Star Energy Group PLC on Tuesday said it has closed a new €25 million secured facility.

The onshore energy company said the facility has been provided by Kommunalkredit Austria AG and is for five years.

Star Energy explained that the loan will ‘support its transition strategy into geothermal energy and enable continued investment in the oil and gas business utilising its existing cash flows.’

Chief Executive Chris Hopkinson said: ‘Securing this facility is an important milestone for Star Energy. It allows us to use cashflows from our existing oil and gas business to optimise near-term conventional production (with quick pay-backs) and deliver our transition strategy; namely developing and monetising our geothermal business in both the UK and Croatia.’

Shares in Star Energy were down 0.3% to 10.47 pence each in London on Tuesday afternoon.

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