Perth-headquartered Po Valley Energy (ASX:PVE) has arranged to extend the maturity date on its Bank of Scotland senior finance facility out to November 2013.

Funds from the facility are currently being pumped into the surface plant installation works on the Sillaro and Castello gas fields east of Bologna and east of Milan, respectively, in Italy.

Drawings on the facility are currently €6.7 million with an interest rate of about 3.5%. The interest margin over EURLIBOR is set to drop to 1.8% after Sillaro and Castello are commissioned.

First gas production is expected to commence in November 2009 from Castello and in early 2010 from Sillaro.