Po Valley Energy (ASX: PVE) informs about recovery of €757,000 Performance Bond Funds

Highlights

• Reimbursement from Italy’s SNAM amounts to €757,000 (100% basis) with €476,910 net to PVO
• The event follows pipeline tie in connection to Po Valley's Podere Maiar–1 gas treatment facility
• The return of bond was contingent upon completion of the SNAM grid connection and Gas Sales Agreement

Australia's Po Valley Energy Limited (ASX: PVE) -- which is into gas and oil exploration with onshore and offshore assets in northern Italy -- has informed about the finalisation of successful process to recover Performance Bond Funds (€757,000) deposited with SNAM, the Italian national Transmission System Operator. This strengthens the cash position of the ASX-listed company.

The first gas supply from PVE's Podere Maiar–1 (PM-1) (Selva Malvezzi Production Concession) would begin post approval from the Ministry after final operation and safety inspection (expected soon) of the gas treatment plant.

PVE's Australian-listed shares traded at AU$0.059 at the time of writing on 29 May 2023.

Source: PVE Investor Presentation

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Po Valley Energy Limited, the ASX-listed explorer with interests in northern Italy, has been able to successfully recover €757,000 performance bond funds that were deposited with Italy's SNAM. The return of the bond was subject to the finalisation of the SNAM grid connection, Gas Sales Agreement, and transportation arrangements.

The company has confirmed that the first gas supply from Selva Malvezzi Production Concession's PM-1 facility will begin after final Ministry approval. This would follow final operation and safety inspection of the PM-1 gas treatment plant. Notably, the final inspection is delayed because of severe flooding throughout the Emilia Romagna region (PVE's gas treatment facility and preparatory activities are unaffected).

The company has been informed that the inspection will take place immediately after the Fire Department has attended to urgent priorities that have emerged due to the flooding.

Source: Company update

Statement by Po Valley Chairman

Mr. Kevin Bailey, the Po Valley Energy Chairman, has lauded the latest development and commented that the timely recovery of the bond reflects "the relationship the PVO team has built with SNAM. The event also confirms that PVE's PM-1 facility is ready for commissioning and delivery of first gas.”