REG - Synergia Energy Ltd - Proposed Sale of Cambay PSC to Selan Exploration

Synergia EnergyAnnouncement

04/07/2025 11:45

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RNS Number : 8369P  Synergia Energy Ltd  04 July 2025

RNS Announcement

 

04 July 2025

 

AIM: SYN

Proposed Sale of Cambay PSC 50% WI to Selan Exploration

 

Synergia Energy Limited ("Synergia" or the "Company"), is pleased to announce
the following update regarding its Cambay PSC (WI: 50%), onshore India.

 

Synergia and Selan Exploration Technology Limited ("Selan") have executed a
Heads of Terms ("HoT") for the proposed sale of the Company's remaining 50%
working interest in the Cambay PSC.

 

Synergia and Selan executed a Farm-out agreement to establish a joint venture
on the Company's Cambay field on 14 February 2024, whereby Synergia
transferred a 50% working interest in the Cambay PSC to Selan in exchange for
a carry of the costs of an agreed work program. The agreement closed on 1
August 2024 following Government of India ("GOI") approval.  The joint
venture is currently preparing to drill its first new well.

 

Following a strategic review, and having considered various alternatives, the
Board has concluded that a full exit from Cambay on the terms proposed is in
the best interests of Synergia's shareholders. The agreed consideration
represents approximately 6x the Company's current market capitalisation.

 

Transaction Terms

 

Selan will pay Synergia a total consideration of US$14 million:

 

·    Initial payment of US$ 0.5 million on execution of the HoT

·    Cash payment of US$ 6.5 million following GoI approval for the
transfer of the 50% working interest

·    Final cash payment of US$ 7.0 million 12 months after GoI approval

·    All payments are subject to applicable taxes

 

Selan has been granted exclusivity for 180 days during which Synergia and
Selan are to finalise a Sale and Purchase Agreement ("SPA") prior to
requesting Government of India ("GoI") approval for the transfer of the
remaining 50% working interest in Cambay PSC to Selan.

 

The proposed transaction if executed will be subject to Rule 15 of the AIM
Rules for Companies and will be subject to shareholder approval with the
Company expecting to publish a circular and notice of General Meeting
("Circular") upon finalisation of the SPA.

 

The Company is currently reviewing its ongoing cost base and forward strategy.
Subject to completion, the Board expects to achieve meaningful cost savings
and intends to return a proportion of the proceeds to shareholders. Further
details including in respect of the Company's forward strategy are expected to
be included in the Circular.

 

The current work program at Cambay is expected to continue while the proposed
transaction progresses.

 

Synergia's Chief Executive Officer, Roland Wessel, said:

 

"Following a detailed strategic review and given the persistent gap between
our net asset value and market capitalisation, the Board has determined that
divesting our remaining Cambay interest represents the most effective way to
unlock value for shareholders.

 

The terms agreed with Selan reflect a compelling valuation relative to our
current market cap and will provide the resources to return capital to
shareholders while supporting the advancement of new strategic initiatives."

 

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           Nominated Advisor and Joint Broker             Joint Broker

 Synergia Energy Ltd         SP Angel Corporate Finance LLP                 Novum Securities

 Briana Stayt                Stuart Gledhill / Richard Hail / Devik Mehta   Colin Rowbury

 Investor Relations                                                         Email:

 Email:                      Tel: +44 (0)20 3470 0470                       crowbury@novumsecurities.com

 bstayt@synergiaenergy.com   UK                                             Tel: +44 20 7399 9427

 Tel: +61 8 9485 3200                                                       UK

 Australia

 

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