REG - Star Energy Group - 2024 AGM Trading Update

Star EnergyAnnouncement

12/06/2024 07:00

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RNS Number : 0216S  Star Energy Group PLC  12 June 2024

12 June 2024

 

Star Energy Group plc (AIM: Star) ("Star Energy" or "the Company")

 

2024 Annual General Meeting (AGM) Trading Update

 

Star Energy today provides the following trading update in advance of the
Company's AGM, which is being held at 10.30 am today.

Ross Glover, Chief Executive Officer said:

"I am delighted to report that we are maintaining strong momentum in
production and it remains in line with guidance at c. 2,000 boepd.  We will
continue to optimise oil production from our existing well stock through
investment in incremental opportunities which deliver quick payback and to
seek further reductions in site operating costs.  Initial discussions with
potential farm down partners, which should enable quicker execution of our
shovel ready oil and gas projects, have been encouraging and a formal process
will commence in early Q3 2024.

Our intention is to exit our shale gas licence positions in order to save the
costs of licence fees and to allow greater focus on our producing assets.

I will be working to right-size the business and to ensure we have the optimal
corporate structure that is both appropriate for a business of our size, but
does not compromise our ability to grow.  We have strengthened our balance
sheet through the recent refinancing exercise. This gives us the opportunity
to reinvest some of our operating cashflows into our oil and gas business to
drive its profitability and sustainability, in a range of commodity price
environments. As our geothermal projects mature we will deploy our capital
appropriately.

I believe that geothermal can be a key part of the solution to decarbonise
heat.  It is not grid-dependent, requires minimal surface infrastructure and
once running it is a consistent renewable source that can be used for both
heating and cooling.

The skills needed to develop the geothermal industry already sit within the
onshore oil and gas industry in the UK - this could be a real "just
transition" for oil and gas workers to a green technology that is proximal in
terms of skill set.

We are in a period of political hiatus from a policy point of view, but clean
energy and clean jobs are a key priority for both main parties.  Labour have
said that GB Energy will be an investment vehicle for nascent renewable
technologies and geothermal fits perfectly within that definition.

In Croatia, we have commenced a review of the technical data from all three
secured licences, to rank the optimal sequencing of their commercial
development.

While the transition over time into geothermal remains our goal, it is
critical that our focus in the short term is maximising cash flow from our
producing assets whilst commodity prices remain high and ensuring we are in
the best shape for the future."

 

For further information please contact:

Star Energy Group plc
                             Tel: +44 (0)20 7993 9899

Ann-marie Wilkinson, Chief of Staff

 

Investec Bank plc (NOMAD and Joint Corporate Broker)     Tel: +44 (0)20
7597 5970

Virginia Bull/Charles Craven

 

Canaccord Genuity (Joint Corporate Broker)
   Tel: +44 (0)20 7523 8000

Henry Fitzgerald O'Connor/Adam James/James Asensio

 

Vigo Consulting
                                    Tel: +44 (0)20 7390
0230

Patrick d'Ancona/Finlay Thomson/Kendall Hill

 

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