London-listed Synergia Energy has entered a binding agreement to sell its 50% stake in the onshore Cambay gas field in India to its partner, Antelopus Selan Energy, for a gross consideration of $14 million.

Transaction Details and Conditions

The sale involves a $500,000 deposit already paid, with $6.5 million due upon completion and a deferred payment of $7 million due twelve months later. The transaction is contingent upon approval from the Government of India and Selan providing a bank guarantee for the deferred payment. The parties had signed a heads of terms agreement in July, granting Selan a 180-day exclusivity period to finalize the deal.

Corporate Consequences for Synergia

Following the disposal of its assets, which requires shareholder approval, Synergia will become a "cash shell" under London's Alternative Investment Market (AIM) rules. This obligates the company to make an acquisition within six months or face share suspension. However, Synergia intends to seek cancellation of its stock trading on AIM, with details to be included in a forthcoming notice for a general meeting to approve the transaction.

Background and Current Field Operations

Selan farmed into the Cambay Production Sharing Contract (PSC) in 2024, acquiring its 50% operating stake by carrying Synergia's costs for a $20 million work programme. Recent operational updates indicate one well continues to produce at an average of 30 barrels of oil per day post-workover. A second well has begun production, with a stable rate to be announced, while a third well's production is being stabilized due to waxy crude issues. A fourth well has been drilled to 1827 meters, with logs indicating hydrocarbons; the next steps are perforation and production testing.