Details of eight new exploration licence applications over new gas targets were outlined yesterday by Po Valley chairman Graham Bradley at the company’s annual general meeting in Sydney.

The licence areas are in and around Po Valley’s existing project areas, where the company made several commercial gas discoveries in 2004 and 2005 near Bologna and Milan.

“Three of the best applications are for uncontested areas, and hosting what Po Valley believes are attractive gas exploration targets,” Bradley said.

“The proposed expansion of our Italian exploration assets is timely, as the likely final grant of the first licences, will coincide with our pending gas production in the first half of 2007.”

If approved, the licences would be granted to Po Valley progressively throughout next year, according to Bradley.

“Our focus remains northern Italy – we know the geology and regulatory processes applying to the province,” he said.

“Acquisition by application for the region is very cost-effective and if at least three or four applications are approved, I am confident Po Valley will find its next generation of successful gas field discoveries on this expanded acreage opportunity.”

The licence applications submitted to the Italian Ministry, covered 2005 square kilometres - almost twice Po Valley’s current licence area. Extensive seismic and well data also available would be used for geological investigations currently underway.

“In the three uncontested applications- Opera, La Prospera, and La Risorta - there is more than one target of potential gas development,” he said.

La Prospera and La Risorta are in the eastern part of northern Italy, near Po Valley’s successful Sillaro development field. Four targets have been identified in these two licences with geological and geophysical studies underway.

Opera is located south of Milan, near its successful Vitalba gas field, and has two target fields.

The applications are expected to be reviewed by mid-year by Italy’s Hydrocarbon

Commission followed by environmental clearance reviews.

“Five of the eight applications have competing bids. This may present an opportunity to work with other competing applicants in joint venturing, and discussions towards this end have commenced with a number of bidders,” Bradley said.