AUSTRALIA’S Po Valley has announced the sale of its interest in two onshore Italian oil exploration licences for $1.69 million.
The company said it is selling its 85% share in the fully awarded large oil exploration licence, Cadelbosco di Sopra, and 100% of the immediately adjoining small oil exploration licence, Grattasasso, to a private oil and gas company backed by a private equity fund based in London.
Both licences are located northwest of Modena in the Emilia Romagna Region.
Completion of the transaction, subject to formal approval by the Italian Ministry of Economic Development, is expected to be received in the March 2018 quarter, Po Valley said.
PVE’s Chief Executive Officer, Ms Sara Edmonson, said the sale of the oil permits is in line with Po Valley’s corporate objective to strengthen the Company’s balance sheet whilst focusing on selected strategic onshore and offshore gas and oil projects in northern Italy.
Proceeds from the sale will be used to finance part of the planned drilling in November of Po Valley’s first well, Podere Maiar-1, on the Selva natural gas prospect, immediately northeast of Bologna.