Photo: Mike Goad from Pixabay
London-based Star Energy has sold its Croatian subsidiary IGeoPen with three geothermal exploration licences to Croatia’s ENNA Group.
Star Energy said it has signed an agreement for the sale of IGeoPen to ENNA Geo, according to its filing for the London Stock Exchange.
IGeoPen’s direct parent is A14 Energy, in which Star Energy owns 71%, and its joint venture partner Peninsula International has 29%. The firm holds three Croatian geothermal exploration licences: Ernestinovo, Sječe and Pčelić, the update reads.
Of note, in August 2023 Star energy bought A14 Energy, which owned a geothermal water exploration license for an area in Ernestinovo in the Pannonian Basin in eastern Croatia.
Star Energy believes that a sale of IGeoPen is in the best interests of its shareholders
Two months later, it was awarded licenses for the areas Pčelić and Sječe by the country’s Ministry of Economy and Sustainable Development.
“Given the delay in the announcement of a premium price tariff for geothermal projects in Croatia by the Croatian Government, the group believes that a sale of IGeoPen is in the best interests of its shareholders,” Star Energy pointed out.
The company added that the transaction delivered a clear strategic refocus of the group’s portfolio, allowing management to concentrate on its core UK oil and gas and geothermal assets.
It releases EUR 5.2 million of restricted cash and removes future capital commitments arising from the Croatian licences.
IGeoPen’s financial profile reflects its early-stage geothermal development activities, including a 2024 loss before tax of EUR 3.2 million, and net liabilities of EUR 5.5 million at the end of that year.
Glover: The transaction enables us to focus fully on our UK operations where we see the clearest path to value creation
The forecast for 2025 includes an anticipated investment-related loss of EUR 1.6 million, the update reads.
According to Star Energy CEO Ross Glover, this transaction releases meaningful cash of EUR 5.2 million, enhances financial flexibility and enables the firm to focus fully on its UK operations where it sees the clearest path to value creation.
“That puts management’s attention firmly where we see the best route to creating shareholder value: a stronger and more resilient UK oil and gas business, pursuing inorganic oil and gas growth opportunities to create value from our GBP 250 million of tax losses, and maintaining our UK geothermal option at low cost,” he explained.
Geothermal projects are gaining momentum in Croatia
In late February, the Croatian Hydrocarbon Agency (AZU) said that it has concluded exploration activities at all planned locations, achieving a 100% success rate and maximum project effectiveness.
Just three months earlier, investor Jordan Alexander Oxley acquired a geothermal exploration field near Slatina in Croatia.
ENNA Geo, the buyer of Star Energy’s assets in Croatia, successfully completed additional production testing of the well at the site of the planned geothermal power plant GTE Zagocha, in August 2025.
ENNA Geo is developing two geothermal power projects – Zagocha and Babina Greda. It is part of the energy and logistics company ENNA Group.
Croatia currently has no active geothermal power plants. The Velika 1 plant in Ciglena near Bjelovar is currently offline.
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