Star Energy, the oil and gas operator with multiple UK onshore sites, is planning to expand its portfolio, according to company accounts.

Interim results for the first half of 2026 reported:

“we are seeking to materially increase profitable production through a combination of acquisitions and the development of our existing in-field and near-field opportunities.”

Chief executive Ross Glover said:

“we have been actively evaluating a number of acquisition opportunities, both in the North Sea and more widely, and have committed management and technical resource to this process.

“We are encouraged by the range of opportunities we are seeing, but to date we have not identified a transaction where the combination of asset quality, risk and valuation will provide the level of return we require for shareholders.”

Star Energy said its “core UK oil and gas business remains fundamental to our strategy.”

It said it intended to use the £8.5m proceeds from a fundraise in May 2026 to increase profitable production. The company said it was focussing on operated or non-operated portfolios of up to 2,500 boepd [barrels of oil equivalent per day].

Star Energy’s net production in the first half year averaged 1,866 boepd. This was down from 1,894 boepd in the same period in 2025.

The company said production had been “adversely affected” by “temporary operational and reliability issues across parts of the portfolio, together with the natural variability associated with operating mature fields”.

But production in July and August 2026 was “materially higher” than the first-half average, following “the resolution of a number of these issues and the completion of optimisation activities”, the company said.

Singleton

Star Energy also blamed delays in the grid connection at the Singleton gas-to-wire project in West Sussex for the fall in production rates.

It said the project, which involves generating electricity from waste gas, would add 74 boepd and reduce routine flaring.

Electricity would be transmitted 1.4km by cable from the Singleton site to a grid connection on the A286 road.

Star Energy said all major equipment had been delivered to the site during the first half of 2026. Export cabling had been laid to the substation and gas processing equipment installed and commissioned on site.

The company said:

“We are working closely with the Distribution Network Operator to complete the final stages of the grid connection, following which final commissioning will be undertaken. First production is currently expected in early October 2026.”

Other  onshore developments

Official figures show Star Energy operated 27 formal producing oil and gas fields onshore in the UK in 2026. The fields comprised 18 producing oil and 1 producing gas. There are also 8 oil fields where there had been no production in 2026..

The company said it had invested £3.2 million in oil and gas assets in the first half of 2026, including the Singleton project (see above). Net cash capital expenditure for 2026 was expected to be £6.6million, the company said.

Investment was being targeted to offset what Star Energy called “natural declines” and improve operating reliabilities. The accounts described work at:

Stockbridge, Hampshire: conversion of well to water injector

Bletchingley, Surrey: installation of gas generator

Welton, Lincolnshire: installation of replacement separator

Glentworth, Lincolnshire: development of the western extension of the Mexborough reservoir that could add 162 bopd, Star Energy said. It said technical and regulatory work is progressing to maintain the site as “a development-ready opportunity”.

Key figures for six months to June 2026

Interim unaudited results released on 169/2026

Revenue: £23.2m (Six months to 30 June 2025: £18.3m)

Oil sales: £22.5m (Six months to 30 June 2025: £17.80m)

Profit before tax: £0.6m (Six months to 30 June 2025: £4.5m)

Profit/(loss) for the period: £2.361m (Six months to 30 June 2025: (£4.069m))

Oil and gas adjusted EBITDA: £6.2m (Six months to 30 June 2025: £5.5m)

Operating cashflow before working capital movements: £6.0m (Six months to 30 June 2025: £4.8m)

Net cash/(debt): £4.6m (Six months to 30 June 2025: (£4.3m))

Cash and cash equivalents: £15.7m (Six months to 30 June 2025: £7.6m)

Loss on commodities hedge: £5m

Capital expenditure in oil and gas: £3.2m.

Expected net cash capital expenditure for 2026: £6.6m

Proceeds to Star Energy of sale of Croation geothermal subsidiary IGeoPen: £1.1m

May 2026 fundraise (net of expenses: £8.5m

Average net production: 1,866 boe/d (Six months to 30 June 2025: 1,894 boe/d

Expected full year production for 2026: 1,900-1,950 boe/d

Net assets: £45.8m (Six months to 30 June 2025: £34.8m)