Star Energy announced that a drill rig has been mobilised to a recently constructed well pad on its Ernestinovo Licence in Eastern Croatia, three months after the acquisition of its Croatian Geothermal interests. The rig will re-enter the Ernestinovo-3 well to test the geothermal potential of the fractured metamorphic pre-Cenozoic formation. Crosco is conducting the well re-entry programme.

They are a highly experienced Croatian based international drilling company and have conducted the successful re-entry of a number of wells in country. The operation is likely to continue for approximately one month, with results expected by late January 2024, on schedule with the planned work programme. Based on preliminary heat reserves and well productivity estimates, the Company's internal assessment forecasts the potential for a first phase development of a 10 MW electricity generation plant utilising five to six wells producing and re-injecting geothermal brine.

The proposed plant would connect into the Ernestinovo HOPS substation - a major substation with 400kV transmission lines to the national grid, Hungary, Serbia and Bosnia, and local distribution lines at 110 kV and 85kV - and sell electricity on either a market premium arrangement (CfD) or bilaterally.