Po Valley completes $10m capital raising

Perth-based Po Valley Energy has successfully raised $10 million through a private placement, with funds raised to progress four Italian gas development projects.

In a statement today, the company said 8.33 million shares were issued at a discounted $1.20 each to Australian institutional and sophisticated investors.

Shares in Po Valley last traded at $1.28 at 12:55 AEDT.

Po Valley chief executive Michael Masterman will also participate in the raising by committing up to $1 million in new shares, subject to shareholder approval.

"The new funds will be used to keep debt levels low, whilst driving Po Valley's proven Castello and Sillaro gas fields into production, and drilling the Company's larger scale Bezzecca gas appraisal project in northern Italy," Po Valley said.

"Civil works have already been completed at the Bezzecca No. 1 well site and the well will spud in March."

The capital raising was managed by Sydney-based stockbroker Petra Capital.