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Po Valley Energy Ltd. reported that a farmin agreement has been executed with Petrorep Italiana S.p.a. (PETROREP) for the Cadelbosco di Sopra exploration license as well as an option agreement in respect of the La Prospera exploration license in the Po Valley, Italy.
The agreement permits PETROREP to earn a 15% interest in the up-coming work programme for the Cadelbosco di Sopra permit, which includes drilling three exploration wells, Zini 1, Canolo 1D and Canolo 2D, for which the drilling approval process is in progress.
The agreement also permits PETROREP to earn a 15% interest in the La Prospera license, which includes one exploration well, Gradizza 1, which is in the final stage of the drilling approval process. The participation of PETROREP in the exploration activity for the La Prospera license is subject to the fulfilment of certain conditions precedent.
For its 15% interest, PETROREP will commit to a promoted share of future drilling expenditures and reimbursement on past costs. Po Valley Energy will retain the residual interest and operatorship. The farmout agreement for both licenses is subject to regulatory approvals by the Italian Ministry of Economic Development.
Po Valley chief executive officer, Giovanni Catalano, commented, "The farmin into these two licenses by an experienced partner is an important first step in our stated development strategy, which aims to accelerate the short-term work program by drilling low-risk assets with farmin partners; allowing us to accelerate the movement of contingent resources into the proven category.”