Synergia Energy Share News (SYN)

(Sharecast News) - Synergia Energy updated the market on its workover activities at the Cambay PSC in India on Thursday, where it holds a 50% working interest.

The AIM-traded firm said the programme was being funded as part of a $20m carry agreement with Selan Exploration.

Cambay well C-70 was the first candidate for the workover, targeting gas production.

The company said the wellbore was cleaned and perforated in the reservoir zone using a 30-tonne workover rig.

Following tie-in to the C-73 gas processing facility, C-70 achieved a test production rate of 150,000 standard cubic feet per day at a stable flowing wellhead pressure of 1,100 psi.

While constrained by low-pressure grid limitations, the well was expected to more than double the project's existing gas production.

Synergia said it planned to further assess C-70's potential by deploying a skid-mounted well test unit and maximising gas sales at approximately $9 per thousand cubic feet, with minimal flaring.

The workover programme had progressed to the C-63 well, where a sucker rod pump had been installed to enhance oil recovery.

Synergia noted that pre-workover activities had already delivered positive results, with crude oil production increasing by an average of 25 barrels per day since 1 November.

That uplift had been sustained through the programme to date.

"This is a very positive start to the Selan carried work programme," said chief executive officer Roland Wessel.

"The initial C70 gas production has more than doubled overall gas production from the Cambay field and will have a positive impact on cash flow."

At 1253 GMT, shares in Synergia Energy were flat at 0.05p.

Reporting by Josh White for Sharecast.com.