• A new 12-month gas sales agreement with Hera Trading starts on 1 October 2026.

The company also holds other assets, including a 100% interest in the Bagnolo in Piano oil discovery (27.3 mmbbl contingent, P50) and the Teodorico offshore concession, whose strategic options are still being evaluated.

What is uncertain

Approval is not assured, and the 2027 start depends on it. The company said in March that 3D seismic processing was under way, and in June that it was nearly complete. Interpretation will follow, and that work is meant to inform where the wells go. Seismic results are due to market in the third quarter of 2026. The company has not disclosed drilling costs or how it would fund four wells.