What the Selva Malvezzi EIA Admissibility, Record Revenue, and New Hera Gas Sales Agreement Mean for Po Valley Energy

Sonal Goyal

29 September 2026 11:51 PM AEST

What the Selva Malvezzi EIA Admissibility, Record Revenue, and New Hera Gas Sales Agreement Mean for Po Valley Energy

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Po Valley Energy Limited (ASX:PVE) announced on 4 September 2026 that Italy's Ministry of Environment and Energy Security (MASE) confirmed the admissibility of the Environmental Impact Assessment for the Selva Malvezzi four-well drilling programme, commencing a 60-day public observation period effective 1 September 2026. Simultaneously, the company reported record gas Revenue for August 2026 from its producing Podere Miair well, achieving €0.67 per standard cubic metre — the highest monthly revenue in over three years of continuous production. A new 12-month gas sales agreement with Hera Trading S.r.l was also signed, commencing 1 October 2026 and running through to 1 October 2027.

Selva Malvezzi EIA Admissibility

Italy's MASE confirmed the admissibility of proceeding with the Selva Malvezzi Environmental Impact Assessment, with a 60-day public observation period commencing effectively from 1 September 2026. The EIA documentation was submitted before the end of June 2026. The admissibility determination means the EIA process has formally commenced — Stakeholders and the public can now submit observations on the proposed four-well drilling programme during the 60-day window, after which MASE will assess the observations and progress toward a determination. Po Valley's technical team is prepared to respond to any queries raised during the public consultation.

Record August Revenue from Podere Miair

The Podere Miair well achieved record revenue for August 2026, with gross production of approximately 2,500,000 scm (standard cubic metres) for the month at an average price of €0.67 per scm, generating gross revenue of approximately €1,670,000 for the month. Po Valley's 63% working interest equates to approximately 1,575,000 scm Volume and approximately €1,052,100 in revenue. This represents the highest monthly revenue in over three years of continuous production, reflecting elevated European gas prices benefiting from supportive market fundamentals.

New Hera Trading Gas Sales Agreement

Po Valley, through its Subsidiary Po Valley Operations Pty Ltd (PVO) as operator, alongside JV partners PXOG Marshall Limited and UOG Italia Srl (the Prospex Group), signed a new gas sales agreement with Hera Trading S.r.l for 12 months commencing 1 October 2026. The agreement covers an estimated 28,185,300 scm for the thermal year ending 1 October 2027. Gas is delivered to the SNAM delivery point at Budrio 50202301. There is no automatic right to extend — parties must commence extension discussions at least 30 days before 30 September 2027. The contract follows on from last year's successful agreement and cements all parties' commitment to Supply locally produced gas to the Italian community.

About the Company

Po Valley Energy Limited is an ASX-listed company developing Natural Gas projects in the Po Valley region of Northern Italy. The company's key producing asset is the Podere Miair well within the Selva Malvezzi permit area. The Selva Malvezzi four-well EIA, if approved, would allow Po Valley to significantly increase gas production from the Northern Italian field.

Risks

The 60-day public observation period for the Selva Malvezzi EIA means the process is not complete. Observations from the public, environmental groups, or local authorities could raise issues that extend the review process or result in conditions being attached to any approval.

European gas prices, while supportive in August 2026 at €0.67/scm, are volatile and subject to storage levels, weather, LNG imports, and Russian supply dynamics. A price decline would reduce Podere Miair's revenue contribution.

The Hera Trading gas sales agreement runs only to 1 October 2027 with no automatic renewal. If market conditions change or Hera Trading does not renew, Po Valley would need to find an alternative gas sales arrangement.

Po Valley's 63% working interest in Podere Miair means it bears the majority of operating costs but does not control 100% of production decisions — JV partner alignment is required.

The Selva Malvezzi EIA approval will not automatically result in drilling commencing — additional permits, funding, and well planning activities would follow any approval, potentially taking additional time.

What to Watch Ahead

The conclusion of the 60-day public observation period (approximately November 2026) and any observations filed by third parties — the content of these observations will indicate whether there are material objections to the Selva Malvezzi programme.

MASE's determination on the Selva Malvezzi EIA following the observation period — approval would be a major milestone allowing Po Valley to progress toward a four-well drilling programme.

Podere Miair monthly gas production and pricing updates — the record August 2026 revenue demonstrates the value of European gas prices for Po Valley, and ongoing high prices would substantially increase project economics.

Hera Trading gas delivery volumes against the 28,185,300 scm annual estimate, which will track the ongoing commercial performance of the Podere Miair well.

Any announcement of financing arrangements or timeline for the Selva Malvezzi four-well drilling programme following EIA approval.

FAQs

Q: What is the Selva Malvezzi four-well drilling programme and why does it require an EIA?

A: The Selva Malvezzi permit area in Northern Italy hosts the Podere Miair producing well and identified resources for further development. The four-well drilling programme would significantly expand production capacity within the permit area. In Italy, oil and gas drilling programmes require an Environmental Impact Assessment (EIA) under Italian and EU environmental law, evaluating the programme's potential effects on the local environment, land, water, and communities. MASE's admissibility determination confirms the application is complete and properly formatted, commencing the formal public consultation and review phase.

Q: Who is Hera Trading S.r.l and what is its role in the Italian gas market?

A: Hera Trading S.r.l is the gas trading subsidiary of Hera S.p.A., one of Italy's largest multi-utility companies providing gas, electricity, water, and waste services to customers in Northern Italy. The Hera Group is a major natural gas purchaser and distributor in the Po Valley region, making it a strategically appropriate buyer for locally produced gas from Po Valley Energy's Podere Miair well. Supplying gas to Hera Trading provides Po Valley with a creditworthy, large-volume offtake partner and distribution access to local Italian consumers.

Q: What does €0.67/scm mean in terms of Italian and European gas pricing?

A: The price of €0.67 per standard cubic metre is a gas unit price reflecting the value of natural gas in the Italian spot market. European gas prices are traded on the TTF (Title Transfer Facility) hub in the Netherlands and on the Italian PSV (Punto di Scambio Virtuale) hub. Prices have been elevated since the 2022-23 European energy crisis that followed the reduction in Russian gas supply. At €0.67/scm and gross production of approximately 2,500,000 scm per month, Podere Miair generates approximately €1.67 million gross per month — an attractive revenue rate for a single well producing from relatively shallow Italian gas reservoirs.

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