The UK’s second biggest onshore oil operator saw production volumes drop nearly 6% below predictions in 2025.

In a trading update, Star Energy said net production averaged 1,886 barrels of oil equivalent per day (boe/d), compared with the 2,000 boe/d expected for the year.

The company’s chief executive, Ross Glover, said:

“Production volumes in 2025 were below our expectations, driven by a number of discrete issues.

“At Gainsborough and Welton, unplanned National Grid power outages during summer infrastructure upgrades, together with a process pipeline failure, impacted output; the grid works are now complete, no shutdowns are scheduled for 2026 and the pipeline issue has been resolved.

“At Stockbridge, water disposal constraints reduced production and we are addressing this through conversion of a production well to a water injector, with production expected to be reinstated in Q3 2026.

“Across the portfolio we are working to minimise downtime and have a programme of work that will holistically assess, on a field by field basis, the opportunities to improve oil recovery.”

Singleton delays

The company also confirmed that plans to generate electricity for the grid from gas at the Singleton well site in West Sussex had been delayed.

Mr Glover said:

“Our Singleton gas‑to‑wire project has been delayed due to protracted regulatory approvals required and delays to the final connection to the grid.

“All major plant items are installed onsite and we are working constructively with the operator to complete the grid connection. We continue to target commissioning in Q2 2026.”

Star Energy reported it spent £2.7m on the Singleton project in 2025 and expected to spend another £2.6m in 2026 to complete it.

The South Downs National Park Authority approved the Singleton scheme unanimously in July 2025, despite objections from the local parish council, environmental groups and some residents.

Key figures for 2025

Net production for 2025: averaged 1,886boe/d. About 2,000boe/d predicted for 2026.

Cash at 31 December 2025: £7.6m

Money drawn under loan facility: £11.9m

Sale of non-core land: £6.3m in proceeds during first half of 2025

Investment in oil and gas assets in 2025: £5.3m (£2.7m on Singleton gas-to-wire project; remainder on production optimisation and plant upgrade

Forecast spending on abandonment activities: £1.4m

Forecast of 2026 capital expenditure: £6.3m (including £2.6m to complete Singleton gas-to-wire project

Realised hedging gain in 2025: £1.2m

Energy Profits Levy payments (windfall tax) for year ending 31 December 2024: £1.7m

General and administrative savings in 2025: £2.0m+

Geothermal expenditure in 2025: £1.2m less in 2025 compared with 2024.