Synergia Updates on Cambay PSC Farm-Out and Operational Progress
On 14 February 2024, Synergia executed a farm-out agreement with Selan Exploration (“Selan”), a well-established oil and gas producer listed on the National Stock Exchange of India. Under the terms of the agreement, Selan will fully fund a $20 million work program at the Cambay PSC, which includes the drilling of three new wells. In return, Selan receives a 50% working interest in the Cambay PSC and assumes the role of lead joint operator, with Synergia acting as joint operator.
The 2025/2026 Work Program and Budget (“WP&B”) was approved by the Government of India on 11 March 2025. Since then, Selan has carried out workover operations on two legacy wells. Synergia incurs no cost for the program, with both operational and overhead expenses covered under the free carry arrangement.
Synergia had expected the drilling of the first new well to begin in the second quarter of 2025. However, Selan has since advised that a drilling rig has not yet been contracted, which will delay the start of operations until at least September 2025. Likewise, a larger workover rig (50T/100T) has yet to be secured. Thanks to the carried cost structure, the delay has had minimal financial impact on Synergia.
The Company continues to work closely with Selan to expedite the drilling timeline, in line with the approved WP&B and the terms of the farm-out agreement.
In parallel, Synergia has initiated a cost-saving and overhead reduction program. This includes pausing all non-essential activities related to the Camelot CCS licence in the UK and partially settling certain directors’ salaries in Company shares, effective 1 April 2025. Further details will be announced as appropriate.
