Star Energy Group PLC has successfully closed a new €25 million secured facility provided by Kommunalkredit Austria AG. This facility will support the company's transition strategy into geothermal energy and enable continued investment in the oil and gas business using existing cash flows. Chris Hopkinson, the CEO, emphasized the significance of this facility, stating that it allows the company to optimize near-term conventional production and deliver its transition strategy.
The facility comprises two components - Facility A and Facility B. Facility A will fund the repayment of the outstanding US$7 million balance on Star Energy's reserves based lending facility from BMO, with a fixed interest rate of 9.384% and repayment due on 30 June 2025. Facility B will provide funding for Star Energy's geothermal development activities, carrying an interest rate of Euribor + 6% and commencing repayments from 31 December 2025.
Hopkinson highlighted the company's competitive advantages in making the energy transition, citing their highly qualified team, established track record in onshore development, and valuable skills in conventional and geothermal projects. The CEO also expressed confidence in the company's ability to drawdown on this facility for geothermal activities, positioning the business for sustained growth and providing flexibility to optimize the value of the entire asset portfolio.
In addition to the finance facility announcement, the company also disclosed that it will release its results for the year ending 31 December 2023 on Wednesday, 24 April 2024. For further information, interested parties can contact Star Energy Group plc or its appointed financial advisors.
This news signifies a significant step for Star Energy Group PLC as it secures funding to support its transition into geothermal energy and continues its investment in the oil and gas business. The new finance facility and the upcoming results announcement demonstrate the company's commitment to its strategic objectives and financial transparency.