Shares in Star Energy Group PLC rose by more than 8% on Wednesday morning after it announced that its Croatian-based geothermal joint venture had been granted two new licences.
Star’s 51%-owned joint venture, A14 Energy, has been granted approval to drill four and three wells respectively at the Sječe and Pčelić licences in Croatia, a statement read.
However, given extensive work carried out already, Star said that only one well was likely necessary at each, with existing data already showing feasibility for geothermal power stations at both.
"Activating geothermal potential is a significant step towards increasing energy production on Croatian soil,” the country’s sustainable development minister Davor Filipović said.
A14 now operates three licences in Croatia, with preliminary work having begun at Sječe and Pčelić.
“We have demonstrated that our Croatian joint venture is well positioned to be a key player in delivering geothermal energy,” Star chief executive Chris Hopkinson added.
Shares jumped 8.3% to 12p.