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To the undoubted annoyance of locals, tourists and American divorcees, Po Valley Energy has struck first gas in a new well in Tuscany, Italy.

The ASX-listed, Italian-focused gas company (ASX:PVE) is exploring its Podere Gallina licence area, deep in the cinematic hills south of the Po Delta.

Log results for the Podere Maiar 1dir well in the Selva gas field confirmed a gross gas pay of 53 metres. The top of the reservoir was encountered at 1245 metres true vertical depth, some 12 metres above the level of any previous production wells in the area.

Well completion is targeted to be completed in the middle of December with flow testing planned for early January.

The Selva gas field historically produced 83 billion cubic feet of gas for ENI from 15 wells over 35 years. Po Valley owns as 80 per cent stake in both the Selva field and also the highly prospective nearby Selva East prospect.

Current estimated 2C resources in Selva are 17 billion cubic feet.

A 2C resource is a best estimate of how much oil or gas is in a deposit.

Po Valley’s shares have almost doubled since August. Shares moved from 2.7c in September to 4c in October. On Wednesday they closed up 5 per cent to 4.2c.

Pic: Investing.com
Po Valley’s shares over the past six months. Pic: Investing.com

The last four months have been tumultuous for the business.

In October it announced a major business restructure that saw its assets, including the Selva field, into an enlarged UK-listed subsidiary of which it’ll own 51 per cent. The idea is to create a mid-cap energy player that Australian investors can benefit from.

Its CEO Sara Edmonson left to lead the subsidiary, Saffron Energy, while chairman Michael Masterman also took on the CEO gig.