Synergia Energy Ltd - India and UK-focused gas production and carbon capture and storage project development company - Announces the successful conclusion of negotiations with Selan Exploration Technology Ltd and execution of a farm-out agreement regarding the Cambay Field production sharing contract. Agrees to farm out 50% of the 100% interest held by Synergia in the Cambay PSC to Selan. In exchange for the 50% interest, Synergia will be carried by Selan through an agreed USD20 million work programme comprising three new wells focussed on the Eocene reservoir and three well work-overs. Synergia receives a cash payment of USD2.5 million immediately, proposes to apply the proceeds towards working capital purposes. Synergia retains a 50% interest in the Cambay PSC and a 50% share of the future production and revenues. This includes bonuses of up to USD9 million, linked to future cumulative gas sales thresholds.
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By Jeremy Cutler, Alliance News reporter
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Synergia Energy (SYN)