REG - Star Energy Group - Trading Update

Star EnergyAnnouncement

25/07/2024 07:00

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RNS Number : 7213X  Star Energy Group PLC  25 July 2024

25 July 2024

 

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

 

Trading Update

 

Star Energy is pleased to provide the following trading update for the six
month period to 30 June 2024. The figures have not been audited and are
subject to change:

 

Key highlights:

 

·    Net production average boepd of 2,012 for six months to 30 June 2024;
with production on track to achieve our full year forecast of c. 2,000 boepd

·    Forensic audit of G&A is underway, with a target to achieve
savings of c.£1.5 million per annum that will take effect from 2025

·    Cash at 30 June 2024 of £4.2 million and net debt of £1.9 million

·    Progress being made on analysis of the technical data from all three
secured licences in Croatia to rank the optimal sequencing of their commercial
development

·    Approvals received for the acquisition of magnetotelluric data across
the Sjece and Pcelic geothermal licence blocks in Croatia.  Data acquisition
will commence imminently

·    Seismic data acquisition and analysis for Salisbury hospital project
to commence in Q3

Commenting, Ross Glover, Star Energy CEO said:

 

"My focus since becoming CEO has been twofold: to identify the best ways to
optimise our oil and gas business in order to make it as capital efficient as
possible; and, by delivering on this goal, generate cashflow that will enable
us to build our geothermal business further, having refined and high-graded
the opportunities it currently holds. There is much to be done to achieve
these goals, but I am pleased to report that we are making progress.

Production remains robust as we focus on quick returning optimisation projects
to yield incremental production and, in the longer term, reduce operational
expenditure.  The oil and gas business for now remains the driver of the
Group cashflow and capitalising on near term production opportunities will be
important for this.

We have committed to transitioning, over time, to a geothermal business,
generating geothermal heat in the UK and power in Croatia. Cashflows from our
oil and gas business to provide development funding are key to this
transition, as are the skills of our workforce. We will, however, be rationing
our capital allocation in this area until we have clarity on government
support mechanisms in the UK and have force ranked our Croatian project
opportunities.

The new UK Government have a clear mandate to build out clean energy and
tackle climate change.  The King's Speech set out the government's commitment
to a clean energy transition, which aligns with our energy transition
strategy. We are heartened by the positive moves to drive forward renewable
energy deployment through the establishment of GB Energy and streamlining
planning processes.  We look forward to continuing positive engagement with
this Government as we continue to deliver indigenous oil and gas whilst
developing low carbon, geothermal heat for a net zero future.

I look forward to updating the market further and in more detail at our
interim results in September."

 

 

 

Notice of results

 

The Group will announce its interim results for the six months ended 30 June
2024 on Wednesday, 18 September 2024.

 

For further information please contact:

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

Ross Glover, Chief Executive Officer

 

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/Ana Ercegovic

 

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

Patrick d'Ancona/Finlay Thomson/Kendall Hill

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