Star Energy Group PLC on Thursday said its value creation strategy remains focused, as it seeks to maximise cash returns from UK oil and gas operations to fund growth.
The London-based onshore energy company reported, ahead of its annual general meeting this morning, that production remains in line with its full-year guidance at around 2,000 barrels of oil equivalent per day.
Its shares rose 5.9% to 7.36 pence on Thursday afternoon in London.
Star Energy noted a cash balance of £10.5 million at the end of May, up from £4.3 million at December 31. Further, it reported net debt at May 31 of £1.9 million, down 75% from £7.5 million over the same period.
The company added that it is on track to repay its secured facility, ’Facility A’, of €6.7 million by the end of this month.
Star Energy said it is continuing the expansion of its UK geothermal pipeline, citing memorandums of understanding with Bring Energy and Veolia.
Looking ahead, it said its value creation strategy remains focused. This includes maximising cash returns from UK oil and gas operations in order to fund growth, as well as to ‘grow a high-quality geothermal platform with scalable, de-risked opportunities in the UK and Croatia’.
‘We are uniquely positioned to deliver value from cash-generative UK oil and gas operations, while building a diversified energy business that can thrive in multiple market scenarios.
‘Our geothermal activities are not a pivot away from hydrocarbons; they are a logical deployment of our core strengths in subsurface, permitting, and infrastructure development into a growth area,’ said Chief Executive Ross Glover.
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