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RNS Number : 6085V Synergia Energy Ltd 05 December 2023
RNS Announcement
5 December 2023
AIM: SYN
Cambay Farm Out and Funding Arrangements
Total Voting Rights
Synergia Energy Limited ("Synergia" or the "Company"), is pleased to announce
the following update regarding the Cambay Farm Out and funding arrangements.
Re: Cambay Farm Out
Synergia 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.
Agreement 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.
Re: Funding Arrangements
The 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.
In 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.
The Placement is being conducted by Novum Securities Limited (Novum) as lead
broker to the capital raising. Accordingly, in connection with the Placement,
the Company has also agreed to issue 82,500,000 unquoted warrants to Novum,
exercisable at GBP 0.14 pence on or before 31 December 2026 (Fee Warrants).
The issue of the Fee Warrants is subject to shareholder approval, and, as
above, a general meeting of Synergia shareholders is anticipated to be held in
early February 2024.
Funds raised from the Placement are intended to be applied to the Company's
working capital base.
The Placement Shares will rank pari passu in all respects with the existing
shares. Application will be made in due course to the London Stock Exchange
for the Placement Shares to be admitted to trading on AIM on or around 18
December 2023 with a further announcement at that time.
Total Voting Rights
Following the issue of all of the Placement Shares, the Company's share
capital and total voting rights will comprise 10,497,336,158 shares. The
Company does not hold any shares in treasury. Consequently, 10,497,336,158
is the figure which may be used by shareholders as the denominator for the
calculation by which they will determine if they are required to notify their
interest in, or a change to their interest in, the Company under the FCA's
Disclosure and Transparency Rules.
Synergia's Chief Executive Officer, Roland Wessel, said:
"The Cambay Farm Out agreement is an important milestone for the Company and
will provide a path to a self-funded full field development and exploitation
of the significant (205 BCF P50) gas reserves on the Cambay license."
This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law
by virtue of the European Union (Withdrawal) Act 2018 ("MAR") and is disclosed
in accordance with the Company's obligations under Article 17 of MAR.
For and on behalf of Synergia Energy Limited
Roland Wessel
CEO
For further information, please contact:
Investor Enquires AIM Joint Broker AIM Joint Broker AIM Nominated Adviser Media Enquires (UK)
Synergia Energy Ltd Panmure Gordon (UK) Ltd Novum Securities Strand Hanson Limited Vigo Consulting
Briana Stayt Broker Broker Nominated Adviser Investor Relations
Investor Relations John Prior / Mark Murphy / Hugh Rich / Freddie Wooding Colin Rowbury Ritchie Balmer / Rory Murphy Patrick d'Ancona / Finlay Thomson
Email: Tel: +44 (0)20 7886 2500 Email: Tel: +44 20 7409 3494 Email:
bstayt@synergiaenergy.com UK crowbury@novumsecurities.com UK patrick.dancona@vigoconsulting.com
Tel: +61 8 9485 3200 Tel: +44 20 7399 9427 finlay.thomson@vigoconsulting.com
Australia UK Tel:+ 44 20 7390 0230
UK
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