22nd Jun 2006 12:04
Star Energy Group PLC22 June 2006 Star Energy Group plc AGM Statement At today's Annual General Meeting Stephen Gutteridge, Chairman, gave thefollowing update: Humbly GroveThe company's first gas storage facility at Humbly Grove has been operatingunder full nomination by the customer, Vitol, since February 1st. Theperformance of the Humbly Grove facility is overall in line with and, in certainrespects, exceeds expectations. The company continues to seek a resolution tothe disputed cost over runs with its EPC contractor, Amec. Other Gas Storage ProjectsThe company is continuing to expend significant effort towards the permittingand development of some 80 bcf of new gas storage capacity at its sites atWelton, Albury, Bletchingley and Gainsborough. • The appeal against Lincolnshire County Council's refusal for the planning applications at Welton have been sent to the Planning Inspectorate. • A new drilling rig has been sourced to commence the further appraisal drilling of the Albury reservoirs in the fourth quarter of this year, subject to planning permission. • Environmental and engineering studies for the prospective Bletchingley gas store's appraisal well are well underway. The company welcomes the renewed central government support for gas storage inthe UK which led to the recent Parliamentary Statement of Need, and the companylooks forward to achieving its target of all current projects reachingcommerciality over the next 5 years. Interim ProductionProduction in the first five months of 2006 has averaged approximately 4600boepd. This is anticipated to rise to an average for the year of approximately5000 boepd, aided by the recently completed Stockbridge 20 well which hascommenced production at rates in excess of 1000 bopd. The company's drillingprogramme will recommence later this year with the arrival of the new and highlyefficient hydraulic rig under a long term exclusive contract. OutlookThe company believes the events of last winter with respect to the gas supplysituation in the UK have vindicated its strategy of aggressively seeking todevelop significant additional seasonal storage capacity. The acquisition ofPentex in August 2005 has further strengthened the company's significantposition as owners and operators of onshore oil and gas fields in the UK, someof which will form the basis of additional potential storage projects. We believe the UK will have a shortage of seasonal storage for the foreseeablefuture and that Star Energy is well placed to address this shortage. Givencurrent market conditions, we are confident that our corporate strategy willallow the company to grow steadily in line with market expectations. 22 June 2006 Enquiries: Star Energy 020 7730 6663 Roland Wessel, Chief Executive College Hill 020 7457 2020 Nick Elwes Paddy Blewer This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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