Star Energy Group plc plans to exit its shale gas licences to save licence fee costs and focus more on its producing oil and gas assets in the East Midland and Weald Basins.
RIGHT-SIZE
Ahead of today’s general meeting, chief executive Ross Glover said that production maintained “strong momentum” in line with guidance of circa 2,000 boepd.
“We will continue to optimise oil production from our existing well stock through investment in incremental opportunities which deliver quick payback and to seek further reductions in site operating costs.
“Initial discussions with potential farm-down partners, which should enable quicker execution of our shovel-ready oil and gas projects, have been encouraging and a formal process will commence in early Q3 2024.”
He added he would “right-size” the business and to ensure the best corporate structure appropriate for the size of the business without compromising growth.
Star Energy has also reinvested some of its operating cash flows into its oil and gas business following the recent £25 million refinancing.
The company also plans to develop its geothermal projects having secured three licences in Croatia.