re: Ann: PoValley in oversubscribed A$8.5m pl... I would be...

re: Ann: PoValley in oversubscribed A$8.5m pl...
I would be guessing a couple of reasons for the capital raising and share offer.

Danny, as you mentioned, I don't think they have had any decent interest from anyone to join in with drilling Fantuzza and are having to go it alone. They have given themselves until December to announce whether they have a partner.

Remember Bezzecca was not quite as good a find as they had planned.

Also, the price they will be receiving for the gas they sell will be reduced from what they were expecting to receive at the time they signed the distribution contracts. They have already extended their finance term with Bank of Scotland.

Having to relinquish the Bernaga licence (Ossola) that they held jointly with Edison was a big kick in the guts for PVE. Nothing has been expressed about the loss but it was, in my view, one of the best chances (if successful)of being a company maker. Again there has been no mention of whether we owe anything back to Edison after they gave PVE half of the Sant' Alberto licence for half of the Bernaga licence. Another question is whether the Italian Government will offer the joint venture partners another lease in exchange for the one relenquished in view of the environmental reasons they gave it up.

The commissioning of Sant' Alberto has now been put back until 2011 but hopefully Bezzecca and possibly Fantuzza (if successful) can start production during 2010.

I had been hoping, as a long shot, that they would partner KEY with drilling their Borsano permit which should be receiving approval in the not to distant future. As long as that licence does not have to be relinquished as well, it is in the same area of Italy as Bernaga.

We can only hope that the fundraising is for something new we don't know about that will bring in the dollars.