Po Valley has a portfolio of gas properties containing an estimated 84 Bcf of remaining (3P) reserves located in Northern Italy and CEO Michael Masterman said he was confident of a positive response to the share offer.

“The Po Valley in Italy is a prolific hydrocarbon province,” Masterman said.

“The funds from this issue will allow Po Valley Energy to bring its three largest fields into production and provide a strong base for expansion. We seek to deliver strong shareholder returns by developing our portfolio of gas fields that lie directly below one of Europe’s largest gas consumption regions.”

Retail and institutional investors will be offered a total of 20 million shares, representing 29% of the issued capital of Po Valley on completion of the offer. Po Valley will have a market capitalisation of $70 million after completion of the offer at the issue price of $1.00 per share.

The funds raised from the offer will enable Po Valley to carry out the company’s proposed development and exploration program, achieve listing on the Australian Stock Exchange and provide working capital.

The offer is scheduled to close on 6 December 2004, with trading of the shares on ASX anticipated to commence on 16 December 2004 under the ASX symbol ‘PVE’.

Equity Capital Markets Limited is the lead manager and underwriter to the offer. Macquarie Equities Limited is the broker to the offer.

Po Valley Energy’s fields are located around the cities of Bologna and Milan. PVE has a 50% stake in the Santa Maddalena development gas fields and 100% interest in the Sillaro and Vitalba fields. PVE has successfully drilled Santa Maddalena in 2004 and will drill Sillaro and Vitalba in early 2005.

In addition to these development gas fields, PVE has other exploration prospects covering prospective gas fields in its portfolio.

Italy has the third largest gas consumption in the European market, driven by its large industrial base in Northern Italy and strong residential consumption. Italy currently imports over 80% of its gas.

The Italian gas market is characterised by few domestic upstream suppliers, regulated open access distribution, and multiple end-users including power generators and retailers. The Po Valley, located between the Alps and the Apennines, is the industrial heartland of Northern Italy and the major area of domestic gas production.