The oil and gas company, Star Energy, said this week it was under increasing strain in a challenging operating environment.

In interim accounts, it reported that onshore oil and gas earnings fell 38% in the half year to June 2025 compared with the same time in 2024. Total revenues were down 21%.

Europa Oil & Gas also reported a fall in revenue in interim accounts published this week. More details below.

Star Energy: Falls in production, prices and the dollar

Star Energy blamed lower oil production and commodity prices and a weaker US dollar for the fall in revenue and earnings.

It also said:

“Our core oil and gas operations – critical to funding the group – are under increasing strain from the Energy Profits Levy.

“This, combined with a more complex and costly regulatory environment, creates substantial barriers just as the UK’s dependence on energy imports remains pronounced.”

Star Energy has previously said oil and gas production would fund its geothermal plans.

It said it remained committed to “developing a robust UK geothermal business”. It said it was lobbying the government to “provide consistent and practical policy and regulatory support”.

The company said lower revenues and earnings in the first half of 2025 had been partially offset by savings in administrative and other costs.

It reported investment of £2m in oil and gas assets This included the gas-to-wire project at the Singleton oilfield in West Sussex. The scheme intendeds to generate electricity from waste gas, instead of flaring and venting. The start date has been postponed until 2026 because of delays to the grid connection, the accounts said.

Star Energy key figures for six months to June 2025

Revenue: £18.3m (same period in 2024 £23.2m)

Adjusted earnings before interest, taxes, depreciation and amortization for oil and gas: £5.5m (same period in 2024 £8.9m)

Net production: 1,895 barrels of oil equivalent/day (boe/d) (same period in 2024 2,012)

Europa: revenue down 19%

Europa Oil & Gas, the company behind proposals to drill and frack for gas in North Yorkshire, blamed lower production and prices for falls in its revenue.

In accounts for the 11 months to the end of June 2025, the company reported a 19% drop in revenue compared with the same period a year before.

82% of Europa’s onshore production is from the Wressle oilfield in North Lincolnshire. The company’s share of Wressle oil fell to 93 bopd ( barrels of oil per day) in 2025 from 106 bopd in 2024.

The company confirmed that the Wressle partners still planned to drill a development well to target the Penistone Flags in 2026. This, however, requires planning permission, to be decided by North Lincolnshire Council.

Europa also said it planned to optimise production at its Crosby Warren site, in Lincolnshire, with a workover programme.

At Burniston, Europa has submitted planning and permit applications to drill and frack a new well. North Yorkshire Council is expected to decide the planning application in the final quarter of this year (2025), the accounts said.

If the Burniston scheme were approved, Europa said it expected to carry out a seismic survey towards the end of 2025 and begin appraisal drilling in 2026.

Europa confirmed that it was changing its accounting period to end on 31 December. The next full annual report will be for 17 months until the new year end, the company said.

Europa key figures for 11 months to June 2025

Revenue: £2.6m (same period in 2024 £3.2m)

Gross profit: £0.4m (same period in 2024 £0.2m)

Pre-tax loss: £1.2m (same period in 2024 £6.6m)

Cash balance: £0.9m (same period in 2024 £1.5m)