Italy's New Energy Decree may have interesting effects on the...

Italy's New Energy Decree may have interesting effects on the potential for development in Teodorico.

I am not an Italian speaker, but the following appears to limit profits to the cost of production plus an agreed margin only in an effort to cap prices. Mr Bailey's cautious comments in this report are probably a warning bell.

Perhaps the safest way to look at PVE currently is to value Teodorico at $0 until we know more, and focus on the remaining 3 development areas in Selva.

"Applicants must submit a request to participate in the procedure to GSE, indicating, inter alia, the expected natural gas production and the necessary investments, as well as increases or restorations in natural gas production. They also have to commit to sell quantities of gas - at fixed prices reflecting the costs incurred and the return on invested capital - to GSE, which in turn undertakes to allocate them on the market, giving priority to companies with high gas consumption. Following the allocation procedures, the concessionaires will enter into long-term contracts with GSE for the purchase of gas rights for a period of five years at a price that reflects the cost of production."

(source: https://www.clearygottlieb.com/news-and-insights/publication-listing/italy-adopts-a-new-energy-decree-to-boost-energy-security-and-renewable-energy)