25th Feb 2026 14:25
(Alliance News) - Star Energy Group PLC on Wednesday said it encountered a number of issues during 2025, such as unplanned power outages, leading to production volumes being below expectations.
The Lincoln, England-based energy company with operations in the UK and Croatia said net production averaged 1,886 of barrels of oil equivalent per day in 2025. For 2024 it had reported production of 1,989 boe/d, which had been down from 2,100 boe/d in 2023.
The firm said production volumes in 2025 were below expectations, citing "a number of discrete issues."
It said: "At Gainsborough and Welton, unplanned National Grid power outages during summer infrastructure upgrades, together with a process pipeline failure, impacted output; the grid works are now complete, no shutdowns are scheduled for 2026 and the pipeline issue has been resolved. At Stockbridge, water disposal constraints reduced production and we are addressing this through conversion of a production well to a water injector, with production expected to be reinstated in Q3 2026. Across the portfolio we are working to minimise downtime and have a programme of work that will holistically assess, on a field by field basis, the opportunities to improve oil recovery."
For 2026, the company expects output of over 2,000 boe/d, which it said was boosted by a "flexible" capital programme focused on quick-return, cost-saving and resilience projects.
Meanwhile, Star Energy said it delivered a "material" cost reduction with general & administrative savings of over GBP2.0 million year-on-year, while the firm plans cost discipline to continue into 2026.
Looking ahead, Chief Executive Officer Ross Glover said: "In 2026 we will continue to improve the profitability and resilience of the oil and gas business, whilst also seeking to generate shareholder value from our geothermal assets in the UK and Croatia. In parallel, we are actively evaluating value‑accretive acquisition opportunities where our substantial UK tax losses and allowances can be utilised to enhance after‑tax returns and create shareholder value.
"I believe that domestic onshore oil and gas continues to play an important role in the UK's energy mix and energy security and note the increasing public recognition of this, with both the Conservative and Reform parties emphasising the importance of oil and gas in the national energy balance."
Star Energy shares fell 6.4% to 12.63 pence each on Wednesday afternoon in London.
By Tom Budszus, Alliance News slot editor
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