Star Energy Group plc has announced that a drill rig has been mobilised to a recently constructed well pad on its Ernestinovo Licence in Eastern Croatia. The rig will re-enter the Ernestinovo-3 well to test the geothermal potential of the fractured metamorphic pre-Cenozoic formation. The operation is expected to continue for approximately one month, with results expected by late January 2024. The company's CEO, Chris Hopkinson, expressed excitement about the well re-entry and praised the expertise of local partners and the efficiency of Croatian regulators. The Ernestinovo licence has excellent data from three deep exploration wells drilled in the 1980s, suggesting high temperatures and flow rates are achievable from this well.
Based on preliminary heat reserves and well productivity estimates, Star Energy Group plc's internal assessment forecasts the potential for a first phase development of a 10 MW electricity generation plant utilizing five to six wells producing and re-injecting geothermal brine. The proposed plant would connect into the Ernestinovo HOPS substation, which has 400kV transmission lines to the national grid, Hungary, Serbia, and Bosnia, as well as local distribution lines at 110 kV and 85kV. The company plans to sell electricity on either a market premium arrangement or bilaterally.
Star Energy Group plc can be contacted for further information. Investec Bank plc and Canaccord Genuity are serving as the company's joint corporate brokers, while Vigo Consulting is providing consulting services. The news was supplied by Euroland.com.