February 25, 2008
Australia’s Po Valley Energy Limited (“PVE”) has announced completion of its €25 million credit facility with Bank of Scotland Corporate in the run-up to first commercial gas flows this year from the gas developer’s northern Italy fields.
The Bank facility has an initial borrowing base of €5 million available for drawdown to be used to finance the construction program for both the Castello (near Milan) and Sillaro (near Bologna) fields, the first fields scheduled to be brought into production. The balance of up to €20 million Senior Debt facility will be available from Bank of Scotland once Po Valley receives its formal production concessions and final development approval for the Castello and Sillaro fields. Drawdown will be subject to satisfying the terms of the facility.
Final necessary approvals for the low capital cost production fields for the Castello and Sillaro projects (€6m for surface plant), by the Italian Ministry, are expected during the coming June quarter
Po Valley’s Chief Executive Officer, Mr Michael Masterman, said: “The bank facility will be specifically used to bring our first development fields into production and is an important component of our capital structure. The facility provides us with additional financial flexibility to grow our maiden production business as quickly as possible.” Mr Michael Thorpe, Lead Director in Bank of Scotland Corporate’s Oil & Gas team, said the arrangement reflected the emerging seamless opportunities for globally focused explorers, developers and financiers, to form strategic partnerships to take advantage of new market opportunities.
“Our deal with PVE is an excellent example of how a UK debt provider can partner with an Australian company to evolve a significant new energy business in a deregulated market environment such as Italy. This is all the more significant at a time when old world economies are being forced to transition to more competitive and greener energy consumables.”
Michael Masterman Po Valley Energy +61 417 851 303
Kevin Skinner Field Public Relations +61 88234 9555 / +61 414 822 631
Harry Hussain Bank of Scotland +44 0131 243 7194
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 around 9,000 employees. Total lending at June 2007 stood at £95.8 billion. 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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