Star Energy Group PLC, listed on AIM, has released a trading update for the six months ending June 30, 2024. The company reported a net production average of 2,012 barrels of oil equivalent per day (boepd) during this period, with production on track to meet the full-year forecast of approximately 2,000 boepd. The company also highlighted a forensic audit of general and administrative expenses (G&A) underway, targeting savings of around £1.5 million per annum from 2025.
As of June 30, 2024, Star Energy had cash reserves of £4.2 million and net debt of £1.9 million. The company is making progress in analyzing technical data from its secured licenses in Croatia to determine the optimal sequencing for their commercial development. Approvals have been received for the acquisition of magnetotelluric data across the Sjece and Pcelic geothermal license blocks in Croatia, with data acquisition set to commence soon.
Furthermore, seismic data acquisition and analysis for the Salisbury hospital project is scheduled to begin in the third quarter. Ross Glover, CEO of Star Energy, emphasized the company's focus on optimizing its oil and gas business to enhance capital efficiency and generate cash flow to support the development of its geothermal business.
Glover stated, "We have committed to transitioning, over time, to a geothermal business, generating geothermal heat in the UK and power in Croatia." He also highlighted the importance of cash flows from the oil and gas business for funding this transition. The company aims to capitalize on near-term production opportunities while rationing capital allocation for the geothermal business until there is clarity on government support mechanisms in the UK and the force ranking of Croatian project opportunities.
Glover expressed optimism about the UK government's commitment to clean energy transition, aligning with Star Energy's energy transition strategy. The company looks forward to engaging with the government to deliver indigenous oil and gas while developing low-carbon geothermal heat for a net-zero future. Star Energy Group PLC will announce its interim results for the six months ended June 30, 2024, on September 18, 2024.
For further information, interested parties can contact Star Energy Group PLC or its appointed financial advisors.