REG - Synergia Energy Ltd - Cambay PSC Update

Synergia EnergyAnnouncement

04/04/2025 10:15

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RNS Number : 7204D  Synergia Energy Ltd  04 April 2025

RNS Announcement

 

4 April 2025

 

AIM: SYN

Cambay PSC Update

 

Synergia Energy Ltd ("Synergia Energy" or the "Company") announces the
following update with respect to its Cambay PSC (WI: 50%), onshore India.

 

Synergia executed a farm out agreement with Selan Exploration ("Selan") on 14
February 2024. Selan are an established oil and gas production company
operating in India and are listed on the National Stock Exchange of India. The
farm out agreement provides for a $20 million work program including the
drilling of three new wells on the Cambay PSC where Synergia is fully carried
by Selan in exchange for a 50% working interest in the Cambay PSC. Selan is
lead joint operator, with Synergia as joint operator.

The work program and budget ("WP&B") for 2025/2026 was approved by the
Government of India on 11 March 2025. To date, Selan has conducted work over
operations on two legacy wells. Synergia is carried at no expense to the
Company through the work program, with both operating costs and overheads
being charged to the free carry.

Synergia had anticipated that the drilling of the first new well under the
WP&B would commence in Q2 2025, however, Selan has informed Synergia that
it is yet to contract a drilling rig and that the drilling operations will not
commence before September 2025. Similarly, the larger (50T/100T) workover rig
has yet to be contracted by Selan. Since the bulk of Synergia's costs in India
are being carried by Selan, the Company has minimized the financial impact of
the delay in the commencement of the drilling program and the re-commencement
of the workover program.

The Company will continue to work closely with Selan to bring forward the
drilling date as soon as is practicable in 2025 consistent with the WP&B
approved by the Government of India and pursuant to the terms of the farm out
agreement.

Synergia has implemented a cost saving and overhead reduction program,
including pausing all non-essential workstreams associated with the Camelot
CCS licence in the UK and the partial settlement of certain directors'
salaries in shares of the Company, effective 1 April 2025, further details on
which will be announced as and when appropriate.

The Company will keep the market informed of any progress or developments.

 

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law
by virtue of the European Union (Withdrawal) Act 2018 ("MAR") and is disclosed
in accordance with the Company's obligations under Article 17 of MAR.

 

For and on behalf of Synergia Energy Limited

 

 

Roland Wessel

CEO

 

For further information, please contact:

 Investor Enquires           AIM Joint Broker                 AIM Joint Broker               AIM Nominated Adviser

 Synergia Energy Ltd         SP Angel Corporate Finance LLP   Novum Securities               Strand Hanson Limited

 Briana Stayt                Broker                           Broker                         Nominated Adviser

 Investor Relations          Richard Hail / Devik Mehta       Colin Rowbury                  Ritchie Balmer / Rory Murphy

 Email:                      Tel: +44 (0)20 3470 0470         Email:                         Tel: +44 20 7409 3494

 bstayt@synergiaenergy.com   UK                               crowbury@novumsecurities.com   UK

 Tel: +61 8 9485 3200                                         Tel: +44 20 7399 9427

 Australia                                                    UK

 

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