REG - Synergia Energy Ltd - Interim Report for the Half-Year Ended 31 Dec 2025
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RNS Number : 1425Y Synergia Energy Ltd 26 March 2026
RNS Announcement
26 March 2026
AIM: SYN
Synergia Energy Ltd (AIM: SYN) - Interim Report for the Half-Year Ended 31
December 2025
Synergia Energy Limited ("Synergia" or the "Company"), is pleased to announce
that it has released its Interim Report for the half-year ended 31 December
2025 (the "Interim Report").
A full version of the Interim Report can be viewed at:
http://www.rns-pdf.londonstockexchange.com/rns/1425Y_1-2026-3-25.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/1425Y_1-2026-3-25.pdf)
The Interim Report is also available on the Company's website at:
https://www.synergiaenergy.com/investors/financial-reports
(https://www.synergiaenergy.com/investors/financial-reports)
Cambay PSC Highlights
· Proposed sale of the remaining 50% participating interest in the
Cambay PSC to Antelopus Selan Energy Limited ("Selan") did not complete,
following execution of a Sale and Purchase Agreement ("SPA") on 1 December
2025 and Synergia shareholder approval on 29 December 2025, after Selan failed
to satisfy completion conditions (including lodgment of the required bank
guarantee and obtaining Selan shareholder approval) within the agreed
exclusivity period which expired on 8 February 2026.
· The non‑refundable US$0.5 million (A$0.7 million) exclusivity
fee has been retained.
· The Company is now reviewing strategic options for its remaining
50% Cambay PSC interest.
Cambay Field - Operational Update
· Four workovers completed in November 2025 under Selan's
operatorship, with two legacy wells (C64 and C74) successfully establishing
new oil production of approximately 60 bopd. Post period production from these
wells increased materially, averaging approximately 195 bopd in early March
2026..
· The C‑77H gas well continues to produce at approximately 50,000
scfd with associated condensate.
· A new well, C‑78, was drilled into the OSII formation but did
not yield commercial production.
· Planning is underway for the C79 well, targeting the Eocene
reservoir.
Medway Hub Camelot CCS Project - Operational Update
· Project activities slowed during the period, with technical work
progressed using in‑house resources while engagement with potential
replacement joint venture partners continues.
· An 18-month extension to the CS019 Camelot licence work programme
is planned to be requested from the NSTA.
Corporate Highlights
· At the General Meeting on 29 December 2025, shareholders voted
for the Company to remain listed on AIM.
· Cost containment measures and improved Cambay production
contributed to the Company avoiding further equity dilution during the
half-year.
Financial Highlights
· Net loss after tax of A$0.57 million (Dec 2024: profit of A$6.37
million, which included a one-off A$8.4 million gain on the Cambay Farm-Out).
· Other income of A$0.70 million, comprising the non‑refundable
exclusivity fee received under the proposed Cambay sale Heads of Terms (Dec
2024: nil).
· Revenue from gas and oil sales of A$0.12 million (Dec 2024:
A$0.16 million).
· Operating cash outflow of A$0.29 million (Dec 2024: A$2.96
million), including the impact of the receipt of the exclusivity fee.
· Investing cash outflow of A$0.17 million (Dec 2024:
A$2.99 million inflow, which included A$3.85 million from the cash proceeds
of the Cambay Farm-Out).
· No financing cash flows during the period (Dec 2024:
A$0.22 million inflow).
· Cash and cash equivalents of A$0.62 million, excluding cash
classified as held for sale (30 June 2025: A$1.21 million).
· Net assets of A$17.96 million (30 June 2025: A$18.95 million),
with remaining Cambay PSC assets and liabilities continuing to be classified
as held for sale.
· The auditor's review report includes a material uncertainty
related to going concern; however, the Directors consider there remains a
reasonable and supportable basis to prepare the Interim Report on a going
concern basis, having regard to the Group's latest cash‑flow forecast,
recent production improvements and prevailing oil prices.
Outlook
Synergia's near-term priorities include:
· Progressing the strategic review of the Cambay PSC following
Selan's non‑completion of the proposed sale.
· Advancing discussions with potential new partners for the Camelot
CCS project.
· Continuing engagement with Indian regulators on the Cambay CCS
pilot project.
· Maintaining disciplined cost control while focusing on value
accretive opportunities.
Authorisation for Release
This announcement is authorised for release by the Board of Synergia Energy
Ltd.
This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law
by virtue of the European Union (Withdrawal) Act 2018 ("MAR") and is disclosed
in accordance with the Company's obligations under Article 17 of MAR.
For and on behalf of Synergia Energy Limited
Roland Wessel
CEO
For further information, please contact:
Investor Enquiries Nominated Advisor and Joint Broker Joint Broker
Synergia Energy Ltd SP Angel Corporate Finance LLP AlbR Capital Limited
Briana Stayt Stuart Gledhill / Richard Hail / Devik Mehta Colin Rowbury
Investor Relations Email:
Email: Tel: +44 (0)20 3470 0470 cr@albrcapital.com
bstayt@synergiaenergy.com UK Tel: +44 20 7469 0930
Tel: +61 8 9485 3200 UK
Australia
SYNERGIA ENERGY LTD
ABN 50 078 652 632
INTERIM FINANCIAL REPORT
Half-Year Ended 31 December 2025
BUSINESS REVIEW
Overview and Strategy
The reporting period has seen some significant developments resulting in a
change of strategy for the Company concerning both its Cambay field in India
and its Medway Hub Camelot CCS project.
Having made the decision to sell its remaining 50% Cambay PSC working interest
to its joint venture partner, Antelopus Selan Energy Limited ("Selan"), in
order to return substantial proceeds of the sale to its shareholders, the
Company worked assiduously to develop a satisfactory Sale and Purchase
Agreement ("SPA") with Selan following the signing of a Heads of Terms in July
2025. After six months and multiple legal revisions of the SPA, a final form
SPA was signed by both parties on 1 December 2025 and held to order by the
Company's lawyers pending Synergia shareholder approval and the establishment
of a bank guarantee by Selan against the second payment tranche.
Synergia's shareholders approved the sale of the Cambay PSC working interest
to Selan at a General Meeting on 29 December 2025. However, in January 2026,
Selan informed the Company that it had not lodged the bank guarantee as agreed
and that it's major shareholder, (via its investment vehicle Blackbuck
Energy), Oak Tree Capital was refusing to sanction the completion of the SPA.
Selan's exclusivity under the Heads of Terms ended on 8 February 2026.
The failure by Selan to execute the SPA after nine months of intensive legal
activity combined with Selan's failure to execute on the agreed work program
under the Farm-out / Farm-in Agreement signed on 14 February 2024, has forced
the Company to review its options going forward. These options will include
marketing the Company's 50% Cambay PSC working interest to other interested
parties.
Production from the Cambay field saw marginal improvements during the
financial period, following the workover of the C-64 and C-74 wells. These
workovers resulted in new production of circa 60 bopd initially, with further
increments following post period end. Disappointingly Selan has yet to drill a
new well in the Eocene gas reservoir which contains 206 BCF of P50 proven gas
reserves. The Company still believes that the Cambay field potential lies in
the Eocene gas reserves the value of which has not diminished since the
signing of the Selan joint venture.
To date the Company has been unable to secure a new partner for it Medway Hub
Camelot CCS project to replace Harbour Energy, although interest remains and
is being pursued. In order to provide the Company with additional runway for
the project, external contract work has been suspended and the Company is
working with the regulator, NSTA, to implement a delay in the Camelot licence
work program.
The Company's aggressive cost-containment program coupled to a modest increase
in revenue from the Cambay field enabled the Company to avoid further dilutive
share placements.
Cambay Field, Onshore Gujarat State, India
(Synergia Energy: Joint Operator and 50% Participating Interest)
Selan as lead operator, conducted four workovers during November 2025 after a
12-month hiatus of development activity. Two of the workovers (C-64 and C-74)
successfully established new production at a rate of circa 60 bopd. The
workovers on C-72 and C-19z were unsuccessful.
A new well (C-78) was drilled during November 2025 down to the Oligocene OSII
formation. The well was tested after perforating the OSII zone without
material production and the well is currently suspended.
During the period, the C-77H well continued to produce on plateau with a
current average production rate of circa 55,000 scfd together with associated
gas condensate. Additional intermittent oil production from other legacy wells
such as C-19z have made minor contributions to production from the Cambay
field.
Planning is underway for a new well (C-79) to be drilled in the Eocene
reservoir as the first well of the agreed three Eocene well work program.
Post period end on 6 March 2026, the Company announced improved oil production
from legacy wells C‑64 and C‑74 (averaging 195 bopd 1 - 6 March) and
confirmed the C‑77H gas well was producing at approximately 50,000 scfd. In
addition, international oil prices moved higher in early March 2026 amid
heightened Middle East tensions.
Cambay CCS Scheme
(Synergia Energy: Operator and 100% Participating Interest)
The Company has developed a CCS scheme in India based on CO₂ storage within
the extensive Olpad Formation, which lies beneath the Cambay producing
reservoirs. The scheme proposes capturing CO₂ emissions from nearby gas- and
coal-fired power stations and transporting it by pipeline to a CCS hub at the
Cambay field, where it would be injected into the Olpad Formation for
permanent storage.
The Cambay CCS scheme and the associated pilot project proposed by Synergia is
still under review by the regulator, the DGH. The Company has requested
Government of India funding for the proof of concept pilot project. The
Government of India is still in the process of developing the regulatory
framework for CCS in India.
Medway Hub Camelot CCS Project
(Synergia Energy: Operator and 50% Participating Interest)
As part of its cost-reduction program and due to a lack of contributions from
a joint venture partner, the Company has progressed the technical work on the
Camelot project using in-house resources. A comprehensive risk assessment
analysis for the 13 legacy wells' integrity was submitted to the NSTA in
November 2025. The Company plans to progress the static and dynamic reservoir
modelling during the course of 2026.
Due to current uncertainties regarding key commercial drivers such as
cross-border CO(2) transportation agreements, the regulatory framework for
non-pipeline projects and an uncertain ETS pricing outlook, the Company plans
to request an 18-month extension to the CS019 Camelot licence work program
from the regulator, the NSTA.
Corporate Update
At a General Meeting of Shareholders held on 29 December 2025, in accordance
with the result of the shareholder vote, the Company will no longer proceed
with the planned delisting of the Company's shares on AIM at the present time
and will focus on developing the Company's business and returning value to
shareholders while remaining an AIM traded company.
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), Chief
Executive Officer and Executive Director of Synergia Energy Ltd. Mr Wessel has
over 50 years' experience in the oil and gas industry.
Mr Wessel meets the requirements of, and acts as, the Qualified Person under
the Alternative Investment Market ("AIM") Rules - AIM Note for Mining and Oil
& Gas Companies. He has reviewed and approved the inclusion of the
technical information in this report and consents to its publication in the
form and context in which it appears.
PETROLEUM AND CCS PERMIT SCHEDULE
PETROLEUM AND CCS PERMIT SCHEDULE - 31 DECEMBER 2025
ASSET LOCATION ENTITY CHANGE IN INTEREST DURING THE PERIOD EQUITY OPERATOR
Cambay Field PSC Gujarat State, India Synergia Energy Ltd - 50% Antelopus Selan Energy Limited and Synergia Energy Ltd ((1))
CS019 - SNS Area 4 (Camelot Area) Southern North Sea (United Kingdom) Synergia Energy CCS Limited - 50% Synergia Energy CCS Limited
((1) ) Synergia Energy and Selan are the joint operators of the
Cambay field, with Selan designated as the lead joint operator.
FINANCIAL AND OPERATING RESULTS FOR THE
HALF-YEAR ENDED 31 DECEMBER 2025
Income Statement
For the half year ended 31 December 2025 (the "current period"), the Group
recorded a loss after income tax of A$574,816, compared to a profit of
A$6,374,558 in the half year ended 31 December 2024 (the "prior period"). The
prior period included a once off A$8.38 million gain from the July 2024 Cambay
Farm Out, while the current period includes a smaller once off A$698,162 non
refundable exclusivity fee received from Selan. Excluding these items, the
underlying loss narrowed, mainly due to a favourable movement in net finance
income, driven by the unwinding of discount on the carried interest
receivable, the absence of borrowing related interest in the current period,
and a smaller foreign exchange loss.
Revenue from gas and oil sales was A$116,469 (prior period: A$156,470), and
the Group incurred a gross loss of A$113,334 (prior period: A$54,038).
Variances reflect the timing and mix of field level operating activity under
Selan's lead operator programme, with the Group holding a 50% participating
interest in the Cambay PSC during both periods.
Exploration, evaluation and appraisal expenditure increased to A$321,841
(prior period: A$182,826), largely comprising Cambay costs that did not meet
capitalisation criteria. Cambay expenditure eligible for capitalisation was
recognised within the development asset classified as held for sale. Activity
on the Camelot CCS project remained deliberately constrained.
Administration expenses were broadly consistent at A$1,233,677 (prior period:
A$1,246,671), and no share based payments expense was recognised (prior
period: A$434,809). Net finance income (including foreign exchange losses) for
the current period was A$398,849 (prior period: net finance cost of A$65,263).
Cash Flow
Operating activities resulted in a net cash outflow of A$290,193 (prior
period: outflow of A$2,962,392). The Group received the A$698,162 exclusivity
fee, made no interest payments (prior period: A$431,834), and Cambay costs
covered under the carried interest receivable from Selan carry reduced cash
payments to suppliers and employees to A$1,025,500 (prior period:
A$2,334,794). Cash receipts from customers were A$107,535 (prior period:
A$234,482).
Investing activities resulted in a net cash outflow of A$170,471, reflecting
continued but reduced investment in the Camelot CCS exploration, evaluation
and appraisal asset. The prior period included A$3.85 million of net proceeds
from the Cambay Farm Out.
There were no financing cash flows during the current period (prior period:
A$222,110 net inflows). The Group had no borrowings during the current period.
Total cash at 31 December 2025 was A$811,542, including A$190,012 classified
as held for sale.
Financial Position
Net assets were A$17,960,817 (30 June 2025: A$18,954,929), with the reduction
reflecting the loss for the period and movements in the assets held for sale
relating to the remaining 50% participating interest in the Cambay PSC and
associated balances. Net assets classified as held for sale were A$16,073,816
(30 June 2025: A$16,909,037), incorporating Cambay expenditure incurred on the
Group's behalf under the carried interest receivable, working capital
adjustments, discount unwinding and foreign exchange movements. Excluding held
for sale balances, the Group held A$621,530 in cash.
CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS
AND OTHER COMPREHENSIVE INCOME
FOR THE HALF-YEAR ENDED 31 DECEMBER 2025
Half-Year Ended
31 Dec 2025 31 Dec 2024
A$ A$
Revenue 116,469 156,470
Cost of sales (229,803) (210,508)
Gross Loss (113,334) (54,038)
Gain on disposal of joint venture participating interest - 8,382,859
Other income - non-refundable exclusivity fee 698,162 -
Exploration, evaluation and appraisal expenditure (321,841) (182,826)
Depreciation (1,816) (4,780)
Administration expense (1,233,677) (1,246,671)
Expected credit losses expense (1,159) (19,914)
Share-based payments expense - (434,809)
Results from Operating Activities (973,665) 6,439,821
Finance income 490,819 441,125
Finance costs (49,552) (421,064)
Net foreign exchange loss (42,418) (85,324)
Net Finance Income/(Costs) 398,849 (65,263)
(Loss)/Profit Before Tax (574,816) 6,374,558
Income tax expense - -
(Loss)/Profit After Tax (574,816) 6,374,558
Other Comprehensive Income/(Loss)
Items that May be Reclassified
Subsequently to Profit or Loss
Exchange differences on currency (419,296) 410,198
translation of subsidiaries
Other Comprehensive (Loss)/Income, Net of Tax (419,296) 410,198
Total Comprehensive (Loss)/Income (994,112) 6,784,756
(Loss)/Earnings per Share
from Continuing Operations
Basic loss per share (cents per share) (0.004) 0.057
Diluted loss per share (cents per share) (0.004) 0.057
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 2025
31 Dec 2025 30 June 2025
A$ A$
Assets
Cash and cash equivalents 621,530 1,214,948
Trade and other receivables 1,069,792 662,809
Prepayments 80,682 52,553
1,772,004 1,930,310
Assets classified as held for sale 18,902,642 19,693,257
Total Current Assets 20,674,646 21,623,567
Exploration, evaluation and appraisal asset 2,117,247 2,264,290
Plant and equipment 10,104 11,920
Total Non-Current Assets 2,127,351 2,276,210
Total Assets 22,801,997 23,899,777
Liabilities
Trade and other payables 1,815,314 1,968,649
Provisions 197,040 191,979
2,012,354 2,160,628
Liabilities directly associated with 2,828,826 2,784,220
assets classified as held for sale
Total Current Liabilities 4,841,180 4,944,848
Total Liabilities 4,841,180 4,944,848
Net Assets 17,960,817 18,954,929
Equity
Issued capital 200,057,746 200,057,746
Reserves 6,987,069 7,406,365
Accumulated losses (189,083,998) (188,509,182)
Total Equity 17,960,817 18,954,929
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 2025
Attributable to Owners of the Company
Issued Capital Share-Based Payments Reserve Foreign Currency Translation Reserve ("FCTR") Accumulated Losses Total Equity
A$ A$ A$ A$ A$
Balance at 1 July 2025 200,057,746 761,648 6,644,717 (188,509,182) 18,954,929
Comprehensive Income
Loss after tax - - - (574,816) (574,816)
Other comprehensive loss - - (419,296) - (419,296)
- - (419,296) (574,816) (994,112)
Balance at 31 December 2025 200,057,746 761,648 6,225,421 (189,083,998) 17,960,817
Balance at 1 July 2024 196,252,167 766,829 6,436,620 (193,499,777) 9,955,839
Comprehensive Income
Profit after tax - - - 6,374,558 6,374,558
Other comprehensive income - - 410,198 - 410,198
- - 410,198 6,374,558 6,784,756
Transactions with
Owners of the Company
Share placements (net) 1,068,134 - - - 1,068,134
Conversion of unsecured 581,022 - - - 581,022
short-term loan
Advisor fee settlement 161,788 - - - 161,788
Conversion of convertible notes 156,203 - - - 156,203
Nil-cost options exercised 453,594 (453,594) - - -
Share-based payment transactions - 405,170 - - 405,170
2,420,741 (48,424) - - 2,372,317
Balance at 31 December 2024 198,672,908 718,405 6,846,818 (187,125,219) 19,112,912
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 2025
Half-Year Ended
31 Dec 2025 31 Dec 2024
A$ A$
Cash Flows from Operating Activities
Cash receipts from customers 107,535 234,482
Receipt of exclusivity fee 698,162 -
Payments to suppliers and employees (1,025,500) (2,334,794)
Payments for exploration, evaluation (70,390) (430,971)
and appraisal related expenses
Interest received - 725
Interest paid - (431,834)
Net Cash Used in Operating Activities (290,193) (2,962,392)
Cash Flows from Investing Activities
Proceeds from Cambay Farm-Out - 3,851,487
Payments for transaction costs related to Cambay Farm-Out - (19,603)
Payments for capitalised development assets - (73,213)
Payments for capitalised exploration, (170,471) (886,992)
evaluation and appraisal assets
Reimbursements from joint venture partner - 121,428
Net Cash from / (Used in) Investing Activities (170,471) 2,993,107
Cash Flows from Financing Activities
Proceeds from issue of share capital - 1,229,848
Payment for share issue costs - (29,565)
Proceeds from borrowings - 272,312
Repayment of borrowings - (1,250,485)
Net Cash from Financing Activities - 222,110
Net Increase in Cash and Cash Equivalents (460,664) 252,825
Cash and cash equivalents at 1 July ((1)) 1,287,503 1,069,782
Effect of exchange rate movements (15,297) (53,643)
on cash and cash equivalents
Cash and Cash Equivalents at 31 December ((1)) 811,542 1,268,964
((1) ) Includes cash of A$190,012 (30 June 2025: A$72,555)
classified as assets held for sale.
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 2025
REPORTING ENTITY
Synergia Energy Ltd (the "Company") is a for-profit entity incorporated and
domiciled in Australia and listed on the Alternative Investment Market ("AIM")
of the London Stock Exchange ("LSE"). The condensed consolidated interim
financial report for the half-year ended 31 December 2025 comprises the
Company and its subsidiaries (together, the "Group").
The principal activities of the Group during the half-year were:
· the appraisal and development of oil and gas prospects;
· the production and sale of oil and gas; and
· the development of CCS projects.
These activities are consistent with those disclosed in the Group's Annual
Report for the year ended 30 June 2025, and there were no significant changes
in the nature of the activities during the half-year. The Group's operations
continue to be focused on its interests in the Cambay Production Sharing
Contract ("Cambay PSC") in India and the CS019 Camelot CCS licence in the
United Kingdom. Further information on these assets and the Group's broader
operations is provided in the Business Review section of this interim report.
The consolidated annual financial report of the Group as at and for the year
ended 30 June 2025 is available on the Company's website at
www.synergiaenergy.com (http://www.synergiaenergy.com) .
BASIS OF PREPARATION
Statement of Compliance
The condensed consolidated interim financial report has been prepared in
accordance with AASB 134 Interim Financial Reporting and the Corporations Act
2001. It does not include all of the information required for a full annual
financial report and should be read in conjunction with the Group's annual
financial report for the year ended 30 June 2025. For the purposes of the
Company's half‑yearly reporting obligations under AIM Rule 18, compliance
with AASB 134 ensures compliance with IAS 134 Interim Financial Reporting as
contained in UK-adopted IFRS. Refer to "GOING CONCERN BASIS" for the Group's
going concern assessment.
Statutory accounts for the year ended 30 June 2025 have been delivered to the
Australian Securities and Investments Commission ("ASIC"), and the interim
report for the half-year ended 31 December 2025 will be delivered as soon as
possible. The Company's auditors have provided their review report on the 31
December 2025 interim report, dated 25 March 2026; their report was
unmodified, with an emphasis of matter paragraph, in relation to a material
uncertainty relating to going concern as set out in "GOING CONCERN BASIS"
below.
Presentation Currency and Rounding
The condensed consolidated interim financial report is presented in Australian
Dollars ("A$"), unless otherwise stated. Amounts have rounded to the nearest
dollar in accordance with ASIC Corporations (Rounding in Financials/Directors'
Reports) Instrument 2016/191, unless otherwise indicated.
Authorisation for Issue
This condensed consolidated interim financial report was authorised for issue
by the Board of Directors on 25 March 2026.
Material Accounting Policies
The accounting policies applied in this interim financial report are the same
as those applied in the Group's annual financial report for the year ended 30
June 2025. No new policies were introduced during the period. Consistent with
AASB 134 / IAS 34, the same recognition and measurement principles have been
applied in the interim period as in the annual financial statements.
New or Amended Standards and Interpretations
The Group has adopted all new or amended pronouncements that are mandatory for
the half‑year reporting period beginning 1 July 2025. The adoption of these
pronouncements did not have a material impact on the Group's financial
position or performance for the half-year. No standards or interpretations
were early adopted.
Comparative Information
Certain comparative information has been updated for consistency with the
Group's Annual Report for the year ended 30 June 2025 and, in some instances,
to improve presentation. These updates relate primarily to the gain on
disposal recognised in the half‑year ended 31 December 2024 and do not
affect the current period results, net assets or cash flows.
ESTIMATES AND JUDGEMENTS
The significant judgements made by management in applying the Group's
accounting policies and the key sources of estimation uncertainty at
31 December 2025 are unchanged from those disclosed in the annual financial
report for the year ended 30 June 2025.
The Group's methodology for measuring expected credit losses remains
unchanged. No expected credit loss was recognised in respect of amounts
receivable from the UK CCS joint venture partner, as the receivable is offset
by a larger payable to the same counterparty.
During the half‑year, there were no changes to discount rates or other key
valuation inputs applied to the carried interest receivable measurement;
routine unwinding of discount, foreign exchange effects and period‑end
working capital movements have been recognised in the relevant notes.
There were also no changes to the judgement applied in classifying the assets
and liabilities relating to the remaining 50% participating interest in the
Cambay PSC, together with the associated carried interest receivable and
related working capital and rehabilitation liabilities, as held for sale; this
classification remains unchanged from 30 June 2025.
GOING CONCERN BASIS
The Directors consider it appropriate to prepare the condensed consolidated
financial statements on a going concern basis, which is based on the
assumption of continuity of normal business operations and the realisation of
assets and settlement of liabilities in the ordinary course of business.
For the half‑year ended 31 December 2025, the Group incurred a consolidated
loss after tax of A$574,816, which was lower than the Group's underlying
operating loss due to the recognition of a one‑off, non‑refundable
exclusivity fee of A$698,162. Excluding this item, the Group would have
recorded a loss of A$1,272,978 for the period. Net cash outflows from
operating and investing activities totalled A$460,664, which were similarly
reduced by the impact of the exclusivity fee. Adjusting for this once‑off
inflow, underlying net cash outflows from operating and investing activities
would have been approximately A$1,158,826.
At 31 December 2025, the Group held cash and cash equivalents of A$621,530,
and had net assets of A$17,960,817. Trade and other payables totalled
A$1,815,314, of which A$761,322 was overdue; A$57,467 has been paid subsequent
to period end. The Group continued to classify assets and liabilities relating
to its remaining 50% participating interest in the Cambay PSC as held for
sale. Excluding those held for sale balances, current assets were A$1,772,004
and current liabilities were A$2,012,354, resulting in net current liabilities
of A$240,350 (excluding held for sale items).
Although an SPA was signed on 1 December 2025 and approved by Synergia
shareholders on 29 December 2025, Selan did not obtain its shareholder
approval or provide the required bank guarantee; the exclusivity period under
the Heads of Terms expired on 8 February 2026. The Group retained the
non‑refundable US$500,000 exclusivity fee received under the Heads of Terms,
which was recognised as income in the period.
In forming their view on going concern, the Directors considered the Group's
latest internal cash‑flow forecast, which reflects the existing operating
cost base, current operating plans and commitments, and the benefit of recent
improvements in production levels and prevailing oil prices. On this basis,
the forecast indicates that the Group has sufficient liquidity to meet
operational and working capital requirements for at least the next 12 months
from the date of this report, without the need for additional funding.
The Directors recognise that forecasting involves judgement and is subject to
factors outside the Group's control, including changes in commodity prices,
production performance and the timing of operational commitments. In addition,
a material portion of forecast revenues is contingent on contracts that are
currently being finalised and had not yet been executed as at the date of this
report. Taken together, these factors give rise to a material uncertainty that
may cast significant doubt on the Group's ability to continue as a going
concern.
Notwithstanding this material uncertainty, the Directors consider there
remains a reasonable and supportable basis to prepare the condensed
consolidated financial statements on a going concern basis, having regard to
the strengthened near‑term operating cash‑flow outlook, established joint
venture cost‑sharing arrangements and the flexibility to phase discretionary
expenditure. If required, further strategic options remain available to the
Group (such as asset‑level transactions or equity/structured alternatives);
however, these options have not been assumed in the Directors' going concern
assessment. Accordingly, the financial statements have been prepared on a
going concern basis. No adjustments have been made that would result if the
going concern basis were inappropriate
RELATED PARTY TRANSACTIONS
Remuneration arrangements for Directors and key management personnel were
unchanged during the period and remain as disclosed in the Group's Annual
Report for the year ended 30 June 2025.
At 31 December 2025, the amount payable to Directors was A$424,696 (30 June
2025: A$167,912).
No further related party transactions or arrangements were entered into during
the half-year ended 31 December 2025.
EVENTS AFTER THE REPORTING DATE
On 9 February 2026, the Company announced that the Sale and Purchase Agreement
("SPA") with Selan for the proposed sale of the Group's remaining 50%
participating interest in the Cambay PSC had not completed. Selan did not
provide the required bank guarantee before the exclusivity period expired on 8
February 2026. The US$0.5 million non‑refundable payment received under
the July 2025 Heads of Terms has been retained since the SPA has not been
completed.
Other than the above, there has not arisen in the interval between the end of
the financial period and the date of this report any item, transaction or
event of a material and unusual nature likely, in the opinion of the
Directors, to affect significantly the operations, results or state of affairs
of the Group in future financial periods.
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. END IR EAKDSADKKEFA
Copyright 2019 Regulatory News Service, all rights reservedRecent news on Synergia Energy
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