REG - Synergia Energy Ltd - Interim Financial Report
14/03/2024 07:00
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RNS Number : 7665G Synergia Energy Ltd 14 March 2024
http://www.rns-pdf.londonstockexchange.com/rns/7665G_1-2024-3-13.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/7665G_1-2024-3-13.pdf)
SYNERGIA ENERGY LTD
ABN 50 078 652 632
INTERIM FINANCIAL REPORT
Six Months Ended 31 December 2023
REVIEW OF OPERATIONS
OVERVIEW AND STRATEGY
Consistent with the Company's strategy to focus on gas production and Carbon
Capture and Storage ("CCS"), Synergia's activities have centred on the
Company's Cambay gas and condensate field in India and on CCS opportunities in
the UK and recently, in India.
Following on from the successful re-frac of the Cambay C-77H well in mid-2022,
the Company has continued efforts to enhance production from the well during
the Period, thereby facilitating progress towards a full field development. To
this end, the Company entered into a Heads of Terms, during the half-year,
with Selan Exploration Technology Limited ("Selan"), with a view to farming
out up to 50% of the Cambay PSC.
On 14 February 2024, the Company executed a farm out agreement with Selan as
detailed below.
The Company was awarded a Carbon Dioxide Appraisal and Storage Licence by the
UK Government's North Sea Transition Authority on 17 August 2023.
Cambay Field, Onshore Gujarat, India
(Synergia Energy: Operator and 100% Participating Interest)
The C-77H re-frac operation in mid-2022 indicated an on-going issue of liquid
loading in the well, confirming the need for an artificial lift solution for
Eocene wells in order to optimise gas and gas condensate production. After due
evaluation, a jet pump was installed in September 2023, enabling uninterrupted
plateau production from the well.
The jet pump installation on the C-77H well continues to work reliably with
production for the month of December 2023 averaging 114,000 SCFD and 4 BPD
condensate, the jet pump being operated for 10 hours per day. In addition, the
well produced an average of 13-15 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.
Based on the C-77H re-frac results, the Company believes new multi-zone and
fracked horizontal Eocene wells with artificial lift can be drilled with
initial production rates of 4 mmscfd and 40% annual decline rates.
A Heads of Terms was entered into on 15 December 2023 with Selan with a view
to farming out up to 50% of the Cambay PSC.
On 14 February 2024, the Company executed a Farm Out agreement with Selan:
· The Company agreed to farm out 50% of the 100% interest held by the
Synergia Group in the Cambay PSC to Selan.
· Selan, is an Indian oil and gas operator listed on the Bombay Stock
Exchange and the National Stock Exchange of India. Selan has currently
entered into a scheme of amalgamation with Antelopus Energy Private Limited,
another highly respected Indian oil and gas operator, which is currently
awaiting regulatory approvals.
· Synergia and Selan will be joint operators of the Cambay PSC with
Selan to be appointed as Lead Joint Operator.
· Both Synergia and Selan are focussed on developing the Cambay PSC Eocene
gas and gas condensate reservoir which contains independently certified 2P
gas reserves of 206 BCF (as at 1 June 2022).
· The farm-out and associated joint operating agreement are conditional
upon customary consents from the Government of India ("GoI") for the transfer
of the 50% interest to Selan and Selan assuming a Lead Joint Operator role
("GoI Approval").
· Synergia and Selan have agreed the form of joint operating agreement
for the Cambay PSC and will enter into the joint operating agreement upon
receipt of GoI Approval.
· In exchange for the 50% interest, 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 3 well work-overs.
· The WP is to be completed within 18 months of the later of GoI
approval of the WP or the award of contracts for the WP, extendable by a
further six months in certain circumstances.
· Synergia will receive a cash payment of US$2.5 million immediately
following GoI Approval. The Company proposes to apply the proceeds of this
cash payment towards working capital purposes.
· Synergia will retain a 50% interest in the Cambay PSC and a 50% share
of the future production and revenues.
· Synergia will be entitled to bonuses of up to US$9 million, linked to
future cumulative gas sales thresholds being achieved as follows:
o US$0.5 million, if cumulative gross gas sales from the Cambay PSC exceeds
5 Bcf;
o US$1.0 million, if cumulative gross gas sales from the Cambay PSC exceeds
10 Bcf;
o US$1.5 million, if cumulative gross gas sales from the Cambay PSC exceeds
15 Bcf;
o US$2 million, if cumulative gross gas sales from the Cambay PSC exceeds 35
Bcf; and
o US$4 million, if cumulative gross gas sales from the Cambay PSC exceeds 70
Bcf.
· Selan has the option to participate in the Cambay CCS scheme on terms
to be agreed.
Cambay CCS Scheme
Leveraging its CCS expertise and experience in the UK, the Company has
developed a CCS scheme in India based on CO(2) storage in the extensive Olpad
Formation which extends under the Cambay producing reservoirs. The scheme
proposes the capture of CO(2) emitted from the many gas and coal-fired power
stations in the vicinity of the Cambay field. CO(2) would be transported via
pipeline to a CCS hub on the Cambay field for injection into the Olpad
Formation for permanent storage.
Further technical studies will be required to confirm the suitability of the
Olpad Formation. In addition to the securing of funding, the necessary
regulatory and commercial frameworks will need to be developed in order to
bring this significant CCS scheme to fruition.
United Kingdom Continental Shelf
Carbon Capture and Storage ("CCS")
The Company, together with its joint venture partner Wintershall Dea Carbon
Management Solutions UK, was formally awarded a Carbon Dioxide Appraisal and
Storage Licence (the "CS019 licence") by the UK Government's North Sea
Transition Authority on 17 August 2023.
Under the terms of the joint venture with Wintershall Dea Carbon Management
Solutions UK, the Company is the operator of the joint venture.
The CS019 licence award, which covers the former Camelot gas field, marks a
significant milestone for the Company's Medway Hub CCS project. The Medway
Hub CCS
(https://www.synergiaenergy.com/sites/synergia-energy-ltd/files/synergia-energy-ltd/operations/united-kingdom/medway-hub-ccs-r7-we.pdf)
project provides for the capture and transportation of CO(2) emissions from
coastal Combined-Cycle Gas Turbine power stations in liquid form by marine
tanker to a Floating Injection, Storage and Offloading vessel (FISO) from
which the CO(2) would be injected into depleted gas fields and saline
aquifers, which are situated in the UK Continental Shelf, for permanent
sequestration. In addition, the FISO will be able to accept CO(2) cargoes
transported by marine tankers originating from Continental European locations.
On 21 December 2023 Wintershall DEA's parent company BASF and key shareholder
LetterOne announced that it had reached agreement with UK-listed company
Harbour Energy, for the latter to acquire the majority of Wintershall DEA's
Exploration and Production global assets, in an $11.2 billion transaction. The
deal is subject to regulatory approvals and scheduled to close towards the end
of 2024. If successful, this will significantly increase Harbour's exposure to
the UK CCS business sector.
The CS019 licence has a work program that incorporates an appraisal phase
comprising seismic re-processing, technical evaluations and risk assessment, a
contingent FEED study leading to the potential storage license application in
2028 following the final investment decision ("FID"). The Camelot license also
includes a contingent appraisal well. First CO(2) injection is anticipated
for 2029/2030. The Company's share of the initial work phase is subject to
funding as would be the FID, to be made in due course.
JPDA 06-103, Timor Sea
In August 2020, on behalf of its Joint Venture Participants, Synergia Energy
Ltd announced a Deed of Settlement and Release ("Deed") with the Autoridade
Nacional Do Petroleo E Minerais ("ANPM"). Under the terms of the Deed,
Synergia Energy committed to a settlement of US$800,000 payable up to the
financial year 2024. This obligation was fully met when the Group made its
final instalment on 7 September 2022.
To fund the settlement to ANPM, Synergia Energy entered into an unsecured loan
facility agreement with two of the JPDA joint venture partners, Japan Energy
E&P JPDA Pty Ltd ("JX") and Pan Pacific Petroleum (JPDA 06 103) Pty Ltd
("PPP"). The portion which was owing to PPP was fully repaid in December 2021.
The portion which was owing to JX was fully repaid on 10 August 2023 when the
Company made its final repayment of US$228,324 to JX, to settle the balance of
the loan to nil. The details and movement in the loan payable during the
current period are detailed in Note 13 to the condensed consolidated interim
financial report.
On 13 October 2022, the non-defaulting parties to the JPDA joint venture
agreed to terminate the Joint Operating Agreement. During the half-year,
Synergia Energy continued the process of progressing the final closure of the
joint venture accounts to conclude this matter.
Qualified Person
The technical information contained in the above disclosure has been prepared
by or under the supervision of Mr Roland Wessel (BSc (Hons) Geology), CEO and
Director employed by Synergia Energy Ltd. Mr Wessel has over 45 years'
experience in the oil and gas industry and is a member of the Society of
Petroleum Engineers. Mr Wessel meets the requirements of and acts as the
Qualified Person under the Alternative Investment Market Rules - AIM Note for
Mining and Oil & Gas Companies, and consents to the inclusion of this
information in this report in the form and context in which it appears.
PERMIT SCHEDULE
PETROLEUM AND CCS PERMIT SCHEDULE - 31 DECEMBER 2023
ASSET LOCATION ENTITY CHANGE IN INTEREST DURING THE PERIOD % EQUITY % OPERATOR
Cambay Field PSC Gujarat, India Synergia Energy Ltd - 85 Synergia Energy Ltd
Oilex N.L. Holdings (India) Limited - 15
CS019 - SNS Area 4 (Camelot Area) ((1)) Southern North Sea (United Kingdom) Synergia Energy CCS Limited 50 50 Synergia Energy CCS Limited
((1)) The NSTA granted the CS019 licence for the Camelot area to Synergia
Energy CCS Limited and its 50% joint venture partner, Wintershall Dea Carbon
Management Solutions UK, with Synergia Energy CCS Limited as operator. The
licence was effective from 1 August 2023.
DIRECTORS' REPORT
FOR THE HALF-YEAR ENDED 31 DECEMBER 2023
The directors present their report together with the condensed interim
financial report of the group comprising of Synergia Energy Ltd (the "Company"
or "Synergia Energy") and its subsidiaries (together collectively referred to
as the "Group") for the half-year ended 31 December 2023 and the auditor's
review report thereon. Unless otherwise indicated, the directors' report is
presented in Australian dollars ("A$"), which is the Company's functional and
presentation currency (see Note 2(a) of the Notes to the Condensed
Consolidated Financial Statements).
DIRECTORS
The directors of the Company at any time during the interim period and until
the date of this report are detailed below. All directors were in office for
this entire period unless otherwise stated.
Mr Jonathan Salomon Non-Executive Chairman
Mr Roland Wessel Chief Executive Officer ("CEO") and Executive Director
Mr Colin Judd Chief Financial Officer ("CFO") and Executive Director
Mr Mark Bolton Non-Executive Director
Mr Paul Haywood Independent Non-Executive Director
Mr Peter Schwarz Independent Non-Executive Director and Deputy Chairman
(appointed Deputy Chairman from 24 January 2024)
REVIEW OF OPERATIONS
A review of the operations of the Group during the financial period and the
results of those operations are set out in the Review of Operations on pages 1
to 3 of this report.
BOARD UPDATE
After half-year end on 24 January 2024, Mr Schwarz was appointed as Deputy
Chairman. There were no other board changes during the period.
ROUNDING OF AMOUNTS
The Company is a company of the kind referred to in ASIC Corporations
(Rounding in Financial/Directors' Reports) Instrument 2016/191 and therefore
the amounts contained in this report and in the financial report have been
rounded to the nearest dollar, unless otherwise indicated.
FINANCIAL AND OPERATING RESULTS
Income Statement
The Group incurred a consolidated loss after income tax of A$2,069,097 during
the half-year ended 31 December 2023 (half-year ended 31 December
2022: A$3,674,813).
During the half-year, the Group recognised total revenues from gas and oil
sales of A$353,168 (31 December 2022: A$690,820). These revenues are
recognised net of royalties and levies imposed by the Government of India
directly on gas and oil sales.
Net revenues from gas sales were A$248,931 (31 December 2022: A$396,767)
which were from 20,882.01 MMBTU of energy supplied at an average price of
US$8.59 per MMBTU (31 December 2022: from 34,325.03 MMBTU of energy supplied
at an average price of US$7.91 per MMBTU).
Net revenues from oil sales were A$104,237 (31 December 2022: A$294,053)
which were from 1,421.50 barrels sold at an average price of US$67.294 per
barrel (31 December 2022: from 3,786.46 barrels sold at an average price of
US$74.286 per barrel).
Cost of sales for the half-year were A$741,361 (31 December
2022: A$2,380,919) which included A$nil refraccing costs (31 December
2022: included A$1,845,527 refraccing costs). This resulted in the Group
incurring a gross loss of A$388,193 during the half-year (31 December 2022:
A$1,690,099).
Expected credit losses ("ECLs") incurred during the half-year were A$196,268
(31 December 2022: A$22,712), mainly due to an increase recorded to
recognise the ECL on the US$124,000 bank guarantee which was put in place by
the Group on 28 July 2023 (refer to footnotes (2) and (3) of Note 7).
An impairment of A$34,593 (31 December 2022: A$nil) was recorded on the
Company's investment in Armour Energy Limited ("Armour"), to bring this
investment down to nil. The impairment assessment was based on Armour's
circumstances at period end, having gone into receivership and administration
in November 2023 (refer to Note 10).
Net finance income was A$77,388 (31 December 2022: net finance costs of
A$236,516) which included a gain of A$876,069 (31 December 2022: A$nil)
resulting from the fair value revaluation of the derivative liability
component of the Group's convertible note. The fair value gain was offset by
interest charges on borrowings of A$688,770 (31 December 2022: A$36,018),
which included amortised effective interest charges on the convertible note of
A$653,142 (31 December 2022: A$nil). This was also offset by the unwinding of
discount on provisions of A$123,049 (31 December 2022: A$144,632). Net
finance income also included a net foreign exchange gain of A$12,876
(31 December 2022: net foreign exchange loss of A$56,024).
Cash Flow
Net cash used in operating activities for the period was A$1,354,041
(31 December 2022: A$4,071,309). The decrease was primarily due to there
being no refraccing costs to be paid during the period, when compared to the
previous half-year period.
The Group invested A$575,444 across its development and exploration,
evaluation and appraisal assets (31 December 2022: A$nil). Out of the
A$575,444, A$411,477 was invested into an artificial lift system which was
installed at the Cambay field in September 2023. The other A$163,967 was for
payments relating to the CS019 licence for the Camelot area since NSTA granted
the Group the licence effective 1 August 2023.
During the period, the Company raised funds net of costs of A$3,124,293
(31 December 2022: A$502,210) from the issue of 1,923,295,454 shares during
the period (half-year ended 31 December 2022: issue of 174,831,394). A
further A$235,405 was received after half-year end on 5 January 2024, for the
issue of 156,250,000 shares in December. The total shares issued during the
period was 2,079,545,454 ordinary shares.
The shares issued were from share placements held in July and in December.
704,545,454 shares were from the July share placement, which was issued on 7
August 2023 at £0.0011 (A$0.0021) per ordinary share. 1,375,000,000 shares
were from the December share placement ("December Placement"), which was
issued on 19 December 2023 at £0.0008 (A$0.0015) per ordinary share. The
December Placement shares were ratified by shareholders at a General Meeting
held by the Company held on 15 February 2024.
On 10 August 2023, the Company made the final loan repayment to JX of
US$228,324 (A$348,853), settling the balance of the loan to nil.
Cash and cash equivalents were A$1,789,410 at the end of the period (at 31
December 2022: A$1,364,423).
Financial Position
The net assets of the Group totalled A$11,533,529 at 31 December 2023 (30 June
2023: A$10,337,516).
As at 31 December 2023, the Company had:
· Available cash resources of A$1,789,410;
· Borrowings (excluding derivative liability component of convertible
notes) of A$1,108,873 (refer to Note 13);
· Derivative liabilities (from convertible notes) of A$151,560 (refer
to Note 14); and
· Issued capital of 10,497,336,158 fully paid ordinary shares and
463,564,923 unlisted options.
MATERIAL UNCERTAINTY RELATED TO GOING CONCERN
The auditor's review report contains a statement of material uncertainty
regarding the Company's ability to continue as a going concern. The
consolidated financial statements have been prepared on a going concern basis,
which contemplates continuity of normal business activities and the
realisation of assets and settlement of liabilities in the ordinary course of
business.
The funding requirements of the Group are reviewed on a regular basis by the
Group's Executive Directors and are reported to the Board at each board
meeting to ensure the Group can meet its financial obligations as and when
they fall due.
Until sufficient operating cash flows are generated from its operations, the
Group remains reliant on equity raisings, joint venture contributions or debt
funding, as well as asset divestitures or farmouts to fund its expenditure
commitments.
The Group may require additional funding in due course to continue its
activities, including CCS, meet its ongoing working capital requirements
(including any loans payable), and for any new business opportunities that the
Group may pursue.
Further information on the Group's going concern basis of preparation is
provided in Note 2(c) of the consolidated financial statements.
SIGNIFICANT EVENTS AFTER BALANCE DATE
On 5 January 2024, the Company received the last instalment of the December
Placement funds of £125,000.
On 23 January 2024, the Company entered into an additional bank guarantee for
US$43,654, in favour of MOPNG to satisfy the Group's Cambay PSC bank guarantee
requirements. Further details of those requirements are detailed in Note 16 to
the Condensed Consolidated Interim Financial Report.
On 24 January 2024, Mr Schwarz was appointed as Deputy Chairman.
On 1 February 2024, one of the Group's inactive entities, Oilex (JPDA 06-103)
Ltd, was deregistered. This entity had no assets at the time of
deregistration.
On 14 February 2024, the Group entered into an agreement to farm out 50% of
the Group's interest in the Cambay PSC to Selan Exploration Technology
Limited, in exchange of an agreed US$20 million work programme as well as a
cash payment of US$2.5 million. The agreement also entitles the Group to
bonuses of up to US$9 million, linked to certain future cumulative gas sales
thresholds being achieved. The agreement is subject to Government of India
approval. See above for further information.
On 28 February 2024, following shareholder approval at a General Meeting held
by the Company on 15 February 2024, the Company issued 1,375,000,000 unquoted
options to the participants of the December Placement ("December Placement
Options") and 82,500,000 unquoted options to Novum Securities Limited
("Novum") pursuant to the capital raising advisory agreement relating to the
December Placement ("December Fee Options"). Both the December Placement
Options and the December Fee Options are exercisable at £0.0014 per share on
or before 31 December 2026.
In line with the 9 March 2024 maturity date of the 6,500 convertible loan
notes issued by the Company effective 9 March 2023, the Company received
notices from five of its seven convertible note holders that indicated their
intention to (a) redeem their 5,430 notes and interest accrued into cash, and
(b) extend the maturity to 30 September 2024 for 1,750 of the notes. The
payments will amount to £386,451 (A$720,184) effective on 9 March 2024 and
£188,688 (A$351,636) effective on 30 September 2024. The first tranche of
payments will be paid in accordance with the convertible note agreements. The
Company also received a notice from another of the convertible note holders
indicating his intention to convert his 320 notes and interest into 42,005,479
ordinary shares of the Company effective 9 March 2024. The remaining
convertible note holder did not provide any option or exercise notice to the
Company by the exercise date and, in accordance with the convertible note
agreement, the remainder of the 750 convertible notes plus interest will
automatically convert into 98,450,342 ordinary shares of the Company effective
9 March 2024. The total shares from the conversion of the 1,070 convertible
notes plus interest, being 140,455,821 ordinary shares, are expected to be
issued, and admitted to trading on AIM, on or before 9 April 2024. Refer to
Note 13 to the Condensed Consolidated Interim Financial Report for further
details.
On 11 March 2024, the Company announced that it has obtained loan funding from
existing investors of GBP400,000. The loan is interest bearing and is on
commercial terms and on an unsecured basis.
There were no other significant subsequent events occurring after the
half-year end.
LEAD AUDITOR'S INDEPENDENCE DECLARATION
The lead auditor's independence declaration is set out on page 9 and forms
part of the Directors' Report for the half-year ended 31 December 2023.
Signed in accordance with a resolution of the Board of Directors made pursuant
to section 306(3) of the Corporations Act 2001.
Mr Peter Schwarz Mr Roland Wessel
Deputy Chairman Chief Executive Officer and Director
Perth, Western Australia
14 March 2024
PKF Perth
ABN 64 591 268 274
Level 5, 35 Havelock Street,
West Perth WA 6005
PO Box 609,
West Perth WA 6872
Australia
+61 8 9426 8999
perth@pkfperth.com.au
pkf.com.au
AUDITOR'S INDEPENDENCE DECLARATION
TO THE DIRECTORS OF SYNERGIA ENERGY LTD
In relation to our review of the financial report of Synergia Energy Ltd for
the half year ended 31 December 2023, to the best of my knowledge and belief,
there have been no contraventions of the auditor independence requirements of
the Corporations Act 2001 or any applicable code of professional conduct.
PKF Perth
Shane Cross
Partner
14 March 2024
West Perth,
Western Australia
Level 4, 35 Havelock Street, West Perth, WA 6005
PO Box 609, West Perth, WA
6872
T: +61 8 9426 8999 F: +61 8 9426 8900 www.pkfperth.com.au
PKF Perth is a member firm of the PKF International Limited family of legally
independent firms and does not accept any responsibility or liability for the
actions or inactions of any individual member or correspondent firm or firms.
Liability limited by a scheme approved under Professional Standards
Legislation.
CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS
AND OTHER COMPREHENSIVE INCOME
FOR THE HALF-YEAR ENDED 31 DECEMBER 2023
Note Half-Year Half-Year
Ended Ended
31 Dec 2023 31 Dec 2022
A$ A$
Revenue 6(a) 353,168 690,820
Cost of sales 6(b) (741,361) (2,380,919)
Gross Loss (388,193) (1,690,099)
Other income 6(c) 10,474 -
Exploration, evaluation and appraisal expenditure (360,405) (385,788)
Administration expense 6(d) (1,090,567) (1,251,915)
Expected credit losses expense 7 (196,268) (22,712)
Share-based payments expense 19 (84,093) (84,094)
Impairment of equity securities 10 (34,593) -
Other expenses 6(e) (2,840) (3,689)
Results from Operating Activities (2,146,485) (3,438,297)
Finance income 6(f) 876,331 158
Finance costs 6(g) (811,819) (180,650)
Net foreign exchange gain/(loss) 6(h) 12,876 (56,024)
Net Finance Income/(Costs) 77,388 (236,516)
Loss Before Tax (2,069,097) (3,674,813)
Income tax expense - -
Loss After Tax (2,069,097) (3,674,813)
Other Comprehensive Income
Items that May be Reclassified
Subsequently to Profit or Loss
Foreign exchange differences on (178,680) 74,357
translation of foreign operations
Other Comprehensive (Loss)/Income, Net of Tax (178,680) 74,357
Total Comprehensive Loss (2,247,777) (3,600,456)
Loss per Share from Continuing Operations
Basic loss per share (cents per share) (0.02) (0.04)
Diluted loss per share (cents per share) (0.02) (0.04)
The above Condensed Consolidated Statement of Profit or Loss and Other
Comprehensive Income is to be read in conjunction with the accompanying notes.
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023
Note 31 Dec 2023 30 June 2023
A$ A$
Assets
Cash and cash equivalents 1,789,410 938,589
Trade and other receivables 7 369,123 220,331
Prepayments 80,982 89,507
Inventories 70,767 113,819
Total Current Assets 2,310,282 1,362,246
Development assets 8 17,190,756 17,558,182
Exploration, evaluation and appraisal asset 9 266,480 -
Plant and equipment 21,278 24,217
Investments 10 - 34,593
Total Non-Current Assets 17,478,514 17,616,992
Total Assets 19,788,796 18,979,238
Liabilities
Trade and other payables 11 1,123,548 485,968
Provisions 12 267,815 174,116
Borrowings 13 1,108,873 774,666
Derivative financial liability 14 151,560 1,050,334
Total Current Liabilities 2,651,796 2,485,084
Provisions 12 5,603,471 6,156,638
Total Non-Current Liabilities 5,603,471 6,156,638
Total Liabilities 8,255,267 8,641,722
Net Assets 11,533,529 10,337,516
Equity
Issued capital 18 196,155,938 192,817,143
Reserves 8,226,240 8,299,925
Accumulated losses (192,848,649) (190,779,552)
Total Equity 11,533,529 10,337,516
The above Condensed Consolidated Statement of Financial Position is to be read
in conjunction with the accompanying notes.
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE HALF-YEAR ENDED 31 DECEMBER 2023
Attributable to Owners of the Company
Issued Capital Share-Based Payments Reserve Foreign Currency Translation Reserve Accumulated Losses Total Equity
Note A$ A$ A$ A$ A$
Balance at 1 July 2023 192,817,143 534,957 7,764,968 (190,779,552) 10,337,516
Comprehensive Loss
Loss after tax for the period - - - (2,069,097) (2,069,097)
Other Comprehensive Loss
Foreign currency translation differences - - (178,680) - (178,680)
Total Comprehensive - - (178,680) (2,069,097) (2,247,777)
Loss for the Period
Transactions with
Owners of the Company
Contributions and Distributions
Shares issued 18 3,571,757 - - - 3,571,757
Capital raising costs ((1)) 18 (232,962) - - - (232,962)
Share-based payment transactions 19 - 104,995 - - 104,995
Total Transactions with 3,338,795 104,995 - - 3,443,790
Owners of the Company
Balance at 31 December 2023 196,155,938 639,952 7,586,288 (192,848,649) 11,533,529
Balance at 1 July 2022 192,181,384 221,321 7,577,543 (185,396,650) 14,583,598
Comprehensive Income/(Loss)
Loss after tax for the period - - - (3,674,813) (3,674,813)
Other Comprehensive Income
Foreign currency translation differences - - 74,357 - 74,357
Total Comprehensive - - 74,357 (3,674,813) (3,600,456)
Income/(Loss) for the Period
Transactions with
Owners of the Company
Contributions and Distributions
Shares issued for cash 18 608,378 - - - 608,378
Capital raising costs ((1) ) 18 27,381 - - - 27,381
Share-based payment transactions 19 - 109,246 - - 109,246
Total Transactions with 635,759 109,246 - - 745,005
Owners of the Company
Balance at 31 December 2022 192,817,143 330,567 7,651,900 (189,071,463) 11,728,147
((1) ) Capital raising costs include cash payments and the fair
value of options granted to the underwriter.
The above Condensed Consolidated Statement of Changes in Equity is to be read
in conjunction with the accompanying notes.
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE HALF-YEAR ENDED 31 DECEMBER 2023
Half-Year Half-Year
Ended Ended
31 Dec 2023 31 Dec 2022
A$ A$
Cash Flows from Operating Activities
Cash receipts from customers 509,173 467,308
Recovery of prior period operating costs - 52,539
Payments to suppliers and employees (1,482,286) (3,771,568)
Repayment of JPDA 06-103 PSC termination penalty - (372,523)
Cash outflows from operations (973,113) (3,624,244)
Payments for exploration, evaluation (370,389) (442,433)
and appraisal expenses
Interest received 262 158
Interest paid (10,801) (4,790)
Net Cash Used in Operating Activities (1,354,041) (4,071,309)
Cash Flows from Investing Activities
Payments for capitalised development assets (411,477) -
Payments for capitalised exploration, (163,967) -
evaluation and appraisal
Net Cash Used in Investing Activities (575,444) -
Cash Flows from Financing Activities
Proceeds from issue of share capital 3,336,352 608,378
Payment for share issue costs (212,059) (106,168)
Proceeds from borrowings - 372,523
Repayment of borrowings (338,052) (199,906)
Net Cash from Financing Activities 2,786,241 674,827
Net Increase/(Decrease) in Cash and Cash Equivalents 856,756 (3,396,482)
Cash and cash equivalents at 1 July 938,589 4,838,459
Effect of exchange rate fluctuations on cash held (5,935) (77,554)
Cash and Cash Equivalents at 31 December 1,789,410 1,364,423
The above Condensed Consolidated Statement of Cash Flows is to be read in
conjunction with the accompanying notes.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL REPORT
FOR THE HALF-YEAR ENDED 31 DECEMBER 2023
1. REPORTING ENTITY
Synergia Energy Ltd (the "Company") is a for-profit entity domiciled in
Australia. The condensed consolidated interim financial report as at and for
the half-year ended 31 December 2023 comprise the Company and its subsidiaries
(collectively the "Group" and individually "Group Entities"). Synergia Energy
Ltd is a company limited by shares incorporated in Australia whose shares are
publicly traded on the Alternative Investment Market ("AIM") of the London
Stock Exchange ("LSE").
The principal activities of the Group during the financial period included:
· exploration for oil and gas;
· appraisal and development of oil and gas prospects; and
· production and sale of oil and gas.
The Group is also focused on carbon-neutral gas production and aims to become
a major contributor to CO(2) emission reduction by developing CCS projects,
leveraging the extensive management experience in this sector.
There were no significant changes in the nature of the activities during the
period.
The consolidated annual financial report of the Group as at and for the year
ended 30 June 2023 is available upon request from the Company's registered
office at Level 24, 44 St Georges Tce, Perth, Western Australia, 6000,
Australia or at www.synergiaenergy.com (http://www.synergiaenergy.com) .
2. BASIS OF PREPARATION
(a) Presentation Currency
The condensed consolidated interim financial report is presented in Australian
Dollars ("A$"), unless otherwise stated.
(b) Statement of Compliance
The condensed consolidated interim financial report is a general purpose
condensed financial report which has been prepared in accordance with
Accounting Standard AASB 134 Interim Financial Reporting (IFRS equivalent: IAS
34 Interim Financial Reporting) and the Corporations Act 2001. The condensed
consolidated interim financial report does not include all of the notes and
information normally included in an annual financial report and accordingly
this report should be read in conjunction with the consolidated annual
financial report of the Group as at and for the year ended 30 June 2023.
The Company is a company of the kind referred to in ASIC Corporations
(Rounding in Financials/Directors' Reports) Instrument 2016/191, dated 24
March 2016, and in accordance with that Corporations Instrument amounts in the
half-year financial report are rounded off to the nearest dollar, unless
otherwise indicated.
This condensed consolidated interim financial report was authorised for issue
by the Board of Directors on 14 March 2024.
(c) Going Concern Basis
The Directors believe it is appropriate to prepare the consolidated financial
statements on a going concern basis, which contemplates continuity of normal
business activities and the realisation of assets and settlement of
liabilities in the ordinary course of business.
The Group incurred a loss of A$2,069,097 (31 December 2022: A$3,674,813) and
had cash outflows from operating and investing activities of A$1,929,485
(31 December 2022: A$4,071,309) in the half-year to 31 December 2023. The
Group concluded the half-year at 31 December 2023 with cash and cash
equivalents of A$1,789,410 (30 June 2023: A$938,589) and had loans
outstanding, including the derivative liability component of convertible
notes, of A$1,260,433 (at 30 June 2023: A$1,825,000).
In addition, subsequent to the half-year, the Company received notices from
five of its convertible note holders, which indicated their intention to (a)
redeem their 5,430 notes and interest accrued into cash, and (b) extend the
maturity to 30 September 2024 for 1,750 of the notes. The payments will amount
to £386,451 (A$720,184) on 9 March 2024 and £188,688 (A$351,636) on 30
September 2024 (refer to Note 13 for further details). The first tranche of
payments will be paid in accordance with the convertible note agreements.
On 11 March 2024, the Company also announced that it has obtained loan funding
from existing investors of GBP400,000. The loan is interest bearing and is on
commercial terms and on an unsecured basis.
The US$2.5 million cash payment from Selan Exploration Technology Limited
("Selan") that is part of the agreement to farm-out 50% of the Group's
interest in the Cambay PSC is subject to Government of India approval and is
receivable from Selan immediately after that.
The Group may require further funding within the next twelve months in order
to continue its activities, including CCS, meet its ongoing working capital
requirements (including any loans payable), and for any new business
opportunities that the Group may pursue.
The Directors believe that the Group will be able to secure sufficient funding
to meet the requirements to continue as a going concern, due to its history of
previous capital raisings, acknowledging that the structure and timing of any
capital raising is dependent upon investor support, prevailing capital
markets, shareholder participation, oil and gas prices and the outcome of
planned exploration, evaluation and appraisal activities, which creates
uncertainty.
The Directors consider the going concern basis of preparation to be
appropriate based on its forecast cash flows for the next twelve months and
that the Group will be in a position to continue to meet its minimum
administrative, evaluation and development expenditures and commitments for at
least twelve months from the date of this report.
If further funds are not able to be raised or realised, then it may be
necessary for the Group to sell or farmout its exploration, evaluation and
appraisal and development assets and to reduce discretionary administrative
expenditure.
The ability of the Group to achieve its forecast cash flows, particularly the
raising of additional funds, represents a material uncertainty that may cast
significant doubt about whether the Group can continue as a going concern, in
which case it may not be able to realise its assets and extinguish its
liabilities in the normal course of business and at the stated amounts in the
financial statements.
3. SIGNIFICANT ACCOUNTING POLICIES
The accounting policies applied by the Group in this condensed consolidated
interim financial report are the same as those applied by the Group in its
consolidated financial report as at and for the year ended 30 June 2023.
New or Amended Accounting Standards and Interpretations Adopted
The Group has adopted all of the new or amended accounting standards,
interpretations and other accounting pronouncements issued by the Australian
Accounting Standards Board ("AASB") that are effective for reporting periods
beginning on or after 1 January 2023 and therefore mandatory for the current
reporting period. The adoption of these accounting standards, interpretations
and other accounting pronouncements did not have any significant impact on the
financial performance or position of the Group.
Any new or amended accounting standards, interpretations and other accounting
pronouncements issued by the AASB that are not yet mandatory for the current
reporting period have not been early adopted.
4. ESTIMATES AND JUDGEMENTS
The preparation of a condensed consolidated interim financial report requires
management to make judgements, estimates and assumptions that affect the
application of accounting policies and the reported amounts of assets and
liabilities, income and expense. Actual results may differ from these
estimates.
In preparing this condensed consolidated interim financial report, the
significant judgements made by management in applying the Group's accounting
policies and the key sources of estimation uncertainty were the same as those
that applied to the consolidated financial report as at and for the year ended
30 June 2023.
5. OPERATING SEGMENTS
The Group has identified its operating segments based upon the internal
reports that are reviewed and used by the executive management team in
assessing performance and that are used to allocate the Group's resources.
There has been no change in the basis of segmentation from the Group's 30 June
2023 annual consolidated financial report.
India JPDA ((1)) Indonesia United Kingdom Corporate ((2)) Consolidated
6 Months Ended 31 Dec 2023 31 Dec 31 Dec 2023 31 Dec 2022 31 Dec 2023 31 Dec 2022 31 Dec 2023 31 Dec 2022 31 Dec 2023 31 Dec 2022 31 Dec 31 Dec
2022 2023 2022
A$ A$ A$ A$ A$ A$ A$ A$ A$ A$ A$ A$
Revenue
External revenue 353,168 690,820 - - - - - - - - 353,168 690,820
Gross Loss (388,193) (1,690,099) - - - - - - - - (388,193) (1,690,099)
Reportable Segment (Loss)/Profit Before (949,876) (2,037,985) (4,081) (9,054) - 62,867 (8,279) (80,304) (1,184,249) (1,373,821) (2,146,485) (3,438,297)
Income Tax
Net finance income/(costs) 64,512 (180,492)
Net foreign exchange gain/(loss) 12,876 (56,024)
Income tax expense - -
Net Loss for the Period (2,069,097) (3,674,813)
India JPDA ((1)) Indonesia United Kingdom Corporate ((2)) Consolidated
31 Dec 2023 30 June 2023 31 Dec 2023 30 June 2023 31 Dec 2023 30 June 2023 31 Dec 2023 30 June 2023 31 Dec 2023 30 June 2023 31 Dec 30 June 2023
2023
A$ A$ A$ A$ A$ A$ A$ A$ A$ A$ A$ A$
Segment Assets 17,553,390 18,501,114 - 414 - - 266,480 - 1,968,926 477,710 19,788,796 18,979,238
Segment Liabilities 6,241,268 6,436,301 - 9,199 - - 130,743 15,568 1,883,256 2,180,654 8,255,267 8,641,722
There were no significant inter-segment transactions during the half-year.
((1)) Joint Petroleum Development Area.
((2)) Corporate represents a reconciliation of reportable segment revenues,
profit or loss and assets to the consolidated figure.
6. REVENUE AND EXPENSES
Half-Year Half-Year
Ended Ended
Note 31 Dec 2023 31 Dec 2022
A$ A$
(a) Revenue
Gas sales 248,931 396,767
Oil sales 104,237 294,053
353,168 690,820
(b) Cost of Sales
Production costs (698,722) (2,072,613)
Amortisation of development assets (2,232) (5,865)
Movement in oil stocks inventory (40,407) (302,441)
(741,361) (2,380,919)
(c) Other Income
Profit from disposal of other assets 10,474 -
10,474 -
(d) Administration Expenses
Employee benefits expense (552,137) (647,592)
Administration expense (538,430) (604,323)
(1,090,567) (1,251,915)
(e) Other Expenses
Depreciation expense (2,840) (3,689)
(2,840) (3,689)
(f) Finance Income
Interest income 262 158
Derivative liability - net change in fair value 876,069 -
876,331 158
(g) Finance Costs
Interest charges on borrowings (688,770) (36,018)
Unwinding of discount on site restoration provision (123,049) (144,632)
(811,819) (180,650)
(h) Foreign Exchange Loss - Net
Foreign exchange (loss)/gain - realised (15,354) 9,920
Foreign exchange gain/(loss) - unrealised 28,230 (65,944)
12,876 (56,024)
7. TRADE AND OTHER RECEIVABLES
31 Dec 2023 30 June 2023
A$ A$
Current
Allocation of Receivables
Joint venture receivables 13,963 16,205
Receivable on shares issued ((1)) 232,948 -
Other receivables 122,212 204,126
369,123 220,331
Joint Venture Receivables
Joint venture receivables ((2)) 243,514 49,371
Provision for expected credited losses ((3)) (229,551) (33,166)
13,963 16,205
Other Receivables
Corporate receivables 151,002 234,903
Provision for expected credited losses (28,790) (30,777)
122,212 204,126
(1) ) Relates to £125,000 of December Placement funds which was
received after half-year end on 5 January 2024. Refer to Note 18, footnote
(2).
(2) ) On 28 July 2023, the Group submitted a US$124,000 bank guarantee
in favour of the Ministry of Petroleum and Natural Gas ("MOPNG") of the
Government of India. Subsequent to the half-year on 23 January 2024, another
US$43,654 bank guarantee was submitted in favour of MOPNG. The two amounts
totalling US$167,654 fulfils the Cambay PSC requirements, which are detailed
in Note 16. The amounts guaranteed include a 15% portion which was guaranteed
on behalf of Oilex N.L. Holdings (India) Limited ("OHIL") for OHIL's share of
the bank guarantee.
(3) ) A corresponding increase in expected credit losses was recorded
as the bank guarantee is to remain in place and will not be received back by
the Group as long as the Group holds the Cambay PSC.
The Group considers that there is evidence of impairment if any of the
following indicators are present: financial difficulties of the debtor,
probability that the debtor will dispute amounts owing and default or
delinquency in payment (more than one year old). Each receivable has been
assessed individually for recovery, and those deemed to have a low chance of
recovery have been fully provided for in the current period. The movement in
the Group's provision for expected credit losses ("ECLs") are detailed below.
The carrying value of trade and other receivables less ECLs approximates its
fair value due to the assessment of recoverability.
Half-Year
Ended
31 Dec 2023
Movement in Provision for Expected Credit Losses A$
Balance at 1 July 2023 (63,943)
Net ECLs incurred during the period (196,268)
Effect of movements in exchange rates 1,870
Balance at 31 December 2023 (258,341)
Allocation of Provision for Expected Credit Losses 31 Dec 2023 30 June 2023
A$ A$
Joint venture receivables (229,551) (33,166)
Other receivables (28,790) (30,777)
(258,341) (63,943)
8. DEVELOPMENT ASSETS
31 Dec 2023 30 June 2023
Non-Current A$ A$
Allocation of Development Assets
Cambay development asset 12,050,212 11,832,652
Cambay restoration asset 5,140,544 5,725,530
Total Carrying Amounts 17,190,756 17,558,182
Movement in Cambay Development Asset Carrying Amount Half-Year
Ended
31 Dec 2023
A$
Cost
Balance at 1 July 33,391,443
Additions during the period ((1)) 411,477
Effect of movements in foreign exchange rates (502,638)
Balance at 31 December 33,300,282
Amortisation and Impairment Losses
Balance at 1 July (21,558,791)
Amortisation charge for the period (2,232)
Effect of movements in foreign exchange rates 310,953
Balance at 31 December (21,250,070)
Cambay Development Asset Carrying Amount at 31 Dec 2023 12,050,212
(1) ) During the period, A$411,477 was invested into an artificial lift
system which was installed in September 2023.
Half-Year
Ended
31 Dec 2023
Movement in Cambay Restoration Asset Carrying Amount A$
Cost
Balance at 1 July 5,740,472
Reduction due to reassessment of restoration provision ((2)) (409,203)
Effect of movements in foreign exchange rates (176,243)
Balance at 31 December 5,155,026
Amortisation and Impairment Losses
Balance at 1 July (14,942)
Effect of movements in foreign exchange rates 460
Balance at 31 December (14,482)
Cambay Restoration Asset Carrying Amount at 31 Dec 2023 5,140,544
(2) ) During the period, a reassessment was made of the restoration
asset and provision, resulting in the reduction of the restoration asset and
provision at 31 December 2023 by A$409,203 (refer to Note 12, footnote (1)).
Total Carrying Amounts A$
At 1 July 2023 17,558,182
At 31 December 2023 17,190,756
Cambay Field Development Assets
Based upon the Company's impairment assessment at 31 December 2023, no
impairment charges were required to be applied to the Cambay Field development
assets during the half-year ended 31 December 2023.
9. EXPLORATION, EVALUATION AND APPRAISAL ("EEA") ASSET
31 Dec 2023 30 June 2023
Non-Current A$ A$
Allocation of EEA Asset
Relating to CS019 licence for the Camelot area ((1)) 266,480 -
Total Carrying Amount 266,480 -
Half-Year
Ended
31 Dec 2023
Movement in EEA Asset A$
Balance at 1 July -
Capitalised EEA expenditure, net of recovery ((1)) 266,839
Effect of movements in exchange rates (359)
Balance at 31 December 266,480
(1) )Effective on 1 August 2023, the NSTA granted the CS019 licence for
the Camelot area ("CS019 - SNS Area 4") to Synergia Energy CCS Limited and its
50% joint venture partner, Wintershall Dea Carbon Management Solutions UK
("Wintershall Dea"), with Synergia Energy CCS Limited as operator. Prior to 1
August 2023, all costs incurred pertaining to obtaining the licence was
expensed.
EEA assets are reviewed at each reporting date to determine whether there is
any indication of impairment. When EEA expenditure does not result in the
successful discovery of potentially economically recoverable reserves or other
assets, or if sufficient data exists to indicate the carrying amount of the
EEA asset is unlikely to be recovered in full, either by development or sale,
it is impaired.
Based on a review of key assumptions, no impairment indicators were identified
as at 31 December 2023. As such no impairment charges were applied to the EEA
asset during the half-year ended 31 December 2023.
10. INVESTMENTS
31 Dec 2023 30 June 2023
A$ A$
Non-Current Investments
Equity securities in Armour Energy Limited ("Armour") - 34,593
- 34,593
In November 2023, Armour stopped trading its shares and went into receivership
and administration. Armour's creditors also resolved to liquidate Armour on 19
January 2024. These are indicators of impairment and as such, the carrying
amount of the Armour investment was fully impaired at 31 December 2023.
11. TRADE AND OTHER PAYABLES
31 Dec 2023 30 June 2023
A$ A$
Current
Trade payables 294,579 78,481
Other payables 209,724 -
Accruals 619,245 407,487
1,123,548 485,968
Trade and Other Payables
The carrying value of trade and other payables is considered to approximate
its fair value due to the short-term nature of these financial liabilities.
12. PROVISIONS
31 Dec 2023 30 June 2023
A$ A$
Current
Employee benefits 192,027 174,116
Site restoration and well abandonment 75,788 -
267,815 174,116
Non-Current
Site restoration and well abandonment 5,603,471 6,156,638
5,603,471 6,156,638
Site Restoration and Well Abandonment
Current 75,788 -
Non-current 5,603,471 6,156,638
5,679,259 6,156,638
Movement in Provision for Site Restoration and Well Abandonment Half-Year
Ended
31 Dec 2023
A$
Balance at 1 July 6,156,638
Unwinding of discount on site restoration provision 123,049
Reduction of provision due to reassessment of restoration asset and provision (409,203)
((1))
Effect of movements in exchange rates (191,225)
Balance at 31 December 5,679,259
(1) )An adjustment was made during the period due to updates in
underlying discount and inflation rates. There were no other adjustments to
the key assumptions on estimated expenditures required by the Company to
settle its site restoration and well abandonment obligations.
13. BORROWINGS
31 Dec 2023 30 June 2023
A$ A$
Current
Unsecured loan (US$800,000 loan facility) - 339,902
Convertible notes (debt component) 1,108,873 434,764
1,108,873 774,666
US$800,000 Loan Facility
The unsecured loan related to an unsecured loan facility agreement for
US$800,000 at an interest rate of 11%, which the Company entered into during
the financial year ended 30 June 2021 with two of its JPDA joint venture
partners, JX and PPP. The loan was restricted to fund the settlement of the
termination penalty to ANPM, which was fully paid by 7 September 2022. The
portion which was owing to PPP was fully repaid in December 2021. The balance
of the loan was fully repaid to JX on 10 August 2023, as shown in the movement
table below:
Half-Year
Ended
31 Dec 2023
Movement in US$800,000 Loan Facility A$
Balance at 1 July 2023 (US$225,355) 339,902
Interest on facility balance at 11% (US$2,969) 4,487
Final repayment made to lender on 10 August 2023 (US$228,324) (348,853)
Effect of movements in exchange rates 4,464
Balance at 31 December 2023 -
Convertible Notes
There are a total of 6,500 unsecured convertible notes on issue at 31 December
2023 and at 30 June 2023, each having a face value of £100. These were
issued effective 9 March 2023 for total proceeds of £650,000. The maturity
date of the notes was 9 March 2024. The conversion rights associated with the
convertible notes were as follows:
· Interest is accrued on the face value of the convertible notes at a
rate of 5% per annum until such time as the interest is either converted into
ordinary shares of the Company or redeemed in cash;
· The holder of the notes may convert the face value of the notes and
interest accrued into ordinary shares of the Company at any time between
9 December 2023 and 9 March 2024 at a conversion price of £0.0008 per share;
· If conversion not elected, holders can elect to redeem their
convertible notes in cash no earlier than the maturity date of 9 March 2024;
· All holders' must notify the Company of their intention to convert or
redeem their convertible notes by 26 February 2024, 10 business days before
the maturity date. If no notice is received by the holders by 26 February
2024, the notes and interest accrued will automatically convert into shares in
the Company on the maturity date.
No convertible notes were converted into the Company's equity during the
half-year period.
Half-Year
Ended
31 Dec 2023
Movement in Convertible Notes (Debt Component) A$
Balance at 1 July 2023 (£228,251) 434,764
Interest on convertible notes at 5% (£16,295) 31,141
Additional amortised effective interest charge (£350,475) ((1)) 653,142
Effect of movements in exchange rates (10,174)
Balance at 31 December 2023 (£595,021) 1,108,873
(1) ) In accordance with AASB 9 Financial Instruments (IFRS equivalent:
IFRS 9 Financial Instruments).
Subsequent Event
In line with the 9 March 2024 maturity date of the 6,500 convertible loan
notes issued by the Company effective 9 March 2023, the Company received
notices from five of its seven convertible note holders that indicated their
intention to redeem their notes and interest accrued into cash. The holders
have a total of 5,430 notes, and requested for 3,680 of its notes, plus
interest accrued, to be redeemed in cash effective on the maturity date of 9
March 2024. These payments will amount to £386,451 (A$720,184 (1)) and will
be paid in accordance with the convertible note agreements.
The holders requested for the other 1,750 notes, plus interest accrued, to be
redeemed in cash with an extended maturity date of 30 September 2024. This
payment will amount to £188,688 (A$351,636 (1)).
The Company also received a notice from another of the convertible note
holders indicating his intention to convert his 320 notes and interest into
42,005,479 ordinary shares of the Company effective 9 March 2024. The
remaining convertible note holder did not provide any option or exercise
notice to the Company by the exercise date and, in accordance with the
convertible note agreement, the remainder of the 750 convertible notes plus
interest will automatically convert into 98,450,342 ordinary shares of the
Company effective 9 March 2024.
The total shares from the conversion of the 1,070 convertible notes plus
interest, being 140,455,821 ordinary shares, are expected to be issued, and
admitted to trading on AIM, on or before 9 April 2024.
On 11 March 2024, the Company also announced that it has obtained loan funding
from existing investors of GBP400,000. The loan is interest bearing and is on
commercial terms and on an unsecured basis.
(1) ) When translated at half-year end GBP to AUD foreign
exchange rate of 0.5366.
14. DERIVATIVE FINANCIAL LIABILITY
31 Dec 2023 30 June 2023
A$ A$
Current
Convertible notes (derivative liability 151,560 1,050,334
on conversion option component)
151,560 1,050,334
Movement in Convertible Notes (Derivative Liability Component) Half-Year
Ended
31 Dec 2023
A$
Balance at 1 July 2023 (£551,425) 1,050,334
Change in fair value (reduction of £470,098) (876,069)
Effect of movements in exchange rates (22,705)
Balance at 31 December 2023 (£81,327) 151,560
The holders of the convertible notes had the option to convert the notes into
ordinary share capital of the Company. This option was effective on 9 December
2023 and expired on 9 March 2024. See Note 13 for further details, including
the notices of intention by five of the convertible note holders to redeem
their notes, plus accrued interest, into cash. One of the convertible note
holders also gave his notice to the Company indicating his intention to
convert his 320 notes and interest into ordinary shares. The remaining
convertible notes will automatically convert into ordinary shares effective
9 March 2024 in accordance with the convertible note agreement.
Fair Value Measurement
The fair value measurement of the derivative liability component has been
determined using a three-level hierarchy, based on the lowest level of input
that is significant to the entire fair value measurement, being:
Level 1: Quoted prices (unadjusted) in active markets for identical assets
that the Group can access at the measurement date;
Level 2: Inputs other than quoted prices included within Level 1 that are
observable for the asset, either directly or indirectly; and
Level 3: Unobservable inputs for the liability.
The derivative liability is determined to be Level 2 and has been valued using
quoted market prices at the end of the reporting period. This valuation
technique maximises the use of observable market data where it is available
and relies as little as possible on entity specific estimates.
15. LEASES
Short-Term Rental Lease Commitments
Non-cancellable operating lease rentals are payable as follows:
31 Dec 2023 30 June 2023
A$ A$
Within one year 13,757 29,626
One year or later and no later than five years - -
13,757 29,626
The Group continues its lease at its Indian office premises in Vadodara,
Gujarat. The lease's lock-in period ended during the half-year on 11 December
2023, and continues on a 3-month rolling basis until 11 December 2025. After
11 December 2025, the Group has the option to negotiate an extension to the
lease at a 12% rent increment, with other terms yet to be determined between
the Group and the lessor should this option be taken up.
Expenses Related to Short-Term or Low Value Leases
Half-Year Half-Year
Ended Ended
31 Dec 2023 31 Dec 2022
A$ A$
Operating lease rentals expensed during the half-year 36,800 36,737
16. EXPENDITURE COMMITMENTS
Exploration, Evaluation and Appraisal Expenditure Commitments
In order to maintain rights of tenure to exploration, evaluation and appraisal
permits, the Group is required to perform exploration, evaluation and
appraisal work to meet the minimum expenditure requirements specified by
various state and national governments. These obligations are subject to
renegotiation when an application for an exploration, evaluation and appraisal
permit is made and at other times. These obligations are not provided for in
the financial report. The expenditure commitments are currently estimated to
be A$nil (30 June 2023: A$nil).
When obligations expire, are re-negotiated or cease to be contractually or
practically enforceable, they are no longer considered to be a commitment.
Further expenditure commitments for subsequent permit periods are contingent
upon future exploration, evaluation and appraisal results. These cannot be
estimated and are subject to renegotiation upon the expiry of the existing
exploration, evaluation and appraisal leases.
Cambay Field
For the extended Cambay PSC period (which started from September 2019), the
Group is required to submit a bank guarantee equivalent to 10% of total
estimated annual expenditure in respect to the work programme approved by
MOPNG of the Government of India. On 28 July 2023, the Group submitted a
US$124,000 bank guarantee in favour of MOPNG (refer to Note 7, footnote (2)),
and subsequent to half-year, on 23 January 2024, another US$43,654 bank
guarantee was submitted, thereby satisfying MOPNG requirements. The total of
US$167,654 submitted up to January 2024 was reduced from the US$248,000
estimated as required and disclosed at 30 June 2023.
The bank guarantee amounts include a 15% portion which is guaranteed on behalf
of OHIL for its share of the bank guarantee.
Required bank guarantee amounts are reassessed every year according to aspects
of the work programme that have been fulfilled during the year, and according
to aspects of the work programme that is planned to be fulfilled for the
relevant upcoming year. This reassessment by MOPNG is expected to happen in
the next few months.
There are no other commitments for the Cambay PSC that is not disclosed
elsewhere in this report.
CCS Licence on Camelot Area
Effective on 1 August 2023, the NSTA granted the CS019 licence for the Camelot
area ("CS019 - SNS Area 4") to Synergia Energy CCS Limited and its 50% joint
venture partner, Wintershall Dea Carbon Management Solutions UK ("Wintershall
Dea"), with Synergia Energy CCS Limited as operator. The carbon storage
licence has a work program that incorporates an appraisal phase comprising
seismic re-processing, technical evaluations and risk assessment, and a
contingent FEED study leading to a potential storage licence application in
2028, following the final investment decision ("FID"). The CS019 licence also
includes a contingent appraisal well. The Group had no other commitments for
the CCS licence at half-year end.
Capital Expenditure Commitments
The Group had no capital expenditure commitments as at 31 December 2023 (30
June 2023: A$nil).
17. CONTINGENT ASSETS, CONTINGENT LIABILITIES AND GUARANTEES
Contingent Assets and Contingent Liabilities at Reporting Date
The Directors are of the opinion that there were no contingent assets or
contingent liabilities as at 31 December 2023 and as at 30 June 2023.
Guarantees
Synergia Energy Ltd has issued a guarantee in relation to corporate credit
cards. The bank guarantee amounts to A$15,000 (30 June 2023: A$15,000).
During the period on 27 July 2023, Synergia Energy Ltd also entered into a
bank guarantee for US$124,000 relating to the Cambay field (refer to Note 7,
footnote (2)), with another US$43,654 guarantee which the Company entered into
after the half-year on 23 January 2024. 15% of these guarantees were entered
into on behalf of OHIL for its share of the bank guarantee. Refer to Note 16
for further details of the Cambay related guarantees.
18. ISSUED CAPITAL
Half-Year Ended Year Ended
31 December 2023 30 June 2023
Number of Issued Number of Issued
Ordinary
Ordinary
Shares Capital
Shares Capital
A$ A$
Shares
On issue 1 July 8,417,790,704 192,817,143 8,242,959,310 192,181,384
Issue of share capital
Shares issued for cash (()(1)) ((2)) 1,923,295,454 3,336,352 174,831,394 608,378
Shares issued for 156,250,000 235,405 - -
(cash to be received) ((2))
Capital raising costs (()(3)) - (232,962) - 27,381
Balance at 31 December / 30 June 10,497,336,158 196,155,938 8,417,790,704 192,817,143
Refer to the following footnotes for additional information of the issue of
ordinary shares and Note 19 for details of unlisted options:
(1) )On 7 August 2023, the Company issued 704,545,454 shares at £0.0011
(A$0.0021) per ordinary share pursuant to the placement announced on 25 July
2023 ("July Placement").
(2) )On 19 December 2023, the Company issued 1,375,000,000 shares at
£0.0008 (A$0.0015) per ordinary share pursuant to the placement announced on
5 December 2023 ("December Placement"). These shares were ratified by
shareholders at a General Meeting held by the Company on 15 February 2024.
The majority of the December Placement funds were received in December, with
£125,000 of the funds received after the half-year on 5 January 2024.
As part of this placement, the Company also issued 1,375,000,000 unquoted
options to the participants of this placement ("December Placement Options")
and 82,500,000 unquoted options to Novum pursuant to the capital raising
advisory agreement relating to this placement ("December Fee Options"). Both
the December Placement Options and the December Fee Options are exercisable at
£0.0014 per share on or before 31 December 2026. The options were issued
after period end on 28 February 2024 following shareholder approval at the
same General Meeting on 15 February 2024.
(3) )Included in capital raising costs is an amount of A$20,902, being the
fair value of 13,636,363 unquoted options ("July Fee Options") granted to
Novum pursuant to the capital raising advisory agreement relating to the July
Placement. These options were issued on 26 September 2023, are exercisable at
£0.0011 per share on or before 31 July 2026. Refer to Note 19 (footnote (2))
to see the factors and assumptions used to determine the fair value of the
July Fee Options.
The Company does not have authorised capital or par value in respect of its
issued shares. The holders of ordinary shares are entitled to receive
dividends as declared from time to time and are entitled to one vote per share
at meetings of the Company.
Subsequent Event
As mentioned previously, on 28 February 2024, following shareholder approval
at the Company's General Meeting on 15 February 2024, the Company issued
1,375,000,000 December Placement Options and 82,500,000 December Fee Options.
Both the December Placement Options and the December Fee Options are
exercisable at £0.0014 per share on or before 31 December 2026.
19. SHARE-BASED PAYMENTS ("SBP")
Half-Year Half-Year
Ended Ended
31 Dec 2023 31 Dec 2022
A$ A$
Shares and Options - Equity Settled
Executive Directors - long-term incentive options (()(1)) 84,093 84,094
Total SBP expense and amount recognised in Profit or Loss 84,093 84,094
SBP Recognised Directly in Equity
Options granted to brokers during the period (()(2)) 20,902 25,152
Total SBP recognised directly in equity 20,902 25,152
Total SBP Transactions 104,995 109,246
Refer to the following footnotes for additional information on SBP
transactions during the period:
(1) )Relates to 324,675,324 unlisted options which were issued to Executive
Directors (Messrs Salomon, Wessel and Judd) on 12 August 2022, following the
Company's General Meeting held on 13 July 2022. The options are exercisable at
£0.0022 (A$0.0039) and expire on 12 August 2027, with one third (1/3) vesting
on 30 June 2022, one third (1/3) vesting on 30 June 2023 and one third (1/3)
vesting on 30 June 2024.
The total fair value of the unlisted options issued to Executive Directors
(A$504,564) was calculated at the grant date of 13 July 2022 using the
Black-Scholes Model. Expected volatility was estimated by considering
historical volatility of the Company's share price over the period
commensurate with the expected term. The following factors and assumptions
were used to determine the fair value of the 324,675,324 unlisted options
granted to Executive Directors on 13 July 2022:
Grant Date Vesting Date Expiry Date Fair Value Per Option Exercise Price Price of Shares on Grant Date Expected Volatility Risk Free Interest Rate Dividend Yield
13 Jul 2022 As indicated above 12 Aug 2027 £0.0009 £0.0022 £0.0016 75.15% 1.35% -
(A$0.0016)
(A$0.0039)
(A$0.0028)
To date, A$420,469 of the A$504,564 fair value of the options have been
expensed, with A$168,188 expensed at 30 June 2022, A$168,188 expensed during
the year ended 30 June 2023, and a further A$84,094 expensed during the
half-year ended 31 December 2023.
(2) ) On 26 September 2023, the Company issued 13,636,363 unquoted July
Fee Options to Novum pursuant to the capital raising advisory agreement
relating to the July Placement. The options are exercisable at £0.0011 per
share and expire on 31 July 2026. The fair value of the unquoted options of
A$20,902 was calculated at the grant date of 7 August 2023 (being the issue
date of the July Placement shares) using the Black-Scholes Model. Expected
volatility was estimated by considering historical volatility of the Company's
share price over the period commensurate with the expected term.
The following factors and assumptions were used to determine the fair value of
the July Fee Options granted to Novum during the period:
Grant Date Vesting Date Expiry Date Fair Value Per Option Exercise Price Price of Shares on Grant Date Expected Volatility Risk Free Interest Rate Dividend Yield
7 Aug 2023 7 Aug 2023 31 July 2026 £0.0008 £0.0011 £0.0012 110.67% 4.10% -
(A$0.0015)
(A$0.0021)
(A$0.0022)
The options have not been exercised at the half-year report date.
(3) )No other options were issued during the half-year ended 31 December
2023. The balance of unlisted options at 31 December 2023 was 463,564,923 (30
June 2023: 449,928,560 options), as shown in the schedule below:
Exercise Balance at 1 July 2023 Issued During the Period Options Expired Balance at 31 Dec 2023
Issue Date Expiry Date Price No. No. No. No.
19 Jan 2022 31 May 2024 £0.0024 25,210,084 - - 25,210,084
12 Aug 2022 12 Aug 2027 £0.0022 324,675,324 - - 324,675,324
13 Sep 2022 30 Apr 2024 £0.0020 30,000,000 - - 30,000,000
3 Apr 2023 1 Apr 2028 £0.0000 70,043,152 - - 70,043,152
26 Sep 2023 31 July 2026 £0.0011 - 13,636,363 - 13,636,363
449,928,560 13,636,363 - 463,564,923
20. RELATED PARTY TRANSACTIONS
Arrangements with related parties continue to be in place. For details of
these arrangements, refer to the consolidated annual financial report of the
Group as at and for the year ended 30 June 2023.
No further related party arrangements were made during the period to 31
December 2023.
21. CHANGE IN THE COMPOSITION OF THE GROUP
Subsequent to half-year end, one of the Group's inactive entities, Oilex (JPDA
06-103) Ltd, was deregistered on 1 February 2024. This entity had no assets at
the time of deregistration.
There have been no other changes in the composition of the Group since the
last annual reporting date.
22. SUBSEQUENT EVENTS
On 5 January 2024, the Company received the last instalment of the December
Placement funds of £125,000.
On 23 January 2024, the Company entered into an additional bank guarantee for
US$43,654, in favour of MOPNG to satisfy the Group's Cambay PSC bank guarantee
requirements. Further details of those requirements are detailed in Note 16.
On 24 January 2024, Mr Schwarz was appointed as Deputy Chairman.
On 1 February 2024, one of the Group's inactive entities, Oilex (JPDA 06-103)
Ltd, was deregistered. This entity had no assets at the time of
deregistration.
On 14 February 2024, the Group entered into an agreement to farm out 50% of
the Group's interest in the Cambay PSC to Selan Exploration Technology
Limited, in exchange of an agreed US$20 million work programme as well as a
cash payment of US$2.5 million. The agreement also entitles the Group to
bonuses of up to US$9 million, linked to certain future cumulative gas sales
thresholds being achieved. The agreement is subject to Government of India
approval.
On 28 February 2024, following shareholder approval at the Company's General
Meeting on 15 February 2024, the Company issued 1,375,000,000 December
Placement Options to the participants of the December Placement and 82,500,000
December Fee Options to Novum pursuant to the capital raising advisory
agreement relating to the December Placement. Both the December Placement
Options and the December Fee Options are exercisable at £0.0014 per share on
or before 31 December 2026.
In line with the 9 March 2024 maturity date of the 6,500 convertible loan
notes issued by the Company effective 9 March 2023, the Company received
notices from five of its seven convertible note holders that indicated their
intention to (a) redeem their 5,430 notes and interest accrued into cash, and
(b) extend the maturity to 30 September 2024 for 1,750 of the notes. The
payments will amount to £386,451 (A$720,184) effective on 9 March 2024 and
£188,688 (A$351,636) effective on 30 September 2024. The first tranche of
payments will be paid in accordance with the convertible note agreements. The
Company also received a notice from another of the convertible note holders
indicating his intention to convert his 320 notes and interest into 42,005,479
ordinary shares of the Company effective 9 March 2024. The remaining
convertible note holder did not provide any option or exercise notice to the
Company by the exercise date and, in accordance with the convertible note
agreement, the remainder of the 750 convertible notes plus interest will
automatically convert into 98,450,342 ordinary shares of the Company effective
9 March 2024. The total shares from the conversion of the 1,070 convertible
notes plus interest, being 140,455,821 ordinary shares, are expected to be
issued, and admitted to trading on AIM, on or before 9 April 2024. Refer to
Note 13 for further details.
On 11 March 2024, the Company announced that it has obtained loan funding from
existing investors of GBP400,000. The loan is interest bearing and is on
commercial terms and on an unsecured basis.
Other than the above disclosures, there has not arisen in the interval between
the end of the financial period and the date of this report an item,
transaction or event of a material and unusual nature likely, in the opinion
of the Directors of the Company, to affect significantly the operations of the
Group, the results of those operations, or the state of affairs of the Group,
in future financial periods.
DIRECTORS' DECLARATION
In the opinion of the Directors of Synergia Energy Ltd (the Company):
1. the condensed consolidated financial statements and notes set out on
pages 10 to 32, are in accordance with the Corporations Act 2001 including:
(a) giving a true and fair view of the Group's financial position as at 31
December 2023 and of its performance for the half-year ended on that date; and
(b) complying with Australian Accounting Standard AASB 134 Interim Financial
Reporting and the Corporations Regulations 2001 and other mandatory
professional reporting requirements; and
2. there are reasonable grounds to believe that the Group and the Company
will be able to pay its debts as and when they become due and payable.
Signed in accordance with a resolution of the Board of Directors made pursuant
to section 303(5) of the Corporations Act 2001.
Mr Peter Schwarz Mr Roland Wessel
Deputy Chairman Chief Executive Officer and Director
West Perth
Western Australia
14 March 2024
PKF Perth
ABN 64 591 268 274
Level 5, 35 Havelock Street,
West Perth WA 6005
PO Box 609,
West Perth WA 6872
Australia
+61 8 9426 8999
perth@pkfperth.com.au
pkf.com.au
INDEPENDENT AUDITOR'S REVIEW REPORT
TO THE MEMBERS OF SYNERGIA ENERGY LTD
Report on the Half-Year Financial Report
Conclusion
We have reviewed the half-year financial report of Synergia Energy Ltd (the
company) and controlled entities (consolidated entity) which comprises the
consolidated statement of financial position as at 31 December 2023, the
consolidated statement of profit or loss and other comprehensive income, the
consolidated statement of changes in equity and the consolidated statement of
cash flows for the half-year ended on that date, and notes to the financial
statements, including material policy information and the directors'
declaration of the consolidated entity comprising the company and the entities
it controlled at 31 December 2023, or during the half year.
Based on our review, which is not an audit, we have not become aware of any
matter that makes us believe that the accompanying half-year financial report
of Synergia Energy Ltd is not in accordance with the Corporations Act 2001
including:
(a) giving a true and fair view of the consolidated entity's financial
position as at 31 December 2023 and of its performance for the half-year ended
on that date; and
(b) complying with Accounting Standard AASB 134 Interim Financial Reporting
and the Corporations Regulations 2001.
Basis for Conclusion
We conducted our review in accordance with ASRE 2410 Review of a Financial
Report Performed by the Independent Auditor of the Entity. Our
responsibilities are further described in the Auditor's Responsibilities for
the Review of the Financial Report section of our report.
Material Uncertainty Related to Going Concern
Without qualifying our conclusion, we draw attention to Note 2(c) in the
financial report in which indicates that the consolidated entity incurred a
net loss of $2,069,097 during the half year ended 31 December 2023 and had
negative operating cashflow of $1,354,041. These conditions, along with other
matters as set forth in Note 2(c), indicate the existence of a material
uncertainty which may cast significant doubt about the consolidated entity's
ability to continue as a going concern and therefore, the consolidated entity
may be unable to realise its assets and discharge its liabilities in the
normal course of business, and at the amounts stated in the financial report.
Independence
We are independent of the company in accordance with the auditor independence
requirements of the Corporations Act 2001 and the ethical requirements of the
Accounting Professional and Ethical Standards Board's APES 110 Code of Ethics
for Professional Accountants (including Independence Standards) (the Code)
that are relevant to our audit of the annual financial report in Australia. We
have also fulfilled our other ethical responsibilities in accordance with the
Code.
Directors' Responsibility for the Interim Financial Report
The directors of the company are responsible for the preparation of the
half-year financial report that gives a true and fair view in accordance with
the Australian Accounting Standards and the Corporations Act 2001 and for such
internal controls as the directors determine is necessary to enable the
preparation of the half-year financial report that gives a true and fair view
and is free from material misstatement, whether due to fraud or error.
Auditor's Responsibilities for the Review of the Financial Report
Our responsibility is to express a conclusion on the half-year financial
report based on our review. ASRE 2410 requires us to conclude whether we have
become aware of any matter that makes us believe that the half-year financial
report is not in accordance with the Corporations Act 2001 including: giving a
true and fair view of the consolidated entity's financial position as at 31
December 2023 and its performance for the half year ended on that date; and
complying with Accounting Standard AASB 134 Interim Financial Reporting and
the Corporation Regulations 2001.
A review of a half-year financial report consists of making enquiries,
primarily of persons responsible for financial and accounting matters, and
applying analytical and other review procedures. A review is substantially
less in scope than an audit conducted in accordance with Australian Auditing
Standards and consequently does not enable us to obtain assurance that we
would become aware of all significant matters that might be identified in an
audit. Accordingly, we do not express an audit opinion.
PKF Perth
Shane Cross
Partner
14 March 2024
PKF Perth is a member of PKF Global, the network of member firms of PKF
International Limited, each of which is a separately owned legal entity and
does not accept any responsibility or liability for the actions or inactions
of any individual member or correspondent firm(s). Liability limited by a
scheme approved under Professional Standards Legislation.
DEFINITIONS
Associated Gas Natural gas found in contact with or dissolved in crude oil in the reservoir.
It can be further categorised as Gas-Cap Gas or Solution Gas.
Barrels/Bbls Barrels of oil or condensate - standard unit of measurement for all oil and
condensate production. One barrel is equal to 159 litres or 35 imperial
gallons.
BBO Billion standard barrels of oil or condensate.
BCF Billion cubic feet of gas at standard temperature and pressure conditions.
BCFE Billion cubic feet equivalent of gas at standard temperature and pressure
conditions.
BOE Barrels of Oil Equivalent. Converting gas volumes to the oil equivalent is
customarily done on the basis of the nominal heating content or calorific
value of the fuel. Common industry gas conversion factors usually range
between 1 barrel of oil equivalent ("BOE") = 5,600 standard cubic feet ("scf")
of gas to 1 BOE = 6,000 scf. (Many operators use 1 BOE = 5,620 scf derived
from the metric unit equivalent 1 m³ crude oil = 1,000 m³ natural gas).
BOEPD Barrels of oil equivalent per day.
BOPD Barrels of oil per day.
CCGT Combined cycle gas turbines.
CCS "Carbon Capture and Sequestration" or "Carbon Capture and Storage".
CO(2) Carbon dioxide.
Contingent Resources Those quantities of petroleum estimated, as of a given date, to be potentially
recoverable from known accumulations by application of development projects,
but which are not currently considered to be commercially recoverable due to
one or more contingencies.
Contingent Resources may include, for example, projects for which there are
currently no viable markets, or where commercial recovery is dependent on
technology under development, or where evaluation of the accumulation is
insufficient to clearly assess commerciality. Contingent Resources are
further categorised in accordance with the level of certainty associated with
the estimates and may be sub-classified based on project maturity and/or
characterised by their economic status.
Discovered in place volume Is that quantity of petroleum that is estimated, as of a given date, to be
contained in known accumulations prior to production.
FEED Front End Engineering Design.
FISO Floating injection, storage and offloading.
GOI The Government of India.
GOR Gas to oil ratio in an oil field, calculated using measured natural gas and
crude oil volumes at stated conditions. The gas/oil ratio may be the solution
gas/oil, symbol Rs; produced gas/oil ratio, symbol Rp; or another suitably
defined ratio of gas production to oil production. Volumes measured in
scf/bbl.
LNG Liquefied natural gas.
mD Millidarcy - unit of permeability.
MD Measured Depth.
MMbbls Million barrels of oil or condensate.
MMBO Million standard barrels of oil or condensate.
MMscfd Million standard cubic feet (of gas) per day.
MOPNG Ministry of Petroleum and Natural Gas, Government of India.
MSCFD Thousand standard cubic feet (of gas) per day.
MTa Million tonnes per annum.
NSTA North Sea Transition Authority.
PI Participating Interest.
Prospective Resources Those quantities of petroleum which are estimated, as of a given date, to be
potentially recoverable from undiscovered accumulations.
PSC Production Sharing Contract.
Reserves Reserves are those quantities of petroleum anticipated to be commercially
recoverable by application of development projects to known accumulations from
a given date forward under defined conditions.
Proved Reserves are those quantities of petroleum, which by analysis of
geoscience and engineering data, can be estimated with reasonable certainty to
be commercially recoverable, from a given date forward, from known reservoirs
and under defined economic conditions, operating methods and government
regulations.
Probable Reserves are those additional Reserves which analysis of geoscience
and engineering data indicate are less likely to be recovered than Proved
Reserves but more certain to be recovered than Possible Reserves.
Possible Reserves are those additional reserves which analysis of geoscience
and engineering data indicate are less likely to be recoverable than Probable
Reserves. Reserves are designated as 1P (Proved), 2P (Proved plus Probable)
and 3P (Proved plus Probable plus Possible).
Probabilistic methods:
· P90 refers to the quantity for which it is estimated there is at
least a 90% probability the actual quantity recovered will equal or exceed.
· P50 refers to the quantity for which it is estimated there is at
least a 50% probability the actual quantity recovered will equal or exceed.
· P10 refers to the quantity for which it is estimated there is at
least a 10% probability the actual quantity recovered will equal or exceed.
SCF/BBL Standard cubic feet (of gas) per barrel (of oil).
SCFD Standard cubic feet (of gas) per day.
TCF Trillion cubic feet of gas at standard temperature and pressure conditions.
Tight Gas Reservoir The reservoir cannot be produced at economic flow rates or recover economic
volumes of natural gas unless the well is stimulated by a large hydraulic
fracture treatment, a horizontal wellbore, or by using multilateral wellbores.
UKCS The United Kingdom Continental Shelf.
Undiscovered in place volume Is that quantity of petroleum estimated, as of a given date, to be contained
within accumulations yet to be discovered.
CORPORATE INFORMATION
Directors Stock Exchange Listings
Jonathan Salomon Synergia Energy Ltd's shares are listed under the code SYN on the Alternative
(B APP SC (Geology), GAICD) Investment Market ("AIM") of the London Stock Exchange ("LSE").
Non-Executive Chairman
Roland Wessel AIM Nominated Adviser
Chief Executive Officer and Executive Director Strand Hanson Limited
Colin Judd 26 Mount Row
Chief Financial Officer and Director London W1K 3SQ
Mark Bolton (B Business) United Kingdom
Non-Executive Director
Paul Haywood AIM Joint Brokers
Independent Non-Executive Director Novum Securities Limited
Peter Schwarz 2nd Floor, 7-10 Chandos Street
(B Sc (Geology), M Sc (Petroleum Geology))
London W1G 9DQ
Independent Non-Executive Director and
United Kingdom
Deputy Chairman
Panmure Gordon
40 Gracechurch Street
Company Secretary
London EC3V 0BT
Ms Anshu Raghuvanshi (FCS, FGIA, LLB)
United Kingdom
Registered and Principal Office Share Registries
Level 24, 44 St Georges Terrace The Office of the Depositary
Perth, Western Australia 6000 Computershare Investor Services PLC
Australia The Pavilions
Ph. +61 (0)8 9485 3200 Bridgwater Road
Fax +61 (0)8 9485 3290 Bristol BS13 8AE
United Kingdom
Postal Address Ph. +44 (0) 370 707 1210
PO Box 255 Website: www.computershare.com/uk (http://www.computershare.com/uk)
West Perth, Western Australia 6872 Computershare Investor Services Pty Limited
Australia Level 17
221 St Georges Terrace
India Operations - Gujarat Project Office Perth, Western Australia 6000
2nd Floor, Shreeji Complex Australia
Next to Rituraj Complex Ph: 1300 850 505 (within Australia)
Vasna Road, Village Akota Ph: +61 (0)3 9415 4000
(https://www.synergiaenergy.com/investors/+61%203%209415%204000) (outside
Vadodara - 390015 Australia)
Gujarat, India. Website: www.computershare.com/au (http://www.computershare.com/au)
Website Auditors
www.synergiaenergy.com (http://www.synergiaenergy.com) PKF Perth
Level 5, 35 Havelock Street
Email West Perth, Western Australia 6005
synergiaenergy@synergiaenergy.com (mailto:synergiaenergy@synergiaenergy.com) Australia
Synergia Energy Ltd
ACN 078 652 632
ABN 50 078 652 632
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