Cambay PSC Sale Agreement Update
Synergia Energy Limited announced that the Sale and Purchase Agreement with Antelopus Selan Energy Limited for the Cambay PSC, with a total consideration of up to US$14 million, has not been completed as Selan failed to provide the required bank guarantee for the deferred payment tranche, citing refusal by its major shareholder. Consequently, Synergia intends to examine its options, noting that Selan's non-refundable payment of US$0.5 million made under the Heads of Terms will not be returned. Despite the SPA's failure, both parties remain bound by their Farm-In/Farm-Out Agreement obligations, including the drilling of three new wells in the Eocene.
Select text to share a quote on X · sign in to keep highlights & notes in your SYN notes
On 1 December 2025 Synergia and Antelopus Selan Energy Limited ("Selan") signed a Sale and Purchase Agreement ("SPA") on terms previously announced, with a total consideration of up to US$14 million payable in two tranches. The SPA was conditional on Synergia shareholder approval and Selan establishing a bank guarantee for the deferred payment tranche. Synergia shareholder approval was gained at the 29 December 2025 Synergia AGM.
Selan has failed to provide the required bank guarantee for the deferred tranche citing refusal by Selan's major shareholder, Oak Tree Capital, to sanction completion of the SPA.
Under the Heads of Terms signed by both parties on 4 July 2025, Selan had exclusivity until 8 February 2026. Synergia remains willing to complete the SPA, however, since the conditions precedent for the SPA have not been satisfied by Selan prior to 8 February 2026, Synergia intends to examine its options. In the event that the SPA is not completed, Selan's non-refundable payment of US $0.5 million made under the Heads of Terms will not be returned.
Roland Wessel, Synergia's CEO stated:
"After 9 months of protracted negotiations, Selan has not satisfied the conditions precedent within the exclusivity period to complete the transaction. We believe in the inherent value of the Cambay PSC's 206 BCF of proven P50 Eocene gas reserves. The parties remain bound by their obligations under the previously executed Farm-In/Farm-Out Agreement including the agreed work program and in particular the drilling of three new wells in the Eocene."
For and on behalf of Synergia Energy Limited
Roland Wessel
CEO
Cleaned text: letterheads, contacts and legal notices removed. View the original announcement ↗ · Company filings. Not investment advice.