(Alliance News) - Synergia Energy Ltd on Tuesday said it has arranged a GBP1.1 million equity raise and added that it reached a deal "in principle" for a farm-out at the Cambay field.
The India and UK-focused gas production and carbon capture and storage project development company, which has been eyeing a farm out of the Cambay asset, said an "agreement has been reached in principle".
It added the deal is subject to the finalisation of the work programme, documentation, regulatory approval and backing from the Indian government. Synergia currently owns 100% of the Cambay field in the state of Gujarat.
"In exchange for the transfer of a 50% working interest in the Cambay PSC, the farminee is to carry Synergia for the full cost of the agreed work programme, to be completed within 12 months from the date of the [government of India] approval. The Cambay field would be under joint operatorship by Synergia and the farminee, with the farminee acting as lead operator," Synergia said.
It is anticipated that the farm-out and joint operating agreements will be executed within three months from the signing of the letter of intent.
In addition, Synergia issued 1.38 billion new shares at 0.08 pence, raising GBP1.1 million. Synergia's share price was down 16% at 0.080 pence each in London on Tuesday afternoon.
"Funds raised from the placement are intended to be applied to the company's working capital base," Synergia said.
In addition, subscribers in the placing will be offered a warrant for another share, exercisable at 0.14p on or before the end of 2026.
The warrant issue is subject to shareholder approval at a February general meeting.
By Hugh Cameron, Alliance News reporter
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Synergia Energy (SYN)