Wells at two key sites in the UK’s failed shale gas revolution have been abandoned.

Star Energy reported today that five wells had been decommissioned at sites at Barton Moss (also called Irlam) in Salford and Doe Green in Cheshire. The company said site restorations were planned for this year (2025).

The Barton Moss site made headlines in the winter of 2013-4, when anti-fracking campaigners protested during drilling for shale gas. The site never went into production.

Doe Green, formerly operated by Ineos, was used by Conservative ministers to promote shale gas a decade ago. It last produced gas in December 2023.

The work, including decommissioning another site, cost Star Energy £1.1m, the company said.

The licences covering both Barton Moss (PEDL193) and Doe Green (PEDL145) no longer exist, according to official data.

Godley Bridge licence

Star Energy has also not renewed its licence PEDL235 in West Sussex and Surrey, which included the Godley Bridge gas discovery.

In 2019, the company, then known as IGas, told local people in the Surrey village of Dunsfold that it planned to drill for oil and gas in their neighbourhood. It said it had signed a lease on land north of the village.

Earlier that year, UK Oil & Gas applied to drill for gas in the neighbouring licence PEDL234, also near Dunsfold.

No site work has been carried out on either scheme.

Today’s news emerged in Star Energy’s annual accounts, for the year ending December 2024.

Star Energy said it was rationalising its portfolio of exploration licences. It said it planned to abandon less productive sites and relinquish early-stage exploration and shale licences.

DrillOrDrop reported in June 2024 that the company was giving up its shale gas licences to save on fees and “allow greater focus” on its producing assets.

The company said it would keep its “core exploration acreage” next to existing operations in the East Midlands.

Falling revenue

Star Energy saw falling revenue and earnings in 2024, compared with the year before. Net debt was up and total assets down.

The accounts said oil revenue fell because of lower prices and volumes and a stronger US dollar.

Gas revenues also dropped because of lower gas prices and the permanent shut-in of the gas-to-grid production at Albury resulting from falling pressure.

The company has prepared what it called a “severe but plausible” downside case, where global economic uncertainties resulted in an oil price drop to $55/bbl in the second quarter of 2025 (today’s brent crude price was $64.11/bbl).

There was scope to draw down further under a loan facility and delay capital spending and reduce costs, the company said.

Chief executive Ross Glover said Star Energy had “maintained strong production” across its oil and gas fields and “made good progress in reducing costs”. He said:

“Our strategic aim is to be a profitable energy business generating strong cashflows from our oil and gas assets whilst progressing growth opportunities in the geothermal sector. By focusing on maximising profitability from our oil and gas activities, we ensure long-term sustainability and can successfully navigate a volatile oil price environment, which is increasingly important in today’s uncertain geopolitical climate.”

Operations update

The accounts reported that the company expected to invest £5.8m on the Singleton gas-to-wire project in 2025. This aims to generate electricity from gas that is currently being flared. Procurement of long lead items is underway and the first export of electricity from the site was expected in late 2025.

The group invested £5.7m during the year, down from £8.5m in 2023. This was mainly on upgraded pipelines and the processing centre at its Gainsborough site, intended to reduce operating costs.

Permission has been granted for projects at Star Energy sites at Glentworth, Corringham and Bletchingley, but are subject to finding a farm-in partner.

Key figures

Revenue: £43.7m (2023 £49.5m)

Oil revenue: £42m (2023 £44.8m)

Gas revenues: £0.2m (2023 £1.9m)

Electricity sales: £0.55m (2023 £1.2m)

Gross profit: £14.9m (2023 £17m)

Administrative costs: £7.4m (2023 £7.3m)

Exploration and evaluation assets impaired: £1.9m (2023 £0.5m)

Underlying operating profit: £5.9m (2023 £9.1m)

Operating loss and profit: loss of £1.9m (2023 profit of £7.2m)

Loss or profit before tax: loss of £4.5m (2023 profit of £2.8m)

Loss after tax: £12.6m (2023 £5.5m)

Adjusted EBITDA: £11.1m (2023 £16.1m)

Net debt: £7.5m (2023 £1.6m)

Total assets: £134m (2023 £145m)

Total liabilities: £91.3m (2023 £90.4m)

Operating cash flow before working capital movements: £8.8m (2023 £15m)

Cash and cash equivalents: £4.7m (2023 £3.9m)

Net finance costs: £4.8m (2023 £4.4m)

Net debt: £7.5m (2023 £1.6m)

Energy Profits Levy payments: £1m

Decommissioning costs: £1.1m (2023: £2.9m)

Redundancy costs: £0.5m (2023 £0.1m)

Net production: 1,989 boepd (2023 2,100)

Operating costs: £24.1m (2023 £22.3m)

Realised price per barrel: $77.5 (2023 $79.9)

Admin expenses per barrel of oil: $13.3 (2023 $12)

Other operating costs per barrel of oil: $32 (2023 $30)

Predicted net production for 2025: 2,000 boepd

Predicted operating costs in 2025: $40/boe

Forecast capital expenditure for 2025: £10m, including £5.8m on the Singleton gas-to-wire project.

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