Star Energy acquires Croatian geothermal development company

ZAGREB (Croatia), August 29 (SeeNews) - The UK-based Star Energy Group said on Tuesday it acquired 51% of the issued share capital of A14 Energy Limited, which indirectly owns the Ernestinovo geothermal waters exploration licence in the highly prospective Pannonian Basin in eastern Croatia.

"The interest in A14 Energy has been acquired by the company's subsidiary, GT Energy Croatia Limited ("GTEC"), from Peninsula International Pte Ltd for a total cash consideration of 1.3 million euro ($1.4 million)," Star Energy said in a press release.

Additionally, Star Energy will pay 100,000 euro, relating to the provision of cash backed guarantees to the Croatian Hydrocarbon Agency, plus 200,000 euro in back costs relating to the ongoing appraisal of the Ernestinovo licence.

A14 Energy Limited owns the Ernestinovo geothermal waters exploration licence via its Croatian subsidiary IGeoPen d.o.o.

"This transaction further develops the Company's strategy to transition into a geothermal developer, owner and operator, diversifying regulatory risk and providing an entry into the electricity generation sector," Star Energy noted, without disclosings further details of the deal.

In addition, GTEC has entered into a shareholders' agreement with Peninsula in order to jointly develop and submit bids, and thereafter to own, construct and operate geothermal projects in Croatia.

GTEC and Peninsula, through IGeoPen, have jointly submitted three bids for geothermal licences to the Croatian Hydrocarbon Agency as part of the current licencing round and expect the results of the bids by December 2023. A further aggregate amount of up to 1.5 million euro is payable upon the successful award of these licences, per the press release.

There is currently a single operating geothermal plant, Velika Ciglena, with an installed capacity of 17.5MWe, Star Energy noted. The Croatian Hydrocarbon Agency estimates that the geothermal potential in Croatia is in excess of 1GW, the company added.

($ = 0.924 euro)