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Https://drillordrop.com/2024/03/04/uk-onshore-oil-and-gas-production-in-charts-december-2023/
star still producing 17% of all the UK onshore oil - 2nd highest producer
star still producing 5% of all the uk onshore gas - 3rd highest producer
Https://x.com/theunsophistic2/status/1772544039536984151?s=46&t=4s-AQzZhMmeWz3Ire1AEsA
Operational and market performance mismatch
Canaccord Genuity view Star's recent updates highlight the progress made across the company's diverse UK onshore oil and gas production base and in the Croatian geothermal business.
Over the past year, the company has turned around a declining UK production profile for the first time in many years, through a combination of greater focus on incremental low-cost enhancements to well performance and significantly improved surface facilities efficiencies and uptime.
That has clearly borne fruit over the past 12+ months, and we think there is plenty of scope to maintain that elevated performance at least over the next few years. That is important because while the company sees longer-term growth through its geothermal businesses, it is the UK conventional hydrocarbons that provide the backbone of cashflow in the nearer-term. We think the progress made by Star in the UK and in Croatia is substantial, and certainly not reflected in the recent market performance.
We maintain our BUY rating, and though we trim our risked NPV10 target price to 65p (from 73p) to reflect the slow pace of progress (unrelated to Star) of the UK geothermal business, we think the company's valuation footing has improved significantly over the past year. Conventional production Productivity gains:
FY23 company expected c.2.09 kboed, better than early year c.2.0 kboed guidance. That rate implies higher production in H2 than H1 (2.07 kboed), itself a positive indicator. As a result, 2023 output is set to be the best since 2019. The signs are that a rolling programme of continued smaller scale investment - workovers and infrastructure optimisation - can be expected to deliver similar stable production levels for several years. New projects would provide further upside, but those probably require additional financing.
Costs: Star has also done a good job on operating cost control, which continue around $40/boe despite the inflationary environment. Geothermal projects Croatia: Star only entered the country in August through the acquisition of 51% of local company A14 Energy which holds the Ernestinovo geothermal exploration licence. Since then the company has been awarded two further licences, prepared a wellsite for testing of Ernestinovo-3, and mobilised a rig to test flow rates (results expected early 2024). A successful outcome can be expected to lead to application for a long-term exploitation licence.
UK: That progress contrasts starkly with activity levels in the UK, where a combination of factors - permitting, lack of government funding distribution, bureaucracy - have all conspired to hamper any real progress. Valuation underpinning The benefits of the renewed vigour applied to the UK oil and gas assets - both improved productivity and cost control - are critical to the underlying value of Star.
Given the unsurprisingly relatively high operating costs of small fields onshore UK and the significant ele
Https://x.com/smackeraim/status/1772247144277086528?s=46&t=4s-AQzZhMmeWz3Ire1AEsA
Tg group
Corringham, Lincolnshire: New well planned for the second half of the year. Planning and permitting in place. If successful, this would add 110 barrels per day, IGas said.
Glentworth, Lincolnshire: Planning application for a new wellsite due to be heard by Lincolnshire County Council in April 2023. If successful, the site could produce 200 barrels/day, IGas said, and further drilling could add an extra 500 barrels/day.
They got planning btw:
https://www.offshore-technology.com/news/igas-gets-planning-consent-for-new-oil-well-site-in-gainsborough-uk/
Seems much better since late last week. Feels as if the seller finally given up. Pretty crazy market cap given they’ve said they’ll be debt free by mid 24, and free cash they must be generating to do that.
Https://x.com/theunsophistic2/status/1772170539710189638?s=46&t=4s-AQzZhMmeWz3Ire1AEsA
Https://finance.yahoo.com/news/analysts-optimistic-well-see-profit-120424538.html#:~:text=According%20to%20the%202%20industry,months%20from%20now%20or%20less.
Newsflow for STAR
- tr1 sand grove out
- end of year accounts to December this week or next
- results from Croatia geothermal drill this week or next
- green network energy grants for the 3 already awarded sites
- activate mou with SSE
- drilling in glentworth for an extra 200-700 boepd
- hydrogen storage application
Reform UK will be getting my vote .. if the Tories had any sense they’d do a deal with Tice / Farage - it’s the only way they’ll keep Labour out, if the polls are to be believed. The ‘price’ of any such deal would include Reform seats round the cabinet table & concessions on policies. Immigration would be top .. but oil / gas / fracking is VERY high on Reform’s agenda. Here’s hoping, would be excellent news for Star Energy and other UK based O&G companies.
Well, the Tory's only success was getting Covid vaccine out - otherwise, a dreadful failure. Labour have nothing better to offer. Reform may be our only hope to save the UK and use our substantial resources!
Jesus we’d wake up millionaires
Wonder if a conservative/reform coalition is on the cards
Reform party : The party has pledged to accelerate oil and gas drilling, start fracking for shale gas, end subsidies for renewables, and scrap the windfall tax on oil and gas companies.
#STAR
£10m mcap highs of £100m+
UKs largest listed UK land producer 2000-2200 boepd, cash generator/profitable, reinvesting into abandonment/green energy (hydrogen,ccs, geothermal and solar)/new oil and gas generation on current uk on land assets
On track to deliver an extra 200-800 boepd (all paid out of cashflow) taking them to 2500-3000 boepd
Geothermal unseen on UK market, operate in Croatia and UK. UK assets in partnership with SSE as offtake profit potential of £14m+ on each plant
RBL debt facility available up to £17m only £2m used
Reason it’s cheap: used to be called IGAS and had the largest uk fracking asset capable of generating enough gas for the uk for 19 years, tr1s 20%+ (sand grove and Bank of America) bought in off the back of fracking and had to exit due to the ban, subsequently rebranded and forgotten
Crazy isn’t it. sadly we may aswell ignore it
“ The U.S. fracking revolution has caused natural gas prices to drop 47 percent compared to what the price would have been prior to the fracking revolution”
When you add in all the posturing from Putin, and greater talk of conflict, it seems ridiculous to me that fracking sites are not done in readiness.
Like as a government scheme, a bit like have enough face masks for a pandemic!
Simplistically - it should be on the agenda for ANY government.
With fracking the uk could be self sufficient and not require shale gas from US. Rediculous that MPs cannot see that as a benefit.
Surely the problem with all these schemes us the infrastructure costs. How do you link the heating pipework of thousands of existing houses together? The ideal solution would be to use the hot water to generate electricity, but you need much higher temperatures for that than obtainable from old coal mines. I think it is a case of green zealots clutching at straws. Fracking was and still is the answere to the UK's energy needs and energy security, if we only had politicians with some backbone.
Yeah..closed up 9.93% along with a couple of hefty buys earlier
NM
Come on Mr. CEO give us some positive figures ref Croatia geothermal drill.
Have some perspective. its about 20 grand of sells and they dropped the bid.
Maybe someone knows the results.
This is getting serious, why has star gone down?!!