(Alliance News) - Synergia Energy Ltd on Monday said its Chief Executive Officer Roland Wessel met several firms in Delhi and Ahmedabad, India as part of its plans to farm out the Cambay field.
Shares in Synergia plunged 24% to 0.12 pence each in London on Monday afternoon.
Synergia is a Perth, Australia-based developer of natural gas assets in India, Indonesia and the UK, formerly known as Oilex Ltd.
It said companies are finalising their due diligence procedures on the Cambay field, while technical and commercial discussions are ongoing.
Synergia said it is optimistic that a farm out arrangement will be achieved, enabling the commencement of the full field development in 2023.
As a result, it said it has begun preparations to procure the required services and equipment to drill the initial new horizontal wells in the Cambay Eocene gas reservoir, including a field inspection of a modern drilling rig suited to the company's requirements.
Synergia claimed the conceptual Cambay carbon capture and storage scheme has generated "considerable interest and support", conducting meetings with the Indian Directorate of Hydrocarbons and the Government of Gujurat Climate Change Department.
This was alongside meetings with senior representatives from Torrent Power and Gujurat State Electricity Corp Ltd - "two of the largest power station operators in the Cambay vicinity".
Synergia said the company will be assisting the Directorate of Hydrocarbons in the development of a regulatory framework, which may initially result in the amendment of the Cambay production sharing contract to incorporate carbon capture and storage activities.
"The Cambay CCS Scheme represents India's first end to end CCS scheme but will require both funding and the development of both a regulatory framework and incentives for the emitting companies to implement CCS," said Synergia in a statement, adding it "aim[s] to play an integral part in these developments".
By Greg Rosenvinge, Alliance News reporter
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Synergia Energy (SYN)