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