Star Energy Group plc has announced that its Croatian subsidiary has been granted two geothermal licenses by the Croatian Hydrocarbon Agency. The licenses, named Sječe and Pčelić, are located in the Drava depression geological region, the same region as the company's recently acquired Ernestinovo license. The licenses have an initial five-year exploration term and require the drilling of four and three wells, respectively. However, due to the density of existing data, it is expected that only the first well on each license will be an exploration/appraisal well.
The Sječe license covers an area of 32km2 and has 356km of 2D seismic and approximately 20km2 of 3D seismic data. Nine exploration wells have been drilled, and up to three different hot water reservoirs have been identified. Initial appraisal indicates that a 15-25MWe power plant is feasible, with an attractive NPV and IRR in the high teens.
The Pčelić license also covers an area of 32km2 and has 262km of 2D seismic data and two exploration wells. The measured temperatures at the bottom of the wells were 196⁰ C and 207⁰ C. Initial appraisal suggests that a 20-30MWe power plant is feasible, with similar NPV and IRR as the Sječe license.
The Croatian Minister of Economy and Sustainable Development, Davor Filipović, commented on the significance of activating geothermal potential in Croatia, stating that it will increase energy production, enhance energy security, and bring economic benefits to the country.
Star Energy CEO Chris Hopkinson expressed his satisfaction with the issuance of the licenses and highlighted the company's commitment to delivering geothermal energy in Croatia. He also mentioned that preparations for the first well re-entry on the Ernestinovo license have already begun.
Star Energy's Croatian geothermal interests are held within a 51% owned joint venture company called A14 Energy.