REG - Synergia Energy Ltd - Cambay Farm Out and C-77H Update

Synergia EnergyAnnouncement

18/12/2023 08:15

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RNS Number : 1378X  Synergia Energy Ltd  18 December 2023

RNS Announcement

 

18 December 2023

 

AIM: SYN

Cambay Farm Out and C-77H Update

 

Synergia Energy Limited ("Synergia" or the "Company"), is pleased to announce
the following update regarding the Cambay Farm Out and the status of the
Cambay C-77H well.

 

Re: Cambay Farm Out

 

Synergia and a respected Indian operating company (the "Farminee") have
executed a Heads of Terms to establish a joint venture on the Company's Cambay
field in which the Company currently holds a 100% working interest, to
facilitate the full development of the Cambay field.

 

The Farminee has been granted exclusivity for 90 days during which Synergia
and the Farminee are to finalise the Farm-in / Farm-out agreement and Joint
Operating Agreement prior to requesting Government of India ("GoI") approval
for the transfer of a 50% working interest to the Farminee.

 

In exchange for the transfer of a 50% working interest in the Cambay PSC, the
Farminee would carry Synergia for the full cost of the agreed work programme
which is to focus on the Eocene gas reservoir and which is to be completed
within 12 months from the date of the GoI approval. The Cambay field would be
under joint operatorship by Synergia and the Farminee, with the Farminee
acting as lead operator. A lumpsum payment would be made by the Farminee after
GoI approval of the working interest transfer, in recognition of past costs.
It should be noted that completion may also be subject to regulatory approvals
(as applicable).

 

Re: Cambay C-77H well update

 

The jet pump installation on the C-77H well continues to work reliably with
production for the month of November averaging 142,000 SCFD and 5 BPD
condensate. In addition, the well produced an average of 15-20 BPD of water.
After an initial reduction in fluid column height, a recent echometer survey
revealed an increase of fluid column height from c. 200m to 300m. It is
believed the legacy fracked zones (1-4) are responsible for the water influx
with the gas and condensate production coming from the re-frac zones 5 and 6.
Mitigation alternatives are being studied, including the re-installation of
the bridge plug to isolate frac zones 1-4.

 

 

Synergia's Chief Executive Officer, Roland Wessel, said:

 

"We are confident of the synergy and alignment of objectives with the Farminee
company and look forward to the accelerated development of the Cambay field
which is the primary objective for the joint venture."

 

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          Media Enquires (UK)

 Synergia Energy Ltd         Panmure Gordon (UK) Ltd                                  Novum Securities               Strand Hanson Limited          Vigo Consulting

 Briana Stayt                Broker                                                   Broker                         Nominated Adviser              Investor Relations

 Investor Relations          John Prior / Mark Murphy / Hugh Rich / Freddie Wooding   Colin Rowbury                  Ritchie Balmer / Rory Murphy   Patrick d'Ancona / Finlay Thomson

 Email:                      Tel: +44 (0)20 7886 2500                                 Email:                         Tel: +44 20 7409 3494          Email:

 bstayt@synergiaenergy.com   UK                                                       crowbury@novumsecurities.com   UK                             patrick.dancona@vigoconsulting.com

 Tel: +61 8 9485 3200                                                                 Tel: +44 20 7399 9427                                         finlay.thomson@vigoconsulting.com

 Australia                                                                            UK                                                            Tel:+ 44 20 7390 0230

                                                                                                                                                    UK

 

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