Star Energy Group has announced results for the year ended 31 December 2025.

Commenting today, Ross Glover, Chief Executive Officer, said:
"2025 was a year in which we remained firmly focused on balance sheet strength, disciplined capital allocation and cash generation. In a volatile market, our diversified portfolio, active hedging programme and tighter cost control helped underpin our financial resilience and reinforce the cash-generative nature of the business.

"We have entered 2026 in a more uncertain geopolitical and commodity price environment, but our priorities remain clear: improve operational reliability, protect returns and invest selectively where the risk-adjusted economics are compelling. We believe our combination of domestic production, strong operational control and disciplined financial management differentiates Star Energy from many small-cap peers and underpins our ability to build a leaner, more resilient business focused on value creation for shareholders.

"The sale of the Croatian geothermal business releases capital, removes future funding demands and allows us to sharpen our focus on our home market in the UK, where we have an outstanding operational track record and see the clearest opportunity to create value. We will continue to work to maximise cash flow from our oil and gas business, maintain a low-cost geothermal platform in the UK while awaiting a more investable policy framework and actively pursue value-accretive oil and gas acquisition opportunities that can bring value to our substantial tax losses. Together, these actions leave Star Energy well placed to seize opportunities and will drive sustainable shareholder value."

Corporate & Financial Highlights

• Cash at 31 December 2025 was £7.6 million, excluding restricted cash, and Star Energy had drawn £11.9 million under its loan facility. In addition, the Company held restricted cash of £4.5 million which relates to the cash backing of performance bonds for licence commitments of the Company's Croatian subsidiary (IGeoPen d.o.o), relating to the Sječe and Pčelić exploration licences. The cash will be released on the completion of the recently announced sale of IGeoPen d.o.o
• Completed the sale of non-core land for £6.3 million with proceeds received in April 2025
• Delivered more than £2.0 million of G&A savings compared to 2024
• Active hedging policy which generated a commodity hedging gain of £1.5 million in 2025. Hedges are in place for 2026 which satisfy the requirements under our finance facility and protect cashflow whilst allowing exposure to price increases. We have hedged 14% of production with swaps at an average price of $68/bbl and 40% with collars with an average ceiling price of $71/bbl
• Energy Profits Levy of £2.85 million paid in 2025 based on the taxable profits for the years ended 31 December 2023 and 31 December 2024

Operational Highlights

• Net production averaged 1,886 boepd in 2025 (2024: 1,989 boe/d), with downtime driven by a number of discrete events, including a National Grid upgrade, which have now been resolved
• Continued to optimise oil production from our existing wells through selective investment in short cycle developments which deliver quick payback
• Singleton gas-to-wire project is well underway with delivery of incremental production of c.74 boe/d, significantly reducing flaring, monetising produced gas, increasing electricity generation and further decarbonising our operations
• Savings achieved in operating costs to offset inflationary increases

Croatian geothermal

• Agreement signed for the disposal of our three Croatian geothermal licences, releasing €5.2 million of restricted cash and enhancing financial flexibility. The consideration includes €1.5 million payable on completion (€1.3 million net to Star Energy in accordance with the A14 Energy Limited shareholder agreements), with a financial earn out of €0.5 million per licence on commencement of operations. The transaction delivers a clear strategic refocus of the Group's portfolio, allowing management to concentrate on its core UK oil and gas and geothermal assets. Completion is expected in H2 2026

Outlook

• We anticipate net production of c.2,000 boepd and operating costs of c.$44/boe (assuming an average exchange rate of £1:$1.33) in 2026
• 2026 forecast capital expenditure is c.£6.6 million. This includes £2.6 million to complete the Singleton gas-to-wire project which is forecast to come online in H1 2026 with production of 74 boe/d. Star Energy also plans to invest £1.0 million on quick returning incremental projects and the balance on regulatory improvements, site resilience and projects to reduce operating costs going forward
• G&A reductions carried into 2026 and targeting further savings
• Low cost development platform maintained to advance our UK geothermal pipeline

KeyFacts Energy: Star Energy Group UK country profile