Business
Acquisition of Geothermal Development Company
Acquisition of Geothermal Development Company.
About this update from Star Energy Group Plc
[{"type":"text","content":"\n\n29 August 2023\n \nStar Energy Group plc (\"Star Energy\" or \"the Company\" or \"the Group\")\n \nAcquisition of Croatian Geothermal Development Company\n \nStar Energy is pleased to announce that it has today acquired 51% of the issued share capital of A14 Energy Limited (\"A14 Energy\"). A14 Energy owns, via its Croatian subsidiary, IGeoPen d.o.o. (\"IGeoPen\"), the Ernestinovo geothermal waters exploration licence in the highly prospective Pannonian Basin in Croatia. The IGeoPen team has deep knowledge and experience of the Croatian energy sector.\nThis transaction further develops the Company's strategy to transition into a geothermal developer, owner and operator, diversifying regulatory risk and providing an entry into the electricity generation sector. \nThe geothermal sector is a fundamental component of the energy transition, with the ability to provide long term baseload electricity and heat generation. Star Energy, has decades of experience of sub-surface analysis, onshore drilling, well management and environmental control from its portfolio of oil and gas operations in the UK. These skills and experience, coupled with those of the IGeoPen team, mean that Star Energy is well positioned to deliver geothermal energy in Croatia, a member of the European Union (EU), with a liberalised, well established and attractive energy market.\nTransaction Details\nThe interest in A14 Energy has been acquired by the Company's subsidiary, GT Energy Croatia Limited (\"GTEC\"), from Peninsula International Pte Ltd (\"Peninsula\") for a total cash consideration of €1.3 million. Additionally, Star Energy will pay €0.1 million, relating to the provision of cash backed guarantees to the Croatian Hydrocarbon Agency, plus €0.2 million in back costs relating to the ongoing appraisal of the Ernestinovo licence. \n \nIn addition, GTEC has entered into a shareholders' agreement with Peninsula in order to jointly develop and submit bids, and thereafter to own, construct and operate geothermal projects in Croatia.\n \nGTEC and Peninsula, through IGeoPen, have jointly submitted three bids for geothermal licences to the Croatian Hydrocarbon Agency as part of the current licencing round and expect the results of the bids by December 2023. A further aggregate amount of up to €1.5 million is payable upon th...