Further to its announcement of the execution of a farm-out agreement with Selan Exploration Technology Limited ("Selan") regarding the Company's Cambay Field Production Sharing Contract ("Cambay PSC") on 14 February 2024, Synergia Energy Ltd ("Synergia" or the "Company") is pleased to announce the approval by the Government of India ("GOI") for the transfer of a 50% interest in the Cambay PSC to Selan effective 19 July 2024.
The GOI approval completes the farm-out to Selan and unlocks the path to a full field development of the Cambay PSC with a sophisticated and experienced operator-partner. In addition to the US$2.5 million upfront payment due from Selan, Synergia will be carried by Selan through an agreed US$20 million work programme ("WP") comprising 3 new wells focussed on the Eocene reservoir and at least 3 well work-overs. The WP will commence as soon as practicable and announcements concerning the commencement of WP operations will be made in the near future.
Synergia Energy CEO, Mr Roland Wessel, said:
"The Farm Out Agreement with Selan marks a pivotal moment for Synergia and its long history with the Cambay PSC. We look forward to an early commencement of work-over and drilling operations to realise the value of the significant Cambay PSC reserves."
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.
