Synergia shares fall more than 23% after Cambay well drilling delayed to 2027

Key Facts

Synergia Energy shares fell more than 23% to 0.0065 pence on the morning of Wednesday, 4 November 2026, as the company announced that drilling of well C-79 in India’s Cambay field had been delayed until February or March 2027. Synergia said in its update that the new timing replaces an earlier estimate for drilling to begin in late November 2026. The delay is linked to the absence of a confirmed date for moving the drilling rig owned by DEEP Industries, which is currently working for ONGC in the state of Assam. The company said the rig is required to drill the well and that joint operator ASEL had not set a date for moving it. This postpones the start of the targeted well in the Eocene formation, while next steps remain tied to the availability of operational information from ASEL. The shares fell during the session in which the announcement was made, though neither the company nor trading data attributed the move to it causally.

The timing change comes against Synergia’s update on 1 October, when it estimated that drilling of C-79 would begin in late November 2026. The annual report published on 30 October also targeted drilling the well during the fourth quarter of 2026, before Wednesday’s update set a date in February or March 2027. The same annual report had referred to a horizontal gas well, C-80, expected in 2027. The new timing for C-79 therefore falls in a year when the company is also targeting another well, according to the plan published before the delay was announced. The 4 November update did not provide a new date for C-80. The timing of C-79 will remain under review until further information is received from the operator.

Synergia said the two companies are largely aligned on the objective for well C-79 in the Eocene formation, as well as the well program and hydraulic fracturing. This means the announced change concerns the timing of moving the drilling rig, while the update did not mention any change to the target or technical program. Synergia holds a 50% working interest in the Cambay licence, while Selan is involved in the project as the main joint operator. The agreed work program, worth US$20 million, includes drilling 3 new wells focused on the Eocene and carrying out 6 well workovers. The plan called for completing the program within 18 months of the later of Indian government approval or the award of contracts, with a possible 6-month extension in certain circumstances. This framework places well C-79 within a broader field development program, rather than as a standalone drilling operation.

Eocene wells are important to Synergia’s plan to exploit the field’s resources. Its annual report for the year ended 30 June 2026 said it aims to drill wells in this formation to access certified gas reserves of 206 billion cubic feet. But the field’s previous drilling record highlights execution and results risks: Selan drilled well C-78 in October and November 2025, and the well did not achieve commercial production, according to Synergia’s information on Cambay development. Wednesday’s update did not specify how that earlier result would affect C-79’s design or production prospects. The company says the two firms remain largely aligned on the well’s objective, program and fracturing, while rig availability remains the immediate timing constraint. The execution date therefore remains tied to the schedule of the unit currently working in Assam. Synergia did not announce a more precise date than February or March 2027 in the update.

The partnership’s background includes 9 months of negotiations to sell Synergia’s 50% interest in the Cambay licence to Selan, but Selan chose not to complete the deal, according to the annual report published on 30 October. Synergia said it decided to retain its interest and focus on carrying out the work program. The report said about US$12.5 million of the US$20 million program commitment remained at the time it was prepared, including US$6.3 million net to Synergia. In its financial results for the year ended 30 June 2026, revenue rose 268% to A$1.08 million, compared with A$0.3 million in the prior year. The group had A$1.12 million in available cash at the end of June, versus A$1.21 million a year earlier, and reported net assets of A$7.4 million. The report also cited a US$700,000 loan facility for 12 months, of which US$225,000 had been drawn by 30 June 2026.

Synergia said it will issue an update on the timing of C-79 as soon as it receives further information from ASEL. The announcement did not specify when that update would come, and it did not provide a confirmed date for moving the DEEP Industries rig from its current work for ONGC in Assam. February or March 2027 remains the company’s announced window for the start of drilling for now. This follows the late-November 2026 estimate in the October update and the fourth-quarter 2026 target in the annual report. The agreed well and workover program remains 3 new wells and 6 workovers under a US$20 million commitment. The next timing step will depend on information from the operator about the drilling rig.