Half Year Results

Mosman Oil and Gas Limited
27 March 2024
 

 

 

27 March 2024

 

Mosman Oil and Gas Limited

 ("Mosman" or the "Company")

 

Half Year Results

Mosman Oil and Gas Limited (AIM: MSMN) the hydrocarbon, helium and hydrogen exploration, development and production company, announces its Half Year results to 31 December 2023 (H124).

Summary

·      

Revenue: $533,794 (H123 $936,187) mainly impacted by notably lower production at Stanley and Cinnabar where work continues to resolve production challenges. 

·      

Gross Profit: $34,059 (H123 $283,003)

·      

Net loss: $984,851 (H123 $665,096)

·      

Net Production to Mosman of 6,289BOE

 

All amounts are in Australian Dollars

1BOE/boe - barrels of oil equivalent

2Gross Project Production - the production of BOE at a total project level (100% basis) before royalties (where Mosman is the Operator) and where Mosman is not the operator the total gross production for the project

3Net Production - Net to Mosman's Working interest before royalties

 

Operational overview

USA

·      

Development project continues at Cinnabar where technical work has identified opportunities for increasing production. Workovers undertaken had limited success. Technical work has identified a zone to be recompleted before the next step of installing artificial lift. Technical work is being conducted on the new lease area acquired that appears highly prospective based on 3D seismic.

·      

Stanley continues to be the main centre of production. Production was affected by downtime due to reconfiguration of production equipment and weather conditions in December.

 

Australia

·      

EP 145 Farmout Agreement was signed with a subsidiary of Greenvale Energy Ltd (ASX:GRV) in October to fund seismic and drilling. GRV can earn 75% interest by funding seismic acquisition and drilling a well (to a cap of $5.5m). This agreement remains subject to completion pending ministerial approval.

·      

EP(A) 155 is subject to a conditional farmout agreement and continues the process of seeking native title approval required for the grant of the licence.

 

Board update

·     

John Young stepped down from the Board in September 2023.

·     

Andy Carroll, Technical Director appointed CEO in September, with Nigel Harvey appointed as Non-Executive Chairman and Carl Dumbrell appointed to the Board as Non-Executive Director. John Barr stepped down in October 20223.

 

Andy Carroll, CEO of Mosman commented:

"The Board has been refreshed and the company has been re-organised with a lower cost base. In the US, we continue cost effective production optimisation to commercialise these assets and exploration work continues in Australia on the areas prospective for helium, hydrogen and hydrocarbons."

 



 

Enquiries:

 

Mosman Oil & Gas Limited

Andy Carroll

CEO

acarroll@mosmanoilandgas.com

NOMAD and Joint Broker

SP Angel Corporate Finance LLP

Stuart Gledhill / Richard Hail / Adam Cowl

+44 (0) 20 3470 0470

Alma Strategic Communications

Justine James / Will Merison

+44 (0) 20 3405 0205

+44 (0) 7525 324431

mosman@almastrategic.com

 

Joint Broker

CMC Markets UK Plc

Douglas Crippen

+44 (0) 020 3003 8632

 

Updates on the Company's activities are regularly posted on its website: www.mosmanoilandgas.com

 

 

 

Notes to editors

Mosman (AIM: MSMN) is an oil exploration, development, and production company with projects in the US and Australia. Mosman's strategic objectives remain consistent: to identify opportunities which will provide operating cash flow and have development upside, in conjunction with progressing exploration of its existing exploration permit and permit application. The Company has several projects in the US. In addition to exploration projects in the Amadeus Basin in Central Australia.



 

Operations Review

 

Mosman's strategic objective remains to identify opportunities which will provide operating cash flow and have development upside, in conjunction with exploration of existing exploration permits and acquiring high potential projects.

 

The conclusion of the Strategic Review was to commercialise the production assets (which may include sale of some assets) and not to proceed with IPO of the Australian assets as there was limited investor interest in IPOs in 2023. As part of this process, the Group incurred some costs in establishing a holding company for the Australian assets in regard to evaluating the potential for an IPO of that company.

 

The Board renewal process was completed with the appointment of Carl Dumbrell. Carl is a qualified accountant and brings extensive experience in Australian and AIM companies. John W Barr and John Young stepped down and are thanked for their service in the successful IPO and steering the company through exploration and building a production base in the USA. The corporate re-organisation resulted in a reduction in the number of Directors from four to three; the reduction in executive directors from two to one; and a clearer separation of Board and management with two independent Directors and a Chief Executive Officer, and the redundancy of the one employee. Whilst there are now lower fixed overheads, there were some one-off costs associated with this reorganisation.

 

Turning to development of the producing US projects, more than $475k was invested in increasing production and progressing exploration during the period. Stanley continues to be the main centre of production and the production equipment has been reconfigured with jet pumps.

 

The development project, Cinnabar, was which was acquired at modest cost when oil and gas prices were lower in 2021, has had an extensive technical work, including reprocessing and re-interpretation of 3D seismic. Whilst results of the Cinnabar development well drilled in November 2022 confirmed the presence of oil and led to an upgrade of Reserves, the production rates have been disappointing. Technical work has identified opportunities for increasing production, and several workovers have now been undertaken on the three wells on the lease. Work will continue to increase production, and to de-risk a new lease area acquired that appears highly prospective based on 3D seismic.

 

Gross Reserves (MBOE):

 

Proved Developed Producing

Proved
Developed
Behind Pipe

Proved Undeveloped

Total Proved

Total Probable

Total Proved Plus Probable

302

147

1,132

1,581

65

1,646

 

In Australia's Northern Territory, Mosman holds a 100% interest over the EP-145 permit and continues to work to secure all required approvals for the next step of exploration.

 

A Farmout Agreement was signed with a subsidiary of Greenvale Energy (ASX:GRV) in October 2023, whereby GRV can earn 75% interest by funding seismic acquisition and drilling a well (to a cap of AUD 5.5 million). This currently remains subject to completion pending ministerial approval.

 

A Prospective Resource estimate for EP-145 was published by Mosman in October 2022 and is detailed below.

 

Prospective Resources (Bcf)

Low Estimate

Best Estimate

High Estimate

Total Gas

12

440

2,290

Helium

0.3

26.4

229

Hydrogen

0.24

26.4

275

 

 

As shareholders and stakeholders expect, Mosman continues to take its Health and Safety requirements very seriously and to date there have been no health, safety or wellbeing issues reported in our small team.

 

Results

 

The unaudited results for the six months to 31 December 2023 reflect a 43% decrease in sales to $533,794 ($936,187 in 2022). Gross profit also decreased by 88% to $34,059 ($283,003 in 2022). The lower sales and gross profit margins were primarily due to lower production at Cinnabar and Stanley as recompletions and upgrade works were undertaken, as well as lower oil and gas prices in the period.

 

The overall result for the period was a net loss of $984,851 (2022: $665,096). This includes one-off restructuring costs of over $100k that are intended to reduce ongoing costs.

 

Projects

 

Mosman has Working Interests in eight onshore producing projects located in the USA, in addition to one granted exploration permit and one application for an exploration permit in the Amadeus Basin in Central Australia.

 

Producing Projects in the USA

 

A summary of the current oil and gas projects as at 27 March 2024:

 

US PROJECTS

Asset/ Project

Mosman Interest1

Location

Status

Cinnabar

 

75.0%

Texas

Producing

Cinnabar Extended

78.0%

Texas

Undrilled

Stanley (various wells)

34.85% to 38.5%

Texas

Producing

Livingston

20%

Texas

Producing

Winters-1

29%

Texas

Producing

Winters-2

23%

Texas

Producing

Greater Stanley (Duff wells)

 

40%

Texas

Producing

Arkoma

27%

Oklahoma

Producing

 

1.         Mosman's ownership is working interest before royalties. The interest shown is approximate, as there are small variations on individual wells

 

 

Production Summary for the six months ending 31 December 2023

 


Gross Project Production2

BOE1

Net Production to Mosman3

BOE1

Cinnabar

1,246

               933

Stanley

9,989

            3,631

Winters

3,145

               734

Livingston

1,045

               209

Arkoma

3,718

               782

Total Production

19,143

6,289

 

1BOE/boe - barrels of oil equivalent

2Gross Project Production - Means the production of BOE at a total project level (100% basis) before royalties (where Mosman is the Operator) and where Mosman is not the operator the total gross production for the project

3Net Production - Net to Mosman's Working Interest; Net Production attributable to Mosman means net to Mosman's Working Interest before royalties

 



 

Australia

 

AUSTRALIAN EXPLORATION PROJECTS

Asset/Project

Mosman Interest1

Location

Status

Permit Number

Licence Renewal Date

Comments

Australia, Amadeus Basin

100%2

(subject to farm-in)

NT

Exploration

EP 145

21 August 2024

Seismic to be acquired

Australia, Amadeus Basin

100%

(subject to farm-in)

NT

Exploration

 

EPA 155

Application

Negotiating land access with CLC

 

1.         Mosman's ownership is working interest before royalties and the interest shown is subject to farmin agreements (detailed below)

 

 

Mosman has continued to conduct technical work on its Central Australian exploration projects, focused on the 100% owned EP-145, in the Amadeus Basin, Northern Territory.

 

The Prospective Resource estimate for EP-145 published by Mosman in October 2022 and is detailed below.

 

Prospective Resources (Bcf)

Low Estimate

Best Estimate

High Estimate

Total Gas

12

440

2,290

Helium

0.3

26.4

229

Hydrogen

0.24

26.4

275

 

All seismic and drilling activities are subject to obtaining the necessary planning approvals from the NT Department of Industry and Resources.

 

On 16 October 2023, the Company announced that it had entered into a farmout agreement with Greenvale Gold Pty Ltd, a wholly owned subsidiary of Greenvale Energy Ltd (ASX:GRV) to fund seismic and drilling on its EP 145 project in the Northern Territory of Australia. Upon Completion, Mosman would retain a 25% working interest in EP 145 and Greenvale would earn a 75% working interest in EP 145 by:

·      Committing to pay AUD160,000 in cash within 5 days of Completion, which is subject to government approval of the transfer of interest and Operatorship.

·      Paying for the EP 145 Permit Year 3 Work Program, including seismic, effective from Completion Date.

·      Funding the Permit Year 4 Work Program, including drilling one well with a well cost cap of AUD5.5 million.

·      The Year 3 Work Program is to be completed by August 2024 and the cost of the seismic acquisition is estimated to be circa AUD2 million.

·      The Year 4 Work Program is to be completed by August 2025. The cost of drilling a well depends on many factors including the depth of a well and cost of drilling rigs at the time of drilling.

 

At Mosman's other central Australian project in EPA-155, the permit application is subject to Native Title negotiations. The required site visit was delayed by the Covid-19 pandemic. Mosman has a farmout agreement, and the farm-in partner has advised they are discussing with the Central Land Council ("CLC") and have arranged a site visit.

 

Matters subsequent to the reporting period

 

Subsequent to the end of the reporting period the Company announced the following material matters occurred:

·      On 15 January 2024, the Group announced it had lodged the Environmental Management Plan ("EMP") with the Northern Territory Government. Approval of the EMP and re-issue of the Aboriginal Areas Protection Authority ('AAPA') Certificate are the two remaining approvals required prior to the acquisition of 2D seismic, scheduled for 2024.

·      On 23 January 2024, the Group announced that Mosman and Greenvale Gas Ltd ("GRV"), a subsidiary of Greenvale Pty Ltd (ASX:GRV), had agreed to amend the Farmin Agreement so that the right for either party to terminate the agreement is changed from 31 January to 30 March 2024.

·      On 2 February, the Group announced it had raised £300,000 (before expenses) by way of a placing of 2,400,000,000 ordinary shares at a price of 0.0125 pence per share.

·      On 7 February, the Group held and Extraordinary General Meeting, where shareholder approval was received to issue 84,210,526 shares and 42,105,263 warrants to CEO Andrew Carroll, and 42,105,263 shares and 21,052,632 warrants to Chairman Nigel Harvey. Shares were issued for cash consideration at 0.0125p per share. The warrants are exercisable at 0.025p each with a two year expiry. All shares and warrants were issued on the same terms as the placement announced on 29 November 2023.

There were no other material matters that occurred subsequent to 31 December 2023.

 

Glossary:

 

boe

Barrels of oil equivalent based on calorific value as opposed to dollar value

boepd

Barrels of oil per day of oil equivalent based on calorific value as opposed to dollar value

bopd

Barrels of oil per day

Gross Project Production

Means the production of BOE at a total project level (100% basis) before royalties (where Mosman is the Operator) and where Mosman is not the operator the total gross production for the project

Mcf

Thousand cubic feet

Bcf

Billion cubic feet

Mcfpd

Thousand cubic feet per day

MBtu

One thousand British Thermal Units

MBtupd

One thousand British Thermal Units per day

MMBtu

One million British Thermal Units

MMBtupd

One million British Thermal Units per day

Net Production

Net to Mosman's Working Interest; Net Production attributable to Mosman means net to Mosman's Working Interest before royalties

SPE

Society of Petroleum Engineers

SPE PRMS

A standard for the definition, classification, and estimation of hydrocarbon resources developed by the Oil and Gas Reserves Committee of the Society of Petroleum Engineers and named the Petroleum Resource Management System

 




Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income

For The Half Year Ended 31 December 2023

 

 

Notes

Consolidated

6 months to

31 December 2023

Consolidated

6 months to

31 December 2022

 

 

$

$



 

 

Revenue


533,794

936,187

Cost of sales

2

(499,735)

(653,184)

Gross profit

 

34,059

283,003





Interest income


348

139

Administrative expenses


(205,505)

 (280,957)

Corporate expenses

3

(467,567)

 (450,964)

Directors fees


(57,880)

 (62,667)

Exploration expenses incurred, not capitalised


(7,425)

 (9,300)

Employee benefits expense


(48,268)

 (40,685)

Finance costs


(5,642)

(5,676)

Amortisation expense


(215,337)

(94,861)

Depreciation expense


(6,220)

(919)

Loss on foreign exchange


(5,414)

(2,209)

Loss from ordinary activities before income tax expense


(984,851)

(665,096)





Income tax expense


-

-

 




Net loss for the period


(984,851)

(665,096)

 




Other comprehensive profit




Items that may be reclassified to profit or loss




-

Foreign currency gain/(loss)


(148,877)

65,405

Total comprehensive income attributable to members of the entity


(1,133,728)

(599,691)

 


 

 

Basic loss per share (cents per share)


 (0.01) cents

 (0.01) cents

Diluted loss per share (cents per share)


(0.01) cents

(0.01) cents

 

The accompanying notes form part of these consolidated financial statements

All amounts are in Australian Dollars

Consolidated Statement of Financial Position

As at 31 December 2023

 

 

Notes

Consolidated

31 December 2023

Consolidated

30 June 2023

 

 

 

$

$

 

 

 

Current Assets


 

 

Cash and cash equivalents


614,305

520,613

Trade and other receivables

4

764,085

863,639

Other assets 

5

110,006

78,086

Total Current Assets


1,488,396

1,462,338








Property, plant & equipment


-

6,220

Oil and gas assets

6

5,824,674

5,780,587

Capitalised oil and gas exploration

7

1,491,725

1,420,531

Total Non-Current Assets


7,316,399

7,207,338





Total Assets


8,804,795

8,669,676





Current Liabilities




Trade and other payables

8

1,490,357

1,185,450

Provisions


-

15,500

Total Current Liabilities


1,490,357

1,200,950




 

Non-Current Liabilities




Provisions


175,043

180,587

Total Non-Current Liabilities


175,043

180,587





Total Liabilities


1,665,400

1,381,537






7,139,395

7,288,139




 

Shareholders' Equity



 

Contributed equity

9

41,656,179

40,675,340

Reserves

10

763,362

908,094

Accumulated losses


(35,280,146)

(34,295,295)




 

Total Shareholders' Equity


7,139,395

7,288,139



 

 

 

The accompanying notes form part of these consolidated financial statements

All amounts are in Australian Dollars



 

Consolidated Statement of Changes in Equity

For the Half Year Ended 31 December 2023

 

 

Accumulated

Losses

Contributed Equity

Reserves

Total

 

$

$

$

$

 

 

 

 

 

Balance at 1 July 2022

(32,168,097)

38,743,432

706,297

7,281,632

 

 

 

 

 

Comprehensive income





Loss for the period

(665,096)

-

-

(665,096)

Other comprehensive income for the period

-

-

65,405

65,405

Total comprehensive loss for the period

                (665,096)

                                -  

                     65,405

                (599,691)

 

 

 

 

 

Transactions with owners, in their capacity as owners, and other transfers:

New shares issued

-

1,406,312

-

1,406,312

Cost of raising equity

-

    (84,379)

-

       (84,379)

Total transactions with owners and other transfers

-

1,321,933

-

1,321,933

Balance at 31 December 2022

(32,833,193)

40,065,365

771,702

8,003,874

 

 

 

 

 

Balance at 1 July 2023

  (34,295,295)

40,675,340

908,094

7,288,139

 

 

 

 

 

Comprehensive income

 

 

 

 

Loss for the period

(984,851)

-

-

(984,851)

Other comprehensive loss for the period

-

-

(148,877)

(148,877)

Total comprehensive loss for the period

                (984,851)

                                -  

                     (148,877)

                (1,133,728)

 

 

 

 

 

Transactions with owners, in their capacity as owners, and other transfers:

New shares issued

-

1,047,856

-

1,047,856

Cost of raising equity

-

(67,017)

4,145

(62,872)

Total transactions with owners and other transfers

-

980,839

4,145

984,984

Balance at 31 December 2023

(35,280,146)

41,656,179

763,362

7,139,395

 

The accompanying notes form part of these consolidated financial statements

All amounts are in Australian Dollars



 

Consolidated Statement of Cash Flows

For the Half Year Ended 31 December 2023

 

 

 

Consolidated

6 months to

31 December 2023   

Consolidated

 6 months to 31 December 2022

 

 

$

$

 

 

 

 

Cash flows from operating activities


 

 

Receipts from customers


633,460

922,683

Payments to suppliers and employees


(875,426)

(1,477,116)

Interest paid


(5,642)

(5,676)

Net cash outflow from operating activities


(247,608)

(560,109)



 

 

Cash flows from investing activities


 

 

Payments for property, plant and equipment


-

(3,629)

Payments for oil and gas assets


(408,786)

(2,108,026)

Payments for acquisition of new subsidiaries


(153,230)

(145,158)

Payments for exploration and evaluation


(71,194)

(52,894)

Net cash outflow from investing activities


(633,210)

(2,309,707)

 

Cash flows from financing activities


 

 

Proceeds from shares issued


1,047,856

1,406,312

Payments for costs of capital


(62,872)

(84,379)

Net cash inflow from financial activities

 

984,984

1,321,933



 

 

Net decrease in cash and cash equivalents


104,166

(1,547,883)

Effects of exchange rate changes on cash and cash equivalents


(10,474)

3,570

Cash and cash equivalents at the beginning of the period


520,613

2,354,689

Cash and cash equivalents at the end of the period


614,305

810,376



 

 

 

The accompanying notes form part of these consolidated financial statements

All amounts are in Australian Dollars

 

 


Condensed Notes to the Financial Statements

For the Half-Year Ended 31 December 2023

All amounts are Australian Dollars

 

1.   Summary of Significant Accounting Policies

 

   Statement of Compliance

The half-year financial report is a general purpose financial report prepared in accordance with the Corporations Act 2001 and AASB 134 Interim Financial Reporting. Compliance with AASB 134 ensures compliance with International Financial Reporting Standard IAS34 Interim Financial Reporting. The half-year report does not include notes of the type normally included in an annual financial report and should be read in conjunction with the most recent annual financial report.

 

Basis of preparation

The condensed consolidated financial statements have been prepared on the basis of historical cost, except for the revaluation of certain non-current assets and financial instruments. Cost is based on the fair values of the consideration given in exchange for assets. All amounts presented in Australian dollars, unless otherwise noted.

 

The accounting policies and methods of computation adopted in the preparation of the half-year financial report are consistent with those adopted and disclosed in the Group's 2023 annual financial report for the financial year ended 30 June 2023, except for the impact of the Standards and Interpretations described below. These accounting policies are consistent with Australian Accounting Standards and with International Financial Reporting Standards (IFRS).

 

Going Concern

The condensed consolidated financial statements have been prepared on the going concern basis, which contemplates continuity of normal business activities and the realisation of assets and the discharge of liabilities in the normal course of business.

 

The directors have considered the funding and operational status of the business in arriving at their assessment of going concern and believe that the going concern basis of preparation is appropriate, based upon the following:

 

·      The ability to further vary cash flow depending upon the achievement of certain milestones within the business plan and;

·      The ability of the Company to obtain funding through various sources, including debt and equity.

 

However, should the Group be unable to raise further required financing from equity markets or other sources, there is uncertainty which may cast doubt as to whether or not the Group will be able to continue as a going concern and whether it will realise its assets and extinguish its liabilities in the normal course of business and at the amounts stated in the financial statements.

 

The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts nor to the amounts and classification of liabilities that might be necessary should the Group not continue as a going concern.

 

Exploration and Evaluation Costs

Exploration and evaluation expenditure incurred is accumulated in respect of each identifiable area of interest. These costs are carried forward in respect of an area for which the rights to tenure are current and that has not at reporting date reached a stage which permits a reasonable assessment of the existence or otherwise of economically recoverable reserves, and active and significant operations in, or relating to, the area of interest are continuing.

 

Impairment of Exploration and Evaluation Assets

The ultimate recoupment of the value of exploration and evaluation assets is dependent on the successful development and commercial exploitation, or alternatively, sale, of the exploration and evaluation assets.

 

Impairment tests are carried out when there are indicators of impairment in order to identify whether the asset carrying values exceed their recoverable amounts. There is significant estimation and judgement in determining the inputs and assumptions used in determining the recoverable amounts. If, after having capitalised the expenditure under the policy, a judgement is made that the recovery of the expenditure is unlikely, the relevant capitalised amount will be written off to profit and loss.

Condensed Notes to the Financial Statements

For the Half-Year Ended 31 December 2023

All amounts are Australian Dollars

 

1.   Summary of Significant Accounting Policies (Continued)

 

The key areas of judgement and estimation include:

 

·      Recent exploration and evaluation results and resource estimates;

·      Environmental issues that may impact on the underlying tenements; and

·      Fundamental economic factors that have an impact on the operations and carrying values of assets and liabilities.

 

Revenue and Other Income

Revenue is measured at the fair value of the consideration received or receivable. Amounts disclosed as revenue are net of returns, trade allowances, rebates and amounts collected on behalf of third parties.

 

The group recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the entity and specific criteria have been met for each of the Group's activities as described below. The group bases its estimates on historical results, taking into consideration the type of customer, the type of transaction and the specifics of each arrangement.

 

Revenue from joint operations is recognised based on the Group's share of the sale by the joint operation.

 

Interest revenue is recognised using the effective interest rate method, which, for floating rate financial assets, is the rate inherent in the instrument.

 

Oil and Gas assets

The cost of oil and gas producing assets and capitalised expenditure on oil and gas assets under development are accounted for separately and are stated at cost less accumulated amortisation and impairment losses. Costs include expenditure that is directly attributable to the acquisition or construction of the item as well as past exploration and evaluation costs.

 

When an oil and gas asset commences production, costs carried forward are amortised over the expected life of the economically recoverable reserves. Changes in factors such as estimates of economically recoverable reserves that affect amortisation calculations do not give rise to prior financial period adjustments and are dealt with on a prospective basis.

 

Segment Reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The chief operating decision maker, who is responsible for allocating resources and assessing performance.

 

New standards and interpretations

The consolidated entity has adopted all of the new or amended Accounting Standards and Interpretations issued by the Australian Standards Board ('AASB') that are mandatory for the current reporting period.

 

Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted.



 

Condensed Notes to the Financial Statements

For the Half-Year Ended 31 December 2023

All amounts are Australian Dollars

 

 

 

Consolidated

6 months to 31 December 2023

Consolidated

6 months to 31 December 2022


$      

$


 

 

2     Cost of sales


Cost of sales

22,285

49,516

Lease operating expenses

477,450

603,668


499,735

653,184

 


$      

$

3     Corporate Costs



Accounting, Company Secretary and Audit fees

88,075

150,109

Consulting fees - board

210,000

159,250

Consulting fees - other

33,098

31,302

NOMAD and broker expenses

90,956

74,728

Legal and compliance fees

45,438

35,575


467,567

450,964


 

 

  

 

Consolidated

Balance as at 31 December 2023

Consolidated

Balance as at 30 June 2023

 

$

$

4     Trade and Other Receivables

 

 

Joint interest billing receivables1

548,399

644,904

Less: allowance for expected credit losses

(119,962)

(123,762)

Deposits

55,706

55,358

GST receivable

29,476

24,353

Accrued revenue

246,080

253,044

Other receivables

4,386

9,742


764,085

863,639

1.     When appropriate, unpaid joint interest billing receivables are recovered from the interest holders share of production income.

 

5     Other Assets 



Prepayments

107,467

75,547

Incorporation costs

2,539

2,539


110,006

78,086

 

6     Oil and Gas Assets                                                                                      

Cost brought forward

5,780,587

4,145,488

Acquisition of oil and gas assets during the period

-

54,113

Capitalised equipment workovers during the period

408,786

2,362,772

Amortisation for the period

(215,337)

(436,028)

Impairment of oil and gas assets

-

(474,586)

Impact of Foreign Exchange on opening balances

(149,362)

128,828

Carrying value at the end of the period

5,824,674

5,780,587

 

The Board has carried out an impairment assessment of the Oil and Gas Assets and have concluded that no impairment is required.

 

 

Consolidated

Balance as at 31 December 2023

Consolidated

Balance as at 30 June 2023

7     Capitalised Oil and Gas Expenditure                                                  

 

 

 

Cost brought forward

1,420,531

1,240,541

Exploration costs incurred during the period

71,194

179,990

Impairment of oil and gas expenditure

-

-

Carrying value at end of the period

1,491,725

1,420,531

 

 

On 16 October 2023, the Company announced that it had entered into a farmout agreement with Greenvale Gold Pty Ltd, a wholly owned subsidiary of Greenvale Energy Ltd (ASX:GRV) to fund seismic and drilling on its EP 145 project in the Northern Territory of Australia. Upon Completion, Mosman would retain a 25% working interest in EP 145 and Greenvale would earn a 75% working interest in EP 145 by:

·      Committing to pay AUD160,000 in cash within 5 days of Completion, which is subject to government approval of the transfer of interest and Operatorship.

·      Paying for the EP 145 Permit Year 3 Work Program, including seismic, effective from Completion Date.

·      Funding the Permit Year 4 Work Program, including drilling one well with a well cost cap of AUD5.5 million.

·      The Year 3 Work Program is to be completed by August 2024 and the cost of the seismic acquisition is estimated to be circa AUD2 million.

The Year 4 Work Program is to be completed by August 2025. The cost of drilling a well depends on many factors including the depth of a well and cost of drilling rigs at the time of drilling.

 

On 23 January 2024, it was agreed to amend the Farmin Agreement so that the right for either party to terminate the agreement is changed from 31 January to 30 March 2024.

 

 

$

$

8     Trade and Other Payables

 

 

Trade creditors

1,399,840

        1,000,619

Amounts owing for acquisition of Nadsoilco LLC

-

           150,830

Other creditors and accruals

            90,517

            34,001


1,490,357

1,185,450

 

9     Contributed Equity

 


 

 


Ordinary Shares:

 


Value of Ordinary Shares fully paid

 

 

Movement in Contributed Equity

Number of shares

Contributed Equity $

Balance as at 1 July 2022:

5,220,138,052

38,743,432


02/11/2022

04/04/2023

26/04/2023

Shares issued (i)

Shares issued (ii)

Shares issued (i)

$0.00123

$0.00101

$0.00103

1,142,857,142

45,454,545

545,454,545

1,406,312

45,829

564,145

Capital raising costs


-

(84,378)

Balance as at 1 July 2023:


6,953,904,284

40,675,340


20/07/2023

05/12/2023

Shares issued (i)

Shares issued (i)

$ 0.00067

$ 0.00024

857,142,857

2,000,000,000

571,739

476,117

Capital raising costs


-

(67,017)

Balance at the end of period


9,811,047,141

41,656,179

 

(i)         Placements via capital raising as announced

(ii)        Shares issued to suppliers

 

 

 

 



Consolidated

Balance as at 31 December 2023

Consolidated

Balance as at 30 June 2023



$

$

10     Reserves


 

 

Foreign currency translation reserve


741,899

890,776

Options reserve


21,463

17,318



763,362

908,094

 

Foreign Currency Translation Reserve



Foreign Currency Translation Reserve at the beginning of the period

890,776

706,297

Current movement in the period

(148,877)

184,479

Foreign Currency Translation Reserve at the end of the period

741,899

890,776

 

Options Reserve



Options Reserve at the beginning of the period

17,318

-

Current movement in the period

4,145

17,318

Options Reserve at the end of the period

21,463

17,318

120,000,000 warrants were issued to brokers as part of their fee for facilitating a placement of shares in the period. The warrants are valued using the Binomial Method with the following inputs:

 

Share price at issue date

0.0118 British Pence

Exercise price

0.0125 British Pence

Risk-Free Interest Rate

3.9%

Volatility

91.8%

 



 

 

11     Segment Information

 

 

The Group has identified its operating segments based on the internal reports that are reviewed and used by the board to make decisions about resources to be allocated to the segments and assess their performance.

 

Operating segments are identified by the board based on the Oil and Gas projects in Australia the United States. Discrete financial information about each project is reported to the board on a regular basis.

 

The reportable segments are based on aggregated operating segments determined by the similarity of the economic characteristics, the nature of the activities and the regulatory environment in which those segments operate.

 

The Group has two reportable segments based on the geographical areas of the mineral resource and exploration activities in Australia, the United States. Unallocated results, assets and liabilities represent corporate amounts that are not core to the reportable segments.

 

(i)       Segment performance

 

 

 

 

 

 

 

United States

$

Australia

$

Total

$

Period ended 31 December 2023


 



Revenue


 



Revenue


533,794

-

533,794

Other income


-

348

348

Segment revenue

 

533,794

348

534,142

 

 

 

 

 

Segment Result

 

 

 

 

Loss


 

 

 

Allocated


 

 

 

-      Corporate costs


-

(467,567)

(467,567)

-      Administrative costs


(146,289)

(59,216)

(205,505)

-      Lease operating expenses


(477,450)

-

(477,450)

-      Cost of sales


(22,285)

-

(22,285)





 

Segment net profit/(loss) before tax

 

(112,230)

(526,435)

(638,665)

 


 

 

 

Reconciliation of segment result to net loss before tax


 

 

 

 


 

 

 

Amounts not included in segment result but reviewed by the Board


 

 

 

-      Evaluation expenses incurred not capitalised


-

(7,425)

(7,425)

-      Amortisation


(215,337)

-

(215,337)

-      Impairment


-

-

-

Unallocated items





-      Employee benefits expense




(106,148)

-      Finance costs




(5,642)

-      Depreciation




(6,220)

-      Loss on foreign exchange




(5,414)

Net Loss before tax from continuing operations

 

 

 

(984,851)

 

 



 

 

 

 

(i)     Segment performance (continued)

 

 

 

 

 

 

 

United States

$

Australia

$

Total

$

Period ended 31 December 2022


 



Revenue


 



Revenue


936,187

-

936,187

Other income


-

139

139

Segment revenue

 

936,187

139

936,326

 

 

 

 

 

Segment Result

 

 

 

 

Loss


 

 

 

Allocated


 

 

 

-      Corporate costs


(37,509)

(413,455)

(450,964)

-      Administrative costs


(156,566)

(124,391)

(280,957)

-      Lease operating expenses


(603,668)

-

(603,668)

-      Cost of sales


(49,516)

-

(49,516)





 

Segment net profit/(loss) before tax

 

88,928

(537,707)

(448,779)

 


 

 

 

Reconciliation of segment result to net loss before tax


 

 

 

 


 

 

 

Amounts not included in segment result but reviewed by the Board


 

 

 

-      Evaluation expenses incurred not capitalised


-

(9,300)

(9,300)

-      Amortisation


(94,861)

-

(94,861)

-      Impairment


-

-

-

Unallocated items





-      Employee benefits expense




(103,352)

-      Finance costs




(5,676)

-      Depreciation




(919)

-      Loss on foreign exchange




(2,209)

Net Loss before tax from continuing operations

 

 

 

(665,096)

 

 

 

 

 

 

(ii)       Segment assets

 

 

 

 

United States

$

Australia

$

Total

$

As at 31 December 2023

 

 

 

Segment assets as at 1 July 2023

7,017,407

1,652,269

8,669,676

Segment asset balances at end of

period




-      Exploration and evaluation

-

8,672,643

8,672,643

-      Capitalised Oil and Gas

10,595,577

-

10,595,577

-      Less: Amortisation

(1,087,371)

-

(1,087,371)

-      Less: Impairment

(3,683,532)

(7,180,918)

(10,864,450)


5,824,674

1,491,725

7,316,399


 

 

 

Reconciliation of segment assets to total assets:

 

 

Other assets

1,046,871

441,525

1,488,396

Total assets from continuing operations

6,871,545

1,933,250

8,804,795

 

 

United States

$

Australia

$

Total

$

As at 30 June 2023

 

 

 

Segment assets as at 1 July 2022

5,618,867

2,983,533

8,602,400

Segment asset balances at end of

period




-      Exploration and evaluation

-

8,601,449

8,601,449

-      Capitalised oil and gas assets

10,490,641

-

10,490,641

-      Less: Amortisation

(909,850)

-

(909,850)

-      Less: Impairment

(3,800,204)

(7,180,918)

(10,981,122)


5,780,587

1,420,531

7,201,118


 

 

 

Reconciliation of segment assets to total assets:

 

 

 

Other assets

1,236,820

231,738

1,468,558

Total assets from continuing operations

7,017,407

1,652,269

8,669,676



 

 

 

 

 

(iii)     Segment liabilities

 


United States

$

Australia

$

Total

$

As at 31 December 2023




Segment liabilities as at 1 July 2023

1,137,363

183,405

1,320,768

Segment liability increase/(decrease) for the period

270,220

74,412

344,632


1,407,583

257,817

1,665,400

Reconciliation of segment liabilities to total liabilities:

 

 

 

Other liabilities

-

-

-

Total liabilities from continuing operations

1,407,583

257,817

1,665,400

 

As at 30 June 2023




Segment liabilities as at 1 July 2022

1,137,363

183,405

1,320,768

Segment liability increase/(decrease) for the period

14,805

45,964

60,769


1,152,168

229,369

1,381,537

Reconciliation of segment liabilities to total liabilities:

 

 

 

Other liabilities

-

-

-

Total liabilities from continuing operations

1,152,168

229,369

1,381,537

 

 

 


 

12      Producing assets

 

The Group currently has 5 producing assets, which the Board monitors as separate items to the geographical and operating

segments.

 

Project performance is monitored by the line items below.

 

 

 

Stanley

$

Cinnabar

$

Winters

$

Livingston

$

Arkoma

$

Other Projects

$

Total

$

Half-Year Ended 31 December 2023








Revenue








Oil and gas project related revenue

357,983

82,684

33,811

18,871

-

40,445

533,794

Producing assets revenue

357,983

82,684

33,811

18,871

-

40,445

533,794

 

 

 

 

 

 

 

 

Project-related expenses

 

 

 

 

 

 

 

-     Cost of sales

(16,495)

(3,810)

(1,253)

(727)

-

-

(22,285)

-     Lease operating expenses

(271,639)

(88,992)

(20,114)

(5,814)

-

(90,891)

(477,450)

Project cost of sales

(288,134)

(92,802)

(21,367)

(6,541)

-

(90,891)

(499,735)

 

Project gross profit

 

 

 

 

 

 

 

Gross profit

69,849

(10,118)

12,444

12,330

-

(50,446)

34,059

 



 

 

12      Producing assets (continued)

 

 

(i)       Project performance

 

 

 

 

 

 

 

 

Stanley

$

Cinnabar

$

Winters

$

Livingston

$

Arkoma

$

Other Projects

$

Total

$

 

Half-Year Ended 31 December 2022








 

Revenue








 

Oil and gas project related revenue

679,263

-

158,563

17,823

42,813

37,725

936,187

 

Producing assets revenue

679,263

-

158,563

17,823

42,813

37,725

936,187

 

 

 

 

 

 

 

 

 

 

Project-related expenses

 

 

 

 

 

 

 

 

-     Cost of sales

(34,616)


(10,997)

(821)

(3,082)

-

(49,516)

 

-     Lease operating expenses

(360,220)


(53,211)

(58,485)

(12,186)

(119,566)

(603,668)

 

Project cost of sales

(394,836)

 

(64,208)

(59,306)

(15,268)

(119,566)

(653,184)

 

 

Project gross profit

 

 

 

 

 

 

 

 

Gross profit

284,427

 

94,355

(41,483)

27,545

(81,841)

283,003

 

 



 


Condensed Notes to the Financial Statements

For the Half-Year Ended 31 December 2023

All amounts are Australian Dollars

 

13     Expenditure Commitments

 

(a)       Exploration

 

The Company has certain obligations to perform minimum exploration work on Oil and Gas tenements held. These obligations may vary over time, depending on the Company's exploration programs and priorities. At 31 December 2023, total exploration expenditure commitments for the next 12 months are as follows:

 

 

Entity

Tenement

31 December 2023

$

31 December 2022

$

Trident Energy Pty Ltd

EP1451

-

-

Oilco Pty Ltd

EPA155

-

-

 

 

-

-

 

1.     EP145 is currently under extension until 21 August 2024, therefore there are no committed expenditures as of the date of this report.

 

(b)       Capital Commitments

 

The Company had no capital commitments at 31 December 2023 (2022 - $Nil).

 

14     Warrants

 

A summary of the movements of all company warrant issues to 31 December 2023 is as follows:

 

Company Warrants

31 December 2023

Number of Options

30 June 2023

Number of Options

Outstanding at the beginning of the period

1,288,928,571

1,584,250,000

Expired

-

(896,750,000)

Granted

1,548,571,428

601,428,571

Outstanding at the end of the period

2,837,499,999

1,288,928,571

Exercisable at the end of the period

2,837,499,999

1,288,928,571

 



 

 

15     Subsequent Events

 

Subsequent to the end of the reporting period the Company announced the following material matters occurred:

·      On 15 January 2024, the Group announced it had lodged the Environmental Management Plan ("EMP") with the Northern Territory Government. Approval of the EMP and re-issue of the Aboriginal Areas Protection Authority ('AAPA') Certificate are the two remaining approvals required prior to the acquisition of 2D seismic, scheduled for 2024.

·      On 23 January 2024, the Group announced that Mosman and Greenvale Gas Ltd ("GRV"), a subsidiary of Greenvale Pty Ltd (ASX:GRV), had agreed to amend the Farmin Agreement so that the right for either party to terminate the agreement is changed from 31 January to 30 March 2024.

·      On 2 February, the Group announced it had raised £300,000 (before expenses) by way of a placing of 2,400,000,000 ordinary shares at a price of 0.0125 pence per share.

·      On 7 February, the Group held and Extraordinary General Meeting, where shareholder approval was received to issue 84,210,526 shares and 42,105,263 warrants to CEO Andrew Carroll, and 42,105,263 shares and 21,052,632 warrants to Chairman Nigel Harvey. Shares were issued for cash consideration at 0.0125p per share. The warrants are exercisable at 0.025p each with a two year expiry. All shares and warrants were issued on the same terms as the placement announced on 29 November 2023.

 

There were no other material matters that occurred subsequent to 31 December 2023.

 

 

16     Dividends

 

No dividends have been paid or proposed during the half year ended 31 December 2023.

 

 

 

 

 

 

 

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