REG - Synergia Energy Ltd - Operational Update, Equity Issue and TVR

Synergia EnergyAnnouncement

05/11/2024 07:00

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RNS Number : 9661K  Synergia Energy Ltd  05 November 2024

RNS Announcement

 

5 November 2024

 

AIM: SYN

Operational Update, Equity Issue and TVR

 

The Board of Synergia Energy Limited (Synergia or the Company) is very pleased
to announce that it has arranged funding for the initial development of its UK
carbon capture and storage ("CCS") project and for general working capital
requirements.

 

Operational update

 

As previously announced, the Company has completed its farm out of a 50%
working interest in its Cambay PSC in India to Selan Exploration Limited
("Selan"). Selan have now commenced the agreed $20 million work program on the
Cambay Field PSC, for which Synergia is to be carried by Selan. A significant
increase in production and cashflow from the work program is anticipated from
Q2 2025 onwards.

 

The Company's Medway Hub Camelot CCS project, (the "CCS Project"), a 50:50
joint venture with Harbour Energy, is being progressed through the
NSTA-prescribed work program and solid progress is being achieved on the next
(site characterisation and assessment) phases. As previously announced,
Synergia are seeking to farm out up to 25% of the CCS Project.

 

Equity Issue

 

The Company has completed an equity issue of a total of 2,021,800,000 new
fully paid ordinary shares (New Shares) at 0.05 pence per share pursuant to a)
a capital raise of £632,500 with existing and new sophisticated and
institutional investors through a placing led by Novum Securities Limited
(Novum), b) the conversion of £295,740 of loans (and accrued interest) into
new ordinary shares and c) through the equity settlement of £82,350 of fees
owed to professional advisers.

 

The capital raise will act as a bridge to the expected increased cashflow from
the Cambay PSC, and the targeted farm out of the CCS Project.

 

The abovementioned conversion of loans is in relation to the unsecured loans
from existing investors announced on 12 June 2024. Subsequent to the equity
settlement, there are no further outstanding loan balances.

 

Each new ordinary share issued will come with one free unquoted warrant
resulting in 2,021,180,000 warrants.  The warrants are exercisable at 0.1
pence per share on or before the 04 November 2026.

 

In connection with the capital raise, the Company has also agreed to issue
75,900,000 unquoted options to Novum, exercisable at 0.05 pence on or before
30 November 2029 (Fee Options).

 

Net proceeds from the capital raise are intended to be applied to the CCS
project, and the Company's working capital base.

 

The New Shares will rank pari passu in all respects with the existing
shares.  Application will be made in due course to the London Stock Exchange
for the New Shares to be admitted to trading on AIM with a further
announcement at that time.

 

 

Total Voting Rights

 

Following the issue of all of the New Shares, the Company's share capital and
total voting rights will comprise 12,760,055,029 shares.  The Company does
not hold any shares in treasury.  Consequently, 12,760,055,029 is the figure
which may be used by shareholders as the denominator for the calculation by
which they will determine if they are required to notify their interest in, or
a change to their interest in, the Company under the FCA's Disclosure and
Transparency Rules.

 

Related Party Transaction

Republic Investment Management Pte Ltd ("Republic") participated in £100,000
of the placing.  Republic has a current shareholding in the Company of 15.3%
and is therefore categorised as a Substantial Shareholder of the Company
pursuant to the AIM Rules for Companies ("AIM Rules"). Accordingly, Republic's
participation in the placing is classified as a related party transaction
pursuant to the AIM Rules.

The Directors of the Company, having consulted with Strand Hanson Limited, the
Company's Nominated Adviser, consider that the terms of Republic's
participation are fair and reasonable insofar as the Company's shareholders
are concerned.

 

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law
by virtue of the European Union (Withdrawal) Act 2018 ("MAR") and is disclosed
in accordance with the Company's obligations under Article 17 of MAR.

 

For and on behalf of Synergia Energy Limited

 

Roland Wessel

CEO

For further information, please contact:

 Investor Enquires           AIM Joint Broker                             AIM Joint Broker               AIM Nominated Adviser          Media Enquires (UK)

 Synergia Energy Ltd         Panmure Liberum Ltd                          Novum Securities               Strand Hanson Limited          Vigo Consulting

 Briana Stayt                Broker                                       Broker                         Nominated Adviser              Investor Relations

 Investor Relations          Mark Murphy / Rauf Munir / Freddie Wooding   Colin Rowbury                  Ritchie Balmer / Rory Murphy   Patrick d'Ancona / Finlay Thomson

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

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

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

 Australia                                                                UK                                                            Tel:+ 44 20 7390 0230

                                                                                                                                        UK

 

 

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