PERTH (miningweekly.com) – Gas producer Po Valley Energy has announced a reorganisation of its Italian oil and gas assets into a larger Aim-listed company.
The restructure would see Po Valley’s Aim-listed subsidiary Saffron Energy become the three-way host vehicle for its own Italian energy assets, as well as the three assets held by Po Valley, along with three gas exploration and two gas production assets owned by Aim-listed Sound Energy.
The transaction will be structured as a purchase of Sound Energy’s subsidiary Sound Energy Holdings Italy and Po Valley subsidiary Po Valley Operations.
Under the agreement, Saffron will issue Po Valley and Sound Energy with more than 185.9-million shares each.
On completion of the transaction, Po Valley will hold a 51% interest of the enlarged Saffron, with Saffron shareholders holding a 16% interest and Sound Energy holding the remaining 33% interest.
“From day one, this transaction will transform Saffron into a materially larger funded natural gas and oil company with critical mass through an exceptional balanced portfolio of high-quality assets,” said Po Valley chairperson Michael Masterman.
“The expanded company will own and manage a significantly larger Italian portfolio of natural gas fields and oil and gas exploration assets, positioning itself as a mid-cap regional gas producer and explorer.”
Saffron currently owns the Sillaro and Sant Alberto gas projects, and a 90% interest in the Bezzecca gas production field.
The reconfiguration of assets will see Po Valley contribute its remaining 80% owned Selva and fully owned Teodorico and Torre Del Moro gas exploration projects, while Sound Energy would contribute its Maria Goretti, Laura and Dalla gas exploration projects, and two Italian gas production fields; Rapagnano and San Lorenzo.