REG - Star Energy Group - New Finance Facility and Notice of Results

Star EnergyAnnouncement

09/04/2024 07:00

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RNS Number : 7641J  Star Energy Group PLC  09 April 2024

 

9 April 2024

Star Energy Group plc (AIM: STAR) ("Star Energy" or "the Company")

 

New Finance Facility and Notice of Results

 

Star Energy is pleased to announce the closing of a new €25 million secured
facility (provided by Kommunalkredit Austria AG (Kommunalkredit)) to support
its transition strategy into geothermal energy and enable continued investment
in the oil and gas business utilising its existing cash flows.

Commenting, Chris Hopkinson, Chief Executive Officer, said:

"Securing this facility is an important milestone for Star Energy. It allows
us to use cashflows from our existing oil and gas business to optimise
near-term conventional production (with quick pay-backs)  and deliver our
transition strategy; namely developing and monetising our geothermal business
in both the UK and Croatia.

 

We believe that we have particular, tangible competitive advantages in making
the energy transition. We have a highly qualified team already in place and an
established track record in onshore development - everything from sub-surface
expertise and knowledge of planning and other environmental processes through
to long-term and responsible operatorship competence. These skills are
valuable in conventional and geothermal projects alike.

 

The size and structure of Kommunalkredit's facility evidences their confidence
in Star's people and its transition strategy. Our ability to drawdown on this
facility for our geothermal activities will allow this business to be
positioned for longer term and sustained growth. It will also give us greater
flexibility to continue to optimise the value of our entire asset portfolio,
with short cycle returns."

 

Key Facility Terms

The new five-year €25 million secured facility matures on 31 December 2028.
This unique, tailored package secured with KommunalKredit has 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, which was due at the
end of June 2024. It has a fixed interest rate of 9.384% and is repayable on
30 June 2025.

Facility B provides funding for Star Energy's geothermal development
activities. It carries an interest rate of Euribor + 6% and has a five year
term, with repayments scheduled to commence from 31 December 2025.

Notice of Results

 

The Company will announce results for the year to 31 December 2023 on
Wednesday, 24 April 2024.

 

For further information please contact:

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

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

 

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