The placement, at $1.95 per share, will be made to US investor Harbinger Management Corporation, which has a 17.2% holding in Po Valley and to Hunter Hall Investment Management, which has a 14.1% stake.

The Italian gas and energy player late yesterday said it plans to use the proceeds to advance existing projects and “evaluate and progress” five new gas and oil exploration licence applications it secured in Italy.

The five licences cover a total area of 1610 square kilometres and are all contained in the petroleum provinces of northern Italy where the company has focused its development activities.

Po Valley today said in its September 2006 quarterly activities report that it “moved forward” with its three successfully drilled projects – Sillaro, Vitalba and Santa Maddalena during the quarter.

It also said its prospective gas and oil portfolio had been “greatly expanded and deepened” with the five new licences.

Based on work initiated by Po Valley to date, the areas contain eight new gas prospects and two new oil/gas field exploration targets. Po Valley said it is now preparing environmental clearance studies.

An additional licence application for Mazzalasino is expected to be reviewed in the 2007 first quarter, it said.