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9 Apr 2024 07:00
9 April 2024
Star Energy Group plc (AIM: STAR) ("Star Energy" or "the Company")
New Finance Facility and Notice of Results
Star Energy is pleased to announce the closing of a new €25 million secured facility (provided by Kommunalkredit Austria AG (Kommunalkredit)) to support its transition strategy into geothermal energy and enable continued investment in the oil and gas business utilising its existing cash flows.
Commenting, Chris Hopkinson, Chief Executive Officer, said:
"Securing this facility is an important milestone for Star Energy. It allows us to use cashflows from our existing oil and gas business to optimise near-term conventional production (with quick pay-backs) and deliver our transition strategy; namely developing and monetising our geothermal business in both the UK and Croatia.
We believe that we have particular, tangible competitive advantages in making the energy transition. We have a highly qualified team already in place and an established track record in onshore development - everything from sub-surface expertise and knowledge of planning and other environmental processes through to long-term and responsible operatorship competence. These skills are valuable in conventional and geothermal projects alike.
The size and structure of Kommunalkredit's facility evidences their confidence in Star's people and its transition strategy. Our ability to drawdown on this facility for our geothermal activities will allow this business to be positioned for longer term and sustained growth. It will also give us greater flexibility to continue to optimise the value of our entire asset portfolio, with short cycle returns."
Key Facility Terms
The new five-year €25 million secured facility matures on 31 December 2028. This unique, tailored package secured with KommunalKredit has two components - Facility A and Facility B.
Facility A will fund the repayment of the outstanding US$7 million balance on Star Energy's reserves based lending facility from BMO, which was due at the end of June 2024. It has a fixed interest rate of 9.384% and is repayable on 30 June 2025.
Facility B provides funding for Star Energy's geothermal development activities. It carries an interest rate of Euribor + 6% and has a five year term, with repayments scheduled to commence from 31 December 2025.
Notice of Results
The Company will announce results for the year to 31 December 2023 on Wednesday, 24 April 2024.
For further information please contact:
Star Energy Group plc Tel: +44 (0)20 7993 9899
Ann-marie Wilkinson, Chief of Staff
Investec Bank plc (NOMAD and Joint Corporate Broker) Tel: +44 (0)20 7597 5970
Virginia Bull/Chris Sim/Charles Craven
Canaccord Genuity (Joint Corporate Broker) Tel: +44 (0)20 7523 8000
Henry Fitzgerald-O'Connor/James Asensio
Vigo Consulting Tel: +44 (0)20 7390 0230
Patrick d'Ancona/Finlay Thomson/Kendall Hill
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