Synergia Energy Share News (SYN)

(Sharecast News) - Synergia Energy updated the market on its two flagship projects on Monday - the onshore Cambay gas and condensate field in India, and the offshore Medway Hub Camelot carbon capture and storage (CCS) project in the UK.

The AIM-traded firm said that at the Cambay PSC, where Synergia holds a 50% working interest, it was advancing a $20m field development programme, fully funded by its joint venture partner Selan Exploration.

It said the programme included a three-well drilling campaign, with two vertical wells followed by a multi-stage fracked horizontal well.

Drilling was scheduled to start in the second quarter of 2025, subject to rig availability, with Selan prepared to redeploy an existing rig from Assam.

The company said it expected the new wells to drive a significant increase in production and cash flow.

Synergia said it was also progressing an extensive workover program at Cambay, using a combination of existing and newly contracted rigs.

Several wells, including C-64, C-19z, C-74, and C-72, would undergo interventions to enhance oil and gas recovery, with sucker rod pumps being installed where necessary.

Additionally, the main producing well, Cambay C-77H, would have its production tubing replaced to improve gas flow rates.

Initial workover activities at Cambay C-70 and C-63 were ongoing, with further remedial actions planned to optimise production.

At the Medway Hub Camelot CCS project, Synergia said it was seeking a new joint venture partner following Harbour Energy's decision to withdraw after acquiring Wintershall Dea, the project's original joint venture partner.

While it was continuing to conduct well integrity studies, it had paused all non-essential technical work until a replacement partner was secured.

Further updates would be provided as discussions progressed, the board confirmed.

"On Cambay, we are pleased to be able to report further details on the forward drilling and workover program for 2025 with our partner Selan as part of the $20m work program where we are fully carried," said chief executive officer Roland Wessel.

"We benefit from the production of low-cost, high-value gas that is sold to domestic industrial customers and, following the proposed drilling of three new wells and workovers, there is the potential to significantly increase gross production and cash flow.

"India remains an attractive jurisdiction to do business given high domestic gas prices and an attractive operating and fiscal regime and we look forward to reporting the results of our drilling and workover activities as they occur."

At 1204 GMT, shares in Synergia Energy were down 1.1% at 0.05p.

Reporting by Josh White for Sharecast.com.