Synergia Energy (AIM: SYN) has provided an update on the proposed sale of its 50% interest in the Cambay PSC onshore India. The company signed a Sale and Purchase Agreement with Selan Energy on 1 December 2025 for total consideration of up to US$14 million, payable in two tranches, subject to shareholder approval and Selan providing a bank guarantee for the deferred payment.
While Synergia shareholders approved the deal at the 29 December 2025 AGM, Selan has failed to provide the required guarantee, citing refusal by its major shareholder, Oak Tree Capital, to sanction completion.
Selan’s exclusivity period expired on 8 February 2026, and Synergia said it will now examine its options. If the transaction does not complete, Selan’s non-refundable US$0.5 million payment made under the Heads of Terms will be retained by Synergia.
Roland Wessel, Synergia’s CEO, stated:
“After 9 months of protracted negotiations, Selan has not satisfied the conditions precedent within the exclusivity period to complete the transaction. We believe in the inherent value of the Cambay PSC’s 206 BCF of proven P50 Eocene gas reserves. The parties remain bound by their obligations under the previously executed Farm-In/Farm-Out Agreement including the agreed work program and in particular the drilling of three new wells in the Eocene.”
