It's interesting that Po Valley paying down debt and talking about using farm-ins to fund further development. I think that's an effect of the broader problems the European banking system is having at the moment. (I'm also bearish on medium-term gas prices, for similar reasons.)
Po Valley shouldn't have any problems with their debt - if there were any market capitalisation covenants on that we'd have known about it by now! - but they may not want to be dependent on that. And I'm pretty confident they won't need to carry out any more capital raisings - the directors own such a large part of the company it's hard to see them resorting to that with the share price so low.
Funding further exploration and development may depend on finding farm-in partners, however, and/or on cash flows. Combine that with the bureaucratic treacle that is the Italian regulatory process, and it could be quite some time before we see any additional wells reaching production.
It's interesting that Po Valley paying down debt and talking...
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