Trading Update & Notice of Half Year Results

Star Energy Group PLC

09 August 2023

 

9 August 2023

Star Energy Group plc

("Star Energy" or "the Company")

Trading Update & Notice of Half Year Results

Star Energy (AIM: STAR) issues the following trading and operations update in advance of the Company's half-year 2023 results, which are scheduled for release on 13 September 2023. The information contained in this statement has not been audited and may be subject to change.

Chris Hopkinson, Chief Executive Officer, commented:

"Production has remained strong averaging 2,080 boepd for the period, compared to 1,865 in the first half of 2022.  This is fantastic progress with maximum uptime from our wells which resulted in production during the latter part of July consistently above 2,250 boepd. 

The restructuring and rebranding of the Company which is now complete, were important steps in refocussing resource and redefining our strategic direction. 

Whilst we are focused on delivering further value from our existing oil and gas assets, our desire over time is to transition out of our oil and gas business and fully into geothermal bringing with us all the complementary skill sets and experience of our workforce.

Globally, the move to geothermal as a zero carbon source of energy continues to grow apace, and whilst we spearhead the industry in the UK, strategically we will also look more widely for geothermal opportunities to diversify our portfolio.  Our approach to opportunities will be disciplined and provide the appropriate level of returns for our shareholders."

Highlights

·    Average net production for the 6 months to 30 June 2023 of 2,080 boepd.  Guidance remains for full year at c. 2,000 boepd.

·    As at 31 July 2023, cash balances were £2.7 million and net debt was £2.7 million.

·    Recently published Government white paper on deep geothermal energy funded by the Department for Energy Security and Net Zero ("DESNZ"): 'The case for deep geothermal energy - unlocking investment at scale in the UK'  https://mcusercontent.com/8027fde9ba31fd5636a4f52c2/files/725a53d3-885e-c809-4a99-358d97207118/Geothermal_White_Paper_Report.pdf

o  Report calls on government to work with industry to deliver geothermal energy and to move quickly to unlock its potential.   

o  Identifies a huge opportunity to use geothermal energy to drive towards net zero and decarbonise the NHS saving emissions between 1.3 -22.7 kt CO2 per year for individual hospital sites.

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018.

For further information please contact:

Star Energy Group plc                    Tel: [phone]

Chris Hopkinson, Chief Executive Officer

Ann-marie Wilkinson, Chief Communications Officer

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

Virginia Bull/Chris Sim

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

Henry Fitzgerald-O'Connor/James Asensio

Vigo Consulting                Tel: [phone]

Patrick d'Ancona/Finlay Thomson/Kendall Hill

 

END