Synergia Energy Ltd (AIM:SYN) Interim Financial Report

Six Months Ended 31 December 2022



Consistent with the Company’s strategy to focus on gas production and Carbon Capture and Storage (“CCS”), Synergia’s activities have centred on the Company’s Cambay gas and condensate field in India and on CCS opportunities in the UK and recently, in India.

A significant development for the Company during the period was the successful re-frac of the Cambay C-77H well facilitating progress towards a full field development. To this end, a formal farm out process was instigated in Q4 2022 with a view to farming out up to 50% of the Cambay PSC to a suitable JV partner.

In addition, the Company added a further CCS project in the form of the conceptual Cambay CCS scheme which we believe not only leverages our Company’s expertise in this sector but also has the potential to make a material impact on India’s carbon emissions reduction aspirations.

Due to the continued high gas prices, the Company has put its search for mature producing gas assets in the UK Continental Shelf area on hold.


(Synergia Energy: Operator and 100% Participating Interest)

The Cambay field was placed on production following a lengthy hiatus in April 2022. The Company’s primary producing well, C-77H, provided the majority of the field’s production during the period even though it was shut in for approximately 2 months during the re-frac operation. Prior to the re-frac, the original 4 fracked zones were unable to provide sustained production due to liquid loading which necessitated the frequent shutting in of the well to allow wellhead pressure to be restored. It was believed that the 4 zones had been fracked sub-optimally.

In order to prove up a new fracking methodology, a bridge plug was set above the original 4 fracked zones to isolate them from 2 new fracked zones at the heel of the well. The 2 new zones were fracked in July 2022 and following a lengthy clean-up process, the well finally provided stable and constant gas production at up to 275,000 SCFD despite the existence of a c.1500m column of condensate. Through the period end the C-77H well exhibited plateau production which verified the new fracking methodology and provides a template for future new wells.

The C-77H re-frac operation confirmed the need for an artificial lift (“AL”) solution for Eocene wells in order to optimise gas and gas condensate production. Progressive cavity pumps (“PCP”) were considered the best AL solution and an evaluation of PCP configuration was commenced in conjunction with the preferred supplier, PCM. Due to elastomer compatibility and availability problems, the Company is evaluating a jet pump AL solution.

Based on the C-77H re-frac results, the Company believes new multi-zone and fracked horizontal Eocene wells with AL can be drilled with initial production rates of 4 mmscfd and 40% annual decline rates.

A formal farm out process commenced in October 2022 with a view to farming out up to 50% of the Cambay PSC. The process is being managed by Moyes & Company. The primary objective of the farm out is to facilitate the commencement of a full field development of the Cambay field in H2 2023.

In November 2022, oil production from C-19z, C-20, C63 and C72 started to augment the gas and condensate production from C-77H and C-73.

Cambay CCS Scheme

Leveraging its CCS expertise and experience in the UK, the Company has developed a CCS scheme in India based on CO2 storage in the extensive Olpad Formation which extends under the Cambay producing reservoirs. The scheme proposes the capture of CO2 emitted from the many gas and coal-fired power stations in the vicinity of the Cambay field. CO2 would be transported via pipeline to a CCS hub on the Cambay field for injection into the Olpad Formation for permanent storage.

Further technical studies will be required to confirm the suitability of the Olpad Formation. In addition to the securing of funding, the necessary regulatory and commercial frameworks will need to be developed in order to bring this significant CCS scheme to fruition.


Carbon Capture and Storage (“CCS”)

Due to a potential overlap of CCS and windfarm activities in the area around the Esmond and Forbes fields, these areas were excluded by the NSTA from the licensing round. Consequently, the Company undertook extensive technical evaluation of two alternative licensing areas incorporating a mix of depleted gas reservoirs and aquifers. The Company made two carbon storage license applications under the NSTA’s first carbon storage licensing round. The licenses are planned to form part of Synergia’s Medway Hub CCS project. It is anticipated that the NSTA will commence the award of licenses at the end of calendar Q1 2023.


Under the terms of the Deed of Settlement and Release, the final instalment of US$250,000 (out of the original US$800,000) was made to Autoridade Nacional Do Petroleo E Minerais (“ANPM”) on 7 September 2022.

The movement in the loan payable relating to the settlement during the period is detailed in Note 12 to the condensed consolidated interim financial report, which shows balance of the loan from Japan Energy E&P JPDA Pty Ltd (“JX”) being at US$440,970 at 31 December 2022. At report date, the balance of the loan from JX was approximately US$253,549, following a repayment to JX of US$196,754 on 13 February 2023.

The balance of the loan from JX at reporting date, plus interest, is to be repaid to JX in August 2023, upon the loan’s maturity on 17 August 2023.

During the period, the non-defaulting parties to the JPDA joint venture agreed to terminate the Joint Operating Agreement. Synergia Energy will be progressing the final closure of the joint venture accounts to conclude this matter.


During the half-year, the Company was advised that its efforts to regain a participating interest and control of the West Kampar PSC in Indonesia were unsuccessful. The Company understands that the West Kampar PSC was awarded to a third party. This marks the end of the Company’s activities in Indonesia.


The technical information contained in the above disclosure has been prepared by or under the supervision of Mr Jonathan Salomon (B App Sc (Geology), GAICD), Executive Chairman employed by Synergia Energy Ltd. Mr Salomon has over 36 years’ experience in petroleum geology and is a member of the American Association of Petroleum Geologists, and the Society of Petroleum Engineers. Mr Salomon 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.

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Mr Jonathan Salomon

Executive Chairman

Mr Roland Wessel

Chief Executive Officer

West Perth

Western Australia

15 March 2023

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