Business
Cambay Farm-Out and Funding Arrangements & TVR
Cambay Farm-Out and Funding Arrangements & TVR.
About this update from Synergia Energy Ltd
[{"type":"text","content":"\n\nRNS Announcement\n \n5 December 2023\n \nAIM: SYN\n\nCambay Farm Out and Funding Arrangements\nTotal Voting Rights\n\n \nSynergia Energy Limited (\"Synergia\" or the \"Company\"), is pleased to announce the following update regarding the Cambay Farm Out and funding arrangements.\n \nRe: Cambay Farm Out\n \nSynergia have been in detailed discussions with a respected Indian operating company (the \"Farminee\") with the aim of executing a Letter of Intent to establish a farm-out agreement to facilitate the full field development of the Company's Cambay field in which the Company currently holds a 100% working interest.\n \nAgreement has been reached in principle, subject to the finalisation of the work programme, final definitive documentation, regulatory approvals (as applicable) and Government of India (\"GoI\") approval, for the formation of a 50:50% joint venture on the Cambay field. 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 GoI approval. The Cambay field would be under joint operatorship by Synergia and the Farminee, with the Farminee acting as lead operator. It is anticipated that the definitive documentation (the Farm-In / Farm-out and joint operating agreements) will be executed within 3 months from the signing of the Letter of Intent.\n \nRe: Funding Arrangements\n \nThe Company has arranged an equity capital raising with clients of Novum Securities Limited of £1.1 million before expenses, through the issue of 1,375,000,000 new fully paid ordinary shares (Placement Shares) at GBP0.08 pence per share (Placement). The Placement will be completed on or around 18 December 2023.\n \nIn addition, subscribers to the Placement will be offered one free attaching unquoted warrant for every one Placement Share subscribed for, resulting in the issue of an aggregate of 1,375,000,000 unquoted warrants (Placement Warrants). The Placement Warrants are exercisable at GBP 0.14 pence per share on or before 31 December 2026. The issue of the Placement Warrants is subject to shareholder approval, and a general meeting of Synergia shareholders is anticipated to be held in early February 2024.\n ...