Announcement PDF 30 July 2024 ASX ANNOUNCEMENT QUARTERLY ACTIVITIES REPORT FOR THE PERIOD ENDED 30 JUNE 2024 Highlights Selva Malvezzi Production Concession – PVE (operator) 63% Interest • Average daily production at PM-1 for the quarter was in the order of ~80,000 scm/day • A routine slick line operation in June confirmed pressure evolution per expectations, underpinning an average daily production rate of 80,000 scm/day for the foreseeable future • Strong gas sales prices with the average weighted gas sales price for the quarter at €0.34/scm • Quarterly production was 6,835k scm of gas (on a 100% basis) and revenue for the quarter was €2,312k (on a 100% basis). Next steps • Po Valley Energy continues to advance other projects within the Selva Malvezzi Production Concession. Top of mind in 2024 will be the preparation for an upcoming 3D seismic campaign on various targets within the license and a multi well drilling program which will require prior approval from the relevant authorities. Corporate • Operating cashflow for the quarter was €1,037k (net to PVE), with a one-month lag between revenue and cash receipts due to normal trading terms with BP Gas Marketing. • Cash at 30 June 2024 was €3,114k (~A$4,989k). Australia's Po Valley Energy Limited (ASX: PVE) ("Po Valley" or "The Company") is pleased to provide its Quarterly Activities Report for the period ending 30 June 2024, covering the Company's gas exploration, development and production outcomes across its onshore and offshore assets in northern Italy. Selva Malvezzi Selva is an onshore natural gas field located in the eastern part of the Po Plain, in the Bologna province of the Emilia Romagna Region. The Selva Malvezzi Production Concession was awarded in July 2022 and measures 80.68km2. It includes the Podere Maiar Gas field (PM-1) (in production) and the gas prospects known as East Selva, Selva North and South and Riccardina carved out from the former Podere Gallina Exploration Permit. Po Valley Operations (100% subsidiary of the Company, “PVO”) is the operator under a Joint Operating Agreement (“JOA”) and holds a 63% interest in the Selva Malvezzi Production Concession with Prospex Oil and Gas Plc (“Prospex”) holding 37% (includes 20% held by Prospex subsidiary UOG Italia S.r.l). 1 Figure 1: Selva Malvezzi Production Concession PM-1 gas production and well management Gas production at PVO’s 63%-owned Podere Maiar – 1 (PM-1) gas facility in the Selva Malvezzi Production Concession for the quarter is shown in the table below: PM1 Gas Production June 2024 quarter Production (scm) April 2024 May 2024 June 2024 PM-1 – 100% 2,345,661 2,434,464 2,055,272 PM-1 – 63% (PVE share) 1,477,766 1,533,712 1,119,214 PM-1 – 100% 730,777 821,623 759,339 PM-1 – 63% (PVE share) 460,389 517,623 478,383 Revenue (€) PM-1 gas continues to be supplied to BP Gas Marketing under an 18-month supply agreement ending 30 September 2024 with an option for extension. Revenue for the quarter ending to 30 June 2024 was €2,311,739 (100%) with PVE share at 63% €1,456,396. Gas production in June was lower than the preceding months due to downtime associated with the routine slickline operation. 2 Production has been consistent through the quarter averaging ~78,000 scm to ~80,000 scm per day, with exception of days during which slick line operations were undertaken. The slick line operation in June confirmed the pressure evolution per expectations with no sand or water detection. Three and a half days were allowed for pressure buildup. The well was reopened on 20 June and production recommenced at ~80,000 scm/day and is expected to continue at this rate for the foreseeable future. A surface sand detector has now also been installed to enhance the monitoring of the PM-1 well. Picture 1 – Directors on a site visit at PM-1 facility Other Selva projects The Selva Malvezzi Production Concession is the key area of focus for the Company with the next stages of development at Selva North, South, Selva East and Riccardina prospects. The Company continues to progress its work programme across these areas, including most imminently the design, planning and permitting of the 3D seismic campaign over the whole Production Concession area. Application for the 3D seismic ministerial authorisation was filed with the Italian Ministry on 19th June 2024. In parallel, the proposed drilling program of new wells Casale Guida 1d (North Selva), Ronchi 1d (South Selva), Selva Malvezzi 1d (East Selva) and Bagnarola 1d (Riccardina), surface facilities design and environmental studies are in progress. The Company expects a drilling application will be submitted to the Italian Ministry in Q3 2024. Other Assets The Company continues to assess how best to realise value from its 100%-owned Teodorico (d.40.AC-PY) off-shore asset, either via a joint venture or sale. Po Valley continues to investigate the New Energy Decree in consultation with its legal advisers and the relevant Ministry, MASE, to determine its implications for Teodorico. Given the decree is promoting domestic production citing the Northern Adriatic as a key source of natural gas for the country, the ultimate impact on Teodorico is regarded as positive. However, the decree’s details are still being worked through from an operational perspective. In addition, the company is reviewing optimal development paths for its residual assets (Cadelbosco di Sopra, Grattasasso and Torre del Moro) including the potential for introduction of third-party investors / partners who have interest in participating in their development. Cadelbosco di Sopra and Grattasasso are shallow gas opportunities which fit neatly with the Company’s proven exploration and development capabilities whilst Torre del Moro is a large deep gas prospect. 3 CORPORATE Cash flow Net operating cashflows for the quarter were €1,037k, which included receipts from gas sales of €1,375k and production operating costs of €174k. Development costs for the production well at PM-1 were completed in the previous quarter and amounts spent in this quarter were for minor additions to the plant. Revenue receipts and costs are net of any Joint Venture Partner contribution or distributions. Work programs for other fields within the Selva Malvezzi Production concession are on track with costs incurred in the quarter of €19k. As the work programme is further developed additional costs will be added. The Group’s cash balance at 30 June 2024 was €3,114k (~A$4,989k). Regarding Section 6.1 of the Appendix 5B amounts paid to related parties and their associates totalled €34k, consisting of director fees. Information Provided in Accordance with ASX Listing Rules 5.4.1 and 5.4.2 In accordance with ASX Listing Rule 5.4.1, the Company confirms that, other than the development and production underway at the Podere Maiar-1 well site, there have been no material developments or changes to its exploration or production activities. The focus in this quarter was monitoring and managing gas production at the Poder Maiar-1 gas plant and pipeline, with work commencing on the work program design for the other gas prospects in the Selva Malvezzi Production Concession. In accordance with ASX Listing Rule 5.4.2, the Company advises that the development, production and exploration activities undertaken and costs incurred are as described in the relevant sections above. Summary of Tenements PRODUCTION CONCESSIONS EXPLORATION PERMITS Tenement Location Interest held AWARDED Selva Malvezzi(1)(2) Italy, Emilia Romagna 63% Po Valley 37% Prospex Group PREL. AWARDED Teodorico (d.40.AC-PY) Italy, Adriatic Offshore 100% Po Valley AR94PY Italy, Adriatic Offshore 100% Po Valley Cadelbosco di Sopra Italy, Emilia Romagna 100% Po Valley Grattasasso Italy, Emilia Romagna 100% Po Valley Torre del Moro Italy, Emilia Romagna 100% Po Valley GRANTED 1 Net to PVE is 63%, JV partners’ 37% held by Prospex Group (Prospex Oil & Gas Plc 17% and UOG Italia S.r.l. 20%, UOG Italia S.r.l is a wholly owned subsidiary of Prospex Oil & Gas Plc. 2 Selva Malvezzi Production Concession includes exploration areas that are deemed suitable for exploration, these areas were previously held under the Podere Gallina exploration permit and are included in the Selva Malvezzi Production Concession awarded in 2022. 2 Reserves and Resources* Licence Project 1C Contingent Resources Gas Bcf 2C Reserves Low Best High Fondo Perino 6.4 9.2 12.9 East Selva 18.3 21.9 25.6 Riccardina 8.2 24.4 81.2 7.9 15.9 25.0 0.6 1.4 2.4 420.7 502 596.1 Selva (Podere Maiar1) 1P 2P 3P 2.38 8.18 18.58 Prospective Resources 3C Selva level A South 0.7 1.1 2.3 Selva Malvezzi Selva level B North 2.2 5.6 11.2 [Net] Selva level B South 0.6 2.2 5.9 Teodorico Teodorico AR94PY 27 37 48 7.4 10.6 14.0 PL3-C Zini (Qu-B) 1.1 2.7 Cadelbosco Canolo (Qu-A) 0.7 1.1 1.7 di Sopra Canolo (Plioc) 0.4 3.6 10.5 Zini (Qu-A) Torre del Moro Torre del Moro 4.6 * Gas Reserves and Resources by Field (as per CPR dated 25 July 2022 ASX announcement 26 July 2022) less depletion from PM1 production for the year to 31 December 2023. Prospective Resources are the estimated quantities of petroleum that may potentially be recovered by the application of a future development project(s) relate to undiscovered accumulations. These estimates have both an associated risk of discovery and a risk of development. Further exploration appraisal and evaluation is required to determine the existence of a significant quantity of potentially moveable hydrocarbons. The Company confirms it is not aware of any new information or data that materially affects the information included in the original market announcements referred to in this announcement and, in the case of estimates for petroleum reserves, contingent resources and prospective resources, all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person's findings are presented have not materially changed from the original market announcement. This announcement was approved for release by the Board of Directors of Po Valley Energy Limited 3 Enquiries to: Kevin Bailey AM, Po Valley Chairman, +61 417 556 458 Registered Office Rome Office Level 5, 191 St Georges Terrace, Perth WA 6000 Email: info@povalley.com Via Isonzo 34, Rome, 00198 Italy TEL +39 06 4201 4968 FAX +39 06 4890 5824 Directors Mr. Kevin Bailey AM, Chairman Ms. Sara Edmonson, Non-executive Director Mr. Joseph Constable, Non-executive Director Ms. Katrina O’Leary, Non-executive Director 4 Rule 5.5 Appendix 5B Mining exploration entity or oil and gas exploration entity quarterly cash flow report Name of entity PO VALLEY ENERGY LIMITED ABN Quarter ended (“current quarter”) 33 087 741 571 30 JUNE 2024 Current quarter €’000 Year to date (6 months) €’000 1,375 2,532 (a) exploration & evaluation (if expensed) - - (b) development - - (c) production (174) (320) (d) staff costs (113) (222) (e) administration and corporate costs (91) (162) Consolidated statement of cash flows 1. Cash flows from operating activities 1.1 Receipts from customers 1.2 Payments for 1.3 Dividends received (see note 3) - - 1.4 Interest received - - 1.5 Interest and other costs of finance paid - - 1.6 Income taxes paid - - 1.7 Government grants and tax incentives - - 1.8 Other – Recoveries from JV for overheads 40 83 1.9 Net cash from / (used in) operating activities 1,037 1,911 2. Cash flows from investing activities 2.1 Payments to acquire: (a) entities - - (b) tenements - - (c) property, plant and equipment - - (6) (9) (19) (25) (e) investments - - (f) - - (c) property, plant and equipment – Development of PM1 (net to PVE) (d) exploration & evaluation (if capitalised) other non-current assets ASX Listing Rules Appendix 5B (01/12/19) + See chapter 19 of the ASX Listing Rules for defined terms. Page 1 Appendix 5B Mining exploration entity or oil and gas exploration entity quarterly cash flow report Consolidated statement of cash flows 2.2 Current quarter €’000 Year to date (6 months) €’000 Proceeds from the disposal of: (a) entities - - (b) tenements - - (c) property, plant and equipment - - (d) investments - - (e) other non-current assets - - 2.3 Cash flows from loans to other entities - - 2.4 Dividends received (see note 3) - - 2.5 Other - - 2.6 Net cash from / (used in) investing activities (25) (34) 3. Cash flows from financing activities 3.1 Proceeds from issues of equity securities (excluding convertible debt securities) - - 3.2 Proceeds from issue of convertible debt securities - - 3.3 Proceeds from exercise of options - - 3.4 Transaction costs related to issues of equity securities or convertible debt securities - - 3.5 Proceeds from borrowings - - 3.6 Repayment of borrowings - - 3.7 Transaction costs related to loans and borrowings - - 3.8 Dividends paid - - 3.9 Other - Lease liabilities (7) (14) 3.10 Net cash from / (used in) financing activities (7) (14) 4. Net increase / (decrease) in cash and cash equivalents for the period 4.1 Cash and cash equivalents at beginning of period 2,108 1,253 4.2 Net cash from / (used in) operating activities (item 1.9 above) 1,037 1,911 4.3 Net cash from / (used in) investing activities (item 2.6 above) (25) (34) 4.4 Net cash from / (used in) financing activities (item 3.10 above) (7) (14) 4.5 Effect of movement in exchange rates on cash held 1 (2) 4.6 Cash and cash equivalents at end of period 3,114 3,114 ASX Listing Rules Appendix 5B (01/12/19) + See chapter 19 of the ASX Listing Rules for defined terms. Page 2 Appendix 5B Mining exploration entity or oil and gas exploration entity quarterly cash flow report 5. Reconciliation of cash and cash equivalents at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts 5.1 Bank balances 5.2 Current quarter €’000 Previous quarter €’000 3,114 2,108 Call deposits - - 5.3 Bank overdrafts - - 5.4 Other (provide details) - - 5.5 Cash and cash equivalents at end of quarter (should equal item 4.6 above) 3,114 2,108 6. Payments to related parties of the entity and their associates 6.1 Aggregate amount of payments to related parties and their associates included in item 1 34 6.2 Aggregate amount of payments to related parties and their associates included in item 2 - Current quarter €'000 Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity report must include a description of, and an explanation for, such payments 7. Financing facilities Note: the term “facility’ includes all forms of financing arrangements available to the entity. Add notes as necessary for an understanding of the sources of finance available to the entity. Total facility amount at quarter end €’000 Amount drawn at quarter end €’000 7.1 Loan facilities - - 7.2 Credit standby arrangements - - 7.3 Other – Convertible Notes - - 7.4 Total financing facilities 7.5 Unused financing facilities available at quarter end 7.6 Include in the box below a description of each facility above, including the lender, interest rate, maturity date and whether it is secured or unsecured. If any additional financing facilities have been entered into or are proposed to be entered into after quarter end, include a note providing details of those facilities as well. ASX Listing Rules Appendix 5B (01/12/19) + See chapter 19 of the ASX Listing Rules for defined terms. - Page 3 Appendix 5B Mining exploration entity or oil and gas exploration entity quarterly cash flow report 8. Estimated cash available for future operating activities 8.1 Net cash from operating activities (Item 1.9) 8.2 Capitalised exploration & evaluation (Item 2.1(d)) 8.3 Total relevant outgoings (Item 8.1 + Item 8.2) 1,018* 8.4 Cash and cash equivalents at quarter end (Item 4.6) 3,114 8.5 Unused finance facilities available at quarter end (Item 7.5) 8.6 Total available funding (Item 8.4 + Item 8.5) 8.7 Estimated quarters of funding available (Item 8.6 divided by Item 8.3) 8.8 If Item 8.7 is less than 2 quarters, please provide answers to the following questions: 1. €’000 1,037 (19) 3,114 n/a as quarter net cash inflow of *€1,018k Does the entity expect that it will continue to have the current level of net operating cash flows for the time being and, if not, why not? Answer: n/a 2. Has the entity taken any steps, or does it propose to take any steps, to raise further cash to fund its operations and, if so, what are those steps and how likely does it believe that they will be successful? Answer: n/a 3. Does the entity expect to be able to continue its operations and to meet its business objectives and, if so, on what basis? Answer: n/a Compliance statement 1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A. 2 This statement gives a true and fair view of the matters disclosed. Date: 30 July 2024 Authorised by: The Board of Po Valley Energy Limited (Name of body or officer authorising release – see note 4) ASX Listing Rules Appendix 5B (01/12/19) + See chapter 19 of the ASX Listing Rules for defined terms. Page 4 Appendix 5B Mining exploration entity or oil and gas exploration entity quarterly cash flow report Notes 1. This quarterly cash flow report and the accompanying activity report provide a basis for informing the market about the entity’s activities for the past quarter, how they have been financed and the effect this has had on its cash position. An entity that wishes to disclose additional information over and above the minimum required under the Listing Rules is encouraged to do so. 2. If this quarterly cash flow report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. If this quarterly cash flow report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report. 3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity. 4. If this report has been authorised for release to the market by your board of directors, you can insert here: “By the board”. If it has been authorised for release to the market by a committee of your board of directors, you can insert here: “By the [name of board committee – eg Audit and Risk Committee]”. If it has been authorised for release to the market by a disclosure committee, you can insert here: “By the Disclosure Committee”. 5. If this report has been authorised for release to the market by your board of directors and you wish to hold yourself out as complying with recommendation 4.2 of the ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations, the board should have received a declaration from its CEO and CFO that, in their opinion, the financial records of the entity have been properly maintained, that this report complies with the appropriate accounting standards and gives a true and fair view of the cash flows of the entity, and that their opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively. ASX Listing Rules Appendix 5B (01/12/19) + See chapter 19 of the ASX Listing Rules for defined terms. Page 5