REG - Star Energy Group - Croatian Geothermal Licencing Round Update

Star EnergyAnnouncement

04/10/2023 07:15

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20231004:nRSD5943Oa&default-theme=true

RNS Number : 5943O  Star Energy Group PLC  04 October 2023

4 October 2023

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

 

Croatian Geothermal Licencing Round Update

Star Energy (AIM:STAR) is pleased to announce its Croatian subsidiary* has
been issued with two highly prospective geothermal licences by the Croatian
Hydrocarbon Agency, as part of the current licencing round announced on 28
December 2022.

The two licences, each with an initial five year exploration term, Sječe and
Pčelić, are located in the Drava depression geological region (the
southwestern area of the Pannonian basin), the same region in which its
recently acquired Ernestinovo licence is located. The licence commitments are
to drill four and three wells respectively, however given the density of
existing data on the licences, it is expected that only the first well on each
licence will be an exploration/appraisal well.

Sječe Licence

A 32km(2) licence, located in north-eastern Croatia within the Drava
Depression of the Pannonian basin the licence has 356km of 2D seismic,
c.20km(2) of 3D seismic data.  Nine exploration wells have been drilled and
up to three different hot water reservoirs identified.

Initial appraisal demonstrates that a 15-25MWe (one million watts of electric
capacity) powerplant is feasible, with an attractive NPV and IRR in the high
teens.

Pčelić Licence

A 32km(2) licence, located in northern Croatia within the Drava Depression of
the Pannonian basin, the licence has 262km of 2D seismic and two exploration
wells drilled.  Measured temperatures at the bottom of the two exploration
wells were 196⁰ C (Pče-1) and 207⁰ C (Pče-1AL).

Initial appraisal demonstrates that a 20-30MWe powerplant is feasible with
similar NPV and IRR as Sječe.

The Croatian Minister of Economy and Sustainable Development , Davor
Filipović commented:

"Activating geothermal potential is a significant step towards increasing
energy production on Croatian soil. In addition to increasing the security of
our state by increasing our own energy production from renewable, clean
sources, activating geothermal potential brings a number of benefits to the
economy. Geothermal potential is becoming a resource that will play a
significant role in creating energy independence and sufficiency of the
Republic of Croatia."

Commenting, CEO Chris Hopkinson, said:

"We are very pleased to be have been issued these two highly prospective
licences.  Now with a portfolio of three licences, including Ernestinovo, we
have demonstrated that our Croatian Joint Venture is well positioned to be a
key player in delivering Geothermal Energy in Croatia in line with the local
Government's targets.  We have already commenced with preparing the site for
our first well re-entry on Ernestinovo and look forward to commencing work on
these two licences."

 

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

 

For further information please contact:

Star Energy Group plc                    Tel: +44 (0)20
7993 9899

Chris Hopkinson, Chief Executive Officer

Ann-marie Wilkinson, Chief of Staff

 

Investec Bank plc (NOMAD and Joint Corporate Broker) Tel: +44 (0)20 7597 5970

Virginia Bull/Chris Sim/Charles Craven

 

Canaccord Genuity (Joint Corporate Broker) Tel: +44 (0)20 7523 8000

Henry Fitzgerald-O'Connor/James Asensio

 

Vigo Consulting                Tel: +44 (0)20 7390 0230

Patrick d'Ancona/Finlay Thomson/Kendall Hill

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  UPDMJBBTMTJMTPJ