Grove Energy Limited
15 December 2004



Grove Energy Limited


Press Release


December 14, 2004



Project Update: Abbadesse, D-14 and Pantelleria Seismic


Grove Energy Limited ('Grove') (TSX-V & AIM: GRV) is pleased to provide the
following update on the current work programme:



Abbadesse-1 Exploratory Well, San Marco Permit, Italy



Abbadesse-1 well reached a total depth of 3,068 metres on Monday December 13,
2004. While drilling, mud logs recorded good quality gas shows between 2,612
metres and 2,632 metres. This interval in all likelihood corresponds to the
first reservoir target and the depth is higher than prognosed. Additional gas
shows were recorded in the interval 2,685 to 2,705 metres.



Schlumberger electric wireline logs are currently being run to quantify the
recorded mud log gas shows. Based upon the wireline log results, a 7' liner will
be run, the well will be flow tested and completed for later production.



D-14 Appraisal Well - Fracture Stimulation, Slovenia



The first stage of the hydraulic fracturing of the D-14 well, being the lowest
zone which lies at a depth of 2,785 metres, has been completed. The initial
indications are that the emplacement of proppant was successful. Given the
over-pressured reservoir regime, an influx of high pressure fracture fluid
charged with gas was observed and quantities of gas were flared over the weekend
in order to relieve pressures and attain a safe working envelope. The second
stage of the hydraulic fracture programme will commence on Wednesday December
15, 2004. It is envisaged that the balance of the programme, comprising the
third and fouth stages, will be completed by the end of this week.



Upon the completion of the fracture stimulation programme, the D-14 well will be
flow tested to assess long term reservoir production properties and will
probably be completed for sustained production.

Pantelleria Seismic Acquisition, Italy



The seismic acquisition programme in respect of the Pantelleria West Exploration
Permit commenced on Monday December 13, 2004. Subject to weather, the programme
should be completed before Christmas.



Wireline log, flow test and details on the fracture stimulation programme in
respect of Abbadesse-1 and D-14 will be further released as they become
available.

Neither the TSX Venture Exchange nor the AIM Market operated by London Stock
Exchange plc approves nor disapproves of the information contained herein.

Readers are cautioned that the preceding statements may include certain
estimates, assumptions and other forward-looking information. The actual future
performance, developments and/or results of the Company and its subsidiaries may
differ materially from any or all of the forward-looking statements, which
include current expectations, estimates and projections, in all or part
attributable to general economic conditions and other risks, uncertainties and
circumstances partly or totally outside the control of the Company and its
subsidiaries, including oil prices, imprecision of reserve estimates, drilling
risks, future production of gas and oil, rates of inflation, changes in future
costs and expenses related to the activities involving the exploration,
development, production and transportation of oil, hedging, financing
availability and other risks related to financial activities, and environmental
and geopolitical risks. Discussion of the various factors that may affect future
results is contained in the corporation's recent filings with Canadian
securities regulatory authorities. The Company disclaims any intention or
obligation to update or revise any forward-looking statements, whether as a
result of new information, future events, or otherwise.

The information contained herein does not constitute an offer of securities for
sale in the United States, United Kingdom, Canada, Japan or Australia.

GROVE ENERGY LIMITED





Per 'Glenn Whiddon'

GLENN R. WHIDDON, CEO



For further information please contact:



Web:
www.groveenergy.com



Grove Energy Limited
Glenn Whiddon, Chief Executive Officer - 0208 429 7478

glenn@groveenergy.com

Canaccord Capital (Europe) Limited
Robert Finlay, Director - 020 7518 2777

Equest Partners Limited
Michael Hanson - 0207 240 7600

mhanson@equest-partners.com




This information is provided by RNS
The company news service from the London Stock Exchange

Well, this slipped down the board a bit quick.

soul, are you still interested in this?

Looks to me like the Abbadesse discovery is written out of the sp, and from what I see a resolution between them ENI and trhe Italian Government is imminent.

It should fly then imo.

http://www.groveenergy.com/

http://www.advfn.com/cmn/fbb/thread.php3?id=7786581

http://boards.fool.co.uk/Message.asp?mid=10086372&sort=whole#10202826

In case anyones wondering, I am putting the links here for research purposes.

Hi SWW, I haven't looked at this for ages.

Mmmm.........

I thought that.

It's one of those you think that's nice, I must have a look see, and then I would forget.

First impressions are the sp is way too low discounted to the assets, but I need a better look.

The next thought is, if I am right with my first impression this wont stay at 34pish for too much longer, however, I need to have an imn depth look.

http://www.oilbarrel.com/home.html

Company Profile (11:04 02/08/06)


"AIM and TSX-V-listed oil and gas explorer Grove Energy is building a diversified portfolio of European and Mediterranean hydrocarbon assets. The Company, which raised 10 million on its AIM debut, holds assets in Italy, Slovenia and Romania and continues to evaluate other opportunities in Europe and the Mediterranean Basin.

An addition to the portfolio in January 2006 was the acquisition of two exploration permits in Tunisia from private Colorado firm Anschutz Overseas Tunisia Corp. The 6,720 sq km Kerlouane offshore block abuts Groves Pantelleria concessions in Italian waters creating a building block of more than 8,000 sq km in the Sicily Channel. The new block is home to the Dougga gas condensate discovery, which was made by Shell in the early 1980s. The 2,428 sq km Chorbane lies onshore in the south eastern coastal area. It contains two leads, which are adjacent to the Sid el Kilani oilfield and on trend with the Miskar and Hasdrubai fields.


The deal followed hard on the heels of the December 2005 announcement that Grove had entered into a heads of agreement with privately Virgo Energy and Australian Stock Exchange-listed Nido Petroleum to merge their E& P assets. The new London-based company will be called Virgo Energy and intends to list on AIM over the course of the next six months


Virgo will be focused in the UK North Sea and will hold interests in 24 exploration blocks, comprising four in the Northern North Sea, five in the Central North Sea and 15 in the Southern North Sea. Of the 24 exploration blocks, nine will be contributed by Virgo, seven by Grove and eight by Nido.


In Italy Grove holds 100 per cent of the San Marco Permit (subject to the Blugas agreement) in the prolific Po Valley Basin plus higher risk exploration acreage in the Sicily Channel near the maritime border with Tunisia. The San Marco Permit is home to a successful gas strike: the Abbadesse-1 well, which lies less than 5 km from existing infrastructure and is surrounded by discoveries totaling in excess of 1tcf of gas. The Abbadesse-1 well flowed at cumulative gas flow rates of more than 15 million cubic feet per day, over an extended period, and exceeded company expectations. Given the proximity to infrastructure in the region and a sales agreement with local gas trading firm Blugas, this well could prove a quick pay back on investment for Grove.


The Company has applied to the Italian authorities for an exploitation permit that would allow it to drill further apprraisal and development wells, build a 2 km pipeline and a small processing facility. Due to import constraint issues, the Italian gas market is very strong resulting in high realized gas price, often in excess of 5 per mcf.


The Sicily Channel acreage includes two permits: Pantelleria West and Pantelleria South. At the back end of last year the Company spent US$600,000 acquiring 750 km of 2D seismic over the northern section of the Pantelleria West Permit. The data is currently being processed and the results will then be assessed before the Company seeks farm-in partners to help shoulder the exploration risk going forward.


In Romania, Grove holds a 40 per cent stake in the South Craiova Concession, operated by Sterling Resources. The concession covers 1.5 million acres in a proven hydrocarbon basin. The first well here, Cetatuia-1, will spud during the week commencing May 22, 2005 and will test two targets. Romania holds many benefits for exploration: low drilling costs, access to rigs and experienced crews, and most importantly, it has been home to many oil and gas discoveries over the past 40 years. As with San Marco, the South Craiova Concession is surrounded by regional discoveries and close to infrastructure.


In Slovenia, Grove has a 45.1 per cent stake in the Petisovci-Dolina gas field, which was discovered in 1960. This field lies in eastern Slovenia, close to the Hungarian and Croatian borders. While the field has produced gas historically, it is a tight gas play that requires fracture stimulation to release the gas from the formation. Grove drilled and fractured the D-14 well, however, to date the results have been disappointing. While the planned results have not be achieved to date, it is understood that the Company will implement a remediation program on the well with the objective of obtaining reduced flow rates from the reservoir. With the high demand for European gas, the Petisovci-Dolina gas field should be considered an option over European gas, with any production from the D-14 a bonus."

Cant find a link for this bit but it is alleged to originate from oilbarrel.com.

"The company has assembled a collection of assets in safe, politically stable European countries including Italy, Holland, Romania, Slovenia and the UK. Canadian broker Fraser MacKenzie estimates that the Abbadesse gas discovery on the San Marco permit onshore Italy, in which Grove has a 100 per cent interest, could hold 10 billion cubic feet of gas on a proven basis (1P), 42.8 bcf on a probable basis (2P) and on a proven, probable and possible basis 62.7 bcf.

Westwind, another Canadian broker, reckons that taking 40 bcf as recoverable, then the discovery could produce 15 million cubic feet a day. The full cycle cost of producing is an estimated US$1.10 per million cubic feet against current Italian prices of US$8.50 per mcf (they rose by more than 50 per cent in 2005) so according to Westwind the asset could produce initially C$19 million a year in revenue.

The question is when? The full development of Abbadesse has been held up by the Italian authorities who have required a joint ENI/Grove Energy development plan since an extension of Abbadesse was mapped into ENIs adjoining San Potito concession, as confirmed with ENIs own Longanesi-1 exploration well. It seems that the Longanesi-1 has been completed. There is an exchange of data between Grove and ENI. The development approval should be achieved this year and there should be gas production and cash flow early in 2007. ........."

Up 9.23% on TSX - no news

The early bird on Monday could catch the worm.

dyor nag etc.

It is hard when there are a lot of words on a page so I'll keep it short.

Abbadesse gas discovery on the San Marco permit onshore Italy, in which Grove has a 100 per cent interest, could hold 10 billion cubic feet of gas on a proven basis (1P), 42.8 bcf on a probable basis (2P) and on a proven, probable and possible basis 62.7 bcf.

In Romania, Grove holds a 40 per cent stake in the South Craiova Concession, operated by Sterling Resources

Boar 1 is nearing completion now, result by the end of the month.

Tendering for Dutch licenses with proven reserves capable of producing 5 to 800 bopd, not much but it's something, and near to exisiting infrastructure

Nice web site, very pretty.....http://www.groveenergy.com/

Okay yes it's small, they do have an assets that can transform this small compnay into something bigger, and that's Abbadesse, I'm in for that becasue they already have found it..

it's a bit bigger than i thought (42m), but i have enough E&P stocks (vog, chp, goo) so will not get into this one ...... Petroceltic looks a better bet for a quick buck, but purely on a technical bounce

cynic yes I agree in respect of PCI.

I too have enough just now.

This one was a lucky escape.

When they outed their North Sea assets, to concentrate on other things, I decided they were not for me.

They still aren't!

Grove Energy abandoning Boar Well in South Craiova Concession
AFX


LONDON (AFX) - Grove Energy Limited said it is plugging and abandoning the Boar Well in the South Craiova Concession in Romania. It said that after drilling to 2,673 MDBRT no hydrocarbons were observed.

Grove has a 40 pct interest in the concession.

It said a further 220 km of 2D seismic is being shot in the western part of the concession known as the Flounder Region. Results from these studies will dictate drilling plans for 2007.