UK oil and gas producer Star Energy Group (AIM:STAR) has acquired a further 20% of a company that owns three geothermal exploration licences in the “highly prospective” Pannonian Basin in Croatia.
Star, which changed its name from Igas Energy in 2023, said the deal to up its stake in A14 Energy will enable it to “accelerate” development of its geothermal projects but does not expose the firm to “material additional costs in the short to medium term”.
The firm produces gas and oil at onshore locations in the the East Midlands and the Weald Basin in Southern England with production averaging around 2,000 boepd in 2024.
It also is developing low carbon heat opportunities including geothermal with a number of NHS hospitals in England.
Star acquired the stake in A14 from its joint venture partner, Peninsula International, taking its total share in the firm to 71%.
It said the acquisition follows the exercise of conversion rights under a €529,614 (£439,103) convertible loan agreement with Peninsula. The convertible loan was provided to Peninsula in order to fund its share of 2024 operating expenses for A14.
The firm, which made headlines as Igas when it made a move into recovering UK onshore shale gas through fracking, acquired geothermal heat developer GT Energy in 2020.
Star Energy chief executive, Ross Glover, who took on the role in June 2024, said the licences include a “proof of concept” for a geothermal power plant.
He said: “The three licences held by A14 Energy are prospective in the Pannonian basin which has proof of concept in the 17.5MWe Velika Ciglena geothermal power plant.
“Our increased stake provides us with greater flexibility in our plans to farm down an interest in the licences and to accelerate the development of our Croatian assets.
“The additional interest does not expose us to material additional costs in the short to medium term due to the existing carry arrangements. Peninsula will continue to provide the partnership with in-country expertise.
Recommended for you
