December 5, 2007
Bank of Scotland Corporate is to provide a finance facility of up to A$34 million to emerging Australian gas producer, Po Valley Energy. The funding ensures that Po Valley Energy has all the necessary financing available to bring its maiden production on stream before the middle of next year.
The two-part finance facility comprises an initial A$8 million (€5 million) for ASXlisted and Perth-based Po Valley Energy to access prior to final development approval from Italian Government authorities for its production start-up from fields in Italy’s far north.
Up to A$34 million (€20 million) Senior Debt facility will be available once Po Valley Energy receives its formal production concession; drawdown will be subject to satisfying the terms of the facility.
Final approvals for the low capital cost production fields for the Castello and Sillaro projects (€6m for surface plant), by the Italian Ministry, are expected in March next year.
Initial drawdown of funds will be used to finance the construction program for both the Castello and Sillaro projects and the drilling costs of the Sillaro 2 production well, Bezzecca and Fantuzza fields in 2008.
Po Valley Energy’s Chief Executive Officer, Mr Michael Masterman, said: “Bank of Scotland Corporate has a proven track record in lending to the oil and gas sector and has recognised the potential of our development projects in Italy”. “The Bank has recognised the quality of our gas reservoirs in the Castello and Sillaro fields. We look forward to working with the Bank in bringing Po Valley Energy’s gas reserves to market from its first production fields during 2008.” Michael Thorpe, Lead Director in Bank of Scotland Corporate’s Oil & Gas team, said: “When we look at the gas economics of the Italian market and the quality of the assets held by Po Valley Energy in this region, we are comfortable in financing the development of the various projects in this strong market environment.”
Michael Masterman Po Valley Energy 0417 851 303
Kevin Skinner Field Public Relations (08) 8234 9555 / 0414 822 631
Notes to editors
Bank of Scotland Corporate, part of HBOS plc, has a reputation for excellence in the provision of corporate finance, delivering innovative funding solutions across a range of markets. Bank of Scotland Corporate employs over 8,300 employees with total lending of £82.4 billion at June 2006. With experience across many areas of corporate finance, including Oil & Gas, Integrated Finance, Joint Ventures, Structured Finance, Acquisition Finance, Infrastructure Finance and Housing Finance, Bank of Scotland can draw on an expert pool of professionals with proven track records. The Oil & Gas team is a recognised industry leader in the oil & gas sector world-wide. As the first British bank to establish a specialised oil & gas financing team, Bank of Scotland provides funding debt to equity solutions to both the upstream and downstream oil & gas value chain, with a particular niche in funding small to medium sized independent exploration and production companies.
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