Synergia Energy Ltd (LSE:SYN) has revealed plans to sell its remaining 50% interest in the Cambay Production Sharing Contract (PSC) to Selan Exploration Technology Limited. The proposed deal, estimated to be worth roughly four times Synergia’s current market capitalization, is designed to unlock value for shareholders and support the company’s future strategic direction. The transaction is contingent on approvals from both shareholders and the Government of India.
As part of the deal, Synergia intends to return a portion of the proceeds to investors while also achieving operational cost savings. Despite ongoing financial headwinds, including continued losses and negative cash flow, the company has seen encouraging corporate activity. While valuation metrics suggest the potential for undervaluation, technical indicators are signaling caution due to an overbought market condition. Financial performance remains the dominant factor impacting the company’s overall standing.
About Synergia Energy Ltd
Synergia Energy Ltd is an energy sector player engaged in oil exploration and production, with its core operations centered around the Cambay PSC in India. The company previously held a 50% working interest in the project.
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