Synergia reports progress on Cambay field development

(Sharecast News) - Synergia Energy updated the market on the Cambay field on Monday, reporting that its chief executive officer Roland Wessel had recently visited several companies in Delhi and Ahmedabad concerning the field's farm-out process.

The AIM-traded firm said those companies were finalising their due diligence, with detailed technical and commercial discussions ongoing.

It said it was "optimistic" that a farm-out arrangement would be achieved, enabling the start of full field development this year.

"To this end, preparations have been initiated to procure the required services and equipment to drill the initial two new horizontal wells in the Cambay Eocene gas reservoir, including a field inspection of a modern drilling rig suited to the company's requirements," the board said in its statement.

Work was also continuing on an artificial lift solution for the C-77H well.

In addition to the progressive cavity pump solution, the firm said it was evaluating a cheaper and "more readily available" jet pump system.

"The jet pump solution is also being evaluated for installation on the C-19z well to boost oil production."

Elsewhere, the directors said the conceptual Cambay CCS scheme had generated "considerable" interest and support.

Meetings were conducted with the Directorate of Hydrocarbons (DGH) and the Government of Gujarat Climate Change Department.

In addition, meetings were held with senior representatives from Torrent Power and Gujarat State Electricity Corporation (GSECL) - two of the largest power station operators in the Cambay vicinity.

"The company will be assisting the DGH in the development of a regulatory framework which may initially result in the amendment of the Cambay PSC to incorporate CCS 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.

"Synergia aims to play an integral part in these developments."

At 1556 GMT, shares in Synergia Energy were down 30.8% at 0.11p.

Reporting by Josh White for Sharecast.com.

Synergia Energy