Star Energy Regulatory News (STAR)

24 Jun 2005 14:47

Star Energy Group PLC24 June 2005 Star Energy Group plc AGM Statement At today's Annual General Meeting Stephen Gutteridge, Chairman, gave thefollowing update: Humbly Grove Construction of the Humbly Grove gas storage facility is progressing well andremains on budget and on schedule for commercial operations in October of thisyear. The 27 km pipeline from Humbly Grove to Barton Stacey, where it links toTransco's National Transmission System, has been installed and tested. Drillingof the four gas storage wells has been completed, although this took longer thananticipated. The summer months will see a period of intense activity centred onthe hook up of the major plant and equipment at the site. Other Gas Storage Projects The company is continuing to make progress in accelerating the Albury andBletchingley gas production and storage projects. Drilling permitting isunderway for both sites as is the preparatory work required for the storagepermitting application. The planning application for the Welton gas storage project remains to beassessed by Lincolnshire County Council. The Company's latest information isthat the date for assessment is July 2005 although the date has been the subjectof continued postponement since the application was lodged in November 2003. Interim Production and Profitability Production in the first five months of 2005 has averaged approximately 3100boepd. This is lower than expected caused by a combination of well down-time andproduction disruptions caused by the extended drilling activities at HumblyGrove. This has also affected the production of gas that the company convertsinto electricity for export and consequently electricity sales are lower thanbudget. The impact of this on our first half performance has been offset to some extentby higher oil prices and a reduced proportion of hedged production since the endof March 2005. Outlook The Company remains fully focussed on bringing the Humbly Grove gas storageproject on stream in October. The UK summer / winter gas price spreads remainstrong for the next few years, underpinning the value of the project and ourstrategy for further gas storage development. Having completed our first year asa listed Company, the Board is able to look to the future with confidence. Resolutions passed Star is pleased to announce that all the resolutions proposed in the notice ofthe meeting were duly passed. 24 June 2005 Enquiries: Star Energy 020 7730 6663 Roland Wessel, Chief Executive College Hill 020 7457 2020 Jim Joseph/Ben Brewerton This information is provided by RNS The company news service from the London Stock Exchange