TIDMMSMN
RNS Number : 8287S
Mosman Oil and Gas Limited
08 November 2023
8 November 2023
Mosman Oil and Gas Limited
("Mosman" or the "Company")
Final Results to 30 June 2023
Mosman Oil and Gas Limited (AIM: MSMN) the hydrocarbon, helium
and hydrogen exploration, development, and production company,
announces its final results for the year ended 30 June 2023.
Summary
-- Gross Project Production 86,933 BOE (1 2)
-- Net Production to Mosman 31,067 BOE (3)
-- Revenue increased to AU$2.25m
-- Gross Profit AU$0.67m
-- Net loss for the year improved to AU$2.1m
(1. BOE/boe - barrels of oil equivalent based on calorific value
as opposed to dollar value)
2. 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
(3. Net to Mosman's Working Interest; Net Production
attributable to Mosman means net to Mosman's Working Interest
before royalties)
Operational overview
USA
-- Cinnabar project (75% WI) Cinnabar-1 well successfully
drilled in November 2022 and commenced production in December,
initially producing 100 bopd. Technical work is currently underway
following a drop in production rates.
-- Stanley project - Whilst overall production declined in the
year, the installation and operation of jet pumps has resolved this
with production now increasing.
Australia
EP145
-- Published a new Prospective Resource estimate and license
extended by 12 months to August 2026.
-- Signed a farmin agreement with a subsidiary of Greenvale
Energy Ltd to fund seismic and drilling.
The Company expects to publish its annual report today which
will be posted and made available on the Company's website at
www.mosmanoilandgas.com/financial-reports .
Board update
-- John W Barr and 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
Andy Carroll, CEO of Mosman commented : "Whilst 2023 has been
challenging, we have also made considerable progress. Mosman
remains resolute in identifying opportunities which will provide
operating cash flow and have development upside, in conjunction
with exploration of existing exploration permits, whilst also being
in a position to evaluate further acquisition targets.
"The team is building a strong foundation from which we plan to
scale up the business and grow by taking advantage of opportunities
in the year ahead.
"We acknowledge it has been a turbulent period for shareholders
and would like to take this opportunity to thank them for their
continued support whilst reassuring them of our confidence of
achieving growth in both production and value for the
business."
Mosman Oil & Gas Limited NOMAD and Joint Broker
Andy Carroll, Technical Director SP Angel Corporate Finance LLP
acarroll@mosmanoilandgas.com Stuart Gledhill / Richard Hail /
Adam Cowl
+44 (0) 20 3470 0470
Alma Joint Broker
Justine James CMC Markets UK Plc
+44 (0) 20 3405 0205 Douglas Crippen
+44 (0) 7525 324431 +44 (0) 020 3003 8632
mosman@almastrategic.com
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 existing exploration
permits. The Company has several projects in the US, in addition to
exploration projects in the Amadeus Basin in Central Australia.
Chairman's Letter
I am pleased to provide my first report as Chair, following
appointment in October 2023. FY 23 and its subsequent events have
certainly been a busy and important period for Mosman Oil &
Gas.
Both our board and our operations have materially evolved. They
have done so around our continuing strategic objective to identify
opportunities with significant upside and actual or potential
operating cash flow. These opportunities have so far been
predominantly in hydrocarbons, hydrogen and helium within our
existing or expanding portfolio in Texas and central Australia.
My first duty as your Chair must be on behalf of all us
shareholders, to acknowledge and thank both my former colleagues on
the board. Our former Executive Chair John W Barr and our former
Non-Executive Director John Young who both made invaluable and
longstanding contributions since the Company's foundation. I must
also welcome to the Board our new Non-Executive Director Mr Carl
Dumbrell who brings great expertise to our table.
Executive Director Andy Carroll, formerly Technical Director,
has now stepped up to become our Chief Executive Officer. He will
be driving the Company forward supported by myself and Mr Dumbrell
both as Non-Executives and our team of consultants. These include
in particular Mr Howard McLauqhlin running our US operations, Dr
Julie Daws our geologist focused on the central Australia assets,
Jarrod White and his team at Traverse (especially Nick Marshall)
providing financial and accounting support.
We plan to keep our team rightsized and our costs as low as
practicable in pursuit of our objective of sustainable positive
cash flow.
You will read ahead of several significant evolutions to our
operations during the year as well.
In East Texas we drilled our first well at Cinnabar and expanded
our lease there somewhat, buoyed by a very promising independent
reserve report. Whilst subsequent production has been disappointing
our team continues to work on technical solutions to access those
more significant reserves.
Our Stanley assets have been responding very well to workovers
and in particular installation of jet pumps. Our Falcon assets were
disposed of and with them any residual liability.
The equity market's excitement around hydrogen and helium saw us
looking at various potential paths for the significant prospective
resources we have worked up with our key central Australian assets.
This included even potentially a separate IPO. Ultimately, however,
it was deemed more effective to farmout, which is yielding us
certainty and importantly, no call on capital for these assets for
quite some time. Mosman will be carried through the first few years
of seismic and technical development as well as the cost of the
first well (up to AUD5.5MM) and then retain a 25% interest in its
EP 145 block near Alice Springs. Its other application block is
also progressing slowly under an earlier farmout.
Nigel Harvey
Chair
Overview of the 2023 Financial Year
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 current medium term focus, through wholly owned subsidiary
Mosman Oil USA Inc, is on developing the existing production assets
in the USA to deliver production increases and cash flow.
Summary
The Company has several active projects in the US in addition to
exploration projects in the Amadeus Basin in Central Australia.
In the period there were several notable developments:
The Cinnabar project was acquired in 2021 at low cost when oil
prices were lower. Two wells have been producing since the 1980s,
with natural decline. 3D seismic was used to map the field and
reservoir engineering modelling indicated significant remaining oil
reserves. The current production rates need to be increased and
technical work is underway to determine the best way forward.
At Stanley, gas lift was successful in increasing rates, but
there is limited gas available. Jet pumps were installed, and after
initial teething problems with sand production, have successfully
increased production rates at the relevant wells. Technical work
indicates additional recoverable oil at Stanley.
After shutting production in the year, the Falcon lease was
disposed of post year end, and with it the liability for any
potential future abandonment costs.
In the period, sales increased by 24% to $2,252,029 ($1,812,119
in 2022). Gross profit decreased by to $674,665 ($695,096 in 2022).
The financial results were supported by increased ownership of
projects, stronger commodity prices and the establishment of a
broader production base, including the Cinnabar wells.
In Australia's Northern Territory, Mosman recently published a
new Prospective Resource estimate over the EP 145 lease, saw the
license extended to August 2024, and post period end, signed a
farmin agreement with a subsidiary of Greenvale Energy Ltd to fund
seismic and drilling. Upon completion, Mosman will retain a 25%
working interest in EP 145
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.
Given the operational progress both during the year and after
the reporting period, the Board looks forward with great optimism
given these achievements and the growth opportunities available to
it.
USA
Net Production attributable to Mosman in the year to 30 June
2023 was 31,067 boe, compared to 37,915 boe in 2022.
Gross Project Production(2) Net Production to Mosman
BOE(1) (3)
BOE(1)
------------------ ---------------------------- -------------------------
Stanley 44,915 16,844
Cinnabar 8,465 6,349
Livingston 2,654 531
Winters 22,733 5,304
Arkoma 8,166 2,039
------------------ ---------------------------- -------------------------
Total Production 86,933 31,067
------------------ ---------------------------- -------------------------
(1) BOE/boe - barrels of oil equivalent
(2) 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
(3) Net Production - Net to Mosman's Working Interest; Net
Production attributable to Mosman means net to Mosman's Working
Interest before royalties
The decrease in net production was primarily due to production
halting at Falcon, which was somewhat offset by increased
production at Stanley and new production at Cinnabar.
Cinnabar (75% working interest)
A well was drilled in November 2022, with Mosman farming out 25%
WI, and a "turnkey" drilling contract was used to reduce cost
exposure. The well was successfully drilled to target depth.
Electric logs and a third party report indicated multiple oil
reservoirs had been penetrated. There was a delay waiting for the
third party cement crew and equipment, during which time there was
"lost circulation" whereby fluid was pumped in to the well to keep
it full, but not all of that fluid returned to surface. This may
have damaged the reservoirs and contributed to subsequent
production problems.
The well was put on production in late December, and initially
produced over 100 bopd of oil and emulsion. Over time, the oil
production declined and the water rate increased to the point where
the well did not flow. Production logs were run and indicated the
water was coming from one zone, and oil from another. A workover
was performed to seal off that zone and flow another zone. Despite
the production log, after the workover that zone will only flow
intermittently (ie the well is shut in, pressure builds, the well
is flowed, pressure drops and flow ceases).
The older wells have been worked-over and now flow at higher
rates, albeit intermittently. This result suggests the reservoir
pressure is not sufficient to maintain flow, and artificial lift is
required (as is common in wells onshore USA). Technical work is
underway to determine the best type of artificial lift for this
field.
Cinnabar Gross Reserves (BOE):
Proved Proved Proved Total Total Total
Developed Developed Undeveloped Proved Probable Proved
Producing Behind Pipe Plus Probable
302,000 147,000 1,132,000 1,581,000 65,000 1,646,000
-------------- -------------- ------------- ----------- ----------------
Stanley (34.85% to 38.5% Working Interests)
Overall production at Stanley declined in the year but is now
increasing primarily due to the installation and operation of jet
pumps.
Livingston (20% Working Interest) and Greater Stanley (40%
Working Interest)
These projects are of strategic importance and form part of the
longer-term planning.
Arkoma (27% Working Interest)
Production has increased in FY2023, since the recovery from a
significant lightning strike in March 2022. This asset has value
when gas prices are high, due to the gas compression and transport
costs.
Winters-2 (23% Working Interest)
Winters-2 continues to produce at rates exhibiting natural
decline.
Falcon
The Falcon-1 well stopped producing in the June 2022 quarter and
the subsequent attempted workovers were not successful. As a
result, the well was shut-in for the full 2023 financial year.
Subsequent to year-end, given the lower gas prices, Mosman
determined not to invest additional resources in this project and
reached an agreement to transfer the Falcon lease to 84 Energy Corp
in exchange for the equipment on the lease. This means Mosman is
not liable for potential future abandonment costs which were
estimated to be up to US$200,000.
In addition, the adjacent undeveloped Galaxie exploration lease
has not been renewed and has expired with no liabilities.
AUSTRALIA
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.
An airborne gravity and gradiometry survey was completed in 2022
and provided a wealth of new information that is critical to
ongoing work. That survey is a significant step in the exploration
programme for EP 145 and is the first time that such data has been
acquired for the whole 818 sq/km of the permit area.
This led to a new Prospective Resource estimate by Mosman as
detailed below.
Based on a report by the Geognostics Australia Pty Ltd dated
October 2022, and data from other wells in the Amadeus basin,
Mosman has estimated gross Prospective Resource volumes for
hydrocarbons, helium, and hydrogen associated with the Walker Creek
Anticline as a lead within the boundaries of the EP 145 permit
using a deterministic approach and applying the SPE PRMS
standard.
Prospective Low Estimate Best Estimate High Estimate
Resources (Bcf)
Total gas 12 440 2,290
============== =============== ===============
Helium 0.3 26.4 229
============== =============== ===============
Hydrogen 0.24 26.4 275
============== =============== ===============
Source: Mosman Oil and Gas Ltd, October 2022
The ongoing exploration work programme on EP 145 is to acquire
seismic prior to drilling an exploration well. Mosman has applied
for the required regulatory and CLC approvals. The CLC has
conducted a site survey and has approved land access approval for
seismic acquisition.
Once all approvals are obtained, the next step is the
acquisition and interpretation of 2D seismic in the current permit
year (expiring August 2024), prior to identifying a drilling
location and drilling an exploration well.
Mosman successfully applied for a grant to undertake a soil gas
sampling program targeting hydrogen and helium. The grant was
awarded by the Northern Territories Government as part of the
Geophysics and Collaborations program. Soil gas sampling is a
non-invasive, rapid and relatively inexpensive technology to
identify the presence of natural hydrogen and helium and provides a
preliminary test to determine if these gases are present in the
permit. Soil gas sampling for hydrogen is a relatively new
technique and only a small number of companies globally have the
equipment to undertake these studies. After evaluation, CSIRO are
the preferred supplier offering reliable equipment and a relatively
quick project turn around and Mosman is currently discussing timing
for a survey. Given the remote location and extreme weather in the
Northern Territory, collection of data is also restricted to the
cooler months (April-October) for safety reasons. Mosman
anticipates that it will be able to conduct a survey once all
access approvals are met and equipment is available.
Subsequent to the end of the Financial Year, Mosman announced
the funding of seismic and drilling by farmout to ASX listed
Greenvale Mining Ltd. Subject to completion including government
approvals, Mosman will retain 25% and Greenvale will earn 75% of
the permit.
Mosman's other central Australian project is EPA-155. This
permit is subject to a farmout with the next step being completion
of Native Title negotiations.
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 Means the production of BOE at a total project level (100%
Production 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
-----------------------------------------------------------------
CORPORATE
Financial Report
Overall, in the year to 30 June 2023, the Company made a loss of
$2,127,198 (2022: $2,446,276) after impairments of $474,586 (2022:
$1,606,816).
Revenue increased to $2,252,029 (2022: $1,812,119) as higher
value oil production replaced lower value gas production.
Gross Profit decreased to $674,665 (2022: $695,096), primarily
due to lower gas prices.
Of significance, some $2,567,643 (2022: $1,588,036) was spent on
investing activities on assets in the portfolio during the year in
support of the Group's growth strategy.
Asset value increase to $8,669,676 (2022: $8,602,400).
The net proceeds of fundraising activities during the year were
$1,931,908 (2022: $2,043,051).
The Board continues to focus on achieving a cash flow positive
position at a Company level. Given the current financial position,
the results of recent drilling and the ongoing focus to control
costs, this is now becoming an increasingly achievable
objective.
Overhead costs continue to be tightly controlled. Mosman
continues to operate with a very small number of Employees and
Consultants. The Company operates in three countries and in
four-time zones, and the role played by the Employees and
Consultants is vital in achieving Mosman's strategic objective.
Accordingly, I again express my profound gratitude for everyone's
efforts in the year.
Outlook
Whilst 2023 has been challenging, we have also made considerable
progress. Mosman remains resolute in identifying opportunities
which will provide operating cash flow and have development upside,
in conjunction with exploration of existing exploration permits,
whilst also being in a position to evaluate further acquisition
targets.
The team is building a strong foundation from which we plan to
scale up the business and grow by taking advantage of organic
production opportunities in the year ahead.
We acknowledge it has been a turbulent period for shareholders
and would like to take this opportunity to thank them for their
continued support whilst reassuring them of our confidence of
achieving growth in both production and value for the business.
Andrew R Carroll
Executive Director and CEO
8 November 2023
Consolidated Statement of Financial Performance
Year Ended 30 June 2023
All amounts are in Australian Dollars
Notes Consolidated Consolidated
2023 2022
$ $
Revenue 21 2,252,029 1,812,119
Cost of sales 2 (1,577,364) (1,117,023)
Gross profit 674,665 695,096
Interest i ncome 483 -
Administrative expenses (587,084) (326,098)
Corporate expenses 3 (964,014) (741,080)
Directors fees (137,667) (120,000)
Exploration expenses
incurred, not capitalised (9,300) (14,775)
Employee b enefits
expense (57,065) (70,024)
Finance costs (5,636) (3,324)
Amortisation expense 11 (436,028) (237,194)
Depreciation expense (2,064) (11,974)
Bad debts expense (121,847) -
Impairment expense 11 (474,586) (1,606,816)
Loss on foreign exchange (7,055) (10,085)
Loss on settlement
of Director liabilities - -
Loss from ordinary
activities before
income tax expense (2,127,198) (2,446,274)
Income tax expense 5 - -
Net l oss for the
year (2,127,198) (2,446,274)
---------------------- ----------------------
Other c omprehensive
profit
Items that may be
reclassified to profit
or loss:
Foreign currency
- gain/(loss) 4 184,479 360,408
Total comprehensive
income attributable
to members of the
entity (1,942,719) (2,085,866)
====================== ======================
Basic loss per share
(cents per share) 22 (0.03) cents (0.06) cents
Diluted loss per share
(cents per share) 22 (0.03) cents (0.06) cents
The accompanying notes form part of these financial
statements.
Consolidated Statement of Financial Position
As at 30 June 2023
All amounts are in Australian Dollars
Notes Consolidated Consolidated
30 June 2023 30 June 2022
$ $
Current Assets
Cash and cash equivalents 7 520,613 2,354,689
Trade and other receivables 8 863,639 787,040
Other assets 9 78,086 69,514
Total Current Assets 1,462,338 3,211,243
-------------- --------------
Non-Current Assets
Property, plant & equipment 10 6,220 5,128
Oil and gas assets 11 5,780,587 4,145,488
Capitalised o il and g as exploration 12 1,420,531 1,240,541
-------------- --------------
Total Non-Current Assets 7,207,338 5,391,157
-------------- --------------
Total Assets 8,669,676 8,602,400
-------------- --------------
Current Liabilities
Trade and other payables 13 1,185,450 1,111,338
Provisions 14 15,500 25,654
Total Current Liabilities 1,200,950 1,136,992
-------------- --------------
Non-Current Liabilities
Provisions 14 180,587 38,617
Other payables 13 - 145,159
-------------- --------------
Total Non-Current Liabilities 180,587 183,776
-------------- --------------
Total Liabilities 1,381,537 1,320,768
-------------- --------------
Net Assets 7,288,139 7,281,632
============== ==============
Shareholders' Equity
Contributed equity 15 40,675,340 38,743,432
Reserves 16 908,094 706,297
Accumulated losses 17 (34,295,295) (32,168,097)
Total Shareholders' Equity 7,288,139 7,281,632
============== ==============
The accompanying notes form part of these financial
statements.
Consolidated Statement of Changes in Equity
Year Ended 30 June 2023
All amounts are in Australian Dollars
Accumulated Contributed Equity Reserves Total
Losses
$ $ $ $
Balance at 1 July 2022 (32,168,097) 38,743,432 706,297 7,281,632
============== =================== ========== ============
Comprehensive income
Loss for the period (2,127,198) - - (2,127,198)
- - - -
Other comprehensive income for the period - - 184,479 184,479
-------------- ------------------- ---------- ------------
Total comprehensive loss for the period (2,127,198) - 184,479 (1,942,719)
Transactions with owners, in their capacity as owners, and other transfers:
New shares issued - 2,016,286 - 2,016,286
Cost of raising equity - (84,378) - (84,378)
Options issued - - 17,318 17,318
Total transactions with owners and other transfers - 1,931,908 17,318 1,949,226
-------------- ------------------- ---------- ------------
Balance at 30 June 2023 (34,295,295) 40,675,340 908,094 7,288,139
============== =================== ========== ============
Balance at 1 July 2021 (29,812,181) 36,700,381 436,247 7,324,447
============== =================== ========== ============
Comprehensive income
Loss for the period (2,446,274) - - (2,446,274)
Other comprehensive income for the period - - 360,408 360,408
-------------- ------------------- ---------- ------------
Total comprehensive loss for the period (2,446,274) - 360,408 (2,085,866)
Transactions with owners, in their capacity as owners, and other transfers:
New shares issued - 2,159,819 - 2,159,819
Cost of raising equity - (116,768) - (116,768)
Options expired 90,358 - (90,358) -
Total transactions with owners and other transfers 90,358 2,043,051 (90,358) 2,043,051
-------------- ------------------- ---------- ------------
Balance at 30 June 2022 (32,168,097) 38,743,432 706,297 7,281,632
============== =================== ========== ============
These accompanying notes form part of these financial
statements
Consolidated Statement of Cash Flows
Year Ended 30 June 2023
All amounts are in Australian Dollars
Notes Consolidated 2023 Consolidated 2022
$ $
Cash flows from operating activities
Receipts from customers 2,067,563 1,598,554
Interest received & other income - 38,626
Payments to suppliers and employees (3,270,744) (2,129,149)
Interest paid (5,636) (3,324)
------------------ ------------------
Net cash outflow from operating activities 23 (1,208,817) (495,293)
------------------ ------------------
Cash flows from investing activities
Payments for property, plant and equipment (3,156) -
Payments for oil and gas assets (2,182,687) (815,243)
Payments for exploration and evaluation (179,990) (533,839)
Payments for Company acquisition (145,158) -
Acquisition of oil and gas production projects (56,652) (238,954)
Net cash outflow from investing activities (2,567,643) (1,588,036)
------------------ ------------------
Cash flows from financing activities
Proceeds from shares issued 2,016,286 2,159,819
Payments for costs of capital (84,378) (116,768)
Net cash inflow from financial activities 1,931,908 2,043,051
------------------ ------------------
Net (decrease)/increase in cash and cash equivalents (1,844,552) (40,278)
------------------ ------------------
Effects of exchange rate changes on cash and cash equivalents 10,478 105,293
------------------ ------------------
Cash and cash equivalents at the beginning of the financial year 2,354,689 2,289,674
------------------ ------------------
Cash and cash equivalents at the end of the financial year 7 520,615 2,354,689
------------------ ------------------
The accompanying notes from part of these financial
statements
Notes to the Financial Statements
Year Ended 30 June 2023
All amounts are Australian Dollars
1 Statement of Accounting Policies
The principal accounting policies adopted in preparing the
financial report of Mosman Oil and Gas Limited (or "the Company")
and Controlled Entities ("Consolidated entity" or "Group"), are
stated to assist in a general understanding of the financial
report. These policies have been consistently applied to all the
years presented, unless otherwise indicated.
Mosman Oil and Gas Limited is a Company limited by shares
incorporated and domiciled in Australia.
(a) Basis of Preparation
This general purpose financial report has been prepared in
accordance with Australian Accounting Standards (including
Australian Interpretations) adopted by the Australian Accounting
Standards Board and the Corporations Act 2001. Compliance with
Australian Accounting Standards ensures that the financial
statements also comply with International Financial Reporting
Standards.
The financial report has been prepared on the basis of
historical costs and does not take into account changing money
values or, except where stated, current valuations of non-current
assets.
Going Concern
The financial statements have been prepared on the going concern
basis. As at 30 June 2023, the consolidated entity incurred a net
loss of $2,127,198 during the year ended 30 June 2023 and, as of
that date, the group had a cash balance of $520,613.
The financial report has been prepared on the going concern
basis, which contemplates the continuity of normal business
activity and the realization of assets and settlement of
liabilities in the normal course of business.
In arriving at this position, the Directors have had regard to
the fact that the Group has, or in the directors' opinion will have
access to, sufficient cash to fund administrative and other
committed expenditure for a period of not less than 12 months from
the date of this report.
In forming this view the directors have taken into consideration
the following:
-- The ability of the Group to obtain funding through various
sources, including equity raised which are currently being
investigated by management;
-- The Group has the capacity, if necessary, to reduce its
operating cost structure in order to minimize its working capital
requirements; and
-- The Directors have reasonable expectations that they will be
able to raise additional funding needed for the Group to continue
to execute against its milestones in the medium term.
Should the company or the group not able to achieve matters set
out above, there is a significant uncertainty related to events or
conditions that may cast significant doubt on the company and the
Group's ability to continue as a going concern, and, therefore,
that it may be unable to realise its assets and discharge its
liabilities in the normal course of business.
The financial report was authorised for issue by the Directors
on 8 November 2023.
(b) Principles of Consolidation and Equity Accounting
The consolidated financial statements incorporate the assets,
liabilities and results of entities controlled by Mosman Oil and
Gas Limited at the end of the reporting period. A controlled entity
is any entity over which Mosman Oil and Gas Limited has the ability
and right to govern the financial and operating policies so as to
obtain benefits from the entity's activities.
Where controlled entities have entered or left the Group during
the year, the financial performance of those entities is included
only for the period of the year that they were controlled. Details
of Controlled and Associated entities are contained in Note 27 to
the financial statements.
In preparing the consolidated financial statements, all
inter-group balances and transactions between entities in the
consolidated group have been eliminated in full on
consolidation.
Under AASB 11 Joint Arrangements, investments in joint
arrangements are classified as either joint operations or joint
ventures. The classification depends on the contractual rights and
obligations of each investor, rather than the legal structure of
the joint arrangement. Mosman Oil and Gas Limited has a working
interest in various joint operations.
Joint ventures
Joint operations represent arrangements whereby joint operators
maintain direct interests in each asset and exposure to each
liability of the arrangement. The Group's interests in the assets,
liabilities, revenue and expenses of joint operations are included
in the respective line items of the financial statements.
Interests in joint ventures are accounted for using the equity
method (see below), after initially being recognised at cost in the
consolidated balance sheet.
Equity method
Under the equity method of accounting, the investments are
initially recognised at cost and adjusted thereafter to recognise
the group's share of the post-acquisition profits or losses of the
investee in profit or loss, and the group's share of movements in
other comprehensive income of the investee in other comprehensive
income. Dividends received or receivable from associates and joint
ventures are recognised as a reduction in the carrying amount of
the investment.
When the group's share of losses in an equity-accounted
investment equals or exceeds its interest in the entity, including
any other unsecured long-term receivables, the group does not
recognise further losses, unless it has incurred obligations or
made payments on behalf of the other entity.
Unrealised gains on transactions between the group and its
associates and joint ventures are eliminated to the extent of the
group's interest in these entities. Unrealised losses are also
eliminated unless the transaction provides evidence of an
impairment of the asset transferred. Accounting policies of equity
accounted investees have been changed where necessary to ensure
consistency with the policies adopted by the group.
The carrying amount of equity-accounted investments is tested
for impairment in accordance with the policy described in note
1(q).
(c) Use of Estimates and Judgements
The preparation of financial statements requires management to
make judgements, estimates and assumptions that affect the
application of accounting policies and reported amounts of assets
and liabilities, income and expenses. Actual results may differ
from these estimates. Estimates and underlying assumptions are
reviewed on an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimate is revised and in
any future periods affected.
Critical Accounting Estimates and Judgements
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.
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;
-- Fundamental economic factors that have an impact on the
operations and carrying values of assets and liabilities.
Taxation
Balances disclosed in the financial statements and the notes
related to taxation, are based on the best estimates of directors
and take into account the financial performance and position of the
Group as they pertain to current income tax legislation, and the
directors understanding thereof. No adjustment has been made for
pending or future taxation legislation. The current tax position
represents the best estimate, pending assessment by the tax
authorities.
Exploration and Evaluation Assets
The accounting policy for exploration and evaluation expenditure
results in expenditure being capitalised for an area of interest
where it is considered likely to be recoverable by future
exploitation or sale or where the activities have not reached a
stage which permits a reasonable assessment of the existence of
reserves.
This policy requires management to make certain estimates as to
future events and circumstances . Any such estimates and
assumptions may change as new information becomes available. 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.
(d) Income Tax
Current tax assets and liabilities for the current and prior
periods are measured at the amount expected to be recovered from or
paid to the taxation authorities. The tax rates and tax laws used
to compute the amounts are those that are enacted or substantively
enacted at the balance sheet date.
Deferred income tax is provided on all temporary differences at
the balance sheet date between the tax bases of assets and
liabilities and their carrying amounts for financial reporting
purposes.
Deferred income tax liabilities are recognised for all taxable
temporary differences.
Deferred income tax assets are recognised for all deductible
temporary differences, carry-forward of unused tax assets and
unused tax losses, to the extent that it is probable that taxable
profit will be available against which the deductible temporary
differences and the carry-forward of unused tax credits and unused
tax losses can be utilised;
The carrying amount of deferred income tax assets is reviewed at
each balance sheet date reduced to the extent that it is no longer
probable that sufficient taxable profit will be available to allow
all or part of the deferred income tax asset to be utilised.
Unrecognised deferred income tax assets are reassessed at each
balance sheet date and are recognised to the extent that it has
become probable that future taxable profit will allow the deferred
tax asset to be recovered.
Deferred income tax assets and liabilities are measured at the
tax rates that are expected to apply to the period when the asset
is realised or the liability is settled, based on tax rates (and
tax laws) that have been enacted or substantively enacted at the
balance sheet date.
Income taxes relating to items recognised directly in equity are
recognised in equity and not in the income statement.
Deferred tax assets and deferred tax liabilities are offset only
if a legally enforceable right exists to set off current tax
liabilities and the deferred tax assets and liabilities relate to
the same taxable entity and the same taxation authority.
(e) Goods and Services Tax
Revenues, expenses and assets are recognised net of the amount
of GST except:
(i) Where the GST incurred on a purchase of goods and services
is not recoverable from the taxation authority, in which case the
GST is recognised as part of the cost of acquisition of the asset,
or as part of the expense item as applicable;
(ii) Receivables and payables are stated with the amount of GST included;
(iii) The net amount of GST recoverable from, or payable to, the
taxation authority is included as part of receivables or payables
in the Statement of Financial Position ;
(iv) Cash flows are included in the Statement of Cash Flow s on
a gross basis and the GST component of cash flows arising from
investing and financing activities, which is recoverable from, or
payable to, the taxation authority, are classified as operating
cash flows; and
(v) Commitments and contingencies are disclosed net of the
amount of GST recoverable from, or payable to, the taxation
authority.
(f) Property , Plant and Equipment
Plant and equipment are measured on the cost basis and therefore
carried at cost less accumulated depreciation and any accumulated
impairment. In the event the carrying amount of plant and equipment
is greater than the estimated recoverable amount, the carrying
amount is written down immediately to the estimated recoverable
amount and impairment losses are recognised either in profit or
loss, or as a revaluation decrease if the impairment losses relate
to a revalued asset. A formal assessment of recoverable amount is
made when impairment indicators are present (refer to Note 1(q) for
details of impairment).
The carrying amount of plant and equipment is reviewed annually
by directors to ensure it is not in excess of the recoverable
amount from these assets. The recoverable amount is assessed on the
basis of the expected net cash flows that will be received from the
asset's employment and subsequent disposal. The expected net cash
flows have been discounted to their present values in determining
recoverable amounts.
(g) Depreciation
The depreciable amount of all fixed assets is depreciated on a
straight-line basis over the asset's useful life to the
consolidated group commencing from the time the asset is held ready
for use. Leasehold improvements are depreciated over the shorter of
either the unexpired period of the lease or the estimated useful
lives of the improvements.
(h) Exploration and Evaluation Assets
Mineral exploration and evaluation expenditure incurred is
accumulated in respect of each identifiable area of interest and is
subject to impairment testing. These costs are carried forward only
if they relate to an area of interest for which rights of tenure
are current and in respect of which:
-- S uch costs are expected to be recouped through the
successful development and exploitation of the area of interest, or
alternatively by its sale; or
-- Exploration and/or evaluation activities in the area have not
reached a stage which permits a reasonable assessment of the
existence, or otherwise, of economically recoverable reserves and
active or significant operations in, or in relation to, the area of
interest is continuing.
In the event that an area of interest is abandoned accumulated
costs carried forward are written off in the year in which that
assessment is made. A regular review is undertaken of each area of
interest to determine the appropriateness of continuing to carry
forward costs in relation to that area of interest.
Where a resource has been identified and where it is expected
that future expenditures will be recovered by future exploitation
or sale, the impairment of the exploration and evaluation is
written back and transferred to development costs. Once production
commences, the accumulated costs for the relevant
area of interest are amortised over the life of the area
according to the rate of depletion of the economically recoverable
reserves.
Costs of site restoration and rehabilitation are recognised when
the Company has a present obligation, the future sacrifice of
economic benefits is probable, and the amount of the provision can
be reliably estimated.
The amount recognised as a provision is the best estimate of the
consideration required to settle the present obligation at the
reporting date, taking into account the risks and uncertainties
surrounding the obligation. Where a provision is measured using the
cash flows estimated to settle the present obligation, its carrying
amount is the present value of those cash flows.
Exploration and evaluation assets are assessed for impairment if
facts and circumstances suggest that the carrying amount exceeds
the recoverable amount.
For the purpose of impairment testing, exploration and
evaluation assets are allocated to cash-generating units to which
the exploration activity relates. The cash generating unit shall
not be larger than the area of interest.
(i) Accounts Payable
These amounts represent liabilities for goods and services
provided to the Group prior to the end of the financial year and
which are unpaid. The amounts are unsecured and are usually paid
within 30 days of recognition .
(j) Contributed Equity
Issued Capital
Incremental costs directly attributable to issue of ordinary
shares and share options are recognised as a deduction from equity,
net of any related income tax benefit.
(k) Earnings Per Share
Basic earnings per share ("EPS") are calculated based upon the
net loss divided by the weighted average number of shares. Diluted
EPS are calculated as the net loss divided by the weighted average
number of shares and dilutive potential shares.
(l) Share-Based Payment Transactions
The Group provides benefits to Directors, KMP and consultants of
the Group in the form of share-based payment transactions, whereby
employees and consultants render services in exchange for shares or
rights over shares ("equity settled") transactions.
The value of equity settled securities is recognised, together
with a corresponding increase in equity.
Where the Group acquires some form of interest in an exploration
tenement or an exploration area of interest and the consideration
comprises share-based payment transactions, the fair value of the
assets acquired are measured at grant date. The value is recognised
within capitalised mineral exploration and evaluation expenditure,
together with a corresponding increase in equity.
(m) Comparative Figures
When required by Accounting Standards, comparative figures have
been adjusted to conform to changes in presentation for the current
financial year.
(n) Financial Risk Management
The Board of Directors has overall responsibility for the
establishment and oversight of the risk management framework, to
identify and analyse the risks faced by the Group . These risks
include credit risk, liquidity risk and market risk from the use of
financial instruments. The Group has only limited use of financial
instruments through its cash holdings being invested in short term
interest bearing securities. The Group has no debt, and working
capital is maintained at its highest level possible and regularly
reviewed by the full board.
(o) Financial Instruments
Recognition, initial measurement and derecognition
Financial assets and financial liabilities are recognised when
the Company becomes a party to the contractual provisions of the
financial instrument and are measured initially at fair value
adjusted by transactions costs, except for those carried at fair
value through profit or loss, which are measured initially at fair
value. Subsequent measurement of financial assets and financial
liabilities are described below.
Financial assets are derecognised when the contractual rights to
the cash flows from the financial asset expire, or when the
financial asset and substantially all the risks and rewards are
transferred. A financial liability is derecognised when it is
extinguished, discharged, cancelled or expires.
Classification and subsequent measurement of financial
assets
Except for those trade receivables that do not contain a
significant financing component and are measured at the transaction
price in accordance with AASB 9, all financial assets are initially
measured at fair value adjusted for transaction costs (where
applicable).
Hybrid contracts
If a hybrid contract contains a host that is a financial asset,
the policies applicable to financial assets are applied
consistently to the entire contract.
Subsequent measurement of financial assets
For the purpose of subsequent measurement, financial assets,
other than those designated and effective as hedging instruments,
are classified into the following categories upon initial
recognition:
-- financial assets at amortised cost
-- financial assets at fair value through profit or loss (FVPL)
-- debt instruments at fair value through other comprehensive income (FVOCI)
-- equity instruments at fair value through other comprehensive income (FVOCI)
Classifications are determined by both:
-- the entity's business model for managing the financial asset
-- the contractual cash flow characteristics of the financial assets
All income and expenses relating to financial assets that are
recognised in profit or loss are presented within finance costs,
finance income or other financial items, except for impairment of
trade receivables which is presented within other expenses.
Financial assets at amortised cost
Financial assets are measured at amortised cost if the assets
meet the following conditions (and are not designated as FVPL):
-- they are held within a business model whose objective is to
hold the financial assets and collect its contractual cash
flows
-- the contractual terms of the financial assets give rise to
cash flows that are solely payments of principal and interest on
the principal amount outstanding
After initial recognition, these are measured at amortised cost
using the effective interest method. Discounting is omitted where
the effect of discounting is immaterial. The Company's cash and
cash equivalents, trade and most other receivables fall into this
category of financial.
Financial assets at fair value through profit or loss (FVPL)
Financial assets that are held within a business model other
than 'hold to collect' or 'hold to collect and sell' are
categorised at fair value through profit and loss. Further,
irrespective of business model, financial assets whose contractual
cash flows are not solely payments of principal and interest are
accounted for at FVPL. All derivative financial instruments fall
into this category, except for those designated and effective as
hedging instruments, for which the hedge accounting requirements
apply.
Debt instruments at fair value through other comprehensive
income (Debt FVOCI)
Financial assets with contractual cash flows representing solely
payments of principal and interest and held within a business model
of collecting the contractual cash flows and selling the assets are
accounted for at FVOCI. Any gains or losses recognised in OCI will
be recycled upon derecognition of the asset.
Equity instruments at fair value through other comprehensive
income (Equity FVOCI)
Investments in equity instruments that are not held for trading
are eligible for an irrevocable election at inception to be
measured at FVOCI. Under this category, subsequent movements in
fair value are recognised in other comprehensive income and are
never reclassified to profit or loss. Dividend income is taken to
profit or loss unless the dividend clearly represents return of
capital.
Impairment of Financial assets
The Group recognises a loss allowance for expected credit losses
on financial assets which are either measured at amortised cost or
fair value through other comprehensive income. The measurement of
the loss allowance depends upon the Group's assessment at the end
of each reporting period as to whether the financial instrument's
credit risk has increased significantly since initial recognition,
based on reasonable and supportable information that is available,
without undue cost or effort to obtain.
Where there has not been a significant increase in exposure to
credit risk since initial recognition, a 12-month expected credit
loss allowance is estimated. This represents a portion of the
asset's lifetime expected credit losses that is attributable to a
default event that is possible within the next 12 months. Where a
financial asset has become credit impaired or where it is
determined that credit risk has increased significantly, the loss
allowance is based on the asset's lifetime expected credit losses.
The amount of expected credit loss recognised is measured on the
basis of the probability weighted present value of anticipated cash
shortfalls over the life of the instrument discounted at the
original effective interest rate.
For financial assets mandatorily measured at fair value through
other comprehensive income, the loss allowance is recognised in
other comprehensive income with a corresponding expense through
profit or loss. In all other cases, the loss allowance reduces the
asset's carrying value with a corresponding expense through profit
or loss.
(p) 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 on a units of production basis over the 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.
(q) Impairment of Assets
At each reporting date, the Group reviews the carrying values of
its tangible assets to determine whether there is any indication
that those assets have been impaired. If such an indication exists,
the recoverable amount of the asset, being the higher of the
asset's fair value less costs to sell and value in use, is
compared to the asset's carrying value. Any excess of the
asset's carrying value over its recoverable amount is expensed to
the income statement. Impairment testing is performed annually for
goodwill and intangible assets with indefinite lives.
Where it is not possible to estimate the recoverable amount of
an individual asset, the Group estimates the recoverable amount of
the cash-generating until to which the asset belongs.
(r) Employee Entitlements
Liabilities for wages and salaries, annual leave and other
current employee entitlements expected to be settled within 12
months of the reporting date are recognised in other payables in
respect of employees' services up to the reporting date and are
measured at the amounts expected to be paid when the liabilities
are settled. Liabilities for non-accumulating sick leave are
recognised when the leave is taken and measured at the rates paid
or payable.
Contributions to employee superannuation plans are charged as an
expense as the contributions are paid or become payable.
(r) Provisions
Provisions are recognised when the Group has a legal or
constructive obligation, as a result of past events, for which it
is probable that an outflow of economic benefits will be the result
and that outlay can be reliably measured.
(s) Cash and Cash Equivalents
Cash and cash equivalents include cash on hand, deposits held at
call with banks, other short-term highly liquid investments with
original maturities of 3 months or less, and bank overdrafts. Bank
overdrafts are shown within short-term borrowings in current
liabilities on the balance sheet.
(t) 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 its share
of the sale by 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.
(u) Business combinations
The acquisition method of accounting is used to account for
business combinations regardless of whether equity instruments or
other assets are acquired.
The consideration transferred is the sum of the acquisition-date
fair values of the assets transferred, equity instruments issued or
liabilities incurred by the acquirer to former owners of the
acquiree and the amount of any non-controlling interest in the
acquiree. For each business combination, the non-controlling
interest in the acquiree is measured at either fair value or at the
proportionate share of the acquiree's identifiable net assets. All
acquisition costs are expensed as incurred to profit or loss.
On the acquisition of a business, the consolidated entity
assesses the financial assets acquired and liabilities assumed for
appropriate classification and designation in accordance with the
contractual terms, economic conditions, the consolidated entity's
operating or accounting policies and other pertinent conditions in
existence at the acquisition-date.
Where the business combination is achieved in stages, the
consolidated entity remeasures its previously held equity interest
in the acquiree at the acquisition-date fair value and the
difference between the fair value and the previous carrying amount
is recognised in profit or loss.
Contingent consideration to be transferred by the acquirer is
recognised at the acquisition-date fair value. Subsequent changes
in the fair value of the contingent consideration classified as an
asset or liability is recognised in profit or loss. Contingent
consideration classified as equity is not remeasured and its
subsequent settlement is accounted for within equity.
The difference between the acquisition-date fair value of assets
acquired, liabilities assumed and any non-controlling interest in
the acquiree and the fair value of the consideration transferred
and the fair value of any pre-existing investment in the acquiree
is recognised as goodwill. If the consideration transferred and the
pre-existing fair value is less than the fair value of the
identifiable net assets acquired, being a bargain purchase to the
acquirer, the difference is recognised as a gain directly in profit
or loss by the acquirer on the acquisition-date, but only after a
reassessment of the identification and measurement of the net
assets acquired, the non-controlling interest in the acquiree, if
any, the consideration transferred and the acquirer's previously
held equity interest in the acquirer.
Business combinations are initially accounted for on a
provisional basis. The acquirer retrospectively adjusts the
provisional amounts recognised and also recognises additional
assets or liabilities during the measurement period, based on new
information obtained about the facts and circumstances that existed
at the acquisition-date. The measurement period ends on either the
earlier of (i) 12 months from the
date of the acquisition or (ii) when the acquirer receives all
the information possible to determine fair value.
(v) Acquisition of Subsidiary Not Deemed a Business Combination
When an acquisition of assets does not constitute a business
combination, the assets and liabilities are assigned a carrying
amount based on their relative fair values in an asset purchase
transaction and no deferred tax will arise in relation to the
acquired assets and assumed liabilities as the initial exemption
for deferred tax under AASB 12 applies. No goodwill will arise on
the acquisition and transaction costs of the acquisition will be
included in the capitalised cost of the asset.
(w) Foreign Currency Translation
Functional currency
Items included in the financial statements of the Group's
operations are measured using the currency of the primary economic
environment in which it operates ('the functional currency').
The functional currency of the Company and controlled entities
registered in Australia is Australian dollars (AU$).
The functional currency of the controlled entities registered in
the US is United States dollars (US$).
Foreign currency transactions are translated into the functional
currency using the exchange rates ruling at the date of the
transaction. Monetary assets and liabilities denominated in foreign
currencies are retranslated at the rate of exchange ruling at the
end of the reporting period. Foreign exchange gains and losses
resulting from settling foreign currency transactions, as well as
from restating foreign currency denominated monetary assets and
liabilities, are recognised in profit or loss, except when they are
deferred in other comprehensive income as qualifying cash flow
hedges or where they relate to differences on foreign currency
borrowings that provide a hedge against a net investment in a
foreign entity.
Non-monetary items measured at fair value in a foreign currency
are translated using the exchange rates at the date when fair value
was determined.
Presentation currency
The financial statements are presented in Australian dollars,
which is the Group's presentation currency.
Functional currency balances are translated into the
presentation currency using the exchange rates at the balance sheet
date. Value differences arising from movements in the exchange rate
is recognised in the statement of comprehensive income.
(x) Joint operations
A joint arrangement in which the Group has direct rights to
underlying assets and obligations for underlying liabilities is
classified as a joint operation.
Interests in joint operations are accounted for by recognising
the Group's assets (including its share of any assets held
jointly), its liabilities (including its share of any liabilities
incurred jointly), its revenue from the sale of its share of the
output arising from the joint operation, its share of the revenue
from the sale of the output by the joint operation and its expenses
(including its share of any expenses incurred jointly).
(y) New standards and interpretations
Account Standard and Interpretation
The Group has adopted all of the new or amended Accounting
Standards and Interpretations issued by the Australian Accounting
Standards Board ('AASB') that are mandatory for the current
reporting period.
Consolidated Consolidated
2023 2022
$ $
2 Cost of sales
Cost of sales 109,373 99,358
Lease operating expenses 1,467,991 1,017,665
1,577,364 1,117,023
---------------------- -------------
3 Corporate Costs
Accounting, Company Secretary and
Audit fees 273,162 178,839
Consulting fees - board 309,273 291,610
Consulting fees - other 118,730 86,379
NOMAD and broker expenses 172,140 112,141
Legal and compliance fees 90,709 72,111
964,014 741,080
---------------------- -------------
4 Other comprehensive profit
Foreign currency gain/(loss) 184,479 360,408
184,479 360,408
-------------- --------
5 Income Tax
No income tax is payable by the Group as it has incurred losses
for income tax purposes for the year, therefore current tax,
deferred tax and tax expense is $NIL (2022 - $NIL).
(a) Numerical reconciliation of income tax expense to prima
facie tax payable
Consolidated Consolidated
2023 2022
$ $
1. Loss before tax 2. (2,127,198) 3. (2,446,274)
4. Income tax calculated at
25% (2022:
25%) 5. (531,800) 6. (611,569)
7. Tax effect of amounts 9. 10.
which are
deductible/non-deductible
8. In calculating taxable
income:
Impairment expense 12. 71,188 13. 241,022
11.
Upfront exploration 15. (44,998) 16. (130,613)
14. expenditure
claimed
Other 18. (13,565) 19. (22,738)
17.
Effects of unused tax losses and tax
offsets not recognised as deferred
tax assets 20. 519,175 21. 523,898
------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------
Income tax expense attributable to
operating profit 22. NIL 23. NIL
24.
25. (b) Tax Losses
26.
27. As at 30 June 2023 the Company had Australian tax losses of
$15,994,372 (2022 : $14,107,506 ). The benefit of deferred tax
assets not brought to account will only be realised if:
-- Future assessable income is derived of a nature and of an
amount sufficient to enable the benefit to be realised; and
-- The conditions for deductibility imposed by tax legislation
continue to be complied with and no changes in tax legislation
adversely affect the Company in realising the benefit.
5 Income Tax (continued)
(c) Unbooked Deferred Tax Assets and Liabilities
Consolidated Consolidated
2023 2022
$ $
Unbooked deferred tax assets comprise:
Capital Raising Costs 18,080 30,227
Provisions/Accruals/Other 88,998 172,017
Tax losses available for offset against
future taxable income 3,998,593 3,642,324
---------- ----------
4,105,670 3,844,568
========== ==========
6 Auditors Remuneration
Audit - Elderton Audit Pty Ltd
Audit of the financial statements 32,300 32,000
------- -------
32,300 32,000
------- -------
7 Cash and Cash Equivalents
Cash at Bank 520,613 2,354,689
520,613 2,354,689
-------- ----------
8 Trade and Other Receivables
Joint interest billing receivables(1) 644,904 393,166
Less: allowance for expected credit losses (123,762) -
Deposits 55,358 54,875
GST receivable 24,353 19,250
Accrued revenue 253,044 318,399
Other receivables 9,742 1,350
863,639 787,040
-------------- -----------
1. When appropriate, unpaid joint interest billing receivables are recovered from the interest
holders share of production income.
9 Other Assets
Prepayments 75,547 69,514
Incorporation costs 2,539 -
78,086 69,514
------- -------
10 Property, Plant and Equipment
Office Equipment and Furniture Total
$ $
Cost
Balance at 1 July 2022 175,665 175,665
Additions 3,156 3,156
Disposals - -
Effective movement in exchange rates - -
------------------------------- ----------
Balance at 30 June 2023 178,821 178,821
------------------------------- ----------
Accumulated Depreciation
Balance at 1 July 2022 (170,537) (170,537)
Depreciation for the year (2,064) (2,064)
Disposals - -
Effective movement in exchange rates - -
------------------------------- ----------
Balance at 30 June 2023 (172,601) (172,601)
------------------------------- ----------
Carrying amounts
Balance at 30 June 2022 5,128 5,128
------------------------------- ----------
Balance at 30 June 2023 6,220 6,220
------------------------------- ----------
Consolidated Consolidated
2023 2022
$ $
11 Oil and Gas Assets
Cost brought forward 4,145,488 3,328,029
Acquisition of oil and gas assets during the year 54,113 1,622,681
Disposal of oil and gas assets on sale during the year - -
Capitalised equipment workovers during the year 2,362,772 697,070
Amortisation for the year (436,028) (237,194)
Impairment of oil and gas assets(1) (474,586) (1,606,816)
Impact of Foreign Exchange on opening balances 128,828 341,718
-------------- ------------------
Carrying value at end of year 5,780,587 4,145,488
-------------- ------------------
1. The Falcon-1 well stopped producing in the June 2022 quarter
and the following workovers were not successful. As a result, an
impairment of $1,412,233 was put through against the asset in
FY2022 (as well a further impairment of $194,583 in relation to
Greater Stanley assets), and a further $474,586 in FY2023.
12 Capitalised Oil and Gas Expenditure
Cost brought forward 1,240,541 706,702
Exploration costs incurred during the year 179,990 533,839
Impairment of oil and gas expenditure - -
-------------------- ---------------------
Carrying value at end of year 1,420,531 1,240,541
-------------------- ---------------------
13 Trade and Other Payables
Consolidated Consolidated
2023 2022
$ $
CURRENT
Trade creditors (1) 1,000,619 900,748
Amounts owing for acquisition of Nadsoilco LLC 150,830 145,159
Other creditors and accruals 34,001 65,431
-----------------
1,185,450 1,111,338
------------------ -----------------
NON-CURRENT
Amounts owing for acquisition of Nadsoilco LLC - 145,159
------------------ -----------------
- 145,159
------------------ -----------------
1. The balance includes amounts payable on behalf of other
royalty holders for which there are also receivables owing for
their share of the workover costs (refer Note 8).
14 Provisions
CURRENT
Employee provisions 15,500 25,654
-------- -------
15,500 25,654
-------- -------
NON-CURRENT
Provision for abandonment 180,587 38,617
-------- -------
180,587 38,617
-------- -------
15 Contributed Equity
Ordinary Shares:
Value of Ordinary Shares fully paid
Movement in Contributed Equity Number of Contributed
shares Equity $
Balance as at 1 July 2021: 3,767,763,052 36,700,381
Shares issued
08/07/2021 (ii) $0.00276 77,375,000 213,701
Shares issued
17/05/2022 (i) $0.00142 1,375,000,000 1,946,117
Capital raising costs (116,767)
--------------- ------------
Balance as at 1 July 2022: 5,220,138,052 38,743,432
--------------- ------------
Shares issued
02/11/2022 (i) $0.00123 1,142,857,142 1,406,312
Shares issued
04/04/2023 (iii) $0.00101 45,454,545 45,829
Shares issued
26/04/2023 (i) $0.00103 545,454,545 564,145
Capital raising costs (84,378)
--------------- ------------
Balance at end of year 6,953,904,284 40,675,340
--------------- ------------
(i) Placements via capital raising as announced
(ii) Shares issued upon conversion of warrants
(iii) Shares issued to suppliers
16 Reserves
Consolidated Consolidated
2023 2022
$ $
Foreign currency translation reserve 890,776 706,297
Options reserve 17,318 -
-------------- --------------
908,094 706,297
-------------- --------------
16 Reserves (continued)
Options Reserve
Nature and purpose of the Option reserve
The options reserve represents the fair value of equity
instruments issued to employees as compensation and issued to
external parties for the receipt of goods and services. This
reserve will be reversed against issued capital when the underlying
shares are converted and reversed against retained earnings when
they are allowed to lapse.
Consolidated Consolidated
2023 2022
Movement in Options Reserve $ $
Options Reserve at the beginning of
the year - 90,358
Options issued 17,318 -
Options expired - (90,358)
Options Reserve at the end of the year 17,318 -
--------------- --------------
Foreign Currency Translation Reserve
Nature and purpose of the Foreign Currency Translation
Reserve
Functional currency balances are translated into the
presentation currency using the exchange rates at the balance sheet
date. Value differences arising from movements in the exchange rate
is recognised in the Foreign Currency Translation Reserve.
Movement in Foreign Currency Translation
Reserve
Foreign Currency Translation Reserve
at the beginning of the year 706,297 345,889
Current year movement 184,479 360,408
-------- --------
Foreign Currency Translation Reserve
at the end of the year 890,776 706,297
-------- --------
17 Accumulated Losses
Accumulated losses at the beginning
of the year 32,168,097 29,812,181
Net loss attributable to members 2,127,198 2,446,274
Options expired - (90,358)
Accumulated losses at the end of the
year 34,295,295 32,168,097
----------- -----------
18 Related Party Transactions
Consolidated Consolidated
2023 2022
$ $
Key Management Personnel Remuneration
Cash Payments to Directors and Management
(i) 512,940 471,000
Total 512,940 471,000
============= =============
i. During the year to 30 June 2023:
a. Directors fees of $17,667 were paid or are payable to Mr Nigel Harvey;
b. Director fees of $30,000 and consulting fees of $120,000 were
paid or are payable to Australasian Energy Pty Ltd;
c. Directors fees of $60,000 and consulting fees of $189,273
were paid or are payable to Kensington Advisory Services Pty
Ltd;
d. Directors fees of $30,000 were paid or are payable to J A Young;
e. CFO, Company Secretary and Consulting Fees totalling $66,000
were paid or are payable to J T White's accounting firm, Traverse
Accountants Pty Ltd.
Movement in Shares and Options
The aggregate numbers of shares and options of the Company held
directly, indirectly or beneficially by Key Management Personnel of
the Company or their personally-related entities are fully detailed
in the Directors' Report .
Amounts owing to the Company from subsidiaries:
Trident Energy Pty Ltd
At 30 June 2023 the Company's 100% owned subsidiary, Trident
Energy Pty Ltd, owed Mosman Oil and Gas Limited $4,060,949 (2022:
$3,943,847).
OilCo Pty Ltd
At 30 June 2023 the Company's 100% owned subsidiary, OilCo Pty
Ltd (OilCo), owed Mosman Oil and Gas Limited $763,034 (2022:
$762,468).
Mosman Oil USA, Inc
At 30 June 2023 the Company's 100% owned subsidiary, Mosman Oil
USA, Inc, owed Mosman Oil and Gas Limited $9,528,917 (2022:
$7,611,451).
Adagio Resources Limited
At 30 June 2023 the Company's 100% owned subsidiary, Adagio
Resources Limited, owed Mosman Oil and Gas Limited $2,539 (2022:
nil).
19 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 30 June 2023, total exploration expenditure
commitments for the next 12 months are as follows:
2023 2022
Entity Tenement $ $
Trident Energy Pty Ltd EP145(1) - -
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.
19 Expenditure Commitments (continued)
(b) Capital Commitments
The Company had no other capital commitments at 30 June 2023
(2022: $NIL).
20 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 and the USA (and previously New
Zealand until 2019). 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 and the USA. Unallocated results, assets and liabilities
represent corporate amounts that are not core to the reportable
segments.
(i) Segment performance
United States Australia Total
$ $ $
-------------- ------------ ------------
Year ended 30 June 2023
Revenue
Revenue 2,252,029 - 2,252,029
Interest income 483 483
Segment revenue 2,252,029 483 2,252,512
-------------- ------------ ------------
Segment Result
Allocated
- Corporate costs (67,343) (896,671) (964,014)
- Administrative costs (293,071) (294,013) (587,084)
- Lease operating expenses (1,467,991) - (1,467,991)
- Cost of sales (109,373) - (109,373)
Segment net profit (loss) before tax 314,251 (1,190,201) (875,950)
-------------- ------------ ------------
Reconciliation of segment result to net loss before tax
Amounts not included in segment result but reviewed by the Board
- Exploration expenses incurred not capitalised (9,300)
- Amortisation (436,028)
- Impairment (474,586)
- Bad debts expense (121,847)
Unallocated items
- Employee benefits expense (194,732)
- Loss on foreign exchange (7,055)
- Depreciation (2,064)
- Finance costs (5,636)
Net Loss before tax from continuing operations (2,127,198)
------------
20 Segment Information (continued)
(i) Segment performance
United States Australia Total
$ $ $
-------------- ---------- ------------
Year ended 30 June 2022
Revenue
Revenue 1,812,119 - 1,812,119
Interest income
Gain on sale of oil and gas assets
Other income
-------------- ---------- ------------
Segment revenue 1,812,119 - 1,812,119
-------------- ---------- ------------
Segment Result
Allocated
- Corporate costs (41,949) (699,131) (741,080)
- Administrative costs (160,880) (165,218) (326,098)
- Lease operating expenses (1,017,665) - (1,017,665)
- Cost of sales (99,358) - (99,358)
Segment net profit (loss) before tax 492,267 (864,349) (372,082)
-------------- ---------- ------------
Reconciliation of segment result to net loss before tax
Amounts not included in segment result but reviewed by the Board
- Exploration expenses incurred not capitalised - (14,775) (14,775)
- Amortisation (237,194) - (237,194)
- Impairment (1,606,816) - (1,606,816)
Unallocated items
- Employee benefits expense - - (190,024)
- Loss on foreign exchange - - (10,085)
- Depreciation - - (11,974)
- Finance costs - - (3,324)
Net Loss before tax from continuing operations (2,446,274)
------------
United States Australia Total
$ $ $
---------------- ------------ -------------
Total assets as at 1 July 2022 5,618,867 2,983,533 8,602,400
---------------- ------------ -------------
Segment asset balances at end of year
- 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
As at 30 June 2023 7,017,407 1,652,269 8,669,676
---------------- ------------ -------------
Total assets as at 1 July 2021 4,925,917 2,798,680 7,724,597
---------------- ------------ -------------
Segment asset balances at end of year
- Exploration and evaluation - 8,421,459 8,421,459
- Capitalised Oil and Gas Assets 7,788,307 - 7,788,307
- Less: Amortisation (449,411) - (449,411)
- Less: Impairment (3,193,408) (7,180,918) (10,374,326)
---------------- ------------ -------------
4,145,488 1,240,541 5,386,029
---------------- ------------ -------------
Reconciliation of segment assets to total assets:
Other assets 1,473,379 1,742,992 3,216,371
---------------- ------------ -------------
Total assets from continuing operations
As at 30 June 2022 5,618,867 2,983,533 8,602,400
---------------- ------------ -------------
(iii) Segment liabilities
United States Australia Total
$ $ $
---------------- ---------- ----------
Segment liabilities as at 1 July 2022 1,137,363 183,405 1,320,768
Segment liability increases (decreases) for the year 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
As at 30 June 2023 1,152,168 229,369 1,381,537
---------------- ---------- ----------
Segment liabilities as at 1 July 2021 29,380 370,770 400,150
Segment liability increases (decreases) for the year 1,107,983 (187,365) 920,618
---------------- ---------- ----------
1,137,363 183,405 1,320,768
---------------- ---------- ----------
Reconciliation of segment liabilities to total liabilities:
Other liabilities - - -
---------------- ---------- ----------
Total liabilities from continuing operations
As at 30 June 2022 1,137,363 183,405 1,320,768
---------------- ---------- ----------
21 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 Total
$ $ $ $ $ Projects $
$
---------- ---------- ---------- ----------- --------- ---------- ------------
Year Ended 30 June 2023
Revenue
Oil and gas project related
revenue 1,352,924 517,185 210,944 39,222 54,989 76,765 2,252,029
Producing assets revenue 1,352,924 517,185 210,944 39,222 54,989 76,765 2,252,029
--------- ---------- ------------
Project-related expenses
* Cost of sales (65,817) (23,834) (13,956) (1,807) (3,959) - (109,373)
* Lease operating expenses (842,878) (186,735) (165,788) (93,968) (21,103) (157,519) (1,467,991)
Project cost of sales (908,695) (210,569) (179,744) (95,775) (25,062) (157,519) (1,577,364)
---------- ---------- ---------- ----------- --------- ---------- ------------
Project gross profit
Gross profit 444,229 306,616 31,200 (56,553) 29,927 -80,754 674,665
---------- ---------- ---------- ----------- --------- ---------- ------------
21 Producing assets (continued)
Stanley Falcon Winters Livingston Arkoma Other Total
$ $ $ $ $ Projects $
$
---------- ---------- ---------- ----------- --------- ---------- ------------
Year Ended 30 June 2022
Revenue
Oil and gas project related
revenue 816,044 636,387 189,479 20,670 69,545 79,994 1,812,119
Producing assets revenue 816,044 636,387 189,479 20,670 69,545 79,994 1,812,119
---------- ---------- ---------- ----------- --------- ---------- ------------
Project-related expenses
* Cost of sales (37,535) (43,977) (11,871) (952) (5,023) - (99,358)
* Lease operating expenses (408,172) (305,882) (96,392) (26,676) (33,996) (146,547) (1,017,665)
Project cost of sales (445,707) (349,859) (108,263) (27,628) (39,019) (146,547) (1,117,023)
---------- ---------- ---------- ----------- --------- ---------- ------------
Project gross profit
Gross profit 370,337 286,528 81,216 (6,958) 30,526 (66,553) 695,096
---------- ---------- ---------- ----------- --------- ---------- ------------
22 Earnings/ (Loss) per shares
Consolidated
Consolidated 2023 2022
$ $
The following reflects the loss and share data used in the calculations of
basic and diluted
earnings/ (loss) per share:
Earnings/ (loss) used in calculating basic and diluted earnings/
(loss) per share (2,127,198) (2,446,274)
------------------- -----------------
Number of shares Number of shares
2023 2022
Weighted average number of ordinary shares used in calculating basic
earnings/(loss) per
share: 6,079,575,874 4,009,195,586
Basic loss per share (cents per share) 0.03 0.06
Diluted loss per share (cents per share) 0.03 0.06
23 Notes to the statement of cash flows
Reconciliation of loss from ordinary
activities after income tax to net Consolidated Consolidated
cash outflow from operating activities: 2023 2022
$ $
------------- -------------
Loss from ordinary activities after
related income tax (2,127,198) (2,446,274)
Depreciation and amortisation 438,092 249,167
Impairment 474,586 1,606,816
Increase in trade and other receivables (85,171) (660,636)
Increase/(decrease) in trade and other
payables 74,112 606,666
Unrealised FX 16,762 148,968
Net cash outflow from operating activities (1,208,817) (495,293)
------------- -------------
24 Financial Instruments
The Company's activities expose it to a variety of financial and
market risks. The Company's overall risk management program focuses
on the unpredictability of financial markets and seeks to minimize
potential adverse effects on the financial performance of the
Company.
(i) Interest Rate Risk
The Company's exposure to interest rate risk, which is the risk
that a financial instrument's value will fluctuate as a result of
changes in market, interest rates and the effective weighted
average interest rates on those financial assets, is as
follows:
Consolidated Note Fixed Assets/ Total
2023 Weighted Funds Available Interest (Liabilities)
Average at a Floating Rate Non
Effective Interest Interest
Interest Rate Bearing
% $ $ $ $
----------------------- ----- ----------- ---------------- ---------- --------------- ----------
Financial Assets
Cash and Cash
Equivalents 7 3.80% 520,613 - - 520,613
Trade and other
R eceivables 8 - - 863,639 863,639
Other assets 9 - - 78,086 78,086
Total Financial
Assets 520,613 - 941,725 1,462,338
---------------- ---------- --------------- ----------
Financial Liabilities - -
Trade and other
Payables 13 1,185,450 1,185,450
Provisions 14 196,087 196,087
---------------- ---------- --------------- ----------
Total Financial
Liabilities 1,381,537 1,381,537
---------------- ---------- --------------- ----------
Net Financial
Assets/(Liabilities) 520,613 (439,812) 80,801
================ ========== =============== ==========
Consolidated Note Fixed Assets/ Total
2022 Weighted Funds Available Interest (Liabilities)
Average at a Floating Rate Non
Effective Interest Interest
Interest Rate Bearing
% $ $ $ $
----------------------- ----- ----------- ---------------- ---------- --------------- ----------
Financial Assets
Cash and Cash
Equivalents 7 3.80% 2,354,689 - - 2,354,689
Trade and other
R eceivables 8 - - 787,040 787,040
Other assets 9 - - 69,514 69,514
Total Financial
Assets 2,354,689 - 856,554 3,211,243
---------------- ---------- --------------- ----------
Financial Liabilities
Trade and other
Payables 13 - - 1,256,497 1,256,497
Provisions 14 - - 64,271 64,271
---------------- ---------- --------------- ----------
Total Financial
Liabilities - - 1,320,768 1,320,768
---------------- ---------- --------------- ----------
Net Financial
Assets 2,354,689 - (464,214) 1,890,475
================ ========== =============== ==========
(ii) Credit Risk
The maximum exposure to credit risk, excluding the value of any
collateral or other security, at balance date, is the carrying
amount, net of any provisions for doubtful debts, as disclosed in
the balance sheet and in the notes to the financial statements. The
Company does not have any material credit risk exposure to any
single debtor or group of debtors, under financial instruments
entered into by it.
(iii) Commodity Price Risk and Liquidity Risk
At the present state of the Company's operations it has minimal
commodity price risk and limited liquidity risk due to the level of
payables and cash reserves held. The Company's objective is to
maintain a balance between continuity of exploration funding and
flexibility through the use of available cash reserves.
(iv) Net Fair Values
For assets and other liabilities, the net fair value
approximates their carrying value. No financial assets and
financial liabilities are readily traded on organised markets in
standardised form. The Company has no financial assets where the
carrying amount exceeds net fair values at balance date.
The aggregate net fair values and carrying amounts of financial
assets and financial liabilities are disclosed in the balance sheet
and in the notes to the financial statements.
25 Contingent Liabilities
There were no material contingent liabilities not provided for
in the financial statements of the Company as at 30 June 2023.
26 Mosman Oil and Gas Limited - Parent Entity Disclosures
2023 2022
$ $
------------ ------------
Financial position
Assets
Current assets 161,866 1,671,987
Non-current assets 12,832,707 10,793,941
------------ ------------
Total assets 12,994,573 12,465,928
------------ ------------
Liabilities
Current liabilities 171,199 183,129
Total liabilities 171,199 183,129
------------ ------------
Net assets 12,823,374 12,282,799
============ ============
Equity
Contributed equity 40,674,671 38,742,763
Reserves 17,318 -
Accumulated losses (27,868,615) (26,459,964)
Total Equity 12,823,374 12,282,799
============ ============
Financial Performance
Loss for the year (1,408,651) (1,083,787)
Other comprehensive income - -
------------ ------------
Total comprehensive loss (1,408,651) (1,083,787)
============ ============
27 Controlled Entities
Investments in group entities comprise:
Beneficial percentage
held by economic
Name Principal activities Incorporation entity
----------------------- ------------------------ --------------- ------------------------
2023 2022
% %
----------------------- ------------------------ --------------- ----------- -----------
Mosman Oil and Gas
Limited Parent entity Australia
Wholly owned and
controlled entities:
OilCo Pty Limited Oil & Gas exploration Australia 100 100
Trident Energy Pty
Ltd Oil & Gas exploration Australia 100 100
Adagio Resources
Limited Oil & Gas exploration Australia 100 -
Mosman Oil USA, INC. Oil & Gas operations U.S.A. 100 100
Mosman Texas, LLC Oil & Gas operations U.S.A. 100 100
Mosman Operating,
LLC Oil & Gas operations U.S.A. 100 100
NADSOILCO, LLC Oil & Gas operations U.S.A. 100 100
Mosman Oil and Gas Limited is the Parent Company of the G roup,
which includes all of the controlled entities. See also Note 29
Subsequent Events for additional corporate activity in progress
subsequent to the 30 June 2022 year end.
28 Share Based Payments
Consolidated Consolidated
2023 2022
Cents Cents
Basic loss per share (cents per share) 0.03 0.06
A summary of the movements of all company warrant issues to 30
June 2023 is as follows:
Company Warrants 2023 2022 2023 2022
Number of Options Number of Options Weighted Average Weighted Average
Exercise Price Exercise Price
Outstanding at the
beginning of the year 1,584,250,000 1,143,702,084 $0.0038 $0.0042
------------------- ------------------- ------------------------ ------------------------
Expired (896,750,000) (169,577,084) $0.0045 $0.0031
------------------- ------------------- ------------------------ ------------------------
Exercised - (77,375,000) - $0.0027
------------------- ------------------- ------------------------ ------------------------
Granted 601,428,571 687,500,000 $0.0026 $0.0028
------------------- ------------------- ------------------------ ------------------------
Outstanding at the end
of the year 1,288,928,571 1,584,250,000 $0.0027 $0.0038
------------------- ------------------- ------------------------ ------------------------
Exercisable at the end
of the year 1,288,928,571 1,584,250,000 $0.0027 $0.0038
------------------- ------------------- ------------------------ ------------------------
29 Events Subsequent to the End of the Financial Year
Subsequent to the end of the reporting period the Company
announced the following material matters occurred:
-- On 13 July 2023, the Company announced it had raised
GBP300,000, by way of a placing of 857,142,857 new ordinary shares
of no-par value in the capital of the Company, at a placing price
of 0.035p per share, with one warrant for every two Placing Shares
exercisable at a price of 0.07p with a term of 24 months.
-- On 31 August 2023, the Company announced that a frac was
completed at the G-2 production well in the Cinnabar project.
-- On 4 September 2023, the Company announced that Executive
Chairman, John W Barr had given his notice of resignation as
Director, effective 30 September 2023.
-- On 4 September 2023, it was also announced the Mr John Young
had resigned as Non-Executive Director, effective immediately.
-- On 6 September 2023, the Company announced that the year
three report on EP 145 had been lodged with the Northern Territory
Government.
-- On 7 September 2023, it was announced that the Company had
reached an agreement to transfer the Falcon lease to 84 Energy Corp
in exchange for equipment on the lease, noting the Company is not
liable for potential future abandonment costs.
-- In addition, the Galaxie exploration lease was not renewed and expired with no liabilities.
-- On 29 September 2023, the Company announced the appointment
of Mr Carl Dumbrell as an independent Non-Executive Director, with
immediate effect. Subsequent to Mr John Barr's resignation, Mr
Nigel Harvey would replace Mr John Barr as Chairman, and Mr Andrew
Carroll would lead the business as CEO, both effective 1 October
2023.
-- On 16 October 2023, the Company announced that it had entered
into a farmin 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:
o 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:
o Paying for the EP 145 Permit Year 3 Work Program, including
seismic, effective from Completion Date;
o Funding the Permit Year 4 Work Program, including drilling one
well with a well cost cap of AUD5.5 million;
o 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;
o 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 26 October 2023, the Company announced the Central Land
Council ("CLC") had agreed to extend the negotiating period in
respect of the Company's EPA 155 permit application until October
2024.
There were no other material matters that occurred subsequent to
30 June 2023.
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END
FR BSBDBSSGDGXI
(END) Dow Jones Newswires
November 08, 2023 09:48 ET (14:48 GMT)
Grafico Azioni Mosman Oil And Gas (LSE:MSMN)
Storico
Da Mar 2024 a Apr 2024
Grafico Azioni Mosman Oil And Gas (LSE:MSMN)
Storico
Da Apr 2023 a Apr 2024
