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