Synergia Energy Limited announced the successful conclusion of negotiations with Selan Exploration Technology Limited and execution of a farm-out agreement regarding the Company's Cambay Field Production Sharing Contract. Highlights: The Company has agreed to farm out 50% of the 100% interest held by the Synergia Group in the Cambay PSC to Selan; Selan. Selan has currently entered into a scheme of amalgamation with Antelopus Energy Private Limited, another highly respected Indian oil and gas operator, which is currently awaiting regulatory approvals; Synergia and Selan will be joint operators of the Cambay PSC with Selan to be appointed as Lead Joint Operator; Both Synergia and Selan are focussed on developing the Cambay PSC Eocene gas and gas condensate reservoir which contains independently certified 2P gas reserves of 206 BCF (as at 1 June 2022); The joint venture unlocks the path to a full field development of the Cambay PSC with a sophisticated and experienced operator-partner; The farm-out and associated joint operating agreement are conditional upon customary consents from the Government of India ("GoI") for the transfer of the 50% interest to Selan and Selan assuming a Lead Joint Operator role (GoI Approval); Synergia and Selan have agreed the form of joint operating agreement for the Cambay PSC and will enter into the joint operating agreement upon receipt of GoI Approval.

Summary of the transaction: In exchange for the 50% interest, Synergia will be carried by Selan through an agreed USD 20 million work programme (WP) comprising 3 new wells focussed on the Eocene reservoir and 3 well work-overs; The WP is to be completed within 18 months of the later of GoI approval of the WP or the award of contracts for the WP, extendable by a further six months in certain circumstances; Synergia will receive a cash payment of USD 2.5 million immediately following GoI Approval. The Company proposes to apply the proceeds of this cash payment towards working capital purposes; Synergia will retain a 50% interest in the Cambay PSC and a 50% share of the future production and revenues; Synergia will be entitled to bonuses of up to USD 9 million, linked to future cumulative gas sales thresholds being achieved; Selan has the option to participate in the Cambay CCS scheme on terms to be agreed; The farm-out agreement contains warranties given by the Company to Selan in relation to, amongst other things, title to the Cambay PSC, as well as certain limited indemnities. The agreement is governed by Indian law.