Drill Rig Mobilised to Ernestinovo Licence

Star Energy Group PLC

12 December 2023

 

12 December 2023

Star Energy Group plc

("Star Energy" or "the Company" or "the Group")

Drill Rig Mobilised to Ernestinovo Licence, Croatia

Star Energy (AIM:STAR) is pleased to announce that a drill rig has been mobilised to a recently constructed well pad on its Ernestinovo Licence in Eastern Croatia, three months after the acquisition of its Croatian Geothermal interests.  The rig will re-enter the Ernestinovo-3 well to test the geothermal potential of the fractured metamorphic pre-Cenozoic formation. 

Crosco is conducting the well re-entry programme. They are a highly experienced Croatian based international drilling company and have conducted the successful re-entry of a number of wells in country.

The operation is likely to continue for approximately one month, with results expected by late January 2024, on schedule with the planned work programme.

Commenting, CEO Chris Hopkinson, said:

"We are excited to begin the well re-entry on Ernestinovo-3.  The speed with which we have constructed a well pad and commenced this operation demonstrates both the expertise of our local partners and the efficiency of the Croatian regulators.  The Ernestinovo licence has excellent data from three deep exploration wells drilled in the 1980s and would suggest high temperatures and flow rates are achievable from this well.  Our UK and Croatian teams are working closely to ensure a successful operation."

The Ernestinovo Development Project

Based on preliminary heat reserves and well productivity estimates, the Company's internal assessment forecasts the potential for a first phase development of a 10 MW electricity generation plant utilising five to six wells producing and re-injecting geothermal brine.

The proposed plant would connect into the Ernestinovo HOPS substation - a major substation with 400kV transmission lines to the national grid, Hungary, Serbia and Bosnia, and local distribution lines at 110 kV and 85kV - and sell electricity on either a market premium arrangement (CfD) or bilaterally. 

For further information please contact:

Star Energy Group plc                    Tel: [phone]

Chris Hopkinson, Chief Executive Officer

Ann-marie Wilkinson, Chief of Staff

Investec Bank plc (NOMAD and Joint Corporate Broker) Tel: [phone]

Virginia Bull/Chris Sim/Charles Craven

Canaccord Genuity (Joint Corporate Broker) Tel: [phone]

Henry Fitzgerald-O'Connor/James Asensio

Vigo Consulting                Tel: [phone]

Patrick d'Ancona/Finlay Thomson/Kendall Hill

Star Energy's Croatian geothermal interests are within a 51% owned joint venture company, A14 Energy.

 

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