22nd Jul 2024 17:31
(Alliance News) - Synergia Energy Ltd on Monday said that its farm out agreement with Selan Exploration Technology Ltd has been approved by the Government of India.
This completes the sale of 50% of the Australia-based oil and gas company's Cambay field production sharing contract to Selan.
Synergia received a USD2.5 million upfront payment from Selan, and will be carried by Selan through an agreed USD20 million work programme.
The programme comprises three new wells focussed on the Eocene reservoir and at least three well work-overs, and will start "as soon as possible".
Chief Executive Officer Roland Wessel, said: "The farm out agreement with Selan marks a pivotal moment for Synergia and its long history with the Cambay PSC. We look forward to an early commencement of work-over and drilling operations to realise the value of the significant Cambay PSC reserves."
Synergia Energy shares closed 1.3% lower at 0.13 pence each in London on Monday.
By Lydia Doye, Alliance News reporter
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