RNS
Announcement
10 February 2025
AIM: SYN
Synergia Energy Ltd ("Synergia Energy" or the "Company") is pleased to provide the
following update regarding the Company's two flagship projects, the
onshore gas and condensate production in India and its carbon
capture and storage ("CCS")
project offshore United Kingdom.
CAMBAY PSC (WI: 50%) ONSHORE INDIA
Following executive board member participation
in various meetings with key stakeholders in India last week, the
Company provides an update on a range of planned drilling and
workover activities for 2025 on the Cambay PSC. The planned
activities in 2025 are part of the US$20 million field development
program where Synergia is fully carried by Selan Exploration
("Selan"), an established
oil and gas production company operating in India. The current work
program when completed is expected to lead to a self-funded
full-field development involving up to 30 wells.
The Cambay PSC is a producing gas field with
gross P50 reserves of 206 Bcf and upside potential from contingent
and prospective resources of more than 1 Tcf that offers further
growth opportunities.
Three Well
Forward Drilling Plan
As part of the $20 million work program for
which Synergia is being carried by Selan, three new wells are to be
drilled comprising two vertical wells followed by one multi-stage
fracked horizontal well. A tender has been issued for a suitable
drilling rig and associated services. The drilling of the first
well is currently scheduled for Q2 2025, subject to rig
availability. Selan is prepared to re-deploy its currently
contracted rig from Assam to Cambay. The first well will be a
vertical fracked well targeting the extensive Eocene gas
reservoir.
The three well drilling programme has the
potential to deliver significant increases in production and
cashflow from the Cambay PSC.
Forward
Workover Plan
Using the currently contracted 30T workover
rig, and an additional 50/100T workover rig to be contracted in the
future for workovers requiring higher rig capacity, the following
workover program will continue through Q1 and Q2 2025:
Cambay
C-64: Miocene well, SRP to be
installed
Cambay
C-19z: This well has been producing material
quantities of oil from the Eocene on free flow for the last 12
months. The planned workover involves the installation of an SRP to
facilitate continuous increased production.
Cambay
C-74: Miocene well, contingent on success of
C-64 workover
Cambay
C-72: OS2 target, SRP to be
installed
Cambay
C-77H: This is currently the main producing
Cambay well. The current 2 3/8" OD production tubing is planned to
be replaced with 2 7/8" tubing to increase gas production
rates.
Initial
Workover Activities
Cambay
C-70: Cambay well C-70 was selected as the
first workover candidate as a gas producer from the shallow Miocene
reservoir. Despite promising initial production of up to c. 190,000
scfd, the well has experienced water influx. A final attempt to
re-start the well using compression equipment will be made in the
near future.
Cambay
C-63: The workover on C-63 targeted oil
production from the Eocene reservoir. The well was cleaned out
prior to the installation of a sucker rod pump ("SRP"). The SRP was not able to be
installed deep enough in the well to avoid "gas blocking" due to an
obstruction in the wellbore. The forward plan is to mill out the
obstruction so the SRP can be installed below the perforations to
avoid gas blocking. Thereafter, contingent on establishing
production, the well is a candidate for frac
stimulation.
MEDWAY HUB CAMELOT CCS PROJECT (WI:
50%), OFFSHORE UK
Further to its announcement on 28 November
2024, the Company provides the following update concerning the
Camelot CS licence CS019 (WI: 50%) in the UK.
The Company is engaged in a search to identify
a replacement JV partner following Harbour Energy's request to
withdraw from the Medway Hub project that it entered in September
2024 as a result of its acquisition of the original JV partner,
Wintershall Dea. Further updates will be provided when there is any
material progress to report regarding a replacement JV
partner.
The Company will continue to progress legacy
well integrity studies but has taken the prudent decision to pause
all other non-essential technical work until there is progress on a
replacement JV partner.
Roland Wessel,
CEO commented: "On Cambay, we are pleased to be
able to report further details on the forward drilling and workover
program for 2025 with our partner Selan as part of the US$20
million work program where we are fully carried. We benefit from
the production of low-cost, high-value gas that is sold to domestic
industrial customers and, following the proposed drilling of three
new wells and workovers, there is the potential to significantly
increase gross production and cash flow. India remains an
attractive jurisdiction to do business given high domestic gas
prices and an attractive operating and fiscal regime and we look
forward to reporting the results of our drilling and workover
activities as they occur."
The
information contained within this announcement is deemed by the
Company to constitute inside information as stipulated under the
Market Abuse Regulation (EU) No. 596/2014 as it forms part of
United Kingdom domestic law by virtue of the European Union
(Withdrawal) Act 2018, as amended by virtue of the Market Abuse
(Amendment) (EU Exit) Regulations 2019.
For and on
behalf of Synergia Energy Ltd
Roland
Wessel
CEO
For further information, please
contact:
