Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
“Even after such a large jump in price, Star Energy Group may still be sending buy signals at present with its price-to-sales (or "P/S") ratio of 0.3x, considering almost half of all companies in the Oil and Gas industry in the United Kingdom have P/S ratios greater than 1x and even P/S higher than 4x aren't out of the ordinary.”
Https://x.com/theunsophistic2/status/1783408387071320533?s=46&t=4s-AQzZhMmeWz3Ire1AEsA
Unrisked broker target £2.42 from yesterday’s report, this assumes:
SSE Stoke network green light (Q2 expectation)
Croatia success (it was a success awaiting development licence)
Glentworth and corringham appraisal (shovel ready, potential farm in)
Easy hold here guys
STAR
“The Company is looking to bring in new partners in 2H24 to invest in development projects, but acknowledged that asset sales might also help to demonstrate the industry value of the UK oil and gas portfolio.”
🤔
Star Energy (STAR LN) 11.1p, Market Cap £14m:
Transition strategy continues
• Star reported average FY23 production of 2.1kboe/d generating £49.5m revenues and £15m operating cash flow (before working cap movements) to end the period with net debt of £1.6m as at 31st December.
• The Company guides average FY24 production of 2.0kboe/d and operating costs of c.$41/boe, which is based on £5.5m cash capex that includes near-term incremental projects with short cycle returns and maintenance.
• Star’s independent CPR estimated a small increase in YE23 reserves to 11.7mboe (1P) and 17.5mb (2P), which has a pre-tax NPV of $143m and $235m respectively, plus 18.6mboe of 2C contingent resources.
• The Company commented that its UK projects continue to suffer from regulatory creep and ever-increasing delays in obtaining regulatory approval for environmental permits, which are commonly in excess of 12M.
Star continues to optimise its UK oil and gas assets by investing to maximise recovery from the existing 2kboe/d onshore production base and progress near term incremental development opportunities to utilise the £240m tax loss.
However, management recognised on the results call that the UK onshore E&P sector remains out of favour and that the market gives little value to its pivot towards the growth of the geothermal business in the UK and in Croatia.
The Company is looking to bring in new partners in 2H24 to invest in development projects, but acknowledged that asset sales might also help to demonstrate the industry value of the UK oil and gas portfolio. Despite Star’s early mover advantage on geothermal energy that can be funded via its new five-year €25m credit facility, we think the market needs more clarity on UK tariffs and Croatian funding partners to enhance visibility on the opportunity set and commerciality of these projects.
So near term for STAR we have
Glentworth Phase 1 oil project environmental permits are expected imminently
Corringham site preparation complete
Bletchingley gas-to-wire secured grid connection
NHS hospital trust geothermal projects in Manchester and Salisbury progressing through feasibility stage
Croatia development plan
Farm in for glentworth and corringham
SSE JV q2
Executed well test on Ernestinovo-3 well in Croatia, satisfying exploration licence obligations. Data analysis from the well, once completed, will allow a ranking exercise for all three licences and lead to the production of a development plan for the most prospective opportunity
Data analysis of Croatia and development plan soon too
Https://x.com/theunsophistic2/status/1783038765381935174?s=46&t=4s-AQzZhMmeWz3Ire1AEsA
Proving up glentworth and hydrogen storage ready.
Can’t believe the potential of corringham
producing more than the whole of wressle
@Starenergygroup 2100 boepd 10m mcap
Wressle 1700 boepd #EOG 30% 10m mcap #UJO 40% 17m mcap
Corringham
The extensive site upgrades required to drill an additional well at Corringham were completed in Q4 2023. Phase 1 of the Corringham project is now "shovel ready" and will be assessed as part of a capital allocation exercise following the refinancing in April 2024. The project can develop c.350 Mstb of 2P undeveloped reserves and initial production is expected to be c.110 bopd. The success of Phase 1 of the project unlocks Phase 2 which could develop c.935 Mstb of current 2C resources.
935 million stock tank barrels
Https://www.starenergygroupplc.com/wp-content/uploads/2024/04/FY-Results-23.pdf
Page 7:
“Seek farm in partners “
Valuation, target price and rating We take account for our new commodity assumptions and make a number of adjustments to our model, taken together we increase our risked NPV10 based target price to 66p (from 55p) and maintain our Buy rating on Star Energ
Valuation, target price and rating We take account for our new commodity assumptions and make a number of adjustments to our model, taken together we increase our risked NPV10 based target price to 66p (from 55p) and maintain our Buy rating on Star EnergY