The two-part finance facility comprises an initial $A8 million the junior company can access before receiving final development approval from Italian Government authorities for production to begin at the Castello and Sillaro gas fields in Italy’s far north.
Once Po Valley Energy receives its formal production concession, it will have access to up to a $A34 million senior debt facility.
Final government approvals for the low capital cost production fields for the Castello and Sillaro projects are expected in March.
The initial funds will be used to finance construction work on both projects, as well as the drilling costs of the Sillaro-2 production well, and at the Bezzecca and Fantuzza fields in 2008.
