Podere Gallina Licence, Onshore Italy (Selva)

Introduction

In July 2017, United Oil & Gas (UOG) completed a farm-in agreement with Po Valley Energy (PVE) to acquire a 20% economic interest in the Podere Gallina Licence in the Po Valley region of Italy. The licence contains the currently shut-in Selva gas-field as well as exciting exploration opportunities. The Podere Maiar-1 (PM-1) well was completed in December 2017, and successfully found a commercial gas accumulation updip of the previous wells on the Selva field.

Selva Field and the Podere Maiar 1 well

• The Selva Gas Field produced over 83 Bcf before being shut-in in 1984, when it was still producing at >0.9Bcf per year with no apparent water-cut.
• The Podere Maiar 1 (PM-1) well targeted the same productive reservoirs, updip of the previous wells
• The PM-1 well was completed in December 2017 after encountering 41m of net gas pay in excellent quality C1 and C2 sandstone reservoirs of the Pliocene Porto Garibaldi Formation.
• The well was tested in January 2018. The lower, C2 reservoir, reported a peak flow-rate of ~150,000scm/d (875boepd) on a 3/8” choke. On a separate test, the upper C1 reservoir, flowed at a peak rate of ~130,000scm/d (750boepd), also on a 3/8” choke.
• Although there is limited seismic data over the field, the large number of wells on the structure constrain the reservoir edge, and coupled with the recent PM-1 well results indicate gross base-case recoverable volumes of 18Bcf (3.1mmboe).

Podere Gallina Exploration

• As well as the Selva Field, there are further material exploration opportunities within the Podere Gallina licence
• East Selva is along the same play trend as the Minerbio and Selva Fields, separated from Selva by a structural saddle
• The recent PM-1 results have helped de-risk this structure, and a 3D seismic to cover this and the other prospectivity in the Selva area is planned once the Selva Field is in production
• Work by CGG on the East Selva lead indicates it holds base-case recoverable resources of 35 Bcf

Po Valley Energy as Operator

• PVE have operated in Italy for the last 10 years, and are experienced in Italy’s regulatory process across the full-cycle of the oil and gas business. There is an experienced local management team in place