Half-year Report

Original source on investegate.co.uk

Star Energy Group PLC

16 September 2026

Star Energy Group plc (AIM: STAR)

("Star Energy" or "the Company" or "the Group")

Unaudited Interim results for the six months ended 30 June 2026

Star Energy announces its unaudited interim results for the six months to 30 June 2026.

Commenting on the results Ross Glover, Chief Executive Officer, said:

"The first half of 2026 marked an important change in Star Energy's position. Having spent the previous period strengthening the balance sheet, reducing costs and improving the resilience of the business, we are now in a position to focus much more actively on growth.

The successful £9.1 million fundraising, together with the agreed sale of our Croatian geothermal business, has significantly strengthened our financial platform and strategic flexibility. On completion, the Croatian transaction will generate immediate consideration of €1.3 million (£1.1 million), release €5.2 million (£4.5 million) of restricted cash and remove substantial future capital commitments. These actions have given us the resources and optionality to pursue opportunities capable of creating material value for shareholders.

Effective commodity price risk management remains key to protecting cash flows, both to mitigate downside exposure in a volatile commodity price environment and to meet the hedging requirements of our Finance Facility. At the start of 2026, we had hedged approximately 54% of our production, reflecting widespread expectations of an oversupplied market and consensus commodity price forecasts of $50-$60/bbl. While this risk management strategy reduced our exposure to potential price weakness, it also limited our ability to benefit from the stronger commodity prices that followed the outbreak of the Iran conflict.

Our core UK oil and gas business remains fundamental to our strategy. We continue to focus on delivering safe and reliable operations, disciplined cost control and targeted investment across our existing fields. At the same time, 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. Our operating and technical capabilities, significant UK tax loss position and stronger balance sheet make Star Energy a credible and nimble counterparty for owners seeking to divest producing assets.

Since completing the fundraising, 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.

We are very conscious of the confidence shareholders showed in supporting the fundraising and remain firmly focused on deploying that capital to grow the business. However, the availability of capital alone will not drive us into a transaction. Any acquisition must be value accretive, generate attractive returns under conservative assumptions and strengthen the quality and cash-generating capacity of the Group. The best way to reward the confidence shown by our shareholders is not simply to deploy the capital quickly, but to deploy it well.

This same discipline applies to our organic growth opportunities. Growth for its own sake is not the objective. Our existing development opportunities will compete for capital alongside acquisitions, with investment directed towards those projects offering the most attractive risk-adjusted returns, manageable capital requirements and the strongest potential to grow sustainable cash flow.

In UK geothermal, we have continued to make good progress while maintaining tight control over our own capital exposure. During the period we advanced our principal heat-network opportunities with our partners and submitted Green Heat Network Fund applications for projects in Manchester and Southampton. Our strategy is increasingly focused on using government support and third-party capital to de-risk and finance projects, while Star Energy contributes its specialist subsurface, development and operating expertise.

Star Energy enters the second half of the year with a stronger balance sheet, a cash-generative underlying business and significantly greater strategic optionality. Our priority now is to convert that position into profitable growth while maintaining the capital discipline that has underpinned the progress we have made over the past two years."

Results Summary

	Six months to 30 June 2026 £m	Six months to 30 June 2025 £m
Revenues	23.2	18.3
Adjusted EBITDA - oil and gas*	6.2	5.5
Adjusted EBITDA - geothermal (continuing operations)*	(0.6)	(0.6)
Operating cashflow before working capital movements	6.0	4.8

	As at 30 June 2026 £m	As at 31 December 2025 £m
Net cash/(debt)* (excluding capitalised fees)	4.6	(4.3)
Cash and cash equivalents	15.7	7.6

*these are alternative performance measures which are further detailed in the financial review

Corporate & Financial Summary

· Cash balances as at 30 June 2026 were £15.7 million (31 December 2025: £7.6 million) and net cash was £4.6 million (31 December 2025: net debt of £4.3 million). The cash balance includes the net proceeds from the share issue in May 2026 but excludes the proceeds of the sale of our Croatian assets (€1.3 million (£1.1 million)) and the €5.2 million (£4.5 million) which cash backs the Croatian performance bonds, pending completion.

· The Group raised £8.5 million, net of costs, from a successful fundraise in May 2026. We intend to use the net proceeds of the fundraising to support our strategy of significantly increasing profitable production through both inorganic and organic means. We are focussing on operated or non-operated portfolios of up to approximately 2,500 boepd. Since completing the fundraising, the Group has been actively evaluating a number of acquisition opportunities and has committed significant management and technical resource to this process. A number of potential transactions have undergone technical, commercial and financial assessment. To date, however, the Group has not identified an opportunity where the combination of asset quality, risk and valuation has met our threshold for shareholder returns.

· Adjusted EBITDA of £5.6 million increased by £0.7 million compared to H1 2025. Although commodity prices increased in H1 2026 compared to H1 2025, the requirements of our Finance Facility and our strategy to manage downside commodity risks in a forecast over supplied market meant that we had hedged a substantial portion of our 2026 production prior to the start of the Iran conflict, and this limited our ability to benefit from the stronger prices. A weaker US dollar compared to H1 2025 also affected our revenue. We successfully offset some of the natural decline in production rates with our optimisation projects but the delay in the grid connection for the Singleton gas-to-wire project meant that production rates were less than H1 2025. We continued to make savings in operating costs, general and administrative expenses and research and non-capitalised development costs, more than offsetting inflationary increases.

· Operating cash flow before working capital movements increased to £6.0 million (H1 2025: £4.8 million) driven by higher cash inflows from oil sales and reduced cash outflows from operating costs, administrative expenses and research and non-capitalised development costs.

· We recognised a loss of £5.0 million on our commodity hedges, of which £3.8 million was realised in the period.

· We invested £3.2 million in our oil and gas assets in the period including on our Singleton project, the conversion of a well to a water injector at Stockbridge, and on smaller projects across our sites to enhance production and optimise operations. Net cash capex for 2026 is expected to be £6.6million.

· In April 2026, Star Energy signed an agreement for the sale of its Croatian geothermal subsidiary, IGeoPen d.o.o. (IGeoPen), to Enna Geo d.o.o. IGeoPen holds the Ernestinovo, Sječe and Pčelić geothermal exploration licences in Croatia. The transaction, with completion expected by the end of October, comprised initial cash consideration of €1.5 million (£1.3 million), of which Star Energy's share is €1.3 million (£1.1 million), together with a potential earn-out of €0.5 million (£0.4 million) per licence payable on the commercial operation date of a geothermal power plant developed on each licence. The sale is consistent with the Board's disciplined approach to capital allocation and removes future licence commitments and ongoing costs associated with the Croatian business, releases restricted cash of €5.2 million (£4.5 million) related to the performance bonds and allows management to concentrate on the Group's UK oil and gas and UK geothermal opportunities.

· The Group had ring fence tax losses of £258 million at 30 June 2026.

Operational Summary

· Net production averaged 1,866 boe/d in H1 2026 (H1 2025: 1,894 boe/d). Production during the period was affected by a number of temporary operational and reliability issues across the portfolio. Following the resolution of several of these issues and the completion of optimisation activities, production in July and August has been materially above the first-half average. Full year production is expected to be between 1,900-1,950 boe/d, reflecting these issues and the delay in the Singleton gas-to-wire project.

· We have continued our program of targeted investment to offset natural declines, improve operating reliability and enhance facilities at our sites. Activities during the period include the conversion of a well to a water injector at Stockbridge, work to install a gas generator at Bletchingley and the installation of a replacement separator at Welton.

· Progress continued on the Singleton project, which is expected to add approximately 74 boepd of incremental production and materially reduce routine flaring at the site. 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.

· The Group continued to mature its organic development portfolio, including the Glentworth development, its principal near-field oil development opportunity. These opportunities are being assessed alongside potential acquisitions as part of the Group's disciplined capital allocation process, with investment directed towards projects offering attractive risk-adjusted returns and sustainable cash generation.

· Following the agreed disposal of the Croatian geothermal business, the Group's geothermal activities are focused on developing its UK geothermal platform on a capital-light basis. During the period, the Group progressed its principal opportunities in Manchester and Southampton and submitted Green Heat Network Fund applications for both projects.

A results presentation will be available at https://www.starenergygroupplc.com/investors/reports-publications-presentations

For further information please contact:

Star Energy Group plc

Tel: +44 (0)20 7993 9899

Ross Glover, Chief Executive Officer

Frances Ward, Chief Financial Officer

Zeus (Nominated Adviser & Broker)

Tel: +44 (0)203 829 5000

Antonio Bossi, Darshan Patel, Liv Highton (Investment Banking)

Simon Johnson, Alex Bartram (Corporate Broking)

Vigo Consulting

Tel: +44 (0)207 597 5970

Patrick d'Ancona/Amelia Thorn

Introduction

Star Energy's strategy is focused on creating shareholder value through disciplined capital allocation across its existing operations, organic development opportunities and acquisitions. The Group's value creation model is based on four priorities:

· maximising sustainable cash generation from the existing UK oil and gas portfolio;

· investing selectively in organic projects that can add profitable production;

· deploying capital into value-accretive acquisitions where the risk-adjusted returns are attractive; and

· developing the UK geothermal platform in a capital-light manner, using government support and third-party capital wherever possible.

The first half of 2026 marked an important transition for Star Energy reflecting a strong focus on these priorities. During 2024 and 2025, the Group focused on strengthening its financial and operational foundations through improved cost control, disciplined capital allocation and actions to enhance the resilience of the underlying business. The Group is now increasingly focused on delivering profitable growth.

Two significant corporate events during the period materially strengthened the Group's financial position and strategic flexibility. In April 2026, Star Energy agreed the sale of its Croatian geothermal business, which, on completion, will release approximately €5.2 million (£4.5 million) of restricted cash and will remove significant future capital commitments. This was followed by the successful £9.1 million equity fundraising in May 2026, providing additional capital dedicated to supporting the Group's growth strategy.

The Group's principal objective in its oil and gas division is to materially increase profitable production and sustainable cash generation. This is expected to be achieved through a combination of value-accretive acquisitions and investment in selected in-field and near-field development opportunities within the existing UK portfolio. Star Energy's long-established and proven operating and technical capability, significant UK tax loss position and available cash pool provide a strong platform from which to pursue this strategy.

Since completing the fundraising, the Group has been actively and rigorously evaluating a number of acquisition opportunities and has committed significant management and technical resource to this process. A number of potential transactions have undergone technical, commercial and financial assessment. To date, however, the Group has not identified an opportunity where the combination of asset quality, risk and valuation will provide the level of return required for shareholders. The Group remains committed to deploying capital to grow the business but will maintain strict investment discipline. Any acquisition must be value accretive, generate attractive returns under conservative assumptions and enhance the quality and cash-generating capacity of the Group.

In conjunction with its M&A activities, the Group continues to mature its existing organic development portfolio. Opportunities, including Glentworth, have the potential to add profitable production using established infrastructure and will compete for capital alongside acquisition opportunities. Investment decisions will therefore be taken on the basis of relative risk-adjusted returns and capital efficiency.

The Group's UK geothermal strategy remains focused on advancing its portfolio while limiting Star Energy's direct capital exposure. During the period, the Group progressed its principal heat-network opportunities with its partners and submitted Green Heat Network Fund applications for projects in Manchester and Southampton. The strategy is increasingly centred on leveraging government support and third-party infrastructure capital to reduce project risk and capital requirements, enabling Star Energy to contribute value through its specialist subsurface, development and operating expertise and knowledge bank.

The Group enters the second half of 2026 with a stronger balance sheet, a cash-generative core business and significantly enhanced strategic flexibility. The priority now is to convert that position into profitable growth and long-term shareholder value while maintaining the financial and capital discipline that has underpinned the Group's recent progress.

Production Operations

Net production for the six months to 30 June 2026 averaged 1,866 boepd (H1 2025: 1,894 boepd). The Group's operational focus remains on maximising safe, reliable and profitable production from its existing UK portfolio. Our mature fields continue to provide the cash-generative foundation of the business and an important source of funding for both organic development and future growth.

During the period, activity was focused on managing natural field decline, improving operating reliability and selectively restoring or increasing production where the economics supported investment. We continued our rolling programme of well interventions, workovers and optimisation activity, prioritising projects that require relatively modest capital expenditure and offer short payback periods.

Production during the first half was adversely affected by a number of temporary operational and reliability issues across parts of the portfolio, together with the natural variability associated with operating mature fields. These reduced production during the period but did not materially change our view of the underlying productive capability or value of the assets. We have continued to improve maintenance planning and operating resilience across the portfolio and a number of the issues experienced during the period have now been resolved.

Production in July and August has been materially higher than the first-half average following the resolution of a number of these issues and the completion of optimisation activities. This improved performance provides encouraging evidence that the actions taken are having the intended effect and reinforces our confidence in the underlying asset base.

This disciplined approach is intended to maximise cash generation from the existing portfolio while preserving the underlying reserve and development opportunity.

Oil & Gas Development Projects

The Group's existing UK portfolio contains a number of opportunities to add profitable production through targeted investment in and around its existing fields. These projects benefit from established infrastructure, operating knowledge and existing reserves and resources, and provide an important organic component of the Group's growth strategy.

Following the strengthening of the Group's balance sheet, organic development opportunities are being assessed alongside potential acquisitions through a single rigorous capital allocation process. We are actively progressing and prioritising opportunities, with a focus on allocating capital to projects that offer the strongest combination of value creation, capital efficiency , short payback periods and sustainable cash generation.

Singleton

The Singleton project is designed to both improve environmental performance and monetise gas which has historically been flared at the site, generating electricity for export to the grid while also materially reducing routine flaring. The project represents a relatively low-risk investment in an existing producing asset and is expected to add approximately 74 boepd of incremental production once fully operational. During the period, work continued on completion and commissioning of the project, with all major equipment delivered to site, the export cabling laid to the substation and gas processing equipment installed and commissioned on site. We continue to press for final connection to the grid by the Distribution Network Operator and we anticipate first production in early October 2026.

In addition to generating incremental production and revenue, the project improves the long-term resilience of the Singleton operation.

Glentworth

Glentworth remains the Group's principal near-field oil development opportunity and has the potential to add material production from an extension of the existing field.

The first phase of the development comprises an appraisal and production well targeting the western extension of the producing Mexborough reservoir. The Group's base case estimates incremental production of approximately 162 bopd, with an estimated range of approximately 125-225 bopd, and the development of approximately 1.0 million barrels of 2P undeveloped reserves.

During the period, the Group continued to progress the technical and regulatory work required to maintain Glentworth as a development-ready opportunity. The timing of investment will be determined as part of the Group's broader capital allocation process, taking into account the relative returns available from Glentworth and potential acquisition opportunities.

At Welton, we have carried out extensive well testing, the results of which are expected to support the identification of well optimisation opportunities and previously bypassed oil volumes. The findings will also help evaluate potential sidetrack drilling options aimed at accelerating recovery from the field.

The Group therefore retains meaningful organic growth optionality alongside its acquisition strategy and is not dependent upon M&A alone to increase production. Our objective remains to deploy capital into those opportunities where we find the strongest combination of value creation, capital efficiency and sustainable cash generation.

Reserves and Resources

CPR

The Company carried out an internal evaluation of the Group's conventional oil and gas interests as at 31 December 2025.

A summary of the report can be found at: https://www.starenergygroupplc.com/investors/reports-publications-presentations

Net reserves as at 31 December 2025 (MMboe)

	1P	2P
Reserves as at 31 December 2024	10.17	15.31
Production during the period	(0.64)	(0.64)
Additions & revisions during the period	0.45	1.07
Reserves as at 31 December 2025	9.98	15.74

· Oil price assumption of c.$64/bbl-$95/bbl then inflated at 2% p.a. from 2041 to a maximum price of $134/bbl.

· The production in the reserve movement table incorporates production at the following sites: Beckingham, Bletchingley, Cold Hanworth, Corringham, East Glentworth, Glentworth, Goodworth, Horndean, Long Clawson, Palmers Wood, Scampton North, Singleton, Stockbridge and Welton.

The report values our conventional assets at $170 million (2024: $188 million) on a 2P NPV10 pre-tax basis.

Geothermal Projects

Following the agreed sale of the Group's Croatian geothermal business, Star Energy's geothermal activities are now focused on the UK. The disposal represents an important step in the Group's capital allocation strategy, releasing capital and removing significant future funding commitments while retaining exposure to a UK geothermal platform which the Board believes has the potential to create material value for shareholders.

The Group believes that the UK geothermal market has the potential to develop into a significant infrastructure opportunity. The progression of our two key projects is dependent on being successful in our Green Heat Network Fund grant applications. However, successful development requires the combination of geothermal and subsurface expertise, long-term heat customers, heat-network capability, infrastructure capital and, importantly, government support.

Star Energy's strategy is therefore to position itself principally in those parts of the value chain where its technical and operating capabilities provide a competitive advantage. By originating projects, defining and reducing subsurface risk and progressing projects through development, the Group aims to create value as projects mature, while bringing in appropriate partners and third-party capital to fund construction and long-term majority ownership.

This approach provides continued exposure to the potential growth of the UK geothermal market without requiring the Group to make material speculative commitments of shareholder capital ahead of projects being sufficiently de-risked.

During the period, good progress was made across the Group's principal UK geothermal opportunities, with particular focus on Manchester and Southampton.

Manchester GeoConnect

The Manchester GeoConnect project is centred on the development of a geothermal heat source and heat network serving major heat users in the Wythenshawe area, including Wythenshawe Hospital, with the potential to extend the network to Manchester Airport and other significant local heat consumers.

The project has been developed as a scalable heat-network opportunity rather than simply a standalone geothermal installation. This provides the potential to connect additional customers over time and create a significant long-term infrastructure asset based around a secure, domestic source of low-carbon heat.

During the period, the Group continued to progress the technical, commercial and development work required to mature the project and submitted an application for support from the Green Heat Network Fund. Government support is an important component of the proposed funding structure and is intended to substantially de-risk the project before significant private capital is committed.

Southampton

The Group has also continued to advance its geothermal activities in Southampton, working with Bring Energy and the University of Southampton.

Southampton already has an established district heat network and a long history of using geothermal energy, providing an attractive platform from which additional geothermal heat supply and network capacity could be developed. Technical work undertaken with the University of Southampton has identified a number of potentially significant geothermal targets beneath the city.

During the period, the project partners continued to develop the technical and commercial proposition and submitted an application to the Green Heat Network Fund to support the next stage of development.

Financial Review

Strong operating cashflows, a successful fundraise and the disposal of our Croatian geothermal assets have ensured that the Group is on a sustainable footing, with good liquidity, and has built a solid foundation for success in our strategic objectives.

Income Statement

The Group generated revenue of £23.2 million in the first six months of 2026. (H1 2025: revenue of £18.3 million). The increase in revenues was primarily driven by higher oil prices with Brent prices averaging $92.6/bbl in H1 2026 compared to $71.7/bbl during H1 2025. However, the benefit from higher prices was mitigated by a realised hedging loss of £3.8 million, a reduction in volumes and a weaker USD:GBP exchange rate.

Adjusted EBITDA for H1 2026 was £5.6 million (H1 2025: £4.9 million), of which £6.2 million (H1 2025: £5.5 million) related to our oil and gas operations and £(0.6) million (H1 2025: £(0.6) million) related to our continuing geothermal activities. The profit after tax from continuing activities was £2.7 million (H1 2025: loss after tax from continuing activities of £3.9 million) and the main factors explaining the movements between H1 2026 and H1 2025 were as follows:

· Oil and gas revenues increased to £23.0 million (H1 2025: £18.3 million) with the impact of higher prices being partially offset by hedging losses, foreign exchange changes and lower volumes. Sale volumes reduced from 1,918 boe/d to 1,869 boe/d, mainly as a result of the delay in the grid connection for our Singleton project and temporary operational issues. We recognised a loss of £5.0 million on oil hedges (H1 2025: gain of £1.0 million) comprising £3.8 million of realised loss and £1.2 million of fair value loss of which £0.5m related to the mark-to-market valuation of open hedges for H2 2026 and H1 2027. Geothermal consultancy revenues were £0.2 million (H1 2025: £nil);

· We continued our cost saving initiatives, offsetting inflationary increases and reducing oil and gas operating costs from £10.8 million in H1 2025 to £10.5 million and maintaining administrative expenses at £2.2 million, consistent with H1 2025;

· Research and non-capitalised development costs relating to our geothermal activities were £0.2 million (H1 2025: £0.2 million);

· H1 2025 included a net gain on disposal of our Holybourne site of £4.5 million and a gain of £0.5 million from the write-off of contingent consideration payable relating to the acquisition of GT Energy UK Limited. No similar gains were recorded in H1 2026;

· Net finance costs reduced to £1.9 million (H1 2025: £3.3 million) mainly due to a net foreign exchange gain of £0.2 million recorded in the period compared to a foreign exchange loss of £0.9 million in H1 2025;

· Depletion, depreciation and amortisation (DD&A) reduced by £0.8 million to £2.8 million (H1 2025: £3.6 million) with the higher charge in the previous period driven by a reduction in the reserves estimate for the Albury field following the permanent shut in of gas-to-grid production; and

· A tax credit of £2.1 million was recognised in the period (H1 2025: tax charge of £8.4 million). The credit for the year includes a deferred tax credit of £2.5 million mainly arising from the recognition of additional tax losses due to higher forecast oil prices. We recognised a current tax charge of £0.4 million representing the estimated Energy Profits Levy ("EPL") charge on profits for the period.

Cash Flow

Net cash generated from operations before working capital movements and tax increased to £6.0 million for the period (H1 2025: £4.8 million). This was driven by higher oil sales, net of realised hedges, combined with reduction in cash outflows from lower operating costs, administrative expenses and research and non-capitalised geothermal development costs.

The Group invested £3.2 million across its asset base during the period (H1 2025: £2.0 million) on the Singleton project, the conversion of a well at Stockbridge to a water injector and other projects which increase production or optimise our facilities.

The Group raised £8.5 million, net of transaction costs, through an equity raise in May 2026.The Group plans to invest the proceeds in value accretive producing oil and gas assets.

The Group repaid £2.0 million (€2.3 million) in line with the contractual repayment profile of facility B of its loan facility (H1 2025: repayment of £5.6 million (€6.7 million) to fully settle facility A of the loan facility). The Group used asset financing of £1.4 million to finance the purchase of two generators for the Singleton project.

Interest paid during the period was £0.8 million (H1 2025: £0.7 million). Repayments made in respect of lease obligations were £0.9 million (H1 2025: £1.2 million).

Cash and cash equivalents were £15.7 million at the end of the period (31 December 2025: £7.6 million).

Balance Sheet

The Group had net assets of £45.8 million at 30 June 2026 (31 December 2025: £34.8 million).

Property, plant and equipment increased by £0.3 million as a result of capital expenditure of £2.0 million and an increase in the value of decommissioning assets of £0.5 million offset by a DD&A charge of £2.2 million.

The deferred tax asset increased by £2.8 million for reasons mentioned above and a reclassification of £0.3 million to the disposal group held for sale.

Trade and other receivables increased by £0.6 million mainly due to higher commodity prices. Trade and other payables reduced by £1.8 million mainly due to the timing of expenditure.

The Group's borrowings reduced by £0.7 million following the repayment of £2.0 million on our loan facility, offset by the hire purchase financing of the Singleton generators. Lease liabilities reduced by £0.5 million due to the timing of payments and right-of-use assets reduced by £0.4 million. The provision for decommissioning increased by £1.0 million due to the unwinding of discount by £1.3 million and a reassessment of the provision of £0.5 million, partially offset by utilisation of £0.4 million for wells abandoned in the period and reclassification to the disposal group held for sale of £0.4 million.

Following the agreement to sell our Croatia operations in April 2026, the related assets and liabilities were considered to form part of a disposal group held for sale in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations and presented accordingly in the consolidated balance sheet.

Non-IFRS Measures

The Group uses non-IFRS measures of performance that are not specifically defined under IFRS or other generally accepted accounting principles. The non-IFRS measures include net debt, adjusted EBITDA and underlying cash operating costs. These non-IFRS measures are used by the Group, alongside IFRS measures, for both internal performance analysis and to help shareholders, lenders and other users of the Interim Report to better understand the Group's performance in the period in comparison to previous periods and to industry peers.

Net Cash/(Debt)

The Group had net cash of £4.6 million at 30 June 2026 (31 December 2025 net debt: £4.3 million). The Group's definition of net cash/(debt) does not include restricted cash or the Group's lease liabilities.

	30 June 2026	30 June 2025	31 December 2025
	£m	£m	£m
Cash and cash equivalents (excluding restricted cash)	15.7	4.3	7.6
Debt (nominal value excluding capitalised expenses)	(11.1)	(7.0)	(11.9)
Net cash/(debt)	4.6	(2.7)	(4.3)

Adjusted EBITDA

Adjusted EBITDA includes adjustments in relation to non-cash items such as share-based payment charges and unrealised gain/loss on hedges together with other one-off exceptional items, and after deducting lease rentals capitalised under IFRS 16. The 2025 comparatives have been restated to exclude discontinued operations following the disposal of our Croatian subsidiary.

	Six months ended 30 June 2026	Six months ended 30 June 2025 Restated	Year ended 31 December 2025 Restated
	£m	£m	£m
Profit before tax	0.6	4.5	2.5
Net finance costs	1.9	3.3	5.2
Depletion, depreciation & amortisation	2.8	3.6	7.3
Impairment of exploration and evaluation assets	-	0.0	0.0
Changes in fair value of contingent consideration	-	(0.5)	(0.5)
EBITDA	5.3	10.9	14.5
Lease rentals capitalised under IFRS 16	(0.9)	(1.0)	(1.8)
Profit on sale of property, plant and equipment	-	(4.5)	(4.5)
Share-based payment charges	0.0	0.1	0.2
Unrealised loss/(gain) on hedges	1.2	(0.8)	(0.3)
Redundancy costs	-	0.2	0.2
Adjusted EBITDA	5.6	4.9	8.3
Related to oil and gas business segment	6.2	5.5	9.9
Related to Geothermal business segment	(0.6)	(0.6)	(1.6)

Underlying cash operating costs

	Six months ended 30 June 2026	Six months ended 30 June 2025	Year ended 31 December 2025
	£m	£m	£m
Other cost of sales*	10.3	10.8	21.6
Lease rentals capitalised under IFRS 16	0.9	1.0	1.8
Underlying operating costs	11.2	11.8	23.4

* this represents total cost of sales of our oil and gas operations less depletion, depreciation and amortisation.

Principal risks and uncertainties

The Group constantly monitors the Group's risk exposures and management reports to the Audit Committee and the Board on a regular basis. The Audit Committee receives and reviews these reports and focuses on ensuring that the effective systems of internal financial and non-financial controls including the management of risk are maintained. The results of this work are reported to the Board which in turn performs its own review and assessment.

The principal risks for the Group remain as previously detailed on pages 14-15 of the 2025 Annual Report and Accounts and can be summarised as:

· Political risk such as change in Government or the effect of local or national referendums which can result in changes to the regulatory or fiscal regime;

· Strategy, and its execution, fails to meet shareholder expectations;

· Climate change risks that causes changes to laws, regulations, policies, obligations and social attitudes relating to the transition to a lower carbon economy which could have a cost impact or reduced demand for hydrocarbons and could impact our strategy;

· Risk of reduction in appetite for low carbon heat solutions;

· Cyber security risk that gives exposure to a serious cyber-attack which could affect the confidentiality of data, the availability of critical business information and cause disruption to our operations;

· Planning, environmental, licensing and other permitting risks associated with operations and in particular, with drilling and production operations;

· Oil or gas production, as no guarantee can be given that they can be produced in the anticipated quantities from any or all of the Group's assets or oil or gas can be delivered economically;

· Risks of delay or higher costs of project delivery or failure to meet project objectives;

· Loss of key staff;

· Pandemic that impacts the ability to operate the business effectively;

· Oil market price risk through variations in the wholesale price in the context of the production from oil fields it owns and operates;

· Electricity market price risk through variations in the wholesale price in the context of its future production volumes;

· Exchange rate risk through its major source of revenue being priced in US$ and its borrowings being priced in euros while most of the Group's operating and G&A costs are denominated in UK pound sterling;

· Liquidity risk; and

· Capital risk resulting from its capital structure, including operating within the covenants of its finance facility.

Going concern

The Group continues to closely monitor and manage its liquidity risks. Cash flow forecasts for the Group are prepared on a monthly basis based on, inter alia, the Group's production and expenditure forecasts, management's best estimate of future oil prices and foreign exchange rates and the Group's available loan facility. Sensitivities are run to reflect different scenarios including, but not limited to, possible reductions in commodity prices, fluctuations in exchange rates and reductions in forecast oil production rates.

The current geopolitical climate and the impact of the war in Iran has resulted in significant increases in crude oil prices for 2026 and forecast prices into 2027. However, the commodity price environment is volatile, with significant uncertainty on the resolution of the conflict in the Middle East and the impact on the global oil market and oil prices.

During 2026, the Group has continued to strengthen its balance sheet and improve its resilience to oil price volatility. This has included the sale of our Croatian Subsidiary, IGeoPen d.o.o, for a consideration of €1.3 million (£1.1 million) (net to Star Energy) payable on completion, together with a potential earn-out of €0.5 million (£0.4 million) per licence payable on the commercial operation date of a geothermal power plant developed on each licence. The sale also removes future licence commitments and ongoing costs associated with the Croatian business and releases restricted cash of €5.2 million (£4.5 million) related to the performance bonds.

In addition, the Group completed a successful fundraise of £8.5m (net of expenses) in May 2026, through a placing of new ordinary shares, with the objective of significantly increasing profitable production through a combination of value-accretive acquisitions and selective investment in organic in-field and near-field opportunities within the existing portfolio.

However, the ability of the Group to operate as a going concern is dependent upon the continued availability of future cash flows and the availability of the monies drawn under its loan facility, which is dependent on the Group not breaching the facility's covenants. To mitigate these risks, the Group benefits from its hedging policy using swaps and three-way put/call options to provide downside protection.

The Group's base case cash flow forecast was run with average oil prices of $78/bbl for the remainder of 2026 and $75/bbl for 2027 and Q1 2028. Foreign exchange rates of an average $1.35/£1 for the remainder of 2026 and $1.34/£1 for 2027 and Q1 2028 have been assumed. In this base case scenario, our forecasts show that the Group will have sufficient financial headroom to meet the applicable financial covenants for the twelve months from the date of approval of the financial statements.

Management has also prepared a "severe but plausible" downside case, which reflects the possible impact of global economic and political uncertainties resulting in the oil price falling lower than in our base case. In this downside case we have assumed an oil price of $73/bbl for the remainder of 2026, $68/bbl the first half of 2027, with prices falling to $62/bbl in the second half of 2027 and Q1 2028. Foreign exchange rates of an average $1.37/£1 for the remainder of 2026 and $1.36/£1 for 2027 and Q1 2028 have been assumed. Our downside case also included a reduction in production of 5% throughout the going concern period. In this downside scenario, our forecast shows that the Group will have sufficient financial headroom to meet its financial covenants for the twelve months from the date of approval of the financial statements. Management remain focused on maintaining a strong balance sheet and funding to support our strategy.

Based on the analysis above, the Directors have a reasonable expectation that the Group has adequate resources to continue as a going concern for at least the next twelve months from the date of the approval of the Group financial statements and have concluded it is appropriate to adopt the going concern basis of accounting in the preparation of the financial statements.

Statement of Directors' responsibilities

The Directors confirm that these Condensed Interim Consolidated Financial Statements have been prepared in accordance with UK-adopted International Accounting Standard 34, 'Interim Financial Reporting' ("IAS 34") and the AIM Rules for Companies; and these Unaudited Interim results include:

· a fair review of the information required (i.e., an indication of important events and their impact during the first six months and a description of the principal risks and uncertainties for the remaining six months of the financial year); and

· a fair review of the information required on related party transactions.

By order of the Board,

Ross Glover

Chief Executive Officer

16 September 2026

Condensed Interim Consolidated Income Statement

Continuing operations	Notes	Unaudited 6 months ended 30 June 2026 £000	Unaudited 6 months ended 30 June 2025 Restated* £000	Audited year ended 31 December 2025 Restated* £000
Revenue	4	23,224	18,297	34,721
Cost of sales:
Depletion, depreciation and amortisation		(2,800)	(3,603)	(7,315)
Other cost of sales		(10,493)	(10,775)	(21,610)
		(13,293)	(14,378)	(28,925)
Gross profit		9,931	3,919	5,796
Administrative expenses		(2,241)	(2,242)	(4,395)
Research and non-capitalised development costs		(188)	(227)	(597)
Impairment of exploration and evaluation assets	8	-	(26)	(26)
(Loss)/gain on derivative financial instruments		(4,957)	1,333	1,847
Other income		-	4,540	4,562
Operating profit		2,545	7,297	7,187
Finance costs	5	(1,912)	(3,263)	(5,217)
Change in fair value of contingent consideration	12	-	480	480
Profit before tax		633	4,514	2,450
Income tax	6	2,079	(8,429)	(9,040)
Profit/(loss) from continuing operations		2,712	(3,915)	(6,590)
Loss from discontinued operations, net of tax	13	(351)	(154)	(1,245)
Profit/(loss) for the period/year		2,361	(4,069)	(7,835)
Attributable to:
Owners of the Parent Company		2,538	(3,922)	(7,304)
Non-controlling interest		(177)	(147)	(531)
		2,361	(4,069)	(7,835)
Earnings/(loss) per share attributable to equity shareholders from continuing operations: Basic earnings/(loss) per share	7	1.86p	(2.96p)	(5.04p)
Diluted earnings/(loss) per share	7	1.81p	(2.96p)	(5.04p)
Earnings/(loss) per share attributable to equity shareholders including discontinued operations: Basic earnings/(loss) per share	7	1.75p	(2.97p)	(5.59p)
Diluted earnings/(loss) per share	7	1.70p	(2.97p)	(5.59p)

* comparative numbers have been restated to present the results of discontinued operations separately in the income statement. See note 13.

Condensed Interim Consolidated Statement of Comprehensive Income

	Unaudited 6 months ended 30 June 2026 £000	Unaudited 6 months ended 30 June 2025 £000	Audited year ended 31 December 2025 £000
Profit/(loss) for the period/year	2,361	(4,069)	(7,835)
Other comprehensive income for the period/year:
Items that may be reclassified subsequently to profit or loss:
Foreign exchange differences on translation of foreign operations	118	(181)	(294)
Total comprehensive profit/(loss) for the period/year	2,479	(4,250)	(8,129)
Total comprehensive profit/(loss) attributable to:
Owners of the Parent Company	2,634	(4,086)	(7,563)
Non-controlling interest	(155)	(164)	(566)
	2,479	(4,250)	(8,129)

Condensed Interim Consolidated Balance Sheet

	Notes	Unaudited at 30 June 2026 £000	Unaudited at 30 June 2025 £000	Audited at 31 December 2025 £000
ASSETS
Non-current assets
Intangible assets	8	4,308	7,899	7,104
Property, plant and equipment	9	69,861	67,402	69,577
Right-of-use assets		5,939	6,872	6,336
Restricted cash		-	4,282	4,534
Deferred tax asset	6	23,404	23,070	20,569
		103,512	109,525	108,120
Current assets
Inventories		1,496	1,450	1,536
Trade and other receivables		5,534	4,663	4,913
Corporation tax receivable	6	766	-	1,284
Cash and cash equivalents	11	15,675	4,277	7,609
Restricted cash		4,495	-	-
Derivative financial instruments	10	-	1,197	703
Assets held for sale	13	3,156	-	-
		31,122	11,587	16,045
Total assets		134,634	121,112	124,165
LIABILITIES
Current liabilities
Trade and other payables		(4,926)	(4,621)	(6,733)
Corporation tax payable	6	-	(2,569)	-
Borrowings	11	(4,157)	(1,158)	(3,961)
Lease liabilities		(779)	(973)	(895)
Provisions	12	(950)	(826)	(1,429)
Derivative financial instruments	10	(479)	-	-
Liabilities directly associated with assets held for sale	13	(879)	-	-
		(12,170)	(10,147)	(13,018)
Non-current liabilities
Borrowings	11	(6,642)	(5,332)	(7,526)
Other payables		(166)	(69)	(97)
Lease liabilities		(5,733)	(6,337)	(6,086)
Provisions	12	(64,129)	(60,729)	(62,659)
		(76,670)	(72,467)	(76,368)
Total liabilities		(88,840)	(82,614)	(89,386)
Net assets		45,794	38,498	34,779
	Notes	Unaudited at 30 June 2026 £000	Unaudited at 30 June 2025 £000	Audited at 31 December 2025 £000
EQUITY Capital and reserves
Called up share capital	14	30,335	30,334	30,334
Share premium account	14	111,826	103,278	103,298
Foreign currency translation reserve		3,769	3,768	3,673
Other reserves		38,734	38,587	38,727
Accumulated deficit		(137,528)	(136,684)	(140,066)
Equity attributable to owners of the Company		47,136	39,283	35,966
Non-controlling interest		(1,342)	(785)	(1,187)
Total equity		45,794	38,498	34,779

Condensed Interim Consolidated Statement of Changes in Equity

	Called up share capital £000	Share premium account £000	Foreign currency translation reserve* £000	Other reserves** £000	Accumulated deficit £000	Equity attributable to owners of the Company £000	Non-controlling interest £000	Total equity £000
At 1 January 2025 (audited)	30,334	103,248	3,929	38,512	(132,331)	43,692	(1,049)	42,643
Loss for the period	-	-	-	-	(3,922)	(3,922)	(147)	(4,069)
Acquisition of non-controlling interest without a change in control	-	-	3	-	(431)	(428)	428	-
Share options issued under the employee share plan	-	-	-	75	-	75	-	75
Issue of shares (note 14)	-	30	-	-	-	30	-	30
Currency translation adjustments	-	-	(164)	-	-	(164)	(17)	(181)
At 30 June 2025 (unaudited)	30,334	103,278	3,768	38,587	(136,684)	39,283	(785)	38,498
Loss for the period	-	-	-	-	(3,382)	(3,382)	(384)	(3,766)
Share options issued under the employee share plan	-	-	-	140	-	140	-	140
Issue of shares (note 14)	-	20	-	-	-	20	-	20
Currency translation adjustments	-	-	(95)	-	-	(95)	(18)	(113)
At 31 December 2025 (audited)	30,334	103,298	3,673	38,727	(140,066)	35,966	(1,187)	34,779
Profit/(loss) for the period	-	-	-	-	2,538	2,538	(177)	2,361
Issue of shares, net of transaction costs (note 14)	1	8,528	-	-	-	8,529	-	8,529
Share options issued under the employee share plan	-	-	-	7	-	7	-	7
Currency translation adjustments	-	-	96	-	-	96	22	118
At 30 June 2026 (unaudited)	30,335	111,826	3,769	38,734	(137,528)	47,136	(1,342)	45,794

* The foreign currency translation reserve includes an amount of £3,799,000 (31 December 2025: £3,799,000, 30 June 2025: £3,799,000) relating to exchange gains and losses on translation of net assets and results, and intercompany balances, which formed part of the net investment of the Group, in respect of subsidiaries which previously operated with a functional currency other than UK pound sterling.

** Other reserves include: 1) Share plan reserves comprising a EIP/MRP/EDRP reserve representing the cost of share options issued under the long-term incentive plans and share incentive plan reserve representing the cost of the partnership and matching shares; 2) a treasury shares reserve which represents the cost of shares in Star Energy Group plc purchased in the market to satisfy awards held under the Group incentive plans; 3) a capital contribution reserve which arose following the acquisition of IGas Exploration UK Limited; and 4) a merger reserve which arose on the reverse acquisition of Island Gas Limited.

Condensed Interim Consolidated Cash Flow Statement

	Notes	Unaudited 6 months ended 30 June 2026 £000	Unaudited 6 months ended 30 June 2025 Restated £000	Audited year ended 31 December 2025 Restated £000
Cash flows from operating activities:
Profit/(loss) for the period/year		2,361	(4,069)	(7,835)
Depletion, depreciation and amortisation		2,804	3,626	7,361
Abandonment costs/other provisions utilised or released		(402)	(508)	(605)
Share-based payment charge		27	94	248
Impairment of exploration and evaluation assets	8	-	26	26
Impairment of development costs	8	-	-	495
Impairment of goodwill	8	-	-	454
Change in fair value of contingent consideration	12	-	(480)	(480)
Unrealised loss/(gain) on derivative financial instruments		1,182	(799)	(305)
Gain on sale of property, plant and equipment		-	(4,540)	(4,540)
Finance costs		2,122	3,040	4,951
Income tax		(2,079)	8,429	8,951
Operating cash flows before working capital movements		6,015	4,819	8,721
(Increase)/decrease in trade and other receivables and other financial assets		(1,370)	1,993	2,646
Increase/(decrease) in trade and other payables		190	(2,547)	(2,162)
(Increase) in restricted cash		(22)	-	(34)
Decrease/(increase) in inventories		40	47	(39)
Cash generated from operating activities		4,853	4,312	9,132
Corporation tax received/(paid)		138	(964)	(2,848)
Net cash generated from operating activities		4,991	3,348	6,284

Cash flows from investing activities:
Purchase of intangible exploration and evaluation assets		(126)	(86)	(47)
Purchase of property, plant and equipment		(3,092)	(1,956)	(5,234)
Proceeds from disposal of property, plant and equipment		-	6,390	6,390
Net cash (used in)/generated from investing activities		(3,218)	4,348	1,109

Cash flows from financing activities:
Cash proceeds from issue of ordinary share capital	14	9,092	14	27
Share issue transaction costs	14	(575)	-	-
Drawdown on finance facility	11	-	-	4,801
Repayment of finance facility	11	(1,964)	(5,631)	(5,631)
Cash received from hire purchase finance	11	1,440	-	-
Repayment of hire purchase liabilities	11	(85)	-	-
Repayment of principal portion of lease liabilities		(650)	(854)	(1,299)
Repayment of interest on lease liabilities		(289)	(326)	(662)
Interest paid	11	(754)	(694)	(1,137)
Net cash generated from/(used in) financing activities		6,215	(7,491)	(3,901)

Net increase in cash and cash equivalents during the period/year		7,988	205	3,492
Net foreign exchange differences		78	(636)	(591)
Cash and cash equivalents at the beginning of the period/year		7,609	4,708	4,708
Cash and cash equivalents at the end of the period/year	11	15,675	4,277	7,609

Notes to the Unaudited Condensed Interim Consolidated Financial Statements

1 Corporate information

The condensed interim consolidated financial statements of Star Energy Group plc and its subsidiaries (the Group) for the six months ended 30 June 2026, which are unaudited, were authorised for issue in accordance with a resolution of the Directors on 16 September 2026. Star Energy Group plc is a public limited company incorporated in the United Kingdom and registered in England and Wales and listed on the Alternative Investment Market (AIM). The Group's principal activities are exploring for, appraising, developing and producing oil and gas and developing geothermal projects.

2 Accounting policies

Basis of preparation

These unaudited condensed interim consolidated financial statements for the six months ended 30 June 2026 have been prepared in accordance with UK-adopted International Accounting Standard 34, 'Interim Financial Reporting' ("IAS 34") and the AIM Rules for Companies. The unaudited condensed interim consolidated financial statements should be read in conjunction with the consolidated financial statements for the year ended 31 December 2025. The annual financial statements of Star Energy Group plc are prepared in accordance with UK-adopted International Accounting Standards.

The financial information contained in this document does not constitute statutory accounts as defined by Section 434 of the Companies Act 2006 (England & Wales). The financial information as at 31 December 2025 is based on the statutory accounts for the year ended 31 December 2025. A copy of the statutory accounts for that year, has been delivered to the Registrar of Companies and is available on the Company's website at www.starenergygroupplc.com. The auditors' report in accordance with Chapter 3 Part 16 of the Companies Act 2006 in relation to those accounts was unqualified, did not draw attention to any matters by way of emphasis and did not contain a statement under section 498(2) or (3) of the Companies Act 2006.

The accounting policies adopted are consistent with those of the previous financial year and corresponding interim reporting period, except for the adoption of the new and amended standards and interpretations discussed below. Prior period numbers have been reclassified, where necessary, to conform to the current period presentation.

Going concern

The Group's base case cash flow forecast was run with average oil prices of $78/bbl for the remainder of 2026 and $75/bbl for 2027, and Q1 2028. Foreign exchange rates of an average $1.35/£1 for the remainder of 2026 and $1.34/£1 for 2027 and Q1 2028 have been assumed. In this base case scenario, our forecasts show that the Group will have sufficient financial headroom to meet the applicable financial covenants for the twelve months from the date of approval of the financial statements.

New and amended standards and interpretations

During the period, the Group adopted the following new and amended IFRSs for the first time for their reporting period commencing 1 January 2026:

Amendments to IFRS 7 and IFRS 9	Classification and measurement of financial instruments
Amendments to IFRS 7 and IFRS 9	Contracts referencing nature-dependent electricity
Amendments to IFRS 1, IFRS 7, IFRS 9, IFRS 10 and IAS 7	Annual improvements to IFRS

The above amendments did not have a material impact on the financial statements of the Group.

There are no other standards that are not yet effective and that would be expected to have a material impact on the entity in the reporting periods when they become effective, with the exception of IFRS 18 Presentation and Disclosure in Financial Statements which was issued on 9 April 2024, effective for periods beginning on or after 1 January 2027. We are in the process of assessing the impact of this standard on our future financial statements.

Estimates and judgements

The preparation of the unaudited condensed interim consolidated financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expense. Actual results may differ from these estimates.

In preparing these unaudited condensed interim consolidated financial statements, the significant judgements made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those applied to the consolidated financial statements for the year ended 31 December 2025.

Financial risk management

The Group's activities expose it to a variety of financial risks; market risk (including interest rate, commodity price and foreign currency risks), credit risk and liquidity risk.

The unaudited condensed interim consolidated financial statements do not include financial risk management information and disclosures required in the annual financial statements; accordingly, the unaudited condensed interim consolidated financial statements should be read in conjunction with the Group's annual financial statements as at 31 December 2025.

3 Basis of consolidation

The unaudited condensed interim consolidated financial statements present the results of Star Energy Group plc and its subsidiaries as if they formed a single entity. The financial information of subsidiaries used in the preparation of these unaudited condensed interim consolidated financial statements is based on consistent accounting policies to those of the Company. All intercompany transactions and balances between Group companies, including unrealised profits/losses arising from them, are eliminated in full. Where shares are issued to an Employee Benefit Trust, and the Company is the sponsoring entity, it is treated as an extension of the entity.

4 Revenue

The Group derives revenue solely within the United Kingdom from the transfer of control over goods and services to external customers which is recognised at a point in time when the performance obligation has been satisfied by the transfer of goods and services. The Group's major product and service lines are:

	Unaudited 6 months ended 30 June 2026	Unaudited 6 months ended 30 June 2025	Audited year ended 31 December 2025
	£000	£000	£000
Oil sales	22,564	17,796	33,823
Electricity sales	481	501	898
Consultancy fee	179	-	-
Revenue for the period/year	23,224	18,297	34,721

5 Finance costs

	Unaudited 6 months ended 30 June 2026 £000	Unaudited 6 months ended 30 June 2025 Restated £000	Audited year ended 31 December 2025 Restated £000
Interest on borrowings	(566)	(595)	(1,121)
Amortisation of finance fees on borrowings	(63)	(65)	(138)
Net foreign exchange gain/(loss)	225	(949)	(821)
Unwinding of discount on decommissioning provision	(1,343)	(1,303)	(2,649)
Interest charge on lease liability	(286)	(323)	(655)
Other interest receivable/(payable)	121	(28)	167
Finance costs for the period/year	(1,912)	(3,263)	(5,217)

6 Tax on profit/(loss) on ordinary activities

The Group calculates the period income tax expense using the UK corporation tax rate that would be applicable to expected total annual earnings for the 12 months ending 31 December 2026. The majority of the Group's profits are generated by "ring-fence" business which attract UK corporation tax and supplementary charges at a combined average rate of 40% (six months ended 30 June 2025: 40%), in addition to the Energy Profits Levy (EPL) with a rate of 38% for the period (six months ended 30 June 2025: 38%). The tax credit for the period comprises deferred tax credit of £2.5 million (six month ended 30 June 2025: deferred tax charge of £8.0 million) mainly arising from an increase in the deferred tax asset relating to tax losses and deductible temporary differences due to increase in future forecast profits following an improved short-term oil price environment, offset by a current tax charge of £0.4 million in respect of the EPL (six months ended 30 June 2025: £0.5 million).

The major components of income tax credit/(charge) in the unaudited condensed interim consolidated income statement are:

	Unaudited 6 months ended 30 June 2026 £000	Unaudited 6 months ended 30 June 2025 £000	Audited year ended 31 December 2025 Restated £000
UK corporation tax
(Charge)/credit on profit for the period/year	(313)	(460)	891
Adjustment in respect of prior periods	(67)	-	618
Total current tax (charge)/credit	(380)	(460)	1,509
Deferred tax
Credit/(charge) relating to the origination or reversal of temporary differences	2,608	(7,984)	(10,344)
(Charge)/credit in relation to prior periods	(149)	15	(205)
Total deferred tax credit/(charge)	2,459	(7,969)	(10,549)
Tax credit/(charge) on profit from continuing activities for the period/year	2,079	(8,429)	(9,040)

A deferred tax asset of £23.4 million (30 June 2025: £23.1 million, 31 December 2025: £20.6 million) has been recognised in respect of tax losses and other temporary differences where the Directors believe that it is probable that these assets will be recovered based on estimated taxable profit forecasts.

Corporation tax receivable of £0.8 million (30 June 2025: corporation tax payable of £2.6 million, 31 December 2025: corporation tax receivable of £1.3 million) has been recognised in respect of the EPL. Tax refund received in the period was £0.1 million (30 June 2025: tax paid of £1.0 million, 31 December 2025: tax paid of £2.8 million).

The Group has gross total tax losses and similar attributes carried forward of £360.0 million (30 June 2025: £367.6 million, 31 December 2025: £370.7 million). Deferred tax assets have been recognised in respect of tax losses and other deductible temporary differences where the Directors believe it is probable that these assets will be recovered based on a five-year profit forecast or to the extent that there is offsetting deferred tax liabilities. Such recognised tax losses include £94.1 million (30 June 2025: £75.0 million, 31 December 2025: £89.5 million) of ringfence corporation tax losses which will be recovered at 30% of future taxable profits, £71.9 million (30 June 2025: £63.0 million, 31 December 2025: £69.3 million) of supplementary charge tax losses which will be recovered at 10% of future taxable profits, £nil (30 June 2025: £3.5 million, 31 December 2025: £2.2 million) of losses arising under the EPL regime which will be recovered at 38% of future taxable profits and £1.1 million (30 June 2025: £3.2 million, 31 December 2025: £1.1 million) of non-ringfence corporation tax losses which will be recovered at 25% of future taxable profits. In addition, the Group recognises £29.4 million (30 June 2025: £24.2 million, 31 December 2025: £28.3 million) of activated investment allowance, which will be recovered at 10% of future taxable profits.

The Group does not recognise £163.5 million (30 June 2025: £174.1 million, 31 December 2025: £169.6 million) of ringfence corporation tax losses, £97.0 million (30 June 2025: £100.4 million, 31 December 2025: £102.7 million) of supplementary charge tax losses and £101.5 million (30 June 2025: £106.5 million, 31 December 2025: £102.5 million) of non-ringfence corporation tax losses due to insufficient forecast future taxable profits or offsetting deferred tax liabilities. Additionally, the Group does not recognise £7.7 million (30 June 2025: £7.7 million, 31 December 2025: £7.7 million) of investment allowance and £44.6 million (30 June 2025: £18.1 million, 31 December 2025: £45.2 million) of future deductible temporary differences (which would create a deduction at 40% of future taxable profits) relating to our decommissioning provision for the same reasons. The tax losses of the Group generated in the UK can be carried forward indefinitely.

7 Earnings per share (EPS)

Basic EPS amounts (from continuing operations) are based on the profit for the period after taxation from continuing operations attributable to the ordinary equity holders of the Parent Company of £2.7 million and the weighted average number of ordinary shares outstanding during the period of 145.4 million. Basic EPS amounts (including discontinued operations) are based on the profit for the period after taxation attributable to the ordinary equity holders of the Parent Company of £2.5 million and the weighted average number of ordinary shares outstanding during the period of 145.4 million

Diluted EPS amounts are based on the profit for the period after taxation attributable to the ordinary equity holders of the Parent Company and the weighted average number of ordinary shares outstanding during the period plus the weighted average number of ordinary shares that would be issued on the conversion of all the potentially dilutive ordinary shares into ordinary shares, except where these are anti-dilutive. As at 30 June 2026, there are 4.2 million potentially dilutive employee share options.

8 Intangible assets


	Exploration and evaluation assets £'000	Development costs £'000	Goodwill £'000	Total £'000
At 1 January 2025 (audited)	3,969	2,626	1,141	7,736
Additions	59	-	-	59
Exchange differences	-	88	42	130
Impairment	(26)	-	-	(26)
At 30 June 2025 (unaudited)	4,002	2,714	1,183	7,899
Additions	107	-	-	107
Exchange differences	-	49	(2)	47
Impairment	-	(495)	(454)	(949)
At 31 December 2025 (audited)	4,109	2,268	727	7,104
Additions	13	-	-	13
Exchange differences	-	(28)	15	(13)
Transfer to assets held for sale (note 13)	-	(2,054)	(742)	(2,796)
At 30 June 2026 (unaudited)	4,122	186	-	4,308

Exploration and evaluation assets

The Group has £4.1 million (30 June 2025: £4.0 million, 31 December 2025: £4.1 million) of capitalised exploration expenditure which relates to our conventional assets including PL 240. Management has assessed the capitalised exploration expenditure for indications of impairment under IFRS 6 Exploration for and Evaluation of Mineral Resources and did not identify any factors indicating a need to perform detailed impairment testing.

Development costs

These represent costs allocated to the UK geothermal business CGU primarily relating to the design and development of a deep geothermal heat project in Manchester, United Kingdom which was recognised as part of the acquisition of GT Energy UK Limited in 2020.

9 Property, plant and equipment

	Unaudited at 30 June 2026 £'000			Unaudited at 30 June 2025 £'000			Audited at 31 December 2025 £'000
	Oil and gas assets	Other property, plant and equipment	Total	Oil and gas assets	Other property, plant and equipment	Total	Oil and gas assets	Other property, plant and equipment	Total
Cost
At 1 January	230,322	1,534	231,856	228,879	1,709	230,588	228,879	1,709	230,588
Additions	2,023	-	2,023	1,959	-	1,959	5,783	26	5,809
Disposals/write offs	(112)	(21)	(133)	(5,335)	(83)	(5,418)	(5,332)	(201)	(5,533)
Transfer to assets held for sale (note 13)	-	(41)	(41)	-	-	-	-	-	-
Changes in decommissioning	497	-	497	(336)	-	(336)	992	-	992
At 30 June/31 December	232,730	1,472	234,202	225,167	1,626	226,793	230,322	1,534	231,856
Accumulated depreciation, depletion and impairment
At 1 January	161,707	572	162,279	159,297	634	159,931	159,297	634	159,931
Charge for the period/ year	2,212	-	2,212	3,010	18	3,028	6,075	35	6,110
Transfer to assets held for sale (note 13)	-	(17)	(17)	-	-	-	-	-	-
Disposals/write offs	(112)	(21)	(133)	(3,550)	(18)	(3,568)	(3,665)	(97)	(3,762)
At 30 June/ 31 December	163,807	534	164,341	158,757	634	159,391	161,707	572	162,279
Net book value at 30 June/31 December	68,923	938	69,861	66,410	992	67,402	68,615	962	69,577

Impairment of Oil and Gas Assets

The Group reviewed the carrying value of oil and gas assets as at 30 June 2026 and assessed it for impairment and impairment reversal indicators. No factors that would have a material impact on the carrying value of the assets since the last balance sheet date were identified. Management has therefore concluded that there were no impairment or impairment reversal indicators at 30 June 2026.

10 Financial Instruments - fair value disclosure

The Group uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:

● Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities;

● Level 2: other valuation techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly; and

● Level 3: valuation techniques which use inputs which have a significant effect on the recorded fair value that are not based on observable market data.

There are no non-recurring fair value measurements nor have there been any transfers between levels of the fair value hierarchy.

Financial assets and liabilities measured at fair value

	Level	Unaudited at 30 June 2026 £'000	Unaudited at 30 June 2025 £'000	Audited at 31 December 2025 £'000
Financial assets:
Derivative financial instruments	2	-	1,197	703
At 30 June/31 December		-	1,197	703

	Level	Unaudited at 30 June 2026 £'000	Unaudited at 30 June 2025 £'000	Audited at 31 December 2025 £'000
Financial liabilities:
Derivative financial instruments	2	(479)	-	-
At 30 June/31 December		(479)	-	-

Fair value of derivative financial instruments

Oil price hedges

The fair values of the oil price hedges were provided by the hedge counterparty. The hedges consist of Asian style put and call options and fixed price swaps to sell oil. The swaps are valued by comparing the fixed prices of the trades with prevailing market forward prices (or end of day prices) and the difference multiplied by the traded volumes. The three-way put and call options are valued based on the excess/deficit of the forward price compared to the call/put strike price for each strip multiplied by the traded volumes. These results are discounted to provide a fair value.

Fair value of other financial assets and financial liabilities

The fair values of all other financial assets and financial liabilities are considered to be materially equivalent to their carrying values.

11 Cash and cash equivalents and other financial assets

	Unaudited at 30 June 2026 £000	Unaudited at 30 June 2025 £000	Audited at 31 December 2025 £000
Cash and cash equivalents	15,675	4,277	7,609
Borrowings - including capitalised fees	(10,799)	(6,490)	(11,487)
Net cash/(debt)	4,876	(2,213)	(3,878)
Capitalised fees	(326)	(458)	(397)
Net cash/(debt) excluding capitalised fees at 30 June/31 December	4,550	(2,671)	(4,275)

Net cash/(debt) reconciliation

	Cash and cash equivalents £000	Borrowings £000	Total £000
At 1 January 2025 (audited)	4,708	(11,734)	(7,026)
Interest paid on borrowings	(694)	-	(694)
Repayment of finance facility	(5,631)	5,631	-
Foreign exchange adjustments	(636)	(322)	(958)
Other cash flows	6,530	-	6,530
Other non-cash movements	-	(65)	(65)
At 30 June 2025 (unaudited)	4,277	(6,490)	(2,213)
Interest paid on borrowings	(443)	-	(443)
Drawdown on finance facility	4,801	(4,801)	-
Foreign exchange adjustments	45	(123)	(78)
Other cash flows	(1,071)	-	(1,071)
Other non-cash movements	-	(73)	(73)
At 31 December 2025 (audited)	7,609	(11,487)	(3,878)
Interest paid on borrowings	(754)	-	(754)
Repayment of finance facility	(1,964)	1,964	-
Foreign exchange adjustments	78	142	220
Cash received from hire purchase finance	1,440	(1,440)	-
Repayment of hire purchase liabilities	(85)	85	-
Other cash flows	9,351	-	9,351
Other non-cash movements	-	(63)	(63)
At 30 June 2026 (unaudited)	15,675	(10,799)	4,876

Borrowings

The carrying amounts of each of the Group's financial liabilities included within borrowings are considered to be a reasonable approximation of their fair value.

On 9 April 2024, the Group secured a €25.0 million finance facility with Kommunalkredit Austria AG ("Kommunalkredit") comprising a facility A to fund the repayment of the outstanding balance on the previous reserves based loan (RBL) facility and a facility B to provide funding for the Group's geothermal development activities. Facility A carried a fixed interest rate of 9.4% and was fully repaid on 30 June 2025 in line with its contractual maturity. Facility B carries an interest rate of Euribor + 6%. Following an amendment in July 2025, the drawdown period was extended to 31 December 2025, and the drawn balance is repayable in 6 equal half-yearly instalments commencing on 30 June 2026.

The Group is subject to the following financial covenants under the facility agreement, to be calculated and tested for compliance at 30 June and 31 December for each year of the agreement, in addition to when drawdowns are made, or as otherwise required by the facility agreement:

· Loan Life Cover Ratio ("LLCR") of greater than or equal to 1.25:1.

· Net Debt to Earnings before Interest, Tax, Depreciation, Amortisation, and Exceptional items ("EBITDAX") ratio of less than or equal to 2.00:1.

· Current ratio of the Group as defined in the facility agreement of greater than or equal to 1.00:1.

· Debt Service Cover Ratio ("DSCR") of greater than or equal to 1.10:1, for both projected and historic figures.

· Proved and developed reserves value to Net Debt ratio of greater than or equal to 2.50:1.

The Group complied with all the covenants applicable during the period and at the balance sheet date.

On 8 January 2026, the Group entered into a hire purchase agreement with a financial institution to finance two generators procured for the Singleton project. The finance amount of £1.4 million is repayable over 5 years in fixed monthly instalments, carries an effective interest rate of 9.4% and is secured against the financed assets.

Collateral against borrowing

A security agreement was executed between Apex Corporate Trustees (UK) Limited (as security agent for Kommunalkredit Austria AG) ("Apex"), Star Energy Group plc and certain subsidiaries, namely; IGas Energy Limited, Star Energy Limited, IGas Energy Enterprise Limited, Island Gas (Singleton) Limited, Island Gas Limited, Dart Energy (East England) Limited, Dart Energy (West England) Limited, IGas Energy Development Limited, IGas Energy Production Limited, Dart Energy (Europe) Limited and GT Energy UK Limited (as chargors) dated 9 April 2024 ("Star Energy Debenture"). On the same date, Scottish bonds and floating charges were executed between Apex (as security agent) and Dart Energy (Europe) Limited and IGas Energy Production Limited (Star Energy Group companies, as "Scottish Chargors") ("Scottish BFCs"). A further security agreement was executed between GT Energy Croatia Limited (a Star Energy Group company, as chargor) and Apex (as security agent) dated 26 April 2024 ("GT Debenture").

Under the terms of the Star Energy Debenture and GT Debenture, Apex has fixed charges over certain real property (freehold and/or leasehold property), petroleum licences, all pipelines, plant, machinery, vehicles, fixtures, fittings, computers, office and other equipment and chattels and all related property rights, shares of certain subsidiaries as well as the assigned agreements and rights and all related property rights and first floating charges over property, assets, rights and revenues (other than those charged or assigned pursuant to the aforementioned fixed charges). Under the terms of the Scottish BFCs, Apex has a first floating charge over all of the assets of the Scottish Chargors.

12 Provisions

	Unaudited at 30 June 2026 £'000			Unaudited at 30 June 2025 £'000			Audited at 31 December 2025 £'000
	Decommis-sioning provisions	Contingent consideration	Total	Decommis- sioning provisions	Contingent consideration	Total	Decommis- sioning provisions	Contingent consideration	Total
At 1 January	(64,088)	-	(64,088)	(60,890)	(480)	(61,370)	(60,890)	(480)	(61,370)
Utilisation of provision	415	-	415	347	-	347	433	-	433
Unwinding of discount	(1,349)	-	(1,349)	(1,309)	-	(1,309)	(2,655)	-	(2,655)
Foreign exchange adjustments	6	-	6	(13)	-	(13)	(23)	-	(23)
Reassessment of decommissioning provision	(493)	-	(493)	310	-	310	(953)	-	(953)
Transfer to liabilities associated with assets held for sale (note 13)	430	-	430	-	-	-	-	-	-
Change in fair value of contingent consideration	-	-	-	-	480	480	-	480	480
At 30 June/31 December	(65,079)	-	(65,079)	(61,555)	-	(61,555)	(64,088)	-	(64,088)

	Unaudited at 30 June 2026 £'000			Unaudited at 30 June 2025 £'000			Audited at 31 December 2025 £'000
	Decommis-sioning provisions	Contingent consideration	Total	Decommis- sioning provisions	Contingent consideration	Total	Decommis- sioning provisions	Contingent consideration	Total
Current	(950)	-	(950)	(826)	-	(826)	(1,429)	-	(1,429)
Non-current	(64,129)	-	(64,129)	(60,729)	-	(60,729)	(62,659)	-	(62,659)
At 30 June/ 31 December	(65,079)	-	(65,079)	(61,555)	-	(61,555)	(64,088)	-	(64,088)

Decommissioning provision

The Group spent £0.4 million on decommissioning activities during the period (six months ended 30 June 2025: £0.3 million; year ended 31 December 2025: £0.4 million).

Provision has been made for the discounted future cost of abandoning wells and restoring sites to a condition acceptable to the relevant authorities. This is expected to take place between 1 to 31 years from period end (30 June 2025: 1 to 30 years; 31 December 2025: 1 to 32 years). The provisions are based on the Group's internal estimate as at 30 June 2026. Assumptions are based on our cumulative experience from decommissioning wells which management believes is a reasonable basis upon which to estimate the future liability. The estimates are based on a planned programme of abandonments but also include a provision to be spent between 2026-2030 on preparing for the abandonment campaign and for abandoning wells and restoring sites which for regulatory, integrity or other reasons fall outside the planned campaign. The estimates are reviewed regularly to take account of any material changes to the assumptions. Actual decommissioning costs will ultimately depend upon future costs for decommissioning which will reflect market conditions and regulations at that time. Furthermore, the timing of decommissioning is uncertain and is likely to depend on when the fields cease to produce at economically viable rates. This, in turn, will depend on factors such as future oil prices, which are inherently uncertain.

The Group applies an inflation adjustment to the current cost estimates and discounts the resulting cash flows using a risk-free discount rate. The provision estimate reflects a higher inflation percentage in the range of 2.5% - 3.5% in the near term for the period 2026 - 2027 and incorporates the long-term UK target inflation rate of 2% for the years 2028 and beyond.

A risk free rate range of 3.0% to 6.8% is used in the calculation of the provision as at 30 June 2026 (30 June 2025: risk free rate range of 3.0% to 6.7%; 31 December 2025: risk free rate range of 3.0% to 6.5%).

Management performed sensitivity analysis to assess the impact of changes to the risk free rate on the Group's decommissioning provision balance. A 0.5% decrease in the risk free rate assumption would result in an increase in the decommissioning provision by £4.6 million. Management also performed sensitivity analysis to assess the impact of changes to the undiscounted future cost of abandoning wells and restoring sites on the Group's decommissioning provision balance. A 10% increase in the undiscounted future cost would result in an increase in the decommissioning provision by £6.7 million.

13 Discontinued operations

In April 2026, the Group signed an agreement for the sale of its Croatian geothermal subsidiary, IGeoPen to Enna Geo d.o.o. IGeoPen holds the Ernestinovo, Sječe and Pčelić geothermal exploration licences in Croatia. The consideration for the sale, which is expected to complete by the end of October 2026, includes €1.5 million (£1.3 million) payable on completion (€1.3 million (£1.1 million) net to Star Energy in accordance with the A14 Energy Limited shareholder agreements) and a financial earn out of €0.5 million (£0.4 million) per licence on commencement of operations.

Management concluded that IGeoPen represents a separate major geographical area of operations and therefore meets the definition of a discontinued operation under IFRS 5. Accordingly, the Group's Croatian operations, which form part of its geothermal segment, have been presented as discontinued operations in these financial statements and the comparative amounts have been re-presented to show the discontinued operations separately from the continuing operations. The assets and liabilities of the Croatian operations subject to sale, are presented separately as a disposal group held for sale. The carrying value of the disposal group approximates its fair value less costs to sell, determined based on the estimated proceeds from the sale of IGeoPen, hence no impairment has been recognised in these financial statements.

Results of discontinued operations

	Unaudited 6 months ended 30 June 2026 £000	Unaudited 6 months ended 30 June 2025 £000	Audited 12 months ended 31 December 2025 £000
Administrative expenses	(159)	(301)	(513)
Research and non-capitalised development costs	18	(76)	(138)
Impairment of development costs	-	-	(495)
Impairment of goodwill	-	-	(454)
Operating loss	(141)	(377)	(1,600)
Finance (cost)/income	(210)	223	266
Loss before tax	(351)	(154)	(1,334)
Income tax	-	-	89
Loss from discontinued operations	(351)	(154)	(1,245)
Loss per share attributable to equity shareholders from discontinued operations:
Basic loss per share	(0.11p)	(0.01p)	(0.55p)
Diluted loss per share	(0.11p)	(0.01p)	(0.55p)

Foreign exchange differences on translation of discontinued operations	118	(181)	(294)

Cash flows used in discontinued operations

	Unaudited 6 months ended 30 June 2026 £000	Unaudited 6 months ended 30 June 2025 £000	Audited 12 months ended 31 December 2025 £000
Net cash used in operating activities	(146)	(658)	(850)
Net cash used in investing activities	-	-	(25)
Net cash used in financing activities	(92)	(8)	(81)

Assets and liabilities of the disposal group held for sale

	Unaudited at 30 June 2026 £'000
Goodwill (note 8)	742
Development costs (note 8)	2,054
Property, plant and equipment (note 9)	24
Right-of-use assets	53
Trade and other receivables	283
Assets held for sale	3,156
Trade and other payables	(13)
Lease liabilities	(66)
Decommissioning provision (note 12)	(430)
Deferred tax liability	(370)
Liabilities directly associated with assets held for sale	(879)

Cumulative expense of £0.03 million comprising foreign exchange differences on translation of foreign operations are included in other comprehensive income (OCI) relating to the disposal group. The determination of the fair value less costs of sale of the disposal group held for sale is categorised as a level 3 fair value based on the inputs to the valuation technique used.

14 Share capital

	Ordinary shares		Deferred shares		Share capital	Share premium
	No.	Nominal value £000	No.	Nominal value £000	Nominal value £000	Value £000
Issued and fully paid
At 1 January 2025 (audited)	130,196,808	3	303,305,534	30,331	30,334	103,248
SIP share issue- partnership	194,501	-	-	-	-	14
SIP share issue - matching	228,768	-	-	-	-	16
At 30 June 2025 (unaudited)	130,620,077	3	303,305,534	30,331	30,334	103,278
SIP share issue - partnership	187,584	-	-	-	-	13
SIP share issue - matching	92,584	-	-	-	-	7
Shares issued in respect of MRP exercises	40,361	-	-	-	-	-
At 31 December 2025 (audited)	130,940,606	3	303,305,534	30,331	30,334	103,298
SIP share issue - partnership	147,812	-	-	-	-	12
SIP share issue - matching	145,312	-	-	-	-	12
Shares issued in respect of MRP exercises	1,245,063	-	-	-	-	-
Shares issued in respect of EIP exercises	22,576	-	-	-	-	-
Shares issued during the period	60,531,015	1	-	-	1	9,079
Transaction costs relating to issue of shares	-	-	-	-	-	(575)
At 30 June 2026 (unaudited)	193,032,384	4	303,305,534	30,331	30,335	111,826

On 1 May 2026, the Company completed a conditional placing of 56,716,664 Placing Shares of 0.002 pence each to new and existing investors and 206,665 Subscription Shares of 0.002 pence each to the Directors of the Company. On 7 May 2026, the Company completed issuance of 3,607,686 Retail Offer Shares of 0.002 pence each to its retail shareholders. The issue price for the placing, subscription and retail offer was 15 pence resulting in cash proceeds of £9.1 million. Transaction costs directly attributed to issue of shares of £0.6 million was incurred and accounted for as a deduction from share premium.

15 Operating Segments

An operating segment is a component of the Group that engages in a business activity from which it may earn revenues and incur expenses, including revenues and expenses that relate to transactions with any of the Group's other components. All operating segments operating results are reviewed regularly to make decisions about resources to be allocated to the Segment and to assess its performance by the Chief Operating Decision Maker, which for the Group is the Board of Directors. Segment results include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. Unallocated items comprise mainly corporate assets and head office expenses.

							Unaudited at 30 June 2026
				Oil and gas segment £'000		Geothermal segment £'000		Unallocated £'000		Total £'000
External revenues				23,045		179		-		23,224
Cost of sales				(13,142)		(151)		-		(13,293)
Gross profit				9,903		28		-		9,931
Administrative expenses				(1,415)		(439)		(387)		(2,241)
Research and non-capitalised development costs				-		(188)		-		(188)
Loss on derivative financial instruments				(4,957)		-		-		(4,957)
Segment operating profit/(loss)				3,531		(599)		(387)		2,545
Finance costs										(1,912)
Profit before income tax										633
Total assets at 30 June				126,750		7,884		-		134,634
Total liabilities at 30 June				(81,219)		(7,372)		(249)		(88,840)
	Unaudited at 30 June 2025 Restated				Audited at 31 December 2025 Restated
	Oil and gas segment £'000	Geothermal segment £'000	Unallo-cated £'000	Total £'000	Oil and gas segment £'000		Geothermal segment £'000		Unallo-cated £'000		Total £'000
External revenues	18,297	-	-	18,297	34,721		-		-		34,721
Cost of sales	(14,378)	-	-	(14,378)	(28,925)		-		-		(28,925)
Gross profit	3,919	-	-	3,919	5,796		-		-		5,796
Administrative expenses	(1,643)	(360)	(239)	(2,242)	(2,822)		(947)		(626)		(4,395)
Research and non-capitalised development costs	-	(227)	-	(227)	-		(597)		-		(597)
Impairment of exploration and evaluation assets	(26)	-	-	(26)	(26)		-		-		(26)
Gain on derivative financial instruments	1,333	-	-	1,333	1,847		-		-		1,847
Other income	4,540	-	-	4,540	4,540		22		-		4,562
Segment operating profit/(loss)	8,123	(587)	(239)	7,297	9,335		(1,522)		(626)		7,187
Finance costs				(3,263)							(5,217)
Change in fair value of contingent consideration				480							480
Profit before income tax				4,514							2,450
Total assets at 30 June/31 December 2025	112,866	8,246	-	121,112	116,096		8,069		-		124,165
Total liabilities at 30 June/31 December 2025	(74,966)	(7,482)	(166)	(82,614)	(80,161)		(8,829)		(396)		(89,386)

The Group has two geographical areas of operation being the UK and Croatia. All Group revenues are derived in the UK. There is a total of £nil (30 June 2025: £8.1 million; 31 December 2025: £7.0 million) of non-current assets relating to operations in Croatia, with the remainder of the Group's non-current assets relating to operations in the UK.

Glossary

£ The lawful currency of the United Kingdom

$/USD The lawful currency of the United States of America

€ The lawful currency of the European Union

1P Low estimate of commercially recoverable reserves

2P Best estimate of commercially recoverable reserves

3P High estimate of commercially recoverable reserves

1C Low estimate or low case of Contingent Recoverable Resource quantity

2C Best estimate or mid case of Contingent Recoverable Resource quantity

3C High estimate or high case of Contingent Recoverable Resource quantity

AIM AIM market of the London Stock Exchange

Bbl(s)/d Barrel(s) of oil per day

Bcf billions of standard cubic feet of gas

boepd Barrels of oil equivalent per day

bopd Barrels of oil per day

Contingent Recoverable Resource - Contingent Recoverable Resource estimates are prepared in accordance with the Petroleum Resources Management System (PRMS), an industry recognised standard. A Contingent Recoverable Resource is defined as discovered potentially recoverable quantities of hydrocarbons where there is no current certainty that it will be commercially viable to produce any portion of the contingent resources evaluated. Contingent Recoverable Resources are further divided into three status groups: marginal, sub‑marginal, and undetermined. Star Energy Group plc's Contingent Recoverable Resources all fall into the undetermined group. Undetermined is the status group where it is considered premature to clearly define the ultimate chance of commerciality.

GIIP Gas initially in place

m Million

Mbbl Thousands of barrels

MMboe Millions of barrels of oil equivalent

MMscfd Millions of standard cubic feet per day

PEDL United Kingdom petroleum exploration and development licence

PL Production licence

Tcf Trillions of standard cubic feet of gas

UK United Kingdom

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