October 4 (SeeNews) - UK-based Star Energy Group said on Wednesday that its Croatian subsidiary A14 Energy has been awarded two geothermal licences by the Croatian Hydrocarbon Agency, as part of an ongoing licencing round.
These licences, named Sjece and Pcelic, cover an area of 32 sq km each and have an initial exploration term of five years. They are located in northern Croatia within the Drava depression geological region, which is part of the southwestern area of the Pannonian basin, according to Star Energy's press release.
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The licensing commitments entail drilling four wells for one licence and three wells for the other. However, considering the density of existing data for these licences, it is expected that only the first well on each licence will serve as an exploration/appraisal well.
The preliminary assessment of the Sjece license indicates the feasibility of a 15-25MWe (one million watts of electric capacity) power plant, boasting an attractive Net Present Value (NPV) and Internal Rate of Return (IRR) in the high teens. This assessment is based on nine exploration wells that have been drilled, leading to the identification of up to three distinct hot water reservoirs.
Similarly, the initial appraisal of the Pcelic license suggests the feasibility of a 20-30MWe power plant, with NPV and IRR metrics comparable to those of Sjece.
Star Energy Group announced in August it acquired 51% of the issued share capital of A14 Energy Limited, which indirectly also owns the Ernestinovo geothermal waters exploration licence. The two new licences are in the same region in which its Ernestinovo licence is located.
"Now with a portfolio of three licences, including Ernestinovo, we have demonstrated that our Croatian joint venture is well positioned to be a key player in delivering geothermal energy in Croatia in line with the local government's targets. We have already commenced with preparing the site for our first well re-entry on Ernestinovo and look forward to commencing work on these two licences," Star Energy CEO Chris Hopkinson said.