LONDON (ShareCast) - (Sharecast News) - Star Energy confirmed on Thursday that it remains on track to meet its full-year production guidance of around 2,000 barrels of oil equivalent per day, as it continued to optimise its UK oil and gas operations while expanding its geothermal energy platform.
In a trading update ahead of its annual general meeting, the AIM-traded energy firm reported cash balances of £10.5m and net debt of £1.9m as of 31 May.

The company said it was on track to repay facility A - €6.7m - by the end of June.

Capital expenditure for the year was forecast at about £10m, with £5.8m allocated to the ongoing gas-to-wire project at Singleton.

"The core of our strategy is simple: to create value for shareholders through disciplined execution, cash generation, and the creation of long-term growth opportunities," said chief executive officer Ross Glover.

He added that domestic oil and gas remain strategically vital, supporting industrial competitiveness and economic resilience, while also generating the cash needed for reinvestment.

Star Energy said it was also advancing its UK geothermal ambitions, having signed memoranda of understanding with Bring Energy and Veolia.

They included a collaboration to decarbonise and extend the Southampton District Heat Network.

Glover said the UK's underdeveloped geothermal sector presents a growing opportunity, supported by drivers such as heat decarbonisation, energy security, and long-term price stability.

In Croatia, the firm said it was continuing to progress its geothermal portfolio through the establishment of the exploitation field within the Ernestinovo licence and technical de-risking at the Sječe and Pčelić sites.

Glover described Croatia as a "supportive jurisdiction" offering access to scalable clean energy investment opportunities.

Looking ahead, the company said it remained focused on maximising cash returns from its UK oil and gas assets, growing a high-quality and de-risked geothermal platform, and maintaining capital discipline.

"This is about building a broader, more resilient business - one that can generate sustainable returns across energy cycles and policy environments," Glover concluded.

At 1448 BST, shares in Star Energy Group were up 0.72% at 7p.

Reporting by Josh White for Sharecast.com.

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