Shares in Synergia Energy Ltd (AIM:SYN) dropped 9% after the company announced plans to sell its remaining 50% stake in the Cambay oil and gas field in India to joint venture partner Selan Exploration for US$14 million.
The deal follows a strategic review, with Synergia concluding that a full exit from Cambay offers the best route to unlock shareholder value. The agreed price represents around four times the company’s current market capitalisation.
Selan will pay an initial $0.5 million now, followed by $6.5 million once the Indian government approves the transfer. A final $7 million payment will be made 12 months later.
The proposed transaction remains subject to shareholder approval, with a full circular to follow once a sale and purchase agreement is finalised.
Synergia said it expects to cut costs and return a portion of the proceeds to shareholders. The current drilling work at Cambay will continue while the transaction progresses.
The shares rose strongly ahead of the formal confirmation of the India exit, suggesting Tuesday's 0.0022p dip in the share price to 0.023p reflects either profit-taking or mild disappointment with the deal terms.