Star Energy oil revenues fell more than 20% in 2025, compared with the year before, according to annual accounts.

The company reported it received £33.5m from oil production in 2025, down from £42m in 2024.

It said the fall was mainly because of lower prices and a stronger exchange rate between the US dollar and pound sterling.

The average pre-hedged realised oil price in 2025 was $66.1/bbl (barrel), compared with $76.9/bbl in 2024, the company added.

The accounts also showed that gas revenues fell to zero in 2025, compared with £0.2m in 2024. This was because of the permanent shut-in of gas-to-grid production at the Albury site in Surrey, the company said.

Electricity revenue rose to £0.9m in 2025, up from £0.6m in 2024. This was largely because of higher prices and volumes, the company said.

Production

Star Energy’s oil production fell 5% in 2025 compared with the year before, the accounts reported.

The company said it produced 1,886 boepd (barrels of oil equivalent per day) in 2025, compared with £1,989 boepd in 2024.

It said the fall was largely because of unplanned National Grid power outages during summer infrastructure upgrades, as well as a process pipeline failure.

Problems with water disposal at the Stockbridge oilfield in Hampshire, also constrained production, the company said.

Star Energy predicted production would average 2,000 boepd in 2026. It said no shutdowns were scheduled. The pipeline issue had been resolved and grid works completed. At Stockbridge, a production well would be converted to a water injector.

Spending

Star Energy said capital expenditure in 2025 totalled £5.3m.

Of this, £2.6m was spent on the Singleton gas-to-wire project in West Sussex. The company said it also paid for an oil plant upgrade at Bletchingley, in Surrey, and optimisation work across oil and gas fields.

In 2026, Star Energy said it expected capital expenditure to reach £6.6m. This would include £2.6m to complete the Singleton gas-to-wire project, forecast to come online in the first half of 2026 with production of 74 boepd.

The company added that it also planned to spend £1m on what it called “quick returning incremental projects”. The rest would be spent on regulatory improvements, site resilience and projects to reduce operating costs.

Abandonment activity in 2026 was expected to cost £1.4m.

According to the accounts, there was no significant write-off of exploration and evaluation assets recorded in 2025. The write-off in 2024 was £1.9m, mainly relating to the Godley Bridge PEDL235 in Surrey.

Receipts

Star Energy said it received £6.3m from the sale of the Holybourne oil terminal in Hampshire during 2025.

It also received 6.3m in April 2025 from the sale of non-core land

An agreement to dispose of three Croation geothermal licences, released E5.2m of restricted cash, Star Energy said.

2025 key figures

Revenue: £34.7m (2024: £43.7m). Oil revenue: £33.5m (2024: £42m). Gas revenue: £0 (2024: £249,000)

Adjusted EBITDA: £7.7m (2024: £11.1m). Related to oil and gas: £9.9m (2024: £15.1m)

Underlying operating profit: £1.7m (2024: £5.9m)

Net cash from operating activities: £6.3m (2024: £2.3m)

Operating cash flow before working capital movements: £8.7m (2024: £8.8m)

Loss after tax: £7.8m (2024: £12.6m)

Net debt: £4.3m (2024: £7.5m)

Cash and cash equivalents (excluding restricted cash): £7.6m (2024: £4.7m)

Net assets: £34.8m (2024: £42.6m)

Drawings under loan facility: £11.9m

Restricted cash: £4.5m

Savings on general and administrative expenses: £2m+

Decommissioning spending: £0.4m (2024: £1.1m)

Tax on profit: £8.9m (2024: £8.133m)

Net production: 1,886 boepd (2024: 1,989 boepd)

Anticipated net production in 2026: 2,000 boepd

Anticipated operating costs in 2026: $44 per boe

2025 capital expenditure: £5.3m

2026 forecast capital expenditure: £6.6m