Selan Exploration Technology Ltd signs HoT with Synergia Energy Ltd for acquisition of balance PI in Cambay Field

Selan Exploration Technology Limited ("Selan" or the "Company") is pleased to announce that it has executed a Heads of Terms ("HoT") with Synergia Energy Limited ("Synergia") to acquire the remaining 50% Participating Interest (PI) in the Cambay Field. The Board of the Company concluded that this acquisition would be in the best interest of Company shareholders. This is a value accretive deal that grants the Company operational flexibility to unlock the Resources in the Cambay Field in an unconstrained fashion.

This HoT grants Selan an exclusivity for 180 days during which Synergia and Selan are to finalise a Sale and Purchase Agreement ("SPA") prior to requesting Government of India ("GoI") approval for the transfer of the remaining 50% working interest in Cambay PSC to Selan.

Selan has already acquired a 50% Participating Interest in the field along with operatorship on 19th July 2024 post Government of India ("GOI") approval. This was following a Farm-out Agreement ("FIFO") signed on 14th February 2024 with Synergia Energy Limited under which Selan agreed to an upfront payment of US$ 2.5m to Synergia and carry Synergia for US $ 10.0 million under an agreed work program.

Upon entering into this HoT, the Company has agreed to an initial payment of US $ 0.5m. Post finalisation of the SPA and GOI approval, the Company shall pay US$ 6.5m. A further payment of US$ 7.0m shall be paid on the first anniversary of GOI approval. All payments are subject to applicable taxes.

Upon acquiring the remaining 50% Participating Interest, Selan shall be relieved from all obligations under the FIFO, including the Carry obligations of US $ 10 million and production bonuses of upto US $ 9 million.

We believe access to 100% Participating Interest in the Cambay fields is in the best interest of the Shareholders and shall contribute significantly to the Growth plans of the company.

Shares of Selan Exploration Technology Limited was last trading in BSE at Rs. 696.85 as compared to the previous close of Rs. 685.05. The total number of shares traded during the day was 10777 in over 619 trades.

The stock hit an intraday high of Rs. 712.00 and intraday low of 683.60. The net turnover during the day was Rs. 7457684.00.

Source : Equity Bulls

Keywords

SelanExplorationTechnology INE818A01017 HoT SynergiaEnergy Acquisition CambayField