REG - Synergia Energy Ltd - Operations Update

Synergia EnergyAnnouncement

10/02/2025 07:00

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RNS Number : 4931W  Synergia Energy Ltd  10 February 2025

 

RNS Announcement

 

10 February 2025

 

AIM: SYN

Operations Update

 

Synergia Energy Ltd ("Synergia Energy" or the "Company") is pleased to provide
the following update regarding the Company's two flagship projects, the
onshore gas and condensate production in India and its carbon capture and
storage ("CCS") project offshore United Kingdom.

CAMBAY PSC (WI: 50%) ONSHORE INDIA

Following executive board member participation in various meetings with key
stakeholders in India last week, the Company provides an update on a range of
planned drilling and workover activities for 2025 on the Cambay PSC. The
planned activities in 2025 are part of the US$20 million field development
program where Synergia is fully carried by Selan Exploration ("Selan"), an
established oil and gas production company operating in India. The current
work program when completed is expected to lead to a self-funded full-field
development involving up to 30 wells.

The Cambay PSC is a producing gas field with gross P50 reserves of 206 Bcf and
upside potential from contingent and prospective resources of more than 1 Tcf
that offers further growth opportunities.

Three Well Forward Drilling Plan

As part of the $20 million work program for which Synergia is being carried by
Selan, three new wells are to be drilled comprising two vertical wells
followed by one multi-stage fracked horizontal well. A tender has been issued
for a suitable drilling rig and associated services. The drilling of the first
well is currently scheduled for Q2 2025, subject to rig availability. Selan is
prepared to re-deploy its currently contracted rig from Assam to Cambay. The
first well will be a vertical fracked well targeting the extensive Eocene gas
reservoir.

The three well drilling programme has the potential to deliver significant
increases in production and cashflow from the  Cambay PSC.

Forward Workover Plan

Using the currently contracted 30T workover rig, and an additional 50/100T
workover rig to be contracted in the future for workovers requiring higher rig
capacity, the following workover program will continue through Q1 and Q2 2025:

Cambay C-64: Miocene well, SRP to be installed

Cambay C-19z: This well has been producing material quantities of oil from the
Eocene on free flow for the last 12 months. The planned workover involves the
installation of an SRP to facilitate continuous increased production.

Cambay C-74: Miocene well, contingent on success of C-64 workover

Cambay C-72: OS2 target, SRP to be installed

Cambay C-77H: This is currently the main producing Cambay well. The current 2
3/8" OD production tubing is planned to be replaced with 2 7/8" tubing to
increase gas production rates.

Initial Workover Activities

Cambay C-70: Cambay well C-70 was selected as the first workover candidate as
a gas producer from the shallow Miocene reservoir. Despite promising initial
production of up to c. 190,000 scfd, the well has experienced water influx. A
final attempt to re-start the well using compression equipment will be made in
the near future.

Cambay C-63: The workover on C-63 targeted oil production from the Eocene
reservoir. The well was cleaned out prior to the installation of a sucker rod
pump ("SRP"). The SRP was not able to be installed deep enough in the well to
avoid "gas blocking" due to an obstruction in the wellbore. The forward plan
is to mill out the obstruction so the SRP can be installed below the
perforations to avoid gas blocking. Thereafter, contingent on establishing
production, the well is a candidate for frac stimulation.

 

MEDWAY HUB CAMELOT CCS PROJECT (WI: 50%), OFFSHORE UK

Further to its announcement on 28 November 2024, the Company provides the
following update concerning the Camelot CS licence CS019 (WI: 50%) in the UK.

The Company is engaged in a search to identify a replacement JV partner
following Harbour Energy's request to withdraw from the Medway Hub project
that it entered in September 2024 as a result of its acquisition of the
original JV partner, Wintershall Dea. Further updates will be provided when
there is any material progress to report regarding a replacement JV partner.

The Company will continue to progress legacy well integrity studies but has
taken the prudent decision to pause all other non-essential technical work
until there is progress on a replacement JV partner.

 

Roland Wessel, CEO commented: "On Cambay, we are pleased to be able to report
further details on the forward drilling and workover program for 2025 with our
partner Selan as part of the US$20 million work program where we are fully
carried. We benefit from the production of low-cost, high-value gas that is
sold to domestic industrial customers and, following the proposed drilling of
three new wells and workovers, there is the potential to significantly
increase gross production and cash flow. India remains an attractive
jurisdiction to do business given high domestic gas prices and an attractive
operating and fiscal regime and we look forward to reporting the results of
our drilling and workover activities as they occur."

 

 

 

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulation
(EU) No. 596/2014 as it forms part of United Kingdom domestic law by virtue of
the European Union (Withdrawal) Act 2018, as amended by virtue of the Market
Abuse (Amendment) (EU Exit) Regulations 2019.

 

For and on behalf of Synergia Energy Ltd

 

 

 

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                                            SP Angel                                                              Novum Securities                                                     Strand Hanson Limited          Vigo Consulting

 Briana Stayt                                                   Richard Hail                                                          Broker                                                               Nominated Adviser              Investor Relations

 Investor Relations                                             Email:                                                                Colin Rowbury                                                        Ritchie Balmer / Rory Murphy   Patrick d'Ancona / Finlay Thomson

 Email:                                                         richard.hail@spangel.co.uk (mailto:richard.hail@spangel.co.uk)        Email:                                                               Tel: +44 20 7409 3494          Email:

 bstayt@synergiaenergy.com (mailto:bstayt@synergiaenergy.com)   Tel: +44 20 3470 0470                                                 crowbury@novumsecurities.com (mailto:crowbury@novumsecurities.com)   UK                             patrick.dancona@vigoconsulting.com (mailto:patrick.dancona@vigoconsulting.com)

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

 Australia                                                                                                                            UK                                                                                                  Tel:+ 44 20 7390 0230

                                                                                                                                                                                                                                          UK

 

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