Star Energy – formerly known as IGas – has taken a majority stake in the owner of a geothermal exploration licence in northern Croatia.

In an announcement today to shareholders, Star Energy said it had acquired 51% of A14 Energy for €1.3m.

A14 Energy owns, via its subsidiary IGeoPen d.o.o., the Envestinovo licence in Croatia’s Pannonian Basin, an area that saw oil and gas operations in the second half of the 20^th century.

Star Energy currently operates 28 UK onshore oil and gas fields. It also has interests in geothermal projects in the UK in Stoke-on-Trent and with NHS Trusts in Manchester and Salisbury. The Croatian acquisition is its first overseas geothermal investment.

The statement said the transaction “further develops” Star Energy’s strategy to transition into a geothermal developer, owner and operator.

It said Star Energy was “well positioned” to deliver geothermal energy in Croatia, given its experience in UK onshore oil and gas drilling and well management and IGeoPen’s knowledge of the Croatian energy sector. It has created a subsidiary, GT Energy Croatia Limited.

Star Energy’s chief executive, Chris Hopkinson, said the company had “identified a significant opportunity in Croatia which would allow faster development and diversification” of the company’s geothermal interests. He said:

“This is an important next step in our strategy to transition over time into a significant player in the geothermal market and to deliver future value for our shareholders.”

The statement said IGeoPen has submitted three bids for geothermal licences in Croatia to the Croatian Hydrocarbon Agency.

As well as the €1.3m purchase, Star Energy said it would pay €0.1m in cash-backed guarantees to the Croatian Hydrocarbon Agency and €0.2m in back costs for the ongoing appraisal of the Ernestinovo licence.

At the time of writing, Star Energy’s share price was down 2.33% at 10.9p.