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(Alliance News) - Star Energy Group PLC on Tuesday said it has bought a 51% stake in A14 Energy Ltd, the Ernestinovo geothermal waters exploration licence in the highly prospective Pannonian Basin in Croatia.
Star Energy is a London-based onshore energy company, formerly known as Igas Energy PLC.
A14 Energy owns, via its Croatian subsidiary, IGeoPen doo, the Ernestinovo geothermal waters exploration licence in the highly prospective Pannonian Basin in Croatia.
Star Energy said the transaction further develops its strategy to transition into "a geothermal developer, owner and operator, diversifying regulatory risk and providing an entry into the electricity generation sector."
The geothermal sector is a fundamental component of the energy transition, with the ability to provide long term baseload electricity and heat generation, it explained.
Star Energy said the interest in A14 Energy has been bought the company's subsidiary, GT Energy Croatia Ltd, from Peninsula International Pte Ltd.
It cost the company EUR1.3 million in cash. Additionally, Star Energy will pay EUR100,000, relating to the provision of cash backed guarantees to the Croatian Hydrocarbon Agency, plus EUR200,000 in back costs relating to the ongoing appraisal of the Ernestinovo licence.
"We are very pleased to announce our first overseas investment in geothermal as we look to build momentum in this part of our business," said Chief Executive Officer Chris Hopkinson.
"Whilst the business has, and continues to build, a material pipeline of business opportunities in the UK, we identified a significant opportunity in Croatia which will allow faster development and diversification of Star Energy's geothermal interests."
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Shares in Star Energy were down 1.4% to 11.00 pence each in London on Tuesday afternoon.
By Sophie Rose, Alliance News reporter
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