Po Valley Energy Limited (ASX:PVE) has received commitments worth $1.4 million through a private placement of nearly 25.5 million fully paid ordinary shares.
Shares were issued at the price of 5.5 cents a share to several institutional and sophisticated investors, including some existing shareholders.
Raised funds will go towards the continued development of two of the company’s high-value development assets Selva and Teoderico, as well as for general working capital.
As the participation of Po Valley’s directors and their related parties in the placement is subject to shareholder approval, placement shares will be issued in two tranches.
The first tranche of 14,545,455 will be issued on or around August 7, 2019, while the second trance of 10,909,091 shares will be issued to the directors, subject to shareholder approval at a general meeting to be held in September this year.
Po Valley’s aim is to bring its Italy-based Selva Malvezzi gas field into production next year, with a strategy focused on four assets – the onshore gas development at Selva, offshore Adriatic gas development at Teodorico, large-scale gas condensate exploration licence at Torro del Moro and the expanded Ravizza and Bagnolo oil reservoirs.
A maiden 2p gas reserve of 13.3 billion cubic feet for the onshore project in Italy’s north was declared earlier this year.
Throughout the March quarter new contingent resources in the Selva North and South Flank of 14.1bcf (2C) were added and with the benefit of the Podere Maiar well and seismic data, the chance of success at East Selva has been increased.
In the March quarter, the company’s offshore project Teodorico was granted primary environmental approval and additional requests from the Ministry for specific plans in relation to water treatment are under preparation.
Po Valley hopes to complete the environmental impact assessment (EIA) process and obtain full environmental approval in the third quarter of 2019.
The PVE team reported a maiden prospective resource of 106 million barrels recoverable from an Original Oil-in-Place (OOIP) of 312 million barrels since the end of the first quarter at the Torre del Moro oil condensate prospect.