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Synergia Energy Ltd on Monday said that its farm out agreement with Selan Exploration Technology Ltd has been approved by the Government of India.
This completes the sale of 50% of the Australia-based oil and gas company’s Cambay field production sharing contract to Selan.
Synergia received a $2.5 million upfront payment from Selan, and will be carried by Selan through an agreed $20 million work programme.
The programme comprises three new wells focussed on the Eocene reservoir and at least three well work-overs, and will start ‘as soon as possible’.
Chief Executive Officer Roland Wessel, said: ‘The farm out agreement with Selan marks a pivotal moment for Synergia and its long history with the Cambay PSC. We look forward to an early commencement of work-over and drilling operations to realise the value of the significant Cambay PSC reserves.’
Synergia Energy shares closed 1.3% lower at 0.13 pence each in London on Monday.
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