REG - Synergia Energy Ltd - Interim Financial Report
13/03/2025 07:00
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RNS Number : 4342A Synergia Energy Ltd 13 March 2025
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ABN 50 078 652 632
INTERIM FINANCIAL REPORT
Half-Year Ended 31 December 2024
REVIEW OF OPERATIONS
Overview and Strategy
This has been a very busy period for your Company as it progresses activities
across its portfolio. The management team continue to work very hard to focus
the deployment of investors' money where it can add most value for the
business and shareholders, whilst utilising partner's funds to progress assets
wherever possible. Whilst there have been challenges for Synergia during the
reporting period, there have also been successes and the team has continued to
work assiduously to overcome any issues as they arise and maintain the
strategic direction of travel, which the Board believes will deliver value for
investors in due course.
The Company's strategy continued to focus on the development of its Cambay gas
and condensate field in India and its Carbon Capture and Storage ("CCS")
project in the UK (The Medway Hub Camelot CCS Project). Additionally, the
Cambay CCS scheme in India has gained momentum.
A key milestone for Synergia was the finalisation of its joint venture with
Selan Exploration ("Selan") involving the farm out of 50% of the Cambay PSC in
India in exchange for Synergia being carried by Selan through an agreed US$20
million work programme ("WP") comprising 3 new wells and at least 3 legacy
well work-overs. In addition, Synergia received a cash lump sum of $2.5
million against past costs. The joint venture was approved by the Government
of India ("GoI") on 19 July 2024 and the Farm Out Agreement with Selan closed
on 1 August 2024.
The Selan joint venture provides a path towards a full field development of
the Cambay PSC and its 206 BCF of P50 gas reserves and associated condensate.
The Medway Hub Camelot CCS project saw a change in joint venture partner after
Wintershall Dea was acquired by Harbour Energy. The technical work programme
prescribed by the North Sea Transition Authority ("NSTA") has been progressing
well but has been temporarily scaled back while a replacement partner is
identified following Harbour Energy's request to withdraw from the project.
The Company believes its "merchant scheme" strategy whereby the Company plans
to provide Transportation and Storage ("T&S") services to CO(2) emitting
customers without relying on direct government funding is proving to be a
sound strategy. The Company believes future government "Track" funding is in
doubt and the government is currently developing an attractive framework for
commercial schemes (such as the Medway Hub Camelot project).
The Cambay CCS scheme was discussed with the Directorate General of
Hydrocarbons ("DGH") in July 2024 and Synergia has formed a consortium
comprising the Institute of Technology Bombay and the British Geological
Survey to apply for GOI funding for a proof-of-concept pilot project.
Andrew Darbyshire joined the Company as Chief Financial Officer in November,
replacing Colin Judd who made an exceptional contribution to the significant
progress made with respect to Synergia's development over the previous three
years.
Cambay Field, Onshore Gujarat State, India
(Synergia Energy: Joint Operator and 50% Participating Interest)
The pivotal joint venture with Selan Exploration came into operation on 1
August 2024 followed by the transfer of operating personnel to Selan as Lead
Operator. The $20 million work programme (whereby Selan are carrying
Synergia's costs) commenced in October 2024 with site preparation work and
well pressure gradient surveying leading to two wells being worked over (C-70
and C-63).
Prior to the work programme, production from the Cambay field was derived
primarily from the C-77H well which produced consistently between 60-120 MCFD.
The C-77H well production is still compromised by liquid loading with the jet
pump not optimised due to smaller than required production tubing diameter.
The current plan is to workover the well in calendar Q2 2025 and install
larger diameter production tubing. Gas production was augmented by oil
production from legacy wells which averaged between 5-15 BPD. Gas export
pricing averaged circa $8/MCF and oil pricing was close to the Brent benchmark
pricing.
The C-70 workover resulted in initial gas production rates up to c. 190 MCFD.
Fluid ingress after a few weeks of strong production requires the installation
of artificial lift equipment and/or a water shut off operation to facilitate
consistent gas production. The workover on C-63 did not result in any material
production.
Oil production increased to 28-30 BPD in November and December as a result of
stimulating production from legacy wells. A number of these legacy wells are
under review concerning future interventions, including the installation of
sucker rod pump artificial lift.
The work programme will address several wells that will require a heavier
(50-100T) workover rig which is anticipated to be contracted during March
2025.
The main part of the work programme comprises the drilling of three new wells:
two vertical wells and one horizontal well targeting the Eocene gas reservoir.
At the time of writing, tendering for key services, including a suitable
drilling rig, is underway. The current plan is to commence the new well
drilling program in calendar Q2 2025 with the initial two vertical wells to be
followed by the horizontal well.
The work programme is anticipated to lead into a self-funded full field
development exploiting the 206 BCF of P50 reserves in the Eocene reservoir.
With the majority of the Company's India-based operating costs being
chargeable to the joint venture account, Synergia's India operation is
currently self-funded and the Company anticipates significant additional
production from the new wells commencing in the second half of calendar year
2025.
Cambay CCS Scheme
(Synergia Energy: Operator and 100% Participating Interest)
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.
The extensive Olpad Formation is up to 1 kilometre thick in the Cambay Basin
and Synergia believe it could form the basis of a national CO(2) storage
resource. However, further technical work and an appraisal well are required
to verify that the Olpad is suitable for CO(2) storage.
The Cambay CCS scheme was presented to the DGH in July 2024 and the Director
General of the DGH encouraged the inclusion of the Institute of Technology
Bombay ("ITT") into a consortium to prepare an application for GoI funding for
a proof-of-concept pilot project. The ITT has prepared several reports on CCS
in India and has collaborated with the British Geological survey ("BGS") for
many years concerning regional CCS studies. In October the BGS agreed to join
the Cambay CCS consortium. A Pilot Project proposal has been submitted to the
DGH which incorporates the drilling of an appraisal well on the Cambay PSC
targeting the Olpad Formation. The appraisal well would be cored and logged,
and CO(2) injection tests would be undertaken. The proposed timeframe for the
Pilot Project is currently in calendar year 2026.
Medway Hub Camelot CCS Project
(Synergia Energy: Operator and 50% Participating Interest)
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 Camelot 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 Medway Hub Camelot CCS 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) will be
injected into the Camelot depleted gas field and Bunter saline aquifer, which
are situated in the Southern North Sea, for permanent sequestration. In
addition, the FISO will be able to accept CO(2) cargoes transported by marine
tankers originating from Continental European locations. The CS019 licence has
a work programme that incorporates an appraisal phase comprising seismic
reprocessing (completed), technical evaluations and risk assessment
(underway), a contingent FEED study leading to the potential storage license
application in calendar year 2028 following the final investment decision
("FID"). The Camelot licence also includes a contingent appraisal well. First
CO(2) injection is anticipated for calendar years 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.
The Company aims to permanently store up to 6.5 million tonnes per annum (MTa)
of CO(2) when the project is fully operational.
On 3 September 2024, Harbour Energy completed the purchase of Wintershall Dea.
Consequently, Harbour Energy replaced Wintershall Dea as the 50% partner on
the CS019 Camelot licence and associated joint operating agreement. On 28
November Harbour Energy announced they wished to withdraw from the Camelot
licence and associated joint venture agreement. In December the NSTA stated
that Harbour Energy could not withdraw from the licence until a replacement
joint venture partner has been identified. Synergia have mandated upstream
energy experts OPC to undertake a formal farm out process to identify a
replacement for Harbour Energy. In the interim, Synergia's work on the
NSTA-prescribed work programme has been limited to technical activity related
to legacy well integrity analysis which is crucial to the storage containment
assurance. Synergia is confident that the Camelot field will be suitable for
CO(2) storage and a recent economic study undertaken by Axis Well Technology
has confirmed that the project will be economically competitive.
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
Executive 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 2024
ASSET LOCATION ENTITY CHANGE IN INTEREST DURING THE PERIOD EQUITY (%) OPERATOR
(%)
Cambay Field PSC ((1)) Gujarat State, India Synergia Energy Ltd (35) 50 Selan Exploration Technology Limited and Synergia Energy Ltd ((2))
Oilex N.L. Holdings (India) Limited (15) -
CS019 - SNS Area 4 (Camelot Area) Southern North Sea (United Kingdom) Synergia Energy CCS Limited - 50 Synergia Energy CCS Limited
( (1)) On 19 July 2024, the Government of India Ministry of Petroleum and
Natural Gas approved the transfer of assignment of 50% participating interest
in the Cambay Field Production Sharing Contract (35% previously held by the
Synergia Energy Ltd entity and 15% previously held by the Oilex N.L. Holdings
(India) Limited entity) to Selan Exploration Technology Limited. After the
transfer of the 50%, Synergia Energy Ltd now holds 50% equity.
((2)) Synergia Energy Ltd and Selan Exploration Technology Limited are joint
operators at the Cambay field, with Selan Exploration Technology Limited being
the lead joint operator.
DIRECTORS' REPORT
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 2024 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 Peter Schwarz Independent Non-Executive Director and Deputy Chairman
Mr Roland Wessel Chief Executive Officer ("CEO") and Executive Director
Mr Andrew Darbyshire Chief Financial Officer ("CFO") and Executive Director
(appointed as CFO on 4 November 2024,
appointed as Executive Director on 4 February 2025)
Mr Colin Judd Chief Financial Officer ("CFO") and Executive Director
(retired 4 November 2024)
Mr Ashish Khare Head of Indian Assets and Executive Director
Mr Mark Bolton Non-Executive Director
Mr Paul Haywood Independent Non-Executive Director
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 4 of this report.
BOARD UPDATE
On 4 November 2024, Mr Colin Judd retired as CFO and Executive Director. Mr
Andrew Darbyshire was appointed as CFO, effective on the same day. Mr
Darbyshire was appointed as Executive Director after the half-year end on 4
February 2025.
Mr Darbyshire qualified as an accountant in 2011 with Garbutt & Elliott
and went on to work in audit for Grant Thornton. In 2014, Mr Darbyshire joined
Getech Group plc to establish its new finance team, and subsequently joined
their board in 2018, where he was instrumental in several acquisitions. Mr
Darbyshire has a master's degree in mathematics from the University of York
and is a Fellow of the Institute of Chartered Accountants in England and
Wales.
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 reported a consolidated profit after income tax of A$10,588,667
during the half-year, compared to a consolidated loss of A$2,069,097 in the
previous half-year ended 31 December 2023. This profit was primarily driven by
a one-time gain on disposal of 50% of the Group's participating interest in
the Cambay PSC, amounting to A$12,596,968.
The reduction of the Group's share in the Cambay PSC to 50% in July 2024 also
impacted revenues and cost of sales during the period. Revenues decreased to
A$156,470, and cost of sales reduced to A$210,508, compared to A$353,168 and
A$741,361, respectively, for the half-year ended 31 December 2023.
There was also a slight decrease in production during the period. The Group's
share of gas energy supplied reduced from 20,882 MMBTU during the previous
half-year ended 31 December 2023 to 9,818 MMBTU during the current period, and
the Group's share of barrels sold reduced from 1,422 barrels during the
previous half-year ended 31 December 2023 to 1,127 barrels during the current
period. This resulted in the Group incurring a gross loss of A$54,038 during
the half-year (half-year ended 31 December 2023: A$388,193).
The reduction of the Group's share in the Cambay PSC also resulted in the
reduction of the Group's share of exploration, evaluation, and appraisal
expenditure on the Cambay field to A$182,826 (half-year ended 31 December
2023: A$360,405). However, administration expenses increased slightly from
A$1,090,567 during the previous half-year ended 31 December 2023 to
A$1,246,671 during the current period, mainly due to an overall 10% increase
in salary rates as well as a 27% increase in salaries for the CEO and CFO
positions effective from 1 July 2024.
During the period, share-based expenses increased from A$84,093 during the
half-year ended 31 December 2023 to A$434,809 during the current period. This
was mainly due to the issue of nil-cost unlisted options to the Executive
Directors, which had a fair value of A$347,579 on 30 October 2024 when they
were granted and issued.
As a result, the Group's consolidated profit after income tax for the period
was A$10,588,667.
Cash Flow
During the period, the Group received A$3,831,884, net of costs, from the cash
payment portion of the 50% farm-out of the Cambay PSC. The Company also raised
funds net of costs amounting to A$1,200,283 (half-year ended 31 December 2023:
A$3,124,293). These funds were used to pay off the Group's borrowings,
consisting of principal and interest repayments of A$1,250,485 and A$431,834,
respectively (half-year ended 31 December 2023: A$338,052 and A$10,801,
respectively).
These funds were also used to make various payments during the period,
including payments to suppliers and employees, which amounted to A$2,334,794
during the period (half-year ended 31 December 2023: A$1,482,286). The
increase in these payments was a result of the combined effect of increases in
administration expenses as well as the repayment of some trade and other
payables which were outstanding as of 30 June 2024.
The payments for capitalised exploration, evaluation, and appraisal assets of
A$765,564 (half-year ended 31 December 2023: A$163,967) reflect the Group's
ongoing investment in its CCS project within the CS019 licence in the Camelot
area.
Overall, this resulted in an increase in cash and cash equivalents of
A$252,825 during the period (half-year ended 31 December 2023: increase of
A$856,756). Cash and cash equivalents were A$1,268,964 at the end of the
period (31 December 2023: A$1,789,410).
Financial Position
During the period, net assets increased from A$9,955,839 at 30 June 2024 to
A$23,327,021 at 31 December 2024. This increase is primarily due to the gain
on the disposal of the Group's 50% joint venture participating interest in the
Cambay PSC, which resulted in the Group acquiring a total carried interest
asset of A$15,061,858 as part of the Cambay Farm-Out (A$15,334,532 after
unwinding interest income recognised at 31 December 2024). This was partially
offset by the decrease in development assets, net of the provision for
restoration, from A$11,892,199 at 30 June 2024 to A$6,087,863 at 31 December
2024, also mainly due to the Cambay Farm-Out transaction.
The increase in net assets was also due to the Group's receipt of the cash
payment portion of the Cambay Farm-Out, net of costs, amounting to
A$3,831,884, as well as the Company's raising of funds net of costs of
A$1,200,283, as previously mentioned. This enabled the Group to reduce its
liabilities, particularly the Group's borrowings, which decreased from
A$1,739,983 at 30 June 2024 to A$nil at 31 December 2024, due to these
borrowings being repaid during the period.
As at 31 December 2024, the Company had issued capital of 13,071,741,779 fully
paid ordinary shares and 3,901,206,904 unlisted options.
MATERIAL UNCERTAINTY RELATED TO GOING CONCERN
The independent auditor's review report contains a statement of material
uncertainty regarding the Company's ability to continue as a going concern.
The Condensed Consolidated Interim Financial Report has 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.
The Group forecasts that revenues from a new vertical well, scheduled for
completion in calendar H2 2025, will provide sufficient operating cash flows
to fund the Group's ongoing activities, working capital requirements,
liquidity requirements and to continue as a going concern for at least the
12-month period from the end of March 2025. On 27 February 2025, the Group
also raised additional equity funding totalling £750,000 (excluding costs),
which will also fund the operations and working capital requirements of the
business up until the completion of this well.
Should the anticipated revenues from the new well not materialise as expected,
or if there are delays in the completion of the well, the Group may need to
seek additional funding or implement cost-saving measures to meet its
financial obligations.
Further information on the Group's going concern basis of preparation is
provided in Note 2(c) of the Notes to the Condensed Consolidated Interim
Financial Report.
SIGNIFICANT EVENTS AFTER BALANCE DATE
On 4 February 2025, Mr Andrew Darbyshire, who was appointed during the current
period as the Company's Chief Financial Officer on 4 November 2024, was
appointed to the Company's Board as Executive Director.
On 27 February 2025, the Company issued 2,500,000,000 shares at £0.0003
(A$0.0006) per ordinary share pursuant to a placement announced on 24 February
2025, raising £750,000 excluding costs. As part of this placement, the
Company also issued 115,000,002 unquoted options (exercisable at £0.0003 per
option and expiring on 27 February 2030) to the Company's brokers, pursuant to
the capital raising advisory agreement relating to this placement.
There were no other significant subsequent events occurring after the
half-year end.
AUDITOR'S INDEPENDENCE DECLARATION
A copy of the auditor's independence declaration as required under section
307C of the Corporations Act 2001 is set out on page 10.
This report is made in accordance with a resolution directors, pursuant to
section 306(3)(a) of the Corporations Act 2001.
On behalf of the Directors:
Mr Jonathan
Salomon
Mr Roland Wessel
Chairman
Chief Executive Officer and Director
Perth
Western Australia
12 March 2025
PKF Perth
ABN 64 591 268 274
Dynons Plaza,
Level 8, 905 Hay Street,
Perth WA 6000
PO Box 7206,
Cloisters Square, WA 6850
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 2024, 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
12 March 2025
Perth,
Western Australia
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.
CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS
AND OTHER COMPREHENSIVE INCOME
FOR THE HALF-YEAR ENDED 31 DECEMBER 2024
Consolidated
Half-Year Ended
Note 31 Dec 2024 31 Dec 2023
A$ A$
Revenue 6 156,470 353,168
Cost of sales (210,508) (741,361)
Gross Loss (54,038) (388,193)
Gain on disposal of joint venture participating interest 7 12,596,968 -
Other income - 10,474
Exploration, evaluation and appraisal expenditure (182,826) (360,405)
Administration expense (1,246,671) (1,090,567)
Expected credit losses expense (19,914) (196,268)
Share-based payments expense 20 (434,809) (84,093)
Impairment of equity securities - (34,593)
Other expenses (4,780) (2,840)
Results from Operating Activities 10,653,930 (2,146,485)
Finance income 441,125 876,331
Finance costs (421,064) (811,819)
Net foreign exchange (loss)/gain (85,324) 12,876
Net Finance (Costs)/Income (65,263) 77,388
Profit/(Loss) Before Tax 10,588,667 (2,069,097)
Income tax expense - -
Profit/(Loss) After Tax 10,588,667 (2,069,097)
Other Comprehensive Income/(Loss)
Items that May be Reclassified
Subsequently to Profit or Loss
Exchange differences on currency 410,198 (178,680)
translation of subsidiaries
Other Comprehensive Income/(Loss), Net of Tax 410,198 (178,680)
Total Comprehensive Income/(Loss) 10,998,865 (2,247,777)
Loss per Share from Continuing Operations
Basic loss per share (cents per share) 0.09 (0.02)
Diluted loss per share (cents per share) 0.09 (0.02)
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 2024
Consolidated
Note 31 Dec 2024 30 June 2024
A$ A$
Assets
Cash and cash equivalents 1,268,964 1,069,782
Trade and other receivables 8 826,892 116,688
Prepayments 73,222 95,101
Inventories 49,271 78,693
Carried interest asset at amortised cost 11 4,677,421 -
Total Current Assets 6,895,770 1,360,264
Development assets 9 8,976,377 17,336,721
Exploration, evaluation and appraisal asset 10 1,976,892 1,154,230
Plant and equipment 13,942 18,701
Carried interest asset at amortised cost 11 10,657,111 -
Total Non-Current Assets 21,624,322 18,509,652
Total Assets 28,520,092 19,869,916
Liabilities
Trade and other payables 12 2,098,145 2,373,587
Provisions 13 280,928 333,088
Borrowings 14 - 1,739,983
Derivative financial liability 15 - 167,726
Total Current Liabilities 2,379,073 4,614,384
Provisions 13 2,813,998 5,299,693
Total Non-Current Liabilities 2,813,998 5,299,693
Total Liabilities 5,193,071 9,914,077
Net Assets 23,327,021 9,955,839
Equity
Issued capital 19 198,672,908 196,252,167
Reserves 7,565,223 7,203,449
Accumulated losses (182,911,110) (193,499,777)
Total Equity 23,327,021 9,955,839
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 2024
Attributable to Owners of the Company
Issued Capital Share-Based Payments Reserve Foreign Currency Translation Reserve ("FCTR") Accumulated Losses Total Equity
Note A$ A$ A$ A$ A$
Balance at 1 July 2024 196,252,167 766,829 6,436,620 (193,499,777) 9,955,839
Comprehensive Income
Profit after tax - - - 10,588,667 10,588,667
Other comprehensive income - - 410,198 - 410,198
- - 410,198 10,588,667 10,998,865
Transactions with
Owners of the Company
Share-based payment transactions 20 - 405,170 - - 405,170
Nil-cost options exercised 19 453,594 (453,594) - - -
Other contributions of equity, net of transaction costs and tax 19 1,967,147 - - - 1,967,147
2,420,741 (48,424) - - 2,372,317
Balance at 31 December 2024 198,672,908 718,405 6,846,818 (182,911,110) 23,327,021
Balance at 1 July 2023 192,817,143 534,957 7,764,968 (190,779,552) 10,337,516
Comprehensive Loss
Loss after tax - - - (2,069,097) (2,069,097)
Other comprehensive loss - - (178,680) - (178,680)
- - (178,680) (2,069,097) (2,247,777)
Transactions with
Owners of the Company
Contributions of equity, net of transaction costs and tax 3,338,795 - - - 3,338,795
Share-based payment transactions - 104,995 - - 104,995
3,338,795 104,995 - - 3,443,790
Balance at 31 December 2023 196,155,938 639,952 7,586,288 (192,848,649) 11,533,529
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 2024
Consolidated
Half-Year Ended
31 Dec 2024 31 Dec 2023
A$ A$
Cash Flows from Operating Activities
Cash receipts from customers 234,482 509,173
Payments to suppliers and employees (2,334,794) (1,482,286)
Cash Outflows from Operations (2,100,312) (973,113)
Payments for exploration, evaluation (430,971) (370,389)
and appraisal expenses
Interest received 725 262
Interest paid (431,834) (10,801)
Net Cash Used in Operating Activities (2,962,392) (1,354,041)
Cash Flows from Investing Activities
Payments for capitalised development assets (73,213) (411,477)
Payments for capitalised exploration, (765,564) (163,967)
evaluation and appraisal assets
Proceeds from disposal of joint venture participating interest 3,831,884 -
Net Cash from / (Used in) Investing Activities 2,993,107 (575,444)
Cash Flows from Financing Activities
Proceeds from issue of share capital 1,229,848 3,336,352
Payment for share issue costs (29,565) (212,059)
Proceeds from borrowings 272,312 -
Repayment of borrowings (1,250,485) (338,052)
Net Cash from Financing Activities 222,110 2,786,241
Net Increase in Cash and Cash Equivalents 252,825 856,756
Cash and cash equivalents at 1 July 1,069,782 938,589
Effect of exchange rate fluctuations on cash held (53,643) (5,935)
Cash and Cash Equivalents at 31 December 1,268,964 1,789,410
The above Condensed Consolidated Statement of Cash Flows is to be read in
conjunction with the accompanying notes.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE HALF-YEAR ENDED 31 DECEMBER 2024
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 2024 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 year included:
· appraisal and development of oil and gas prospects;
· production and sale of oil and gas; and
· development of CCS projects.
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 2024 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 and the Corporations
Act 2001. Compliance with AASB134 ensure compliance with IFRS Accounting
Standard IAS 134 Interim Financial Reporting. 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 2024.
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 12 March 2025.
(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. In adopting the going concern
basis, the Directors have considered the Group's business operations as set
out on pages 1 to 4, the financial performance and financial position of the
Group, its cash flows and liquidity position, and the Group's financial risk
management objectives and exposures to liquidity and other financial risks as
set out in Note 30 in the consolidated annual financial report of the Group
for the year ended 30 June 2024.
During the period, the Group reported a net consolidated profit after income
tax of A$10,588,667. This profit included a gain on disposal of the Group's
joint venture participating interest in the Cambay PSC, which amounted to
A$12,596,968. Excluding this gain on disposal, the Group's net consolidated
loss for the period would have been A$2,008,301 (half-year ended 31 December
2023: A$2,069,097).
During the period, the Group also had net consolidated cash inflows from
operating and investing activities of A$30,715. The net inflows include
A$3,831,884 which was received as part of the Cambay Farm-Out transaction.
Excluding this receipt, the Group's net consolidated cash outflows from
operating and investing activities would have been A$3,801,169 (half-year
ended 31 December 2023: A$1,929,485).
The Group concluded the half-year at 31 December 2024 with net assets of
A$23,327,021 and net current assets of A$4,516,697. These net assets include
the carried interest asset of A$15,334,532, which has a current portion of
A$4,677,421. Excluding the carried interest asset, the Group's net assets
would have been A$7,992,489 (30 June 2024: A$9,955,839), and its net current
liabilities would have been A$160,724 (30 June 2024: A$3,254,120).
The Group's net assets at half-year end also included:
· cash and cash equivalents of A$1,268,964 (30 June 2024: A$1,069,782);
and
· trade and other payables of A$2,098,145 (30 June 2024: A$2,373,587),
of which A$646,888 was overdue at 31 December 2024 (30 June 2024: A$353,588).
Subsequent to period end, A$73,170 of this amount has been paid.
The Group forecasts that revenues from a new vertical well, scheduled for
completion in calendar H2 2025, will provide sufficient operating cash flows
to fund the Group's ongoing activities, working capital requirements,
liquidity requirements and to continue as a going concern for at least the
12‑month period from the end of March 2025. On 27 February 2025, the Group
also raised additional equity funding totalling £750,000 (excluding costs),
which will also fund the operations and working capital requirements of the
business up until the completion of this well.
Based on the above, and should the anticipated revenues from the new well not
materialise as expected, or if there are delays in the completion of the well,
the Group may require additional funding within the next 12 months from the
date of this report in order to continue its activities, meet ongoing working
capital requirements (including payment of trade and other payables), meet its
liquidity requirements, and continue as a going concern for at least the
12-month period from the end of March 2025.
To this end, the Directors have assessed the Group's cash flow forecasts,
which incorporate future fundraisings, and believe that the Group will be able
to secure this additional funding to meet the Group's requirements to continue
as a going concern, due to its history of previous capital raisings. However,
the Directors acknowledge 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 in turn creates uncertainty.
The ability of the Group to achieve its forecast cash flows, including
achieving revenues from the new well and 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 such a case, the Group
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. If funds are not able to be raised or realised, then it may be
necessary for the Group to:
· sell or farm out more of its interests in its exploration,
evaluation, appraisal, and development assets; and
· reduce discretionary administrative expenditure.
Based on the above indications, the Directors believe that it remains
appropriate to prepare the financial statements on a going concern basis.
However, this material uncertainty may cast significant doubt on the Group's
ability to continue as a going concern and, therefore, to continue realising
its assets and discharging its liabilities in the normal course of business.
The financial statements do not include any adjustments that would result from
the basis of preparation being inappropriate.
3. MATERIAL 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 2024.
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 2024 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 2024.
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
2024 annual consolidated financial report.
India United Kingdom Corporate ((1)) Consolidated
6 Months Ended 31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023
A$ A$ A$ A$ A$ A$ A$ A$
Revenue
External revenue 156,470 353,168 - - - - 156,470 353,168
Gross Loss (54,038) (388,193) - - - - (54,038) (388,193)
Reportable Segment Profit/(Loss) Before Income Tax 12,289,054 (949,876) (61,169) (8,279) (1,573,955) (1,188,330) 10,653,930 (2,146,485)
Net finance income 20,061 64,512
Net foreign exchange (loss)/gain (85,324) 12,876
Income tax expense - -
Net Profit/(Loss) for the Period 10,588,667 (2,069,097)
India United Kingdom Corporate ((1)) Consolidated
31 Dec 2024 30 June 2024 31 Dec 2024 30 June 2024 31 Dec 2024 30 June 2024 31 Dec 2024 30 June 2024
A$ A$ A$ A$ A$ A$ A$ A$
Segment Assets 25,056,218 17,626,989 2,379,979 1,786,958 1,083,895 455,969 28,520,092 19,869,916
Segment Liabilities 3,594,918 6,045,320 1,192,490 1,098,062 405,663 2,770,695 5,193,071 9,914,077
((1)()) "Corporate" represents a reconciliation of reportable segment
revenues, profit or loss, assets and liabilities to the consolidated figure.
There were no significant inter-segment transactions during the period.
6. REVENUE
Consolidated
Half-Year Ended
31 Dec 2024 31 Dec 2023
A$ A$
Revenue from Contracts with Customers
Gas sales 106,982 248,931
Oil sales 49,488 104,237
156,470 353,168
Revenue from Continuing Operations 156,470 353,168
Disaggregation of Revenue
The disaggregation of revenue from contracts with customers is as follows:
Consolidated
Half-Year Ended
31 Dec 2024 31 Dec 2023
A$ A$
Major Product Lines
Gas 106,982 248,931
Oil 49,488 104,237
156,470 353,168
Geographical Regions
India 156,470 353,168
156,470 353,168
Timing of Revenue Recognition
Goods transferred at a point in time 156,470 353,168
156,470 353,168
7. DISPOSAL OF 50% PARTICIPATING INTEREST IN CAMBAY PSC
On 14 February 2024, the Group entered into an agreement to farm out 50% of
the Group's participating interest in the Cambay PSC to Selan Exploration
Technology Limited ("Selan") ("Cambay Farm-Out"), in exchange for the
following:
· Cash payment of US$2.5 million;
· 50% interest in an agreed US$20 million work programme to be fully
carried by Selan ("US$10 million carried interest asset" or "carried interest
asset"); and
· entitlements to bonuses of up to US$9 million, linked to certain
future cumulative gas sales thresholds being achieved.
The agreement was effective on 19 July 2024 when approval was received from
the Government of India.
Details of the Disposal of Participating Interest Consolidated
19 July 2024
A$
Consideration received or receivable:
Cash 3,851,487
Fair value of US$10 million carried interest asset ((1)) 15,061,858
Fair value of entitlements to bonuses ((2)) -
Less: Costs of disposal (265,626)
Total disposal consideration, net of costs of disposal 18,647,719
Less: Carrying amount of net assets disposed in farm out (6,050,751)
Gain on Disposal of Participating Interest Before Income Tax 12,596,968
Income tax expense on gain -
Gain on Disposal After Income Tax 12,596,968
(1) ) At the time of sale the fair value of the carried
interest was determined to be US$9,363,957. It has been recognised as a
financial asset at amortised cost (see Note 11).
(2) ) As the entitlements to bonuses are contingent, these have
been included under contingent assets (refer to Note 18).
The carrying amounts of 50% of the assets and liabilities in the Cambay PSC
effective at the date of the Cambay Farm-Out (19 July 2024) were:
Net Assets Disposed Under the Cambay Farm-Out Consolidated
19 July 2024
A$
Inventories 35,510
Development assets
Development asset 6,325,961
Restoration asset 2,486,477
Total Assets 8,847,948
Provision for site restoration and well abandonment (2,797,197)
Total Liabilities (2,797,197)
Net Assets 6,050,751
8. TRADE AND OTHER RECEIVABLES
Consolidated
31 Dec 2024 30 June 2024
A$ A$
Current
Trade receivables 34,955 35,618
Joint venture receivables 657,694 47,802
Corporate receivables 134,243 33,268
826,892 116,688
Trade Receivables
Trade receivables from contracts with customers 35,529 41,073
Less: Provision for expected credit losses (574) (5,455)
34,955 35,618
Joint Venture Receivables
Joint venture receivables 1,128,597 495,863
Less: Provision for expected credit losses (470,903) (448,061)
657,694 47,802
Corporate Receivables
Corporate receivables 167,599 62,970
Less: Provision for expected credit losses (33,356) (29,702)
134,243 33,268
9. DEVELOPMENT ASSETS
Consolidated
Non-Current 31 Dec 2024 30 June 2024
A$ A$
Allocation of Development Assets
Cambay development asset 6,459,167 12,481,500
Cambay restoration asset 2,517,210 4,855,221
Total Carrying Amounts 8,976,377 17,336,721
Half-Year
Ended
31 Dec 2024
A$
Movement in Cambay Development Asset Carrying Amount
Balance at 1 July 12,481,500
Reversal of accrued costs previously capitalised (337,405)
Effect of movements in foreign exchange rates 121,656
Balance Pre Cambay Farm-Out 12,265,751
Farm down of 50% participating interest in Cambay PSC to Selan ((1)) (6,325,961)
Additions accrued during the period 167,283
Amortisation charge for the period (1,287)
Effect of movements in foreign exchange rates 353,381
Cambay Development Asset Carrying Amount at 31 Dec 2024 6,459,167
Movement in Cambay Restoration Asset Carrying Amount
Balance at 1 July 4,855,221
Movements in economic assumptions and timing of cash flows 18,253
Effect of movements in foreign exchange rates 99,483
Balance Pre Cambay Farm-Out 4,972,957
Farm down of 50% participating interest in Cambay PSC to Selan ((1)) (2,486,477)
Movements in economic assumptions and timing of cash flows (78,856)
Effect of movements in foreign exchange rates 109,586
Cambay Restoration Asset Carrying Amount at 31 Dec 2024 2,517,210
(1) ) See Note 7 on the Cambay Farm-Out.
Cambay Field Development Assets
Based upon the Company's impairment assessment at 31 December 2024, no
impairment charges were required to be applied to the Cambay Field development
assets during the half-year ended 31 December 2024.
10. EXPLORATION, EVALUATION AND APPRAISAL ("EEA") ASSET
Consolidated
Non-Current 31 Dec 2024 30 June 2024
A$ A$
Allocation of EEA Asset
Relating to CS019 licence for the Camelot area 1,976,892 1,154,230
Total Carrying Amount 1,976,892 1,154,230
11. CARRIED INTEREST IN COMMITTED WORK PROGRAMME - AT AMORTISED COST
Consolidated
31 Dec 2024 30 June 2024
A$ A$
Current
NPV of carried interest in work programme 4,677,421 -
Non-Current
NPV of carried interest in work programme 10,657,111 -
Total NPV of Carried Interest in Work Programme 15,334,532 -
Half-Year
Ended
31 Dec 2024
A$
Movement in Carried Interest Asset
Balance at 1 July -
NPV of carried interest asset recognised 15,061,858
as part of Cambay Farm-Out (see Note 7)
Unwinding of discount on carried interest asset 272,674
Balance at 31 December 15,334,532
The above relates to the Group's 50% interest in the agreed US$20 million
work programme to be fully carried by Selan under the terms of the Cambay
Farm-Out (refer to Note 7). The net present value of the carried interest
asset has been discounted based on estimated timing of cash flows as assessed
by management.
12. TRADE AND OTHER PAYABLES
Consolidated
31 Dec 2024 30 June 2024
A$ A$
Current
Trade payables 1,224,092 1,288,715
Other payables 31,053 329,392
Accruals 843,000 755,480
2,098,145 2,373,587
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. At
31 December 2024, A$646,888 of the trade payables amount was overdue (30 June
2024: A$353,588). Subsequent to balance date, A$73,170 of this amount has been
paid.
13. PROVISIONS
Consolidated
31 Dec 2024 30 June 2024
A$ A$
Current
Employee benefits 206,412 188,259
Site restoration and well abandonment 74,516 144,829
280,928 333,088
Non-Current
Site restoration and well abandonment 2,813,998 5,299,693
2,813,998 5,299,693
Provision for Site Restoration and Well Abandonment
Current 74,516 144,829
Non-current 2,813,998 5,299,693
2,888,514 5,444,522
Half-Year
Ended
31 Dec 2024
A$
Movement in Provision for Site Restoration and Well Abandonment
Balance at 1 July 5,444,522
Unwinding of discount on site restoration provision 20,067
Movements in economic assumptions and timing of cash flows 18,253
Effect of movements in exchange rates 111,558
Balance Pre Cambay Farm-Out 5,594,400
Farm down of 50% participating interest in Cambay PSC to Selan ((1)) (2,797,197)
Unwinding of discount on site restoration provision 46,055
Movements in economic assumptions and timing of cash flows (78,856)
Effect of movements in exchange rates 124,112
Balance at 31 December 2,888,514
(1) ) See Note 7 on the Cambay Farm-Out.
14. BORROWINGS
Consolidated
31 Dec 2024 30 June 2024
A$ A$
Current
Extended convertible notes (()(1)) - 310,269
Unsecured short-term borrowings - 1,429,714
- 1,739,983
(a) Extended Convertible Notes
Movement in Extended Convertible Notes Half-Year
Ended
31 Dec 2024
A$
Balance at 1 July 2024 310,269
Interest on extended convertible notes at 5% 4,298
Additional amortised effective interest charge 46,069
Extended notes converted into shares (()(2)) (156,203)
Extended notes redeemed in cash (()(3)) (208,271)
Effect of movements in exchange rates 3,838
Balance at 31 December 2024 -
(1) ) Related to 1,750 convertible notes which had their expiry
extended from 9 March 2024 to 30 September 2024. The terms associated with
the extended convertible notes were as follows:
· interest accrued on the face value of the notes at a rate of 5%
per annum until such time as the interest is either converted into shares or
redeemed in cash;
· the holder of the notes had the option to convert the face value
of the notes and interest accrued into shares at any time until 30 September
2024, at a conversion price of £0.0008 per share; and
· if conversion not elected, holders were able to elect to redeem
their notes in cash no earlier than the extended maturity date of 30 September
2024.
(2) ) The Company received a notice from one of the extended
convertible note holders indicating their intention to convert their 750 notes
and interest of £80,866 (A$156,203) into 101,083,050 shares. The shares were
converted at £0.0008 (A$0.0015) effective on the maturity date of the
extended notes on 30 September 2024, in accordance with the terms of the
extended notes.
(3) ) The remainder of the 1,000 extended convertible notes
plus interest of £107,822 (A$208,271) were repaid in cash, as requested by
the remainder of the convertible note holders.
(b) Unsecured Short-Term Borrowings
Movement in Unsecured Short-Term Borrowings Half-Year
Ended
31 Dec 2024
A$
Balance at 1 July 2024 (£749,741) (()(1)) 1,429,714
Proceeds (third tranche, £140,000) (()(2)) 272,312
Interest 304,575
Repayment of first tranche of short-term borrowings in cash (£566,000) (1,114,173)
(()(1))
Repayment of second tranche of short-term borrowings in shares (£295,740) (581,022)
(()(1))
Repayment of third tranche of short-term borrowings in cash (£184,618) (359,874)
(()(2))
Effect of movements in exchange rates 48,468
Balance at 31 December 2024 -
(1) ) The opening balance of unsecured short-term borrowings is
made up of proceeds of £400,000 and £200,000 plus interest:
· the first tranche of £400,000 of was received in March 2024 and
bore interest at a fixed rate of 17.50% for the period of the loan
(approximately 3 months). Additional interest was also charged on this tranche
of borrowings at a fixed penalty interest rate of 8% per month from 11 June
2024 until this tranche was repaid. The repayment of the first tranche
amounted to £566,000 and was repaid on 11 September 2024;
· the second tranche of £200,000 was received in June 2024 and
bore interest at a fixed rate of 23.87% for the period of the loan
(approximately 3 months). Additional interest was also charged on this tranche
of borrowings at a fixed penalty interest rate of 8% per month from 11
September 2024 until this tranche was repaid. The repayment of the second
tranche amounted to £295,740 and was repaid on 20 November 2024 in shares as
part of the November Placement (see footnote (1) of Note 19).
(2) ) During the half-year period, a third tranche of £140,000
was received in July and August 2024, which bore interest at a fixed rate of
23.87% until 11 September 2024. Additional interest was also charged on this
tranche of borrowings at a fixed penalty interest rate of 8% per month from
11 September 2024 until this tranche was repaid. The repayment of the third
tranche amounted to £184,618 and was repaid on 11 October 2024.
15. DERIVATIVE FINANCIAL LIABILITY
Consolidated
31 Dec 2024 30 June 2024
A$ A$
Current
Extended convertible notes (derivative - 167,726
liability on conversion option component) (()(1))
- 167,726
Movement in Convertible Notes (Derivative Liability Component) Half-Year
Ended
31 Dec 2024
A$
Balance at 1 July 2024 167,726
Change in fair value (()(1)) (167,726)
Balance at 31 December 2024 -
(1) ) Related to the conversion option component of the 1,750
extended convertible notes (refer to footnote (1) of Note 14(a) to see the
terms associated with the extended convertible notes). The option was
effective during the period until the extended convertible notes were repaid
or converted on 30 September 2024.
16. LEASES
Short-Term Rental Lease Commitments
Non-cancellable operating lease rentals are payable as follows:
Consolidated
31 Dec 2024 30 June 2024
A$ A$
Within one year 14,404 13,971
One year or later and no later than five years -
14,404 13,971
During the period the Group continued its lease at its Indian office premises
in Vadodara, Gujarat. The lease's lock-in period ended 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
Consolidated
Half-Year Ended
31 Dec 2024 31 Dec 2023
A$ A$
Operating lease rentals expensed during the period 27,615 36,800
17. 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 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.
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.
The expenditure commitments are currently estimated to be A$nil (30 June 2024:
A$nil) and are made up as follows:
Consolidated
31 Dec 2024 30 June 2024
A$ A$
Contractual obligations relating to Cambay Field - -
Contractual obligations relating to CCS licence - -
- -
Cambay Field
There are no minimum exploration work commitments in the Cambay Production
Sharing Contract. At the date of this report, the Group has also met the bank
guarantee requirements by the Ministry of Petroleum and Natural Gas of the
Government of India (see Note 18, "Guarantees").
CCS Licence on Camelot Area
Under the CS019 carbon storage licence for the Camelot area, Synergia Energy
CCS Limited and its 50% joint venture partner, Wintershall Dea Carbon
Management Solutions UK has a "firm commitment" to carry out the remaining
following work programme that incorporates:
· an appraisal phase comprising technical evaluations and risk
assessment;
· a contingent FEED study leading to a potential storage licence
application in 2028, following the final investment decision ("FID"); and
· a contingent appraisal well.
There are no minimum expenditure requirements for each phase of the work
programme, however, the Group has engaged consultants to ensure that each
phase of the work programme is completed by the due dates specified in the
carbon storage licence.
Capital Expenditure Commitments
The Group had no capital expenditure commitments as at 31 December 2024 (30
June 2024: A$nil).
18. CONTINGENT ASSETS, CONTINGENT LIABILITIES AND GUARANTEES
The Group had contingent assets and liabilities, and have made guarantees in
respect of the following:
Contingent Assets
Under the Cambay Farm-Out agreement (refer to Note 7), the Group is entitled
to bonuses of up to US$9 million from Selan Exploration Technology Limited,
linked to future cumulative gas sales thresholds being achieved as follows:
· US$0.5 million, if cumulative gross gas sales from the Cambay PSC
exceeds 5 Bcf;
· US$1.0 million, if cumulative gross gas sales from the Cambay PSC
exceeds 10 Bcf;
· US$1.5 million, if cumulative gross gas sales from the Cambay PSC
exceeds 15 Bcf;
· US$2 million, if cumulative gross gas sales from the Cambay PSC
exceeds 35 Bcf; and
· US$4 million, if cumulative gross gas sales from the Cambay PSC
exceeds 70 Bcf.
No receivable has been recognised with respect to these linked bonuses as the
timing of the achievement of these targets is uncertain.
Contingent Liabilities
With reference to the Cambay Farm-Out (refer to Note 7), on 24 September 2024,
the Company entered into an agreement to indemnify Selan against any liability
for withholding tax on the US$2.5 million cash payment under the farm-out
agreement. The indemnity agreement is effective from 1 August 2024 until 1
April 2035.
Guarantees
Synergia Energy Ltd's bank guarantee in relation to corporate credit cards
remains at A$15,000 at half-year end.
The Group's bank guarantees (submitted in favour of the Ministry of Petroleum
and Natural Gas of the Government of India, to cover 10% of total estimated
approved annual work programme expenditure) remains at US$247,835 at the date
of the report.
19. ISSUED CAPITAL
Half-Year Ended Year Ended
31 December 2024 30 June 2024
Number of Issued Number of Issued
Ordinary
Ordinary
Shares Capital
Shares Capital
A$ A$
Shares
On issue 1 July 10,637,791,979 196,252,167 8,417,790,704 192,817,143
Issue of share capital
Shares issued for cash (()(1)) 1,265,000,000 1,229,848 2,079,545,454 3,571,757
Shares issued on conversion of 591,480,000 581,022 - -
unsecured short-term loans (()(1))
Shares issued on settlement of fees 164,700,000 161,788 - -
owed to professional advisors (()(1))
Shares issued on conversion of 101,083,050 156,203 140,455,821 217,298
convertible notes ((2))
Shares issued on conversion 311,686,750 453,594 - -
of KMP nil-cost options ((3))
Capital raising costs (()(4)) - (161,714) - (354,031)
Balance at 31 December / 30 June 13,071,741,779 198,672,908 10,637,791,979 196,252,167
Refer to the following footnotes for additional information of the issue of
ordinary shares and Note 20 for details of unlisted options:
(1) ) On 20 November 2024, the Company issued 2,021,180,000
shares at £0.0005 (A$0.0010) per ordinary share pursuant to the placement
announced on 5 November 2024 ("November Placement"). This included:
· a capital raise of £632,500 (A$1,229,848) with existing and new
sophisticated and institutional investors through a placing led by Novum
Securities Limited ("Novum"), resulting in 1,265,000,000 shares issued;
· the conversion of £295,740 (A$581,022) of unsecured short-term
loans, resulting in 591,480,000 shares issued; and
· equity settlement of £82,350 (A$161,788) owed to Novum
(including £37,950 (A$74,558) for the November Placement fee), resulting in
164,700,000 shares issued.
As part of this placement, the Company also issued 2,021,180,000
free-attaching unquoted options to the participants of this placement
("November Placement Options") and 75,900,000 unquoted options to Novum
pursuant to the capital raising advisory agreement relating to this placement
("November Fee Options"). The November Placement Options are exercisable at
£0.0010 each, on or before 4 November 2026, and were issued on 20 November
2024. The November Fee Options are exercisable at £0.0005 per share on or
before 30 November 2029, and were issued on 20 November 2024.
(2) ) The Company received a notice from one of the extended
convertible note holders indicating their intention to convert their 750 notes
and interest of £80,866 (A$156,203) into 101,083,050 shares. The shares were
converted at £0.0008 (A$0.0015) effective on the maturity date of the
extended notes on 30 September 2024, in accordance with the terms of the
extended notes.
(3) ) On 20 November 2024, the Company issued 311,686,750
shares upon the exercise of 311,686,750 nil-cost options previously issued to
key-management personnel ("KMP"):
· 61,727,935 of the options were granted and issued on 3 April 2023
and had a fair value of A$106,015 at grant date; and
· 249,958,815 of the options were granted and issued on 30 October
2024 and had a fair value of A$347,579 at grant date (see footnote (2) of Note
20).
The amount of A$453,594 was transferred from the share-based payments reserve
and reflects the value of the nil-cost options at the original grant dates of
those options as indicated above.
(4) ) Included in capital raising costs is an amount of
A$132,149, which is made up of:
· A$74,558 (£37,950), being the November Placement Fee and settled
in shares as part of the total £82,350 owed and settled in shares to Novum
(as described in footnote (1) above); and
· A$57,591, being the fair value of the 75,900,000 November Fee
Options issued to Novum (as described in footnote (1) above). Refer to Note
20, footnote (3), to see the factors and assumptions used to determine the
fair value of the November 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
On 27 February 2025, the Company issued 2,500,000,000 shares at £0.0003
(A$0.0006) per ordinary share pursuant to a placement announced on 24 February
2025, raising £750,000 excluding costs. As part of this placement, the
Company also issued 115,000,002 unquoted options (exercisable at £0.0003 per
option and expiring on 27 February 2030) to the Company's brokers, pursuant to
the capital raising advisory agreement relating to this placement.
This brings the Company's issued capital to 15,571,741,779 after half-year end
and at the date of this Interim Financial Report.
20. SHARE-BASED PAYMENT ("SBP") TRANSACTIONS
Half-Year Ended 31 Dec 2024
SBP SBP Total
Settled by
Settled by
SBP
Shares
Options
A$
A$
A$
SBP Recognised in Profit or Loss
Fees from professional advisers settled in shares ((1)) 87,230 - 87,230
Nil-cost options issued to Executive Directors (()(2)) - 347,579 347,579
87,230 347,579 434,809
SBP Recognised Directly in Equity
Broker fees settled in shares ((1)) 74,558 - 74,558
Options granted to brokers (()(3)) - 57,591 57,591
74,558 57,591 132,149
Other Equity Settled Transactions
Conversion of unsecured short-term loans (()(4)) 581,022 - 581,022
Conversion of convertible notes (()(5)) 156,203 - 156,203
737,225 - 737,225
Total SBP Transactions During the Period 899,013 405,170 1,304,183
Half-Year Ended 31 Dec 2023
SBP SBP Total
Settled by
Settled by
SBP
Shares
Options
A$
A$
A$
SBP Recognised in Profit or Loss
Long-term incentive options issued - 84,093 84,093
to Executive Directors
SBP Recognised Directly in Equity
Options granted to brokers - 20,902 20,902
Total SBP Transactions During the Period - 104,995 104,995
Refer to the following footnotes for additional information on SBP
transactions during the period:
(1) ) Relates to the equity settlement of £82,350 (A$161,788) owed to
Novum for professional fees of:
· £44,400 (A$87,230) related to the previous procurement of unsecured
short-term loans; and
· £37,950 (A$74,558) related to the November Placement.
164,700,000 shares were issued to Novum as part of this equity settlement
(also refer to footnote (1) of Note 19).
(2) ) Relates to the issue of 249,958,815 nil-cost unlisted options to
the executive directors (Messrs Wessel, Judd and Khare) on 30 October 2024
which was a non-cash settlement amount in accordance with the Company's
short-term incentive plan for the 18-month period ended 30 June 2024. All of
the 249,958,815 options were exercised on 20 November 2024, before their
expiry of 31 October 2029 (refer to footnote (3)1) of Note 19).
The fair value of the 249,958,815 nil-cost options of A$347,579 was calculated
at the grant date of 30 October 2024 based on the Company's share price on
that date of £0.0007 per share. The following factors and assumptions were
used to determine the fair value of the nil-cost options granted and issued to
executive management on 30 October 2024:
Grant Date Vesting Expiry Fair Value Per Option Exercise Price Price of Shares on Grant Date Expected Volatility Risk Free Interest Rate Dividend Yield
Date
Date
30 Oct 2024 30 Oct 2024 31 Oct 2029 £0.0007 - £0.0007 N/A N/A -
(A$0.0014)
(A$0.0014)
(3) ) On 20 November 2024, the Company issued 75,900,000 unquoted
November Fee Options to Novum pursuant to the capital raising advisory
agreement relating to the November Placement. The options are exercisable at
£0.0005 per share and expire on 30 November 2029.
The fair value of the unquoted options of A$57,591 was calculated at the grant
date of 5 November 2024 (being the announcement of the November Placement)
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 November Fee Options:
Grant Date Vesting Expiry Fair Value Per Option Exercise Price Price of Shares on Grant Date Expected Volatility Risk Free Interest Rate Dividend Yield
Date
Date
5 Nov 2024 5 Nov 2024 30 Nov 2029 £0.0004 £0.0005 £0.0005 91.34% 4.35% -
(A$0.0008)
(A$0.0010)
(A$0.0010)
The options have not been exercised at the half-year report date.
(4) ) Relates to the conversion of £295,740 (A$581,022) of unsecured
short-term loans which was part of the November Placement (refer to footnote
(1) of Note 19), resulting in 591,480,000 shares issued.
(5) ) Relates to the conversion of one of 750 extended convertible
notes plus interest of £80,866 (A$156,203) into 101,083,050 shares. The terms
of the conversion are detailed in footnote (2) of Note 19.
Other Options Issued and Total Options at Period End
In addition to the share-based payment transactions as listed above, the
Company issued 2,021,180,000 free-attaching unquoted November Placement
Options, as part of the November Placement detailed in footnote (1) of Note
19). The November Placement Options are exercisable at £0.0010 each, on or
before 4 November 2026, and were issued on 20 November 2024.
No options expired during the period.
The balance of unlisted options at 31 December 2024 was 3,901,206,904 (30 June
2024: 1,865,854,839 options), as shown in the schedule below:
Exercise Balance at 1 July 2024 Issued During the Period Options Exercised Balance at 31 Dec 2024
Issue Date Expiry Date Price No. No. No. No.
12 Aug 2022 12 Aug 2027 £0.0022 324,675,324 - - 324,675,324
3 Apr 2023 1 Apr 2028 £0.0000 70,043,152 - (61,727,935) 8,315,217
26 Sep 2023 31 July 2026 £0.0011 13,636,363 - - 13,636,363
27 Feb 2024 31 Dec 2026 £0.0014 1,375,000,000 - - 1,375,000,000
27 Feb 2024 31 Dec 2026 £0.0014 82,500,000 - - 82,500,000
30 Oct 2024 31 Oct 2029 £0.0000 - 249,958,815 (249,958,815) -
20 Nov 2024 30 Nov 2029 £0.0005 - 75,900,000 - 75,900,000
20 Nov 2024 4 Nov 2026 £0.0010 - 2,021,180,000 - 2,021,180,000
1,865,854,839 2,347,038,815 (311,686,750) 3,901,206,904
Subsequent Event
On 27 February 2025, the Company issued 115,000,002 unquoted options
(exercisable at £0.0003 per option and expiring on 27 February 2030) to the
Company's brokers, pursuant to the capital raising advisory agreement relating
to the placement as announced on 24 February 2025 (refer to the "Subsequent
Event" heading under Note 19).
This brings the Company's balance of unlisted options to 4,016,206,906, after
half-year end and at the date of this Interim Financial Report.
21. RELATED PARTY TRANSACTIONS
Remuneration arrangements of key management personnel are disclosed in the
consolidated annual financial report of the Group as at and for the year ended
30 June 2024. In addition:
(a) On 30 October 2024, 249,958,815 nil-cost unlisted options were issued to
the executive directors (Messrs Wessel, Judd and Khare). The nil-cost options
had an expiry of 31 October 2029 and were a non-cash settlement amount in
accordance with the Company's short-term incentive plan for the 18-month
period ended 30 June 2024. The fair value of the nil-cost options were
calculated at £0.0007 (A$0.0014) per share, according to the valuation
methodology and assumptions as listed in footnote (2) of Note 20. Based on
this, the value of the options granted and vested to each executive director
during the period were as follows:
Grant and Issue Date No. Options Granted and Vested Value of Options Granted at Grant Date % Options Vested % Options Forfeited
R Wessel 30 Oct 2024 116,382,259 A$161,835 100% Nil
C Judd 30 Oct 2024 71,314,677 A$99,166 100% Nil
A Khare 30 Oct 2024 62,261,879 A$86,578 100% Nil
249,958,815 A$347,579
The above nil-cost options were exercised on 20 November 2024.
(b) In addition to the above nil-cost options exercised, 61,727,935 nil-cost
options which were previously granted and issued to the following directors on
3 April 2023, and having a fair value of A$106,015 at 3 April 2023, were also
exercised on 20 November 2024:
Grant and Issue Date No. Options Granted and Vested Value of Options Granted at Grant Date % Options Vested % Options Forfeited
R Wessel 3 Apr 2023 27,272,727 A$46,840 100% Nil
C Judd 3 Apr 2023 18,200,000 A$31,258 100% Nil
A Khare 3 Apr 2023 16,255,208 A$27,917 100% Nil
61,727,935 A$106,015
(c) During the period, the annual remuneration for Messrs Wessel and Judd
increased effective from 1 July 2024:
· Mr Wessel's annual remuneration increased from £150,000 to £190,000
per annum; and
· Mr Judd's annual remuneration increased from £110,000 to £140,000
per annum.
There were no other changes to Messrs Wessel and Judd's employment terms
during the period.
(d) On 4 November 2024, Mr Colin Judd retired as CFO and Executive Director.
Mr Andrew Darbyshire was appointed as CFO, effective on the same day. Mr
Darbyshire was appointed as Executive Director after the half-year end on 4
February 2025. Mr Darbyshire's annual remuneration is £150,000 from the start
of his contract on 1 November 2024, with other terms of his employment being
similar to Mr Judd's previous employment terms.
No further related party arrangements were made during the period to 31
December 2024.
22. CHANGE IN THE COMPOSITION OF THE GROUP
There have been no changes in the composition of the Group since the last
annual reporting date.
23. JOINT ARRANGEMENTS
Since the last annual reporting date, the Group farmed out 50% of its
participating interest in the Cambay field, and entered into a joint operation
with Selan Exploration Technology Limited. Refer to Note 7 for details of the
farm out.
24. SUBSEQUENT EVENTS
On 4 February 2025, Mr Andrew Darbyshire, who was appointed during the current
period as the Company's Chief Financial Officer on 4 November 2024, was
appointed to the Company's Board as Executive Director.
On 27 February 2025, the Company issued 2,500,000,000 shares at £0.0003
(A$0.0006) per ordinary share pursuant to a placement announced on 24 February
2025, raising £750,000 excluding costs. As part of this placement, the
Company also issued 115,000,002 unquoted options (exercisable at £0.0003 per
option and expiring on 27 February 2030) to the Company's brokers, pursuant to
the capital raising advisory agreement relating to this placement.
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 11 to 36, 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 2024 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)(a) of the Corporations Act 2001.
On behalf of the Directors:
Mr Jonathan Salomon Mr Roland Wessel
Chairman Chief Executive Officer and Director
Perth
Western Australia
12 March 2025
PKF Perth
ABN 64 591 268 274
Dynons Plaza,
Level 8, 905 Hay Street,
Perth WA 6000
PO Box 7206,
Cloisters Square, WA 6850
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 2024, 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 2024, 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 2024 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 consolidated entity incurred a net
profit of $10,588,667 during the half year ended 31 December 2024 and had
negative operating cashflow of $2,962,392. 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 2024 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
12 March 2025
Perth,
Western Australia
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
A$ Australian dollar(s).
AIM The Alternative Investment Market of the London Stock Exchange ("LSE").
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".
CEO Chief Executive Officer.
CFO Chief Financial Officer.
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.
DGH The Directorate General of Hydrocarbons, under the Ministry of Petroleum &
Natural Gas ("MOPNG") of the Government of India.
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.
EEA Exploration, evaluation and appraisal.
FEED Front End Engineering Design.
FID Final Investment Decision.
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.
KMP Key Management Personnel.
LNG Liquefied natural gas.
LSE London Stock Exchange
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 & Natural Gas, of the Government of India.
MSCFD Thousand standard cubic feet (of gas) per day.
MTa Million tonnes per annum.
NPV Net present value.
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.
SBP Share-based payment(s).
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.
US$ United States dollar(s).
WP Work programme.
CORPORATE INFORMATION
Directors Stock Exchange Listings
Jonathan Salomon Synergia Energy Ltd's shares are listed under the code SYN on the AIM Market
(B APP SC (Geology), GAICD) of the London Stock Exchange ("LSE").
Non-Executive Chairman AIM Nominated Adviser
Peter Schwarz Strand Hanson Limited
(B Sc (Geology), M Sc (Petroleum Geology))
26 Mount Row
Independent Non-Executive Director and Deputy Chairman)
London W1K 3SQ
Roland Wessel
United Kingdom
Chief Executive Officer and Executive Director
AIM Joint Brokers
Andrew Darbyshire (MMATH, FCA)
Novum Securities Limited
Chief Financial Officer and Executive Director
2(nd) Floor, 7-10 Chandos Street
Ashish Khare (BE in Chemical Engineering)
London W1G 9DQ
Head of India Assets and Executive Director
United Kingdom
Mark Bolton (B Business)
SP Angel
Non-Executive Director
Prince Frederick House
Paul Haywood
35-39 Maddox Street
Independent Non-Executive Director
London W1S 2PP
Company Secretary
United Kingdom
Mr Luke Phillips (LLB BA MBA(Exec) FGIA)
Share Registries
Registered and Principal Office
The Office of the Depositary
Level 24, 44 St Georges Terrace
Computershare Investor Services PLC
Perth, Western Australia 6000
The Pavilions, Bridgwater Road
Australia
Bristol BS13 8AE
Ph. +61 (0)8 9485 3200
United Kingdom
Fax +61 (0)8 9485 3290
Ph. +44 (0) 370 707 1210
Postal Address
Website: www.computershare.com/uk (http://www.computershare.com/uk)
PO Box 255,
Computershare Investor Services Pty Limited
West Perth, Western Australia 6872
Level 17, 221 St Georges Terrace
Australia
Perth, Western Australia 6000
India Operations
Gujarat Project Office Australia
2nd Floor, Shreeji Complex Ph: 1300 850 505 (within Australia)
Next to Rituraj Complex Ph: +61 (0)3 9415 4000
(https://www.synergiaenergy.com/investors/+61%203%209415%204000) (outside
Vasna Road, Village Akota Australia)
Vadodara - 390015 Website: www.computershare.com/au (http://www.computershare.com/au)
Gujarat, India. Auditors
PKF Perth
Dynons Plaza, Level 8
Website 905 Hay Street, Perth,
www.synergiaenergy.com Western Australia 6000
Email Australia
synergiaenergy@synergiaenergy.com Synergia Energy Ltd
ACN 078 652 632
ABN 50 078 652 632
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