January 12, 2011
Improved gas revenue streams have enabled Po Valley Energy Limited (ASX:
“PVE”) to reduce by 15% its current debt with the Bank of Scotland
(BoS), while separately, also securing an increased borrowing limit. The
reduced debt level improves the overall balance sheet of the Company
while maintaining sufficient accessible funds for near-term development
activities, including the drilling of the Vitalba -1dirA well in the
producing Castello gas field in northern Italy.
The Company announced today that borrowings with its Bank of Scotland
Facility reduced during December 2010 from €7 million to €6 million thus
resulting in a full 2010 year reduction in debt from €10.3 million to
BoS has recently completed its semi-annual review of the Facility. The
Bank has increased Po Valley’s borrowing base limit for the first half
of 2011 by 14% to €9.1 million.
The increased borrowing limit followed the Bank’s assessment of the
stable gas production performance over the second half 2010 calendar
year from Po Valley’s Sillaro gas field in northern Italy and of
reserves reviews conducted by the Company and independent experts,
during that period.
The Bank’s borrowing limit calculations are based on a combination of
factors including gas and oil prices, production projections, proven
reserves and operating costs.
Under the terms of the BoS Facility, the Bank sets a borrowing limit on a semiannual basis up to a maximum limit of €20 million.
The BoS Facility has been utilised by Po Valley over the past 18 months
to fund plant installation and commissioning of the Company’s maiden
production in northern Italy from the Castello and Sillaro gas fields.
Po Valley Energy
+39 06 4201 62 75
Field Public Relations
(08) 8234 9555 / 0414 822 631
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