London calling for Po Valley

Perth oil and gas hopeful Po Valley Energy is heading to London, with the company planning to list its Sillaro gas asset in northern Italy on the London Stock Exchange’s Alternative Investment Market in a bid to raise up to $3.7 million.

ASX-listed Po’s assets include the Bezzecca project, which is expected to start production early in 2017, and the existing Sillaro operation.

A further asset, Sant’Alberto, is expected to be in production later this year, which has probable reserves of 2.1 billion cubic feet.

Those three assets will be listed on the LSE via the company’s vehicle Saffron Energy, which Po estimates has an overall value of $8.5 million.

Po said it had run a strategic review of options to recapitalise, including sale of assets, with the funding to be used to bring Sant’Alberto to development and for working capital.

Its broader priorities are to increase production, bring near-term assets to operation and progress licensing on potential exploration plans.

Today’s move follows a completed $900,000 capital raising in October last year.

Po Valley chairman Michael Masterman said the LSE listing would upgrade the market value of the assets.

“With Bezzecca joining Sillaro in production in early 2017 and Sant’Alberto following later in the year, this package of gas production assets can generate strong returns and cash flows," he said.

Shares in Po were unchanged at 2.5 cents each at the time of writing.