I put a small amount into STAR because north sea gas is in decline & the Zebrugge to Bacton import pipeline may not be able to cope with peak demand.

So I started looking around for companies in the gas storeage business & I found STAR.

I bought them expecting them to gradually rise but they haven't moved so far.

The Humbly Grove storeage project is on budget and on schedule to start commercial operations in October 2005

The next storeage project is in Lincolnshire.

They are also pumping oil from small UK wells so the current OIL price is great for profits.

I don't buy many AIM shares but this one is an exception.

telegraph Link

BP abandons small firms to concentrate on bigger picture

By Tessa Thorniley, Telegraph (Filed: 11/10/2004)

BP has decided to pull out of supplying small British manufacturers with industrial gas as thousands of businesses are being hit with a near-doubling of energy bills.

Amid alarming volatility in the gas markets, the oil and gas major is withdrawing supplies for some firms to focus on wholesale markets and large industrial customers. A BP spokesman said: "We will not be renewing contracts for some industrial and commercial customers on our metered system as the agreements expire over the next six to 12 months."


The news will be a blow to thousands of companies that have delayed signing contracts with energy suppliers this year amid soaring gas and electricity prices. "The fewer players you have in the market, the more product margins are likely to rise," Mike Coulten of the Energy Information Centre said.

Gas prices have soared over the past 18 months as North Sea reserves have declined and Britain relies increasingly on gas flowing from the Continent. The prospect of a 50pc to 60pc increase in energy prices has led to thousands of businesses waiting to sign contracts in the hope that the surge would be short-lived.

Roger Handley, who runs Handley Printers, a jigsaw manufacturing and printing company in Stockport, said he is facing "a financial crisis" after waiting since August to renegotiate a contract with German utility E.on, owner of Powergen.

He said: "We heat the factory with gas as it needs to be temperature controlled for the printing work. Over the past few months I have been offered three gas contracts showing price increases of up to 58pc. After accepting each offer it was withdrawn shortly after because prices were moving so quickly. I've now accepted a 90pc increase, taking my bill to 44,000 compared with 23,000 last year.

"There are only two major companies that manufacture jigsaws in the UK and at this rate there will only be one," Mr Handley said.

Far from falling back, wholesale gas prices are at "absolutely crazy levels", analysts at John Hall Associates warn. The energy consultancy said the outlook is bleak with little relief from volatility and high prices expected over the next two years.

Ratings agency Fitch echoed the comments in a recent report, predicting greater price volatility in coming years and "limited price relief until 2007 to 2008" when new liquefied natural gas terminals and pipeline capacity comes online. Mr Handley said: "I've contacted brokers but all the suppliers are in the same boat. No one could offer me a better deal."

Ofgem and the European Commission are currently investigating whether trading through the sub-sea pipeline connecting Bacton in Norfolk to Zeebrugge in Belgium has been manipulated, with imports of cheaper Continental gas being withheld to force UK gas prices higher.

The watchdog wants to know why European companies opted to store gas rather than take advantage of higher prices to sell on to the European market. Britain's liberalised competitive trading arrangements are in stark contrast to the rigid European markets dominated by former monopolies. This is an increasing source of friction.

Mr Coulten said: "It's disgraceful. There's plenty of gas in Europe, it's a case of the EU's former nationalised energy groups over-contracting to protect themselves from competition. It also looks as though British gas producers have been sitting on their hands."

High risk during construction phase, but like the strategy and have locked a few away at 182p.

There appears to be something happening!!!!!!!!!!

Apple -Delayed reaction to your post 21st Oct - perhaps to do with Artemis stake revealed yesterday?

Nice rise.

partridge
I saw even more activity a few days ago & now we know who some of it was.

Yep, I'm in here. One look at the chart and I couldn't say no!

More buying today.

I certainly rate the Artemis Smaller caps fund - these guys seem to know a good thing when they see it. LNG is talking over from oil - the next big thing. With patience this could be huge.

rgrds
gk

STAR should start moving soon as what it does sinks in with investors. The buzz surrounding imports of LNG is enormous and this will eventually spill over into STAR - see the thread on Hamworthy (HMY) ,makers of LNG handling equipment, for some interesting reading.

Hamworthy Thread Link

I've just visited the STAR website and note that Artemis Investment Managers have a material holding, but I'm not sure if there is a suggestion that Artemis UK Smaller Companies have a stake in this company or not. Please could somebody add clarity as to which Artemis funds hold Star? Thanks

there has been a rush of announcements (Exxon, Shell and Total) in the last few days about big LNG contracts to bring the gas into the UK and Continent. Soon somebody will wake up to the fact the the next few years is going to bring a massive demand for storage facilities. This can only play into the hands of STAR.

Why was there such a static share price after the IPO last year.This is a difficult one,how to calculate where the sp should go to.Help please.

ethel

don't really know - the IPO was pretty low key and there has been limited newsflow. I also think that STAR is being looked at as a small oil company and its potential for storage is being overlooked. I don't try and calculate anything about a company as young as this. I look at what they have got to offer and is it (or will it be) needed. IMOH the answer has got to be yes. If you invest in STAR at the moment its got to be pretty much a gut feeling. As always DYOR .

I feel sure that this one will happen but not yet. If you can afford to have your money dormant for several months, then go for it. When all the LNG comes on line it's got to be stored somewhere. But the word is WHEN. But you know the old saying "The early bird" ect. I'll be watching and will invest but I can get a return on my money now without having to wait for things to come on line.

LOL

MS

Been some chunky deals this afternoon, which has seen the share price move up a couple of notches........perhaps something is stirring in the City.

Check out the HMY thread. Lots of info regarding massive world wide investments in LNG. Storage, ships etc.

MS

Thanks for your advice.I shall probably wait and see.Ethel

LNG is one of the fastest-growing segments of the global energy business, as markets such as the US and Britain start to run out of domestic natural gas supplies.

Super-cooling the gas into a liquid allows it to be shipped on tankers, like oil, eliminating the need to build expensive pipelines across unstable parts of the world.

James Boxell The FT March 1 2005

.......................................

It looks like this share will start to move soon.

It ticked up a little bit today.

nearly two million shares trades including two big sells. clearing a stock overhang maybe? be interesting to see the volume next week

Are you still holding these Apple,or did you get bored.First news in weeks,that UBS own 4.25%,hardly touched STAR.Only 10,500 shares sold today.Are we going to sit on these till results on April 18???

ethel

that is just what i am going to do. As i've said before i think the story for star is only just beginning. the whole lng story is really starting to make the news.

I'm still in, I got in at the bottom.

I'm confident about STAR but I can't guess the timing.

Lookin good today.

slowly but surely, daily volumes are picking up. This stock is starting to show up on some radar screens.

UP a bit again!

:-)

UP a bit further,

Perhaps we are on our way.

Every single transaction today was a buy.

We have lift off!

So far today anyway.

UP again :-)

Still gradually going UP!

STAR has retraced a bit but so has most of the market.

No volume so far today.

Results for 2004 due out on Monday. Expect a loss but should give an update on the storage projects currently underway.

Results in line with expectations. Humbly Grove expected to come on line in October with the storage already pre-let to traders.

Star Energy Group plc Significant Shareholders at March 17th 2005

European Acquisition Capital 19.96%

Artemis Investment Management 18.34%

Fidelity Investments 9.74%

Vitol Holding S.a.r.l. 9.48%

Lansdowne Partners 6.94%

Tudor Capital (UK) 5.69%

UBS Warburg (MM) 4.32%

Invesco Perpetual Asset Mgt. 4.16%

Och-Ziff Management Europe Limited 3.79%


Some big names have taken a share in STAR and I am going to add to my holding.

Good to see these edging upward again after a long quiet spell.

Hopefully we'll see a steady rise in sp as we near the opening date of the new gas storage site (which I believe is still on schedule for October, unless anyone knows any different?)

got a few of these...

chart looks reasonably positive, oil and gas stocks moving up, may have another nibble soon...

Showing signs of life today.

I wonder why?

AGM statement just released.

Humbly Grove gas storage facility is on schedule, which is good news.


Star Energy Group PLC
24 June 2005

Star Energy Group plc

AGM Statement

At today's Annual General Meeting Stephen Gutteridge, Chairman, gave the
following update:

Humbly Grove

Construction of the Humbly Grove gas storage facility is progressing well and
remains on budget and on schedule for commercial operations in October of this
year. The 27 km pipeline from Humbly Grove to Barton Stacey, where it links to
Transco's National Transmission System, has been installed and tested. Drilling
of the four gas storage wells has been completed, although this took longer than
anticipated. The summer months will see a period of intense activity centred on
the hook up of the major plant and equipment at the site.

Other Gas Storage Projects

The company is continuing to make progress in accelerating the Albury and
Bletchingley gas production and storage projects. Drilling permitting is
underway for both sites as is the preparatory work required for the storage
permitting application.

The planning application for the Welton gas storage project remains to be
assessed by Lincolnshire County Council. The Company's latest information is
that the date for assessment is July 2005 although the date has been the subject
of continued postponement since the application was lodged in November 2003.

Interim Production and Profitability

Production in the first five months of 2005 has averaged approximately 3100
boepd. This is lower than expected caused by a combination of well down-time and
production disruptions caused by the extended drilling activities at Humbly
Grove. This has also affected the production of gas that the company converts
into electricity for export and consequently electricity sales are lower than
budget.

The impact of this on our first half performance has been offset to some extent
by higher oil prices and a reduced proportion of hedged production since the end
of March 2005.

Outlook

The Company remains fully focussed on bringing the Humbly Grove gas storage
project on stream in October. The UK summer / winter gas price spreads remain
strong for the next few years, underpinning the value of the project and our
strategy for further gas storage development. Having completed our first year as
a listed Company, the Board is able to look to the future with confidence.

Resolutions passed

Star is pleased to announce that all the resolutions proposed in the notice of
the meeting were duly passed.

24 June 2005

Enquiries:

Star Energy 020 7730 6663
Roland Wessel, Chief Executive

College Hill 020 7457 2020
Jim Joseph/Ben Brewerton



This information is provided by RNS
The company news service from the London Stock Exchange

Star Energy Group PLC
13 July 2005



NOT FOR DISTRIBUTION OR TRANSMISSION, DIRECTLY OR INDIRECTLY, IN OR INTO THE
UNITED STATES, CANADA, AUSTRALIA, JAPAN OR THE REPUBLIC OF IRELAND



STAR ENERGY GROUP PLC



PROPOSED ACQUISITION OF PENTEX MANAGEMENT LIMITED

AND

35.0 MILLION PLACING





Star Energy Group plc ('Star Energy' or the 'Company'), the UK based energy
company, announces the proposed acquisition of Pentex Management Limited
('Pentex') and a Placing.



Key points



Proposed Acquisition

Pentex is a privately owned UK based energy company, which has oil and
gas assets in the UK producing approximately 2,000 boepd (net) including
approximately 1.4 mmscfd of gas (equivalent to approximately 230 boepd).

Pentex had Proven and Proven and Probable remaining reserves of 9.5
mmboe and 16.4 mmboe respectively, as at 1 January 2005.

Pentex's assets consist of operated interests in 15 onshore licenses
and appraisal and exploration opportunities in the UK onshore sector (East
Midlands Basin and Weald Basin).

In addition, the Directors believe that there may be potential for gas
storage development opportunities in the Pentex portfolio.

The consideration for the Acquisition will be approximately $67.6
million (approximately 38.5 million), payable in cash on Completion, for the
entire issued share capital of Pentex and, in addition, the existing Pentex
Group's current debt of $14.4 million (approximately 8.2 million) will be
refinanced.

A potential further payment of approximately 5.1 million will be
payable if, inter alia, planning permission is obtained in respect of a gas
storage project at Gainsborough.

The Directors believe that the Acquisition will be earnings enhancing
in the first full year of ownership.



Placing and New Debt Facilities

Placing to raise approximately 35.0 million by the issue of
19,125,684 New Ordinary Shares at 183.0 pence per share.

An additional debt facility of 20.0 million has been entered into.

Of the amount being raised in the Placing, 18.5 million will be used
to fund the proposed Acquisition, 5.7 million will be used to accelerate the
development of the potential Albury and Bletchingley gas storage facilities
and the balance will be used for general corporate purposes

European Acquisition Capital Limited ('EAC') has entered into
non-binding heads of terms to sell its stake in the Company to a leading
Fortune 500 multinational oil and gas company (the 'Prospective Purchaser').
The Prospective Purchaser has, in addition, indicated its intention to
subscribe for 19.06 per cent. of the New Ordinary Shares at the Placing Price.





Commenting on the proposed acquisition and the placing the Chairman, Stephen
Gutteridge, stated:



'The acquisition of Pentex will consolidate Star Energy's position as a leading
participant in the onshore UK oil and gas industry and as the key owner of
depleted reservoir gas storage opportunities onshore UK. The Acquisition is
expected to increase production from Star Energy's current level of
approximately 3,100 boepd (net) to approximately 5,100 boepd (net) and will
significantly increase Star Energy's Proven and Probable reserves as at 1
January 2005 from 14.7 mmboe to 31.1 mmboe. In addition to the increased oil
reserves and production, the Acquisition may add further potential gas storage
opportunities and provides operational synergies and incremental cash flow
within the Enlarged Group.'

see RNS for full text

Baza

RNS 14/07/05 12:11 Petronas Int Corp Aquires 16.9%

After months of inactivity, hurrah a flurry of activity with a mass of buys today, presumably after the markets had finally digested that huge document regarding the purchase of Pentax.

Pentax looks to be quite a canny buy - perhaps STAR might slip out of the shadows and onto peoples radars at long last.

I have a modest holding in STAR

I think some of you have misunderstood the gas storage part of Star Energy's business, which has nothing to do with LNG. They intend to buy gas in the summer when it is cheap, inject it under pressure it into depleted oil reservoirs like Humbley Grove and then produce it during the winter months when gas prices are high in order to meet swing demand. The gas stored in the reservoir can be produced to enable the gas network to cope with periods of high demand. A typical gas contract has a "swing factor" included which is the amount by which the gas purchaser can increase or decrease supply from an agreed average rate. The importance of storage is in enabling companies to meet these swing rates. Currently we have very little gas storage capacity (the Rough offshore storage field being one of the most important) - it is about 3600 mcm (million cubic metres). If all of the planned projects went ahead then we would see an increase of about 1750 mcm of storage capacity. Star's Humbly Grove is about 280 mcm. Of the rest about 700 mcm is still at the conceptual stage. So, aside from the oil STAR produce the gas storage side of the business looks like a long term winner as does HMY (which I hold). I dont hold STAR at the moment but I think it looks like a good long term hold and might dive in soon.

Another RNS Click below
21/07/05 11:06 Petronas Int Corp SAR 3 - Star Energy Group RNS

A trickle of buys is steadily turning into a constant stream. Is there something afoot or is the upward movement in the SP simply a vindication of the managements proposed purchase of Pentax ?

Starting to get interesting ................

Heading north again ........ up 14.5% today. Looks as if the MMs are steadily running out of stock.

Looking very good, click below

03/08/05 11:34 Artemis Investmt Man SAR 3 - Star Energy Group RNS

Things are getting interesting

18/08/05 - 14:17 Holding(s) in Company RNS
18/08/05 - 13:17 Holding(s) in Company RNS
16/08/05 - 14:13 Holding(s) in Company RNS
11/08/05 - 13:13 Holding(s) in Company RNS
11/08/05 - 13:12 Holding(s) in Company RNS
11/08/05 - 13:08 Holding(s) in Company RNS
11/08/05 - 13:05 Holding(s) in Company RNS
11/08/05 - 13:03 Holding(s) in Company RNS
10/08/05 - 14:33 Star Energy says Petronas' interest in co raised AFX
10/08/05 - 13:54 Holding(s) in Company RNS

05/08/05 10:25 Star Energy Group (STAR) Result of EGM RNS
04/08/05 10:17 CONOCOPHILLIPS (COC) Indonesia govt awards 9 oil/gas concessions to local/foreign cos AFX

the oil price is rising again, good close in NY friday, may see the nex leg up commencing soon...


oil stocks are due a good week if this continues towards the $70 target price...

05/09/05 - 10:24 Star Energy H1 pretax losses narrow; Humbly Grove AFX

06/10/05 - 08:28 Star Energy to start Humbly Grove ops by end-Oct AFX

Hi apple, well done for your persistance etc, we both thought this would be a good long term one.

Having said that like the moron I am at times bought in and got shot quickly.

Never mind. I can see this stock as a real pension provider.

Safe I feel and plenty of upside leading to a nice divi.
Growth is obviously there.

Still in coal?


cheers GF.

http://www.interconnector.com/Enhancement/CapacityDemand.htm

cheers GF.

Interesting stuff - Star gets a mention (sp up today I notice).


Pressure is building for more gas storage
By Thomas Catan
Published: October 25 2005 03:00 | Last updated: October 25 2005 03:00

In a humming control room 18 miles off north-east England, two technicians are busy pumping gas into the earth.


ADVERTISEMENT




The process is going well, one says, pointing to a bank of flashing screens. Several hundred feet below the offshore platform, the gas reservoir is fast approaching capacity.

If Britain suffers an unusually cold winter, the giant gas storage facility at Rough, near Hull, will assume a critical importance to the country. In an emergency, it can provide more than 10 per cent of the UK's peak gas demand for 77 days.

The company that operates it is investing 38m to make sure it works flawlessly. "We've prepared well for this winter," says GlennSibbick, operations director at Centrica Storage, surveying recent work on the platform.

So far this year, Rough has worked 99.9 per cent of the time, a big improvement on patchy performance under previous owners.

Ministers and businessmen alike are hoping it maintains that record throughout this critical winter. The last time it broke down, in January 2004, the price of gas soared from 37p a therm to 1.60 in a matter of hours.

"If Rough went down this winter, all hell would break loose," says Niall Trimble, chief executive of the Energy Contract Company, a consultancy. "It would be much worse than before."

Several factors have combined to make this winter's gas supply one of the tightest in living memory. Production from the North Sea is declining faster than many people had expected, but gas demand keeps rising. A third of Britain's electricity is generated using gas, and Britons use it far more than people in other countries to heat their homes.

As a result, Britain last year turned from a net exporter of gas into a net importer. But multi-billion pound infrastructure projects that will bring foreign gas to these shores will not be ready for two years or more.

Britain has enough gas to meet demand in an average winter. If it is much colder, however, National Grid, the pipeline operator, has said it would probably have to cut supplies to heavy industrial users and gas-fired power stations.

With prices surging, it is hoped some industrial users would voluntarily close their factories, preferring to sell the gas back into the market. Equally, some gas-fired power stations may temporarily be able switch to alternatives such as fuel oil.

But if the cold weather persisted, Britain would have few spare supplies to draw on. Heavy users may have to close until the cold weather ends.

Part of the problem is that Britain has very few facilities like Rough to draw on, which accounts for three-quarter of the country's total storage capacity. France has about 90 days of its average gas demand in storage, Germany 76 days and Italy 60. By comparison, the UK has only 13 days of gas in storage, or seven days of peak demand.

Continental European countries have always been highly dependent on foreign imports of natural gas, and so have worried about supply interruptions. By contrast, Britain had large amounts of readily available North Sea gas, which it was able to produce in higher or lower quantities to match variations in demand.

But as Britain's gas supplies have fallen, so has its capacity to vary its production. According to Wood Mackenzie, the oil consultancy, UK "swing production" has fallen from about 150 per cent in the middle of the last decade to about 125 per cent today.

Imported gas does not have the same flexibility as the UK production it is replacing. Unlike some of the old gas fields, new pipelines are not built to provide double the capacity that is needed for most of the year, says Frank Harris, gas analyst at Wood Mackenzie. Several terminals being built to receive shipments of liquefied natural gas are also unlikely to have any significant spare capacity during periods of peak demand, he says.

"Our traditional flexibility has been steadily declining for years," says Mr Trimble. "We are starting to look a lot more like Europe but without the storage capacity."

There is certainly money to be made in gas storage. Taking advantage of seasonal swings, utilities and energy traders like to buy gas when its cheap in the summer, store it, and sell it in winter, when prices are high. In the past three years, the spread between summer and winter gas prices has ballooned from as little as 6.5p a therm to more than 45p.

That has boosted the value of storage. Before Centrica bought Rough in 2002, the price of a standard bundled unit of storage at the facility was about 10p. The average price of storage this year was 37p a unit, while the price quoted for next year is more than 70p, at times rising to more than 1.

Centrica Storage, a unit of British Gas's owner Centrica, made almost as much profits in the first half of this year as it did for the whole of 2004. Next year also promises to be a bumper year for the company.

Other companies are keen to enter the storage market, although nothing on the scale of Rough, which was converted in 1983 with taxpayer money. However, they face big hurdles.

Star Energy, which owns onshore oil and gas fields in the UK, wants to turn some of them into gas storage sites. It expects to open a 65m facility at Humbly Grove in Hampshire with a capacity of 10bn cubic feet of gas by the beginning of next month.

The company wants to build a further 80bn cubic feet of storage in the next five years but many of its projects have been stalled by local opposition. Star's storage facility at Welton, Lincolnshire, could have started by 2007 but its planning process has stretched on for nearly two years.

"It's like one of those bad dreams where you just can't catch that bus that's moving away," says Roland Wessel, Star's chief executive.

Canatxx, a privately-held company, also has a storage project bogged down in a long planning inquiry. Local residents say its plan to fill a salt cavern in Lancashire with gas is unsafe.

"There is a tremendous amount of local opposition," says Ian Mulroy, a resident who is spearheading the resistance. "Gas migration, followed by explosion, is the main fear."

Canatxx and other industry voices insist that underground storage is safe and says the government must act urgently if the UK is to get the storage it needs.

"There are companies willing and able to build gas storage facilities," says Adrian Fernando, head of business development at Star Energy. "We'd like to see a more streamlined planning and consenting process so we can do that."

Star Energy says Humbly Grove gas storage facility to start ops Nov 4
AFX


LONDON (AFX) - UK-based energy company, Star Energy Group PLC said its Humbly Grove gas storage facility is undergoing final system checks and operations are expected to start on Nov 4.

The company also announced the appointment of Roger Pearson as operations director.

newsdesk@afxnews.com

cheers GF.

This has appeared on Bloomberg today - adds some flesh to the bones......

Star Energy May Expand Its First U.K. Gas-Storage Facility

By Renee Lawrence
Oct. 27 (Bloomberg) -- Star Energy Group Plc, a U.K. oil producer and builder of natural-gas storage sites, may expand its first storage facility to take advantage of growing demand for stored gas because of falling production at home.

London-based Star Energy will start offering storage services Nov.4 at the Humbly Grove field in Hampshire, the company said yesterday in a statement. Star may expand the facility, the U.K.'s third-biggest gas-storage unit, because Britain's gas demand is projected to rise in the next 10 years and dependence on imports is forecast to approach 50 percent by 2010.

"There is upside potential," Roland Wessel, Star Energy's chief executive said in a phone interview in London today. "We are bullish about gas storage because of the combination of a lack of storage in the U.K. and decline in North Sea gas."

Natural-gas shippers in the U.K., the European Union's largest market for the fuel, are relying more on stored gas as domestic production declines. Humbly accounts for about 8 percent of the U.K.'s gas storage and is key to Britain's supply-and-demand balance during the winter, when cold weather may drive up prices.

Star is planning to open two more storage units in the U.K.
Vitol Group, the world's biggest closely held oil-trading company, will supply gas into Humbly, the chief executive said. Star said it will take 45 days to fill the storage facility.

Gazprom

Gazexport, the export arm of the world's largest gas company Gazprom, announced in July it has signed a deal with Vitol for 143 million cubic metres of capacity at Humbly Grove, the Russian company said on its Web site.

The five-year deal gives Gazprom access to approximately half of the facility's total storage capacity. The capacity will be managed by Gazprom Marketing & Trading, the U.K. gas and power network manager.

Star Energy expects Humbly to generate revenue of 12 million pounds ($21 million) in its first year of operations. Star Energy invested 65 million pounds in building the facility, the company said in its annual report

Shares of Star Energy were unchanged at 241.5 pence as of 10 a.m. in London. The stock has risen 29 percent this year, according to Bloomberg Data.

--Editor: King

The amount of buying over the past week and especially this morning must be leaving the MMs a bit short by now ......... SP must be due an upward revision from its current 262.5p level