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Synergia Energy Ltd on Friday said it has executed heads of terms to sell an onshore oil field to Selan Exploration Technology Ltd. The Perth-based oil and gas mining company has a 50% stake in the Cambay Basin asset, located in India’s Gujarati region. Back in February 2024, Synergia and Selan, a Gandhinagar, India-based mining firm, executed a farm-out agreement to set up a joint venture at Cambay. Under that deal, Synergia transferred 50% working interest to Selan, which carried the costs of the work programme. The deal was approved by the Indian government in August, and preparations are currently underway to drill the first well. Synergia updated on Friday that it plans to exit the project entirely, following a company review. Selan has agreed to pay $14 million for full ownership of the Cambray project. This includes an initial $500,000 payment upon execution of heads of terms, a $6.5 million cash payment after state approval and a final $7.0 million cash payment one year after the approval decision comes through. The firms have entered a 180-day exclusivity period to finalise the deal, after which they will request approval for Synergia to transfer the remaining 50% stake to Selan. The deal is also subject to approval from Synergia shareholders. ‘The board expects to achieve meaningful cost savings and intends to return a proportion of the proceeds to shareholders,’ noted Synergia. ‘Given the persistent gap between our net asset value and market capitalisation, the board has determined that divesting our remaining Cambay interest represents the most effective way to unlock value for shareholders,’ added Synergia Chief Executive Roland Wessel. ‘The terms agreed with Selan reflect a compelling valuation relative to our current market cap and will provide the resources to return capital to shareholders while supporting the advancement of new strategic initiatives.’ Synergia shares rose 48% to 0.028 pence on Friday afternoon in London, for a market capitalisation of £4.7 million, or $6.4 million. Work is expected to continue at Cambray throughout the sale process. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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