In its annual report released today, the Perth-based junior said during 2007 it raised $7.88 million in private placement of shares. The funds have been used to progress Sillaro and Castello, in northern Italy, towards commercial gas production and speed up assessment and development of highly attractive new projects.
The company said it received environmental approval for Sillaro in January 2008 and is expecting to be granted production concession in the second quarter of 2008.
Po added that the connection of Sillaro to the national pipeline grid was 38% complete at the end of March 2008.
Following the grant of production concession, the company will drill a second production well, Sillaro-2, and test the deeper Miocene structure in the Sillaro field by drilling Fantuzza-1 in the second half of 2008.
In the Cascina San Pietro licence, Po received environmental approval in March 2008 and final production concession award is expected in the second quarter of 2008.
Preparatory work for the company's fourth development field, Bezzecca-1, is advanced according to Po, with approvals for drilling expected in the first half of 2008.
Managing director Michael Masterman said the company's priority was to continue growing a portfolio of new prospects, and they had applied for 11 new licence areas in northern Italy.
Masterman said 6 licence application were granted during the last two years including Ossola and Opera around Milan, and La Prospera, La Risorta, and Podere Gallina near Bologna.
"These gas prospects are in northern Italy and, like Sillaro, Castello and Bezzecca, are expected to benefit from high quality gas, close proximity to the pipeline grid, and high Italian gas prices," he said.
"Italy remains an attractive market with gas and oil being of high quality, an accessible and low cost transportation network and a pricing environment that has been stable and higher than other comparable European countries.
"Strategically, therefore, the company is well positioned for accelerating and sustaining growth," he added.
