www.povalley.com
Po Valley Energy is a leading independent Oil and Gas enterprise growing rapidly from quiet, results-driven beginnings. The Company currently operates exclusively in northern Italy exploiting the large hydrocarbon system, and it is now a gas producer in the fast-growing Italian market as it brings its first 2 fields into production - with more to come. All of the Po Valley Energy's fields are in very close proximity to the pipeline grid and major consumers in the north of Italy.
Po Valley Energy reduces debt, to drill Vitalba -1dirA well in Castello gas field
Italy–resource focused Po Valley Energy (ASX: PVE) has reduced its current debt by 15% with the Bank of Scotland (BoS) as a result of improved gas revenue streams and has also secured an increased borrowing limit from the bank.
The company's overall balance sheet has improved due to the reduced debt level and maintains sufficient accessible funds for drilling of the Vitalba -1dirA well in the producing Castello gas field in northern Italy.
The BoS facility has been used by Po Valley over the past 18 months to fund plant installation and commission its maiden production from the Castello and Sillaro gas fields.
Po Valley reduced its borrowings with the Bos facility during December 2010 from €7 million to €6 million, resulting in a full 2010 year reduction in debt from €10.3 million to €6 million.
The Bank has increased Po Valley’s borrowing base limit for the first half of 2011 by 14% to €9.1 million on the completion its semi-annual review of the facility.
The increased borrowing limit was based on the stable gas production performance over the second half 2010 calendar year from the Sillaro gas field and of reserves reviews conducted by the company and independent experts.
The Bank sets a borrowing limit on a semiannual basis up to a maximum limit of €20 million.
On January 13 Po Valley celebrated another key milestone with the maiden production of one million cubic metres of gas in Italy.
The company's new 100%-owned Castello gas plant east of Milan is currently outputting at 50,000 cubic metres of gas per day, with the volume scheduled to be incrementally increased to around 70,000 cubic metres over the next two months as the plant moves to post commissioning operations.
