REG - Mosman Oil & Gas - Final Results to 30 June 2024
31/10/2024 07:00
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RNS Number : 3370K Mosman Oil and Gas Limited 31 October 2024
31 October 2024
Mosman Oil and Gas Limited
("Mosman" or the "Company")
Final Results to 30 June 2024
Mosman Oil and Gas Limited (AIM:MSMN) the helium, hydrogen and
hydrocarbon exploration, development and production company, announces its
final results for the year ended 30 June 2024.
Summary
· Gross Project Production: 47,245 BOE (1 2)
· Net Production to Mosman: 16,340 BOE(3)
· Revenue: AU$186,232
· Gross Profit: AU$76,362
· Net loss for the year: AU$2.1m
Operational overview
· The pivot to focus on helium was achieved with first entry into the USA with
the acquisition of a 20% working interest in the Vecta Helium Project, where
drilling of five planned helium wells is expected to commence in December
2024.
· Cinnabar project (75% WI) in Texas, USA leases are held by production and has
significant Reserves. Technical work is underway to resolve production
challenges.
· The two projects in Australia are progressing. At EP-145, land access was
obtained from CLC and the Environmental Management Plan has been submitted for
approval. At EPA-155, the process to approve the grant of the permit
progressed with a meeting held with CLC and native title stakeholders.
Post-period overview
· Completed sale of Stanley project in USA.
· Raised £1.5m by way of a placing and subscription of ordinary shares. This,
combined with the Stanley sale enables the Company to fund its share of Vecta
drilling 5 wells, acquire seismic at EP-145 and business development seeking
additional helium exploration projects.
· With the focus on helium exploration, appraisal and development and the sale
of Stanley area assets, Mosman will no longer be providing quarterly
production updates.
Andy Carroll, CEO of Mosman commented: "It has been a significant year for
Mosman as we delivered on our corporate plan to turn our focus towards helium
opportunities.
"This pivot has been made possible by the hard work of the team who have now
built a strong foundation upon which we can now grow the business and
capitalise on the exciting opportunities ahead of us.
"I would like to once again thank shareholders for their continued support
during a year of significant change and reemphasise our confidence in the
future of the business."
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/reports-results-presentations
(http://www.mosmanoilandgas.com/reports-results-presentations)
(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)
Market Abuse Regulation (MAR) Disclosure
The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulations
(EU) No. 596/2014 ('MAR') which has been incorporated into UK law by the
European Union (Withdrawal) Act 2018. Upon the publication of this
announcement via Regulatory Information Service ('RIS'), this information is
now considered to be in the public domain.
Enquiries:
Mosman Oil & Gas Limited NOMAD and Joint Broker
Andy Carroll SP Angel Corporate Finance LLP
CEO Stuart Gledhill / Richard Hail / Adam Cowl
acarroll@mosmanoilandgas.com (mailto:acarroll@mosmanoilandgas.com) +44 (0) 20 3470 0470
Alma Joint Broker
Justine James / Will Merison CMC Markets UK Plc
+44 (0) 20 3405 0205 Douglas Crippen
mosman@almastrategic.com (mailto:mosman@almapr.co.uk) +44 (0) 020 3003 8632
Updates on the Company's activities are regularly posted on its
website: www.mosmanoilandgas.com (http://www.mosmanoilandgas.com/)
Notes to editors
Mosman (AIM: MSMN) is a helium, hydrogen and hydrocarbon 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. The Company has several projects in
the US, in addition to exploration projects in the Amadeus Basin in Central
Australia.
Chairman's Statement
We look back with pride on a busy year of transformation and transactions at
Mosman Oil & Gas and we believe that it portends more to come as
opportunities arise and resources allow.
Strategic move into helium
During the year, the Group completed its strategic review and concluded Mosman
would focus on helium opportunities more than conventional natural gas and oil
and this strategic pivot into helium was advanced in June 2024 with the
acquisition of a 10% interest in the Vecta helium project in USA.
In pivoting to helium Mosman remains firmly focused on exploration,
development and production where we apply the technical and commercial skills
borne of extensive experience in the hydrocarbon industry that have
applications in helium: in the newer more exciting and more valuable markets
of helium and hydrogen. As a Group we are proudly opportunistic in our quest
for good assets to acquire and commercialise.
Our exit from the Stanley oil & gas assets had been in progress for many
months and we were pleased to conclude this disposal in October 2024. Not only
did this improve the balance sheet, but with a clear focus on building the
Group's helium portfolio, Howard McLaughlin, head of US Operations, can now
focus more closely on assessing new helium opportunities with support from Tim
Rynott, an experienced helium consultant, who was appointed in September 2024.
Helium, and to a lesser extent hydrogen, have both been long-term targets in
our large central Australian exploration blocks. We have historically farmed
them out to partners to fund exploration but retained material carried
interests. More recently though, when our partner in EP-145 changed its own
ambitions, we were happy to buy back and resume control.
Corporate Update
In September 2023, the Board renewal process was completed with my appointment
as non-executive Chairman and Carl Dumbrell as a non-executive Director,
resulting in a reduction in the number of Directors from four to three; the
reduction in executive directors from two to one; and a clearer separation of
Board and management with two independent Directors and a Chief Executive
Officer.
In Australia, recent activity has highlighted the need to expand the general
management resource and we have appointed Dr Julie Daws, who has worked as our
consultant geologist for more than 10 years as General Manager of Exploration.
Julie has been an anchor and technical lead on the Central Australian assets
and a key technical advisor to our CEO. Julie's appointment, combined with Tim
Rynott's appointment to support Howard McLaughlin in the US, has resulted in a
stronger operational team to deliver on the Group's strategy.
As part of our repositioning, in June we launched a new website alongside
refreshed branding to better represent the evolution of Mosman Oil & Gas
as a helium focussed company.
Health and Safety update - It is also pleasing to report that no accidents
were reported among the Group, underscoring our commitment to maintaining a
safe working environment.
Post-Period Events
In September, the Company completed a £1.5m placing that was well supported
by the market, this was followed by the completion of the sale of our interest
in Nadsoilco LLC in October 2024 and provided Mosman with a healthy cash
position which will allow the Company to pursue and progress new projects and
provide additional working capital. The Company expects to deploy some of this
capital in its forthcoming seismic acquisition in Australia and participating
in drilling 5 wells in the USA.
Finally, I would like to extend my gratitude to the team, consultants and
advisers whose hard work and dedication has been invaluable in helping to
drive the company forward in a transformational year.
Nigel Harvey
Chair
Overview of the 2024 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 focus, through the wholly owned subsidiary Mosman Helium Inc, is
on acquiring high potential helium assets in the USA to deliver growth by
identifying commercial helium resources that can be commercialised and deliver
reserves, production and cash flow.
Summary
In the period there were several notable developments:
More than $785,000 was invested in increasing production and progressing
exploration during the period.
In October 2023, the Company announced that it had entered into a farmout
agreement with Greenvale Gold Pty Ltd, a wholly owned subsidiary of Greenvale
Energy Ltd (ASX:GRV) to fund seismic and drilling on its EP-145 project in the
Northern Territory of Australia. Upon Completion in April 2024 Mosman retained
a 25% working interest in EP-145 and Greenvale had a 75% working interest.
Subsequent to year-end, Mosman reached an agreement to acquire the 75%
interest in EP-145 from Greenvale Energy Ltd, subject to normal conditions
including government approval. This will result in Mosman holding a 100%
interest and operational control of EP-145.
The sale of Nadsoilco LLC (which holds the Stanley assets) for consideration
of up to US$1.75m was announced in June 2024 and completed subsequent to the
financial year end. The final sale terms, as announced on 2 October 2024 were:
· US$500k initial payment (which has been received);
· Two conditional cash payments of US$250k each to be paid within 10 days of end
of June 2025, and June 2026 respectively if the gross production rate average
for each intervening period is greater than 150 bopd;
· Three additional US$250k payments upon achieving gross aggregate production
milestones of 100,000 bbls, 200,000 bbls and 300,000 bbls of oil from the
effective date of completion of 1 July 2024.
In June 2024, the Group announced that it had acquired a 10% working interest
in a helium project in Las Animas County, Colorado, USA (the "Vecta Helium
Project") from Vecta Oil and Gas Ltd, a private company that has explored,
drilled and produces helium in Colorado (the "Acquisition").
In the period, primarily due to lower production at Cinnabar, and as set out
in the Company's quarterly production updates, annual sales (including from
discontinued operations) decreased by 44% to $1,251,551 ($2,252,029 in 2023)
and gross profit decreased by 37% to $425,202 ($674,665 in 2023).
Subsequent to the financial year end, a further 10% of the Vecta project was
acquired for shares. Vecta Oil & Gas Ltd owns the remaining 80% and
operates the project.
USA
Net Production attributable to Mosman in the year to 30 June 2024 was 16,340
boe, compared to 31,067 boe in 2023.
Gross Project Production(2) Net Production to Mosman(3)
BOE(1) BOE(1)
Stanley(4) 31,500 11,503
Cinnabar 2,494 1,869
Livingston(4) 2,093 419
Winters(4) 5,513 1,286
Arkoma 5,645 1,263
Total Production 47,245 16,340
(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
(4)Projects were disposed of as part of the Nadsoilco LLC sale subsequent to
financial year end
The decrease in net production was primarily due to lower production at
Cinnabar, which was somewhat offset by increased production at Stanley.
Cinnabar (75% working interest)
The decision was made to recomplete Arco Fee G-3 (formerly known as
Cinnabar-1) in a zone that looked promising on wireline logs. The recompleted
zone has produced oil with reduced water flow but only flows for a few days
before being shut-in to build up pressure.
The other wells continue to produce oil intermittently.
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 increased in the
latter part of the year due to successful workovers. Stanley was sold post the
end of the financial period with completion in October 2024.
Livingston (20% Working Interest) and Greater Stanley (40% Working Interest)
These assets were sold with the Stanley assets as noted above.
Arkoma (27% Working Interest)
Production decreased in FY2024. This asset has value when gas prices are high,
however due to the gas compression and transport costs it has limited value
during current low gas prices. The Company continues to review options for the
asset but has not committed additional expenditure.
Winters-2 (23% Working Interest)
Winters-2 continues to produce at rates exhibiting natural decline. These
assets were sold with the Stanley assets.
AUSTRALIA
Mosman has continued to conduct technical work on its Central Australian
exploration projects in the Amadeus Basin, Northern Territory.
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 Resources (Bcf) Low Estimate Best Estimate High Estimate
Total gas 12 440 2,290
Helium 0.3 26.4 229
Hydrogen 0.24 26.4 275
Source: Mosman Oil and Gas Ltd, October 2022
The ongoing exploration work program on EP-145 is to acquire seismic prior to
drilling an exploration well. The CLC has conducted a site survey and has
approved land access for seismic acquisition.
Other approvals have been applied for the acquisition of 2D seismic in the
current permit year prior to identifying a drilling location and drilling an
exploration well.
Mosman's other central Australian project is EPA-155 and is subject to a farm
out agreement. This permit application is subject to a farmout with the next
step being completion of Native Title negotiations.
CORPORATE
Financial Report
In the year to 30 June 2024, the Company made a loss of $2,140,072 (2023:
$2,127,198) after loss from discontinued operations of $594,241 (2023:
$134,382).
Revenue from continuing operations decreased to $186,232 (2023: $572,174),
primarily due to decreased production at Cinnabar.
Gross Profit from continuing operations decreased to $76,362 (2023: $221,295),
primarily due to lower production.
Of significance, some $1,097,952 (2023: $2,567,643) was spent on investing
activities on assets in the portfolio, including payments towards the Vecta
acquisition, further development and workovers for Cinnabar, and workovers for
Stanley which led to improved production rates in Q4.
Total asset value increased to $9,450,567 (2023: $8,669,676).
The net proceeds of fundraising activities during the year were $1,859,072
(2023: $1,931,908).
Overhead costs continue to be tightly controlled. Mosman continues to operate
with a very small number of Employees and Consultants. The Company operates in
two countries and in four-time zones, and the role played by the Employees and
Consultants is vital in achieving Mosman's strategic objective.
Outlook
We have successfully pivoted from oil and gas production to helium focused
exploration. Mosman has identified 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.
We are particularly encouraged by the wide range of early stage helium
exploration opportunities in the USA. The Vecta project is a good example of
shallow low cost drilling that enables exploration and production without
large capital requirements. Other projects are being evaluated that, if
acquired, will complement this asset with identified prospects in areas with
demonstrated helium production.
Andrew R Carroll
Executive Director and CEO
30 October 2024
Glossary
boe Barrels of oil equivalent based on calorific value as opposed to dollar value
boepd Barrels of oil per day of oil equivalent based on calorific value as opposed
to dollar value
bopd Barrels of oil per day
Gross Project Production Means the production of BOE at a total project level (100% basis) before
royalties (where Mosman is the Operator) and where Mosman is not the operator
the total gross production for the project
Mcf Thousand cubic feet
Bcf Billion cubic feet
Mcfpd Thousand cubic feet per day
Mbtu One thousand British Thermal Units
Mbtupd One thousand British Thermal Units per day
MMBtu One million British Thermal Units
MMBtupd One million British Thermal Units per day
Net Production Net to Mosman's Working Interest; Net Production attributable to Mosman means
net to Mosman's Working Interest before royalties
SPE Society of Petroleum Engineers
SPE PRMS A standard for the definition, classification, and estimation of hydrocarbon
resources developed by the Oil and Gas Reserves Committee of the Society of
Petroleum Engineers and named the Petroleum Resource Management System
Consolidated Statement of Profit or Loss and Other Comprehensive Income
Year Ended 30 June 2024
All amounts are in Australian Dollars
Notes Consolidated Consolidated
2024 2023
$ (restated)
$
Revenue from continuing operations 22 186,232 572,174
Cost of sales 2 (109,870) (350,879)
Gross profit 76,362 221,295
Interest income 698 483
Administrative expenses (299,696) (429,702)
Corporate expenses 3 (902,768) (964,014)
Directors fees (125,380) (137,667)
Exploration expenses incurred, not capitalised (7,525) (9,300)
Employee benefits expense (48,268) (57,065)
Finance costs (5,642) (5,636)
Amortisation expense 12 (216,685) (127,505)
Depreciation expense (6,220) (2,064)
Impairment expense 12 - (474,586)
Loss on foreign exchange (10,707) (7,055)
Loss before income tax expense from continuing operations (1,545,831) (1,992,816)
Income tax expense 5 - -
Loss after income tax expense from continuing operations (1,545,831) (1,992,816)
Loss after income tax expense from discontinued operations 10 (594,241) (134,382)
Net loss after income tax expense for the year (2,140,072) (2,127,198)
Other comprehensive income
Items that may be reclassified to profit or loss:
- Foreign currency gain 4 13,956 184,479
Total comprehensive income attributable to members of the entity (2,126,116) (1,942,719)
Total comprehensive income for the year attributable to:
Continuing operations (1,531,875) (1,808,338)
Discontinued operations (594,241) (134,381)
(2,126,116) (1,942,719)
The accompanying notes form part of these financial statements.
Consolidated Statement of Profit or Loss and Other Comprehensive Income
Year Ended 30 June 2024
All amounts are in Australian Dollars
Notes Consolidated Consolidated
2024 2023
$ $
Basic and diluted loss per share from continuing operations (cents per share) 23 (0.016) cents (0.033) cents
Basic and diluted loss per share from discontinued operations (cents per 23 (0.006) cents (0.002) cents
share)
Basic and diluted loss per share (cents per share) 23 (0.022) cents (0.035) cents
The accompanying notes form part of these financial statements.
Consolidated Statement of Financial Position
As at 30 June 2024
All amounts are in Australian Dollars
Notes Consolidated Consolidated
30 June 2024 30 June 2023
$ $
Current Assets
Cash and cash equivalents 7 873,365 520,613
Trade and other receivables 8 140,241 863,639
Other assets 9 20,186 78,086
1,033,792 1,462,338
Assets classified as held for sale 10 3,227,483 -
Total Current Assets 4,261,275 1,462,338
Non-Current Assets
Property, plant & equipment 11 - 6,220
Oil and gas assets 12 3,685,367 5,780,587
Capitalised oil and gas exploration 13 1,503,925 1,420,531
Total Non-Current Assets 5,189,292 7,207,338
Total Assets 9,450,567 8,669,676
Current Liabilities
Trade and other payables 14 1,438,420 1,185,450
Provisions 15 - 15,500
1,438,420 1,200,950
Liabilities classified as held for sale 10 887,507 -
Total Current Liabilities 2,325,927 1,200,950
Non-Current Liabilities
Provisions 15 87,966 180,587
Total Non-Current Liabilities 87,966 180,587
Total Liabilities 2,413,893 1,381,537
Net Assets 7,036,674 7,288,139
Shareholders' Equity
Contributed equity 16 42,404,962 40,675,340
Other contributed equity 145,029 -
Reserves 17 904,732 908,094
Accumulated losses 18 (36,418,049) (34,295,295)
Total Shareholders' Equity 7,036,674 7,288,139
The accompanying notes form part of these financial statements.
Consolidated Statement of Changes in Equity
Year Ended 30 June 2024
All amounts are in Australian Dollars
Accumulated Contributed Equity Other Contributed Equity Reserves Total
Losses
$ $ $ $ $
Balance at 1 July 2023 (34,295,295) 40,675,340 - 908,094 7,288,139
Comprehensive income
Loss for the period (2,140,072) - - - (2,140,072)
Other comprehensive income for the period -
- - 13,956 13,956
Total comprehensive loss for the period (2,140,072) - - 13,956 (2,126,116)
Transactions with owners, in their capacity as owners, and other transfers:
New shares issued - 1,827,348 - - 1,827,348
Cost of raising equity - (113,303) - (113,303)
Share applications - - 145,029 - 145,029
Warrants issued - - - 15,577 15,577
Warrants expired 17,318 - - (17,318) -
Transfer from warrants reserve upon exercise of warrants - 15,577 (15,577) -
-
Total transactions with owners and other transfers 17,318 1,729,622 (17,318) 1,874,651
145,029
Balance at 30 June 2024 (36,418,049) 42,404,962 145,029 904,732 7,036,674
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)
Warrants 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
These accompanying notes form part of these financial statements
Consolidated Statement of Cash Flows
Year Ended 30 June 2024
All amounts are in Australian Dollars
Notes Consolidated 2024 Consolidated 2023
$ $
Cash flows from operating activities
Receipts from customers 1,368,885 2,067,563
Payments to suppliers and employees (1,892,011) (3,270,744)
Interest paid (5,642) (5,636)
Net cash outflow from operating activities 24 (528,768) (1,208,817)
Cash flows from investing activities
Payments for property, plant and equipment - (3,156)
Payments for oil and gas assets (785,767) (2,182,687)
Payments for exploration and evaluation (83,394) (179,990)
Payments for Company acquisition (152,527) (145,158)
Acquisition of oil and gas production projects (76,264) (56,652)
Proceeds from farmin of exploration assets 160,000 -
Cash allocated to held for sale assets (24,201) -
Net cash outflow from investing activities (962,153) (2,567,643)
Cash flows from financing activities
Proceeds from shares issued 1,827,348 2,016,286
Proceeds from other contributed equity 145,029 -
Payments for costs of capital (113,303) (84,378)
Net cash inflow from financial activities 1,859,074 1,931,908
Net (decrease)/increase in cash and cash equivalents 368,153 (1,844,552)
Effects of exchange rate changes on cash and cash equivalents (15,403) 10,478
Cash and cash equivalents at the beginning of the financial year 520,615 2,354,689
Cash and cash equivalents at the end of the financial year 873,365 520,615
7
Notes to the Financial Statements
Year Ended 30 June 2024
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 2024, the consolidated entity incurred a net loss of $2,140,072 during
the year ended 30 June 2024 and, as of that date, the group had a cash balance
of $873,365.
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 30 October
2024.
(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 28 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(s).
(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) Discontinued operations
A discontinued operation is a component of the consolidated entity that has
been disposed of or is classified as held for sale and that represents a
separate major line of business or geographical area of operations, is part of
a single co-ordinated plan to dispose of such a line of business or area of
operations, or is a subsidiary acquired exclusively with a view to resale. The
results of discontinued operations are presented separately on the face of the
statement of profit or loss and other comprehensive income.
(f) 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 Flows 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.
(g) 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(s) 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.
(h) 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.
(i) 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:
· Such 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.
(j) Non-current assets or disposal groups classified as held for
sale
Non-current assets and assets of disposal groups are classified as held for
sale if their carrying amount will be recovered principally through a sale
transaction rather than through continued use. They are measured at the lower
of their carrying amount and fair value less costs of disposal. For
non-current assets or assets of disposal groups to be classified as held for
sale, they must be available for immediate sale in their present condition and
their sale must be highly probable.
An impairment loss is recognised for any initial or subsequent write down of
the non-current assets and assets of disposal groups to fair value less costs
of disposal. A gain is recognised for any subsequent increases in fair value
less costs of disposal of a non-current assets and assets of disposal groups,
but not in excess of any cumulative impairment loss previously recognised.
Non-current assets are not depreciated or amortised while they are classified
as held for sale. Interest and other expenses attributable to the liabilities
of assets held for sale continue to be recognised.
Non-current assets classified as held for sale and the assets of disposal
groups classified as held for sale are presented separately on the face of the
statement of financial position, in current assets. The liabilities of
disposal groups classified as held for sale are presented separately on the
face of the statement of financial position, in current liabilities.
(k) 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.
(l) Contributed Equity
Issued Capital
Incremental costs directly attributable to issue of ordinary shares and share
options and warrants are recognised as a deduction from equity, net of any
related income tax benefit.
(m) 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.
(n) 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.
(o) Comparative Figures
When required by Accounting Standards, comparative figures have been adjusted
to conform to changes in presentation for the current financial year.
(p) 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.
(q) 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.
(r) 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.
(s) 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.
(t) 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.
(u) 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.
(v) 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.
(w) 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.
(x) 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.
(y) 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.
(z) 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.
(aa) 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).
(bb) 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
2024 2023
$ $
2 Cost of sales
Cost of sales 8,950 27,793
Lease operating expenses 100,920 323,086
109,870 350,879
3 Corporate Costs
Accounting, Company Secretary and Audit fees 192,405 273,162
Consulting fees - board 349,000 309,273
Consulting fees - other 93,077 118,730
NOMAD and broker expenses 157,449 172,140
Legal and compliance fees 110,837 90,709
902,768 964,014
4 Other comprehensive profit
Foreign currency gain 13,956 184,479
13,956 184,479
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 (2023 - $NIL).
(a) Numerical reconciliation of income tax expense to prima facie tax payable
Consolidated Consolidated
2024 2023
$ $
Loss before tax (2,140,071) (2,127,198)
Income tax calculated at 25% (2023: 25%) (535,018) (531,800)
Tax effect of amounts which are deductible/non-deductible
In calculating taxable income:
Impairment expense 123,526 71,188
Upfront exploration expenditure claimed (20,849) (44,998)
Other 13,177 (13,565)
Effects of unused tax losses and tax offsets not recognised as deferred tax 419,164 519,175
assets
Income tax expense attributable to operating NIL NIL
profit
(b) Tax Losses
As at 30 June 2024 the Company had tax losses of $ 34,345,264 (2023:
$32,762,723). 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.
(c) Unbooked Deferred Tax Assets and Liabilities
Deferred tax assets are estimated but not recognised at $8,586,316 at 30 June
2024 (2023: $8,190,681) so as to enable the Board to determine more reliably
the probability of utilising these tax assets in the foreseeable future.
Consolidated Consolidated
2024 2023
$ $
6 Auditors Remuneration
Audit - Elderton Audit Pty Ltd
Audit of the financial statements 32,600 32,300
32,600 32,300
7 Cash and Cash Equivalents
Cash at Bank(1) 873,365 520,613
873,365 520,613
1. Excludes cash balances of Nadsoilco, LLC, which have been
separately disclosed in Assets Held for Sale. Refer Note 10 for further
details.
8 Trade and Other Receivables
Joint interest billing receivables(2) 9,023 644,904
Less: allowance for expected credit losses - (123,762)
Deposits 56,056 55,358
GST receivable (13,161) 24,353
Accrued revenue 83,794 253,044
Other receivables 4,529 9,742
140,241 863,639
2. When appropriate, unpaid joint interest billing receivables are
recovered from the interest holders share of production income.
9 Other Assets
Prepayments 17,647 69,514
Incorporation costs 2,539 -
20,186 69,514
10 Assets and Liabilities Classified as Held For Sale
On 10 June 2024, the Company announced the sale of its interest in Nadsoilco
LLC. On 2 October 2024, the Company further announced that it had completed
the sale for consideration of up to US$1.75 million. The final sale terms
were:
· US$500k initial payment;
· Two conditional cash payments of US$250k each to be paid within
10 days of end of June 2025, and June 2026 if the gross production rate
average for each intervening period is greater than 150 bopd;
· Three additional US$250k payments upon achieving gross aggregate
production milestones of 100,000 bbls, 200,000 bbls and 300,000 bbls of oil
from the effective date of completion of 1 July 2024.
Consolidated Consolidated
2024 2023
$ $
Assets
Cash and cash equivalents 24,202 -
Trade and other receivables 532,126 -
Other Assets 48,243 -
Oil and Gas Assets 2,622,912 -
Total Assets Held for Sale 3,227,483 -
Liabilities
Trade and other payables 746,027 -
Provisions 92,784 -
Total Liabilities Held for Sale 838,811 -
Net Assets Held for Sale(1) 2,339,976 -
1. US$1.75m in consideration is receivable for the sale of Nadsoilco
LLC, with US$1.25m subject to production milestones. The Directors have
impaired the value of the Assets Held for Sale down to US$1.55m (AU$2.34m)
based on a weighted probability of each tranche of the production milestones.
Discontinued operations
(a) Financial performance
Consolidated Consolidated
2024 2023
$ $
Revenue 1,065,319 1,679,855
Cost of sales (716,479) (1,226,483)
Gross profit 348,840 453,372
Administrative expenses (131,636) (157,382)
Amortisation expense (223,228) (308,523)
Impairment expense (588,217) -
Bad debts expense - (121,847)
Loss before income tax expense (594,241) (134,380)
Income tax expense - -
Loss after income tax expense from discontinued operations
(594,241) (134,380)
(b) Cash flow information
Consolidated Consolidated
2024 2023
$ $
Net cash from operating activities 122,493 167,300
Net cash used in investing activities (322,169) (320,470)
Net decrease in cash and cash equivalents from discontinued operations (209,676) (153,170)
11 Property, Plant and Equipment
Office Equipment and Furniture Total
$ $
Cost
Balance at 1 July 2023 178,821 178,821
Additions - -
Disposals - -
Effective movement in exchange rates - -
Balance at 30 June 2024 178,821 178,821
Accumulated Depreciation
Balance at 1 July 2023 (172,601) (172,601)
Depreciation for the year (6,220) (6,220)
Disposals - -
Effective movement in exchange rates - -
Balance at 30 June 2024 (178,821) (178,821)
Carrying amounts
Balance at 30 June 2023 6,220 6,220
Balance at 30 June 2024 - -
Consolidated Consolidated
2024 2023
$ $
12 Oil and Gas Assets
Cost brought forward 5,780,587 4,145,488
Acquisition of oil and gas assets during the year 754,831 54,113
Capitalised equipment workovers during the year 785,767 2,362,772
Amortisation for the year(1) (439,912) (436,028)
Transfer to assets held for sale (2,622,912) -
Impairment of oil and gas assets(2) (588,217) (474,586)
Impact of Foreign Exchange on opening balances 15,223 128,828
Carrying value at end of year 3,685,367 5,780,587
1. $223,228 of the amortisation balance disclosed relates to
amortisation expense from discontinued operations.
2. Impairment of $588,217 was recognised in relation to capitalised
oil and gas assets held in Nadsoilco LLC and is reflected in loss on
discontinued operations. The remaining oil and gas assets held in this entity
were transferred to assets held for sale.
13 Capitalised Oil and Gas Expenditure
Cost brought forward 1,420,531 1,240,541
Exploration costs incurred during the year 83,394 179,990
Impairment of oil and gas expenditure - -
Carrying value at end of year 1,503,925 1,420,531
Consolidated Consolidated
2024 2023
$ $
14 Trade and Other Payables
CURRENT
Trade creditors(1) 457,389 1,000,619
Amounts owing for acquisition of Nadsoilco LLC - 150,830
Amounts owing for Vecta Helium project 679,348 -
Deposits received 160,000 -
Other creditors and accruals 141,683 34,001
1,438,420 1,185,450
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).
15 Provisions
CURRENT
Employee provisions - 15,500
- 15,500
NON-CURRENT
Provision for abandonment 87,966 180,587
87,966 180,587
16 Contributed Equity
Ordinary Shares:
Value of Ordinary Shares fully paid
Movement in Contributed Equity Number of shares Contributed Equity $
Balance as at 1 July 2022: 5,220,138,052 38,743,432
02/11/2022 Shares issued (i) $0.00123 1,142,857,142 1,406,312
04/04/2023 Shares issued (iii) $0.00101 45,454,545 45,829
26/04/2023 Shares issued (i) $0.00103 545,454,545 564,145
Capital raising costs (84,378)
Balance as at 1 July 2023: 6,953,904,284 40,675,340
20/07/2023 Shares issued (i) $0.00067 857,142,857 571,739
05/12/2023 Shares issued (i) $0.00024 2,000,000,000 476,117
08/02/2023 Shares issued (i) $0.00024 2,400,000,000 580,912
13/02/2024 Shares issued (iv) $0.00024 126,315,789 30,000
07/06/2024 Shares issued (ii) $0.00024 264,000,000 63,038
21/06/2024 Shares issued (ii) $0.00049 160,000,000 76,809
24/06/2024 Shares issued (ii) $0.00048 60,000,000 28,733
Transfer from warrants reserve upon exercise of warrants 15,577
Capital raising costs (113,303)
Balance at end of year 12,821,362,930 42,404,962
(i) Placements via capital raising as announced
(ii) Shares issued upon conversion of warrants
(iii) Shares issued to suppliers
(iv) Shares issued to Directors as part of placement
17 Reserves
Consolidated Consolidated
2024 2023
$ $
Foreign currency translation reserve 904,732 890,776
Warrants reserve - 17,318
904,732 908,094
Warrants Reserve
Nature and purpose of the Warrants Reserve
The warrants 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.
Movement in Warrants Reserve
Warrants reserve at the beginning of the year 17,318 -
Warrants issued 15,577 17,318
Transfer from warrants reserve upon exercise of warrants (15,577) -
Warrants expired (17,318) -
Warrants 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 890,776 706,297
Current year movement 13,956 184,479
Foreign Currency Translation Reserve at the end of the year 904,732 890,776
18 Accumulated Losses
Accumulated losses at the beginning of the year 34,295,295 32,168,097
Net loss attributable to members 2,140,072 2,127,198
Warrants expired (17,318) -
Warrants reserve - 17,318
Accumulated losses at the end of the year 36,418,049 34,295,295
19 Related Party Transactions Consolidated Consolidated
2024 2023
$ $
Key Management Personnel Remuneration
Cash Payments to Directors and Management (i) 540,380 512,940
Total 540,380 512,940
i. During the year to 30 June 2024:
a. Directors fees of $37,500 were paid or are payable to Mr Nigel Harvey;
b. Director fees of $37,500 were paid or are payable to Universe Solutions
Pty Ltd, and consulting fees of $229,000 were paid or are payable to
Australasian Energy Pty Ltd, of which both entities are controlled by Mr
Andrew Carroll;
c. Director fees of $30,000 were paid or are payable to Mr Carl Dumbrell;
d. Directors fees of $15,000 and consulting fees of $120,000 were paid or
are payable to Kensington Advisory Services Pty Ltd, an entity control by Mr
John Barr;
e. Directors fees of $5,380 were paid or are payable to Mr John Young;
f. CFO, Company Secretary and Consulting Fees totalling $66,000 were
paid or are payable to Mr J T White's accounting firm, Traverse Accountants
Pty Ltd.
Movement in Shares and Warrants
The aggregate numbers of shares and warrants 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 2024 the Company's 100% owned subsidiary, Trident Energy Pty Ltd,
owed Mosman Oil and Gas Limited $4,017,275.84 (2023: $4,060,949).
OilCo Pty Ltd
At 30 June 2024 the Company's 100% owned subsidiary, OilCo Pty Ltd (OilCo),
owed Mosman Oil and Gas Limited $764,358 (2023: $763,034).
Mosman Oil USA, Inc
At 30 June 2024 the Company's 100% owned subsidiary, Mosman Oil USA, Inc, owed
Mosman Oil and Gas Limited $9,679,815 (2023: $9,528,917).
Adagio Resources Limited
At 30 June 2024 the Company's 100% owned subsidiary, Adagio Resources Limited,
owed Mosman Oil and Gas Limited $4,984 (2023: $2,539).
20 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:
Entity Tenement 2024 2023
$ $
Trident Energy Pty Ltd EP145(1) - -
Oilco Pty Ltd EPA155 - -
1. EP145 is currently under extension until 21 February 2025. End date
is 21st February 2027
(b) Capital Commitments
The Company had no other capital commitments at 30 June 2024 (2023: $NIL).
21 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. 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 2024
Revenue
Revenue 186,232 - 186,232
Interest income - 698 698
Segment revenue 186,232 698 186,930
Segment Result
Allocated
- Corporate costs - (902,768) (902,768)
- Administrative costs (155,539) (144,157) (299,696)
- Lease operating expenses (100,920) - (100,920)
- Cost of sales (8,950) - (8,950)
Segment net profit (loss) before tax (79,177) (1,046,227) (1,125,404)
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 (7,525)
- Amortisation (216,685)
Unallocated items
- Employee benefits expense (173,648)
- Loss on foreign exchange (10,707)
- Depreciation (6,220)
- Finance costs (5,642)
Net Loss before tax from continuing operations (1,545,831)
(i) Segment performance
United States Australia Total
$ $ $
Year ended 30 June 2023
Revenue
Revenue 572,174 - 572,174
Interest income 483 483
Segment revenue 572,174 483 572,657
Segment Result
Allocated
- Corporate costs (67,343) (896,671) (964,014)
- Administrative costs (135,689) (294,013) (429,702)
- Lease operating expenses (323,086) - (323,086)
- Cost of sales (27,793) - (27,793)
Segment net profit (loss) before tax 18,263 (1,190,201) (1,171,938)
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 (127,505)
- Impairment (474,586)
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 (1,992,816)
(ii) Segment assets
Australia Total
United States $ $
$
Total assets as at 1 July 2023 7,017,407 1,652,269 8,669,676
Segment asset balances at end of year
- Assets held for sale 2,339,976 - 2,339,976
- Exploration and evaluation - 8,684,843 8,684,843
- Capitalised Oil and Gas Assets 8,685,937 - 8,685,937
- Less: Amortisation (603,134) - (603,134)
- Less: Impairment (4,397,436) (7,180,918) (11,578,354)
6,025,343 1,503,925 7,529,268
Reconciliation of segment assets to total assets:
Other assets 206,086 827,706 1,033,792
Total assets from continuing operations 6,231,429 2,331,631 8,563,060
As at 30 June 2024
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 7,017,407 1,652,269 8,669,676
As at 30 June 2023
(iii) Segment liabilities
Australia Total
United States $ $
$
Segment liabilities as at 1 July 2023 1,152,168 229,369 1,381,537
Segment liability increases (decreases) for the year (60,727) 205,576 144,849
1,091,441 434,945 1,526,386
Reconciliation of segment liabilities to total liabilities:
Other liabilities - - -
Total liabilities from continuing operations 1,091,441 434,945 1,526,386
As at 30 June 2024
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 1,152,168 229,369 1,381,537
As at 30 June 2023
22 Producing assets
For the year ended 30 June 2024, the Group had 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.
Continued Operations Discontinued Operations
Cinnabar Arkoma Total Stanley Winters Livingston Other Projects Total
$ $ $ $ $ $ $ $
Year Ended 30 June 2024
Revenue
Oil and gas project related revenue 172,033 14,199 186,232 890,123 60,851 40,532 73,813 1,065,319
Producing assets revenue 172,033 14,199 186,232 890,123 60,851 40,532 73,813 1,065,319
Project-related expenses
- Cost of sales (7,927) (1,023) (8,950) (41,017) (1,771) (1,725) - (44,513)
- Lease operating expenses (92,928) (7,992) (100,920) (545,295) (33,869) (14,845) (77,957) (671,966)
Project cost of sales (100,855) (9,015) (109,870) (586,312) (35,640) (16,570) (77,957) (716,479)
Project gross profit
Gross profit 71,178 5,184 76,362 303,811 25,211 23,962 (4,144) 348,840
22 Producing assets (continued)
Continued Operations Discontinued Operations
Cinnabar Arkoma Other Projects Total Stanley Winters Livingston Other Projects Total
$ $ $ $ $ $ $ $ $
Year Ended 30 June 2023
Revenue
Oil and gas project related revenue 517,185 54,989 - 572,174 1,352,924 210,944 39,222 76,765 1,679,855
Producing assets revenue 517,185 54,989 - 572,174 1,352,924 210,944 39,222 76,765 1,679,855
Project-related expenses
- Cost of sales (23,834) (3,959) - (27,793) (65,817) (13,956) (1,807) - (81,580)
- Lease operating expenses (186,735) (21,103) (115,248) (323,086) (842,878) (165,788) (93,968) (42,271) (1,144,905)
Project cost of sales (210,569) (25,062) (115,248) (350,879) (908,695) (179,744) (95,775) (42,271) (1,226,485)
Project gross profit
Gross profit 306,616 29,927 (115,248) 221,295 444,229 31,200 (56,553) 34,494 453,370
23 Loss per share
Consolidated 2024 Consolidated
$ 2023
$
The following reflects the loss and share data used in the calculations of
basic and diluted loss per share:
Loss used in calculating basic and diluted earnings/ loss per (1,545,831) (1,992,816)
share from continuing operations
Loss used in calculating basic and diluted earnings/ loss per share from (594,241) (1,942,719)
discontinued operations
Number of shares Number of shares
2024 2023
Weighted average number of ordinary shares used in 9,907,661,135 6,079,575,874
calculating basic loss per share:
Basic and diluted loss per share from continuing 0.016 0.033
operations (cents per share)
Basic and diluted loss per share from discontinued operations (cents per 0.006 0.002
share)
Basic and diluted loss per share (cents per share) 0.022 0.035
24 Notes to the statement of cash flows
Reconciliation of loss from ordinary activities after income tax to net cash Consolidated Consolidated
outflow from operating activities:
2024 2023
$ $
Loss from ordinary activities after related income tax (2,140,072) (2,127,198)
Depreciation and amortisation 446,132(1) 438,092
Impairment 588,217(1) 474,586
(Increase)/decrease in trade and other receivables 781,298 (85,171)
Increase in trade and other payables 252,970 74,112
Transfer of trade and other payables to oil and gas assets (472,715) -
Unrealised FX 15,402 16,762
Net cash outflow from operating activities (528,768) (1,208,817)
1. $223,228 of the amortisation balance and $588,217 of impairment
disclosed relates to expenses from discontinued operations.
25 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 Weighted Average Effective Interest Funds Available at a Floating Interest Rate Fixed Interest Rate Assets/ (Liabilities) Non Total
2024 % $ Interest Bearing
$
$
$
Financial Assets
Cash and Cash Equivalents 7 3.80% 873,365 - - 873,365
Trade and other Receivables 8 - - 140,241 140,241
Other assets 9 - - 20,186 20,186
Total Financial Assets 873,365 - 160,427 1,033,792
Financial Liabilities - - - -
Trade and other Payables 14 - - 1,438,420 1,438,420
Provisions 15 - - 87,966 87,966
Total Financial Liabilities - - 1,526,386 1,526,386
Net Financial Assets/(Liabilities) 873,365 - (1,365,959) (492,594)
Consolidated Note Weighted Average Effective Interest Funds Available at a Floating Interest Rate Fixed Interest Rate Assets/ (Liabilities) Non Total
2023 % $ Interest Bearing
$
$
$
Financial Assets
Cash and Cash Equivalents 7 3.80% 520,613 - - 520,613
Trade and other Receivables 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 14 - - 1,185,450 1,185,450
Provisions 15 - - 196,087 196,087
Total Financial Liabilities - - 1,381,537 1,381,537
Net Financial Assets/(Liabilities) 520,613 - (439,812) 80,801
(i) 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.
(ii) 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.
(iii) 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.
26 Contingent Liabilities
There were no material contingent liabilities not provided for in the
financial statements of the Company as at 30 June 2024.
27 Mosman Oil and Gas Limited - Parent Entity Disclosures
2024 2023
$ $
Financial position
Assets
Current assets 789,677 161,866
Non-current assets 12,937,481 12,832,707
Total assets 13,727,158 12,994,573
Liabilities
Current liabilities 274,945 171,199
Total liabilities 274,945 171,199
Net assets 13,452,213 12,823,374
Equity
Contributed equity 42,404,293 40,674,671
Other contributed equity 145,029 -
Reserves - 17,318
Accumulated losses (29,097,109) (27,868,615)
Total Equity 13,452,213 12,823,374
Financial Performance
Loss for the year (1,245,812) (1,408,651)
Other comprehensive income - -
Total comprehensive loss (1,245,812) (1,408,651)
28 Controlled Entities
Investments in group entities comprise:
Name Incorporation Beneficial percentage held by economic entity
Principal activities
2024 2023
% %
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 100 100
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
Mosman Helium, LLC (incorporated 18 June 2024) Oil & Gas operations U.S.A. 100 100
Nadsoilco, LLC(1) Oil & Gas operations U.S.A. 100 100
1. Entity sold subsequent to balance date.
Mosman Oil and Gas Limited is the Parent Company of the Group, which includes
all of the controlled entities. See also Note 30 Subsequent Events for
additional corporate activity in progress subsequent to the 30 June 2024 year
end.
29 Share Based Payments
Consolidated Consolidated
2024 2023
Cents Cents
Basic loss per share (cents per share) 0.02 0.03
A summary of the movements of all company warrant issues to 30 June 2024 is as
follows:
Company Warrants 2024 2023 2024 2023
Number of Warrants Number of Warrants Weighted Average Exercise Price Weighted Average Exercise Price
Outstanding at the beginning of the year 1,288,928,571 1,584,250,000 $0.0027 $0.0038
Expired (717,500,000) (896,750,000) $0.0027 $0.0045
Exercised (484,000,000) - $0.0002 -
Granted 2,955,729,323 601,428,571 $0.0006 $0.0026
Outstanding at the end of the year 3,043,157,894 1,288,928,571 $0.0010 $0.0027
Exercisable at the end of the year 3,043,157,894 1,288,928,571 $0.0010 $0.0027
30 Events Subsequent to the End of the Financial Year
Subsequent to the end of the reporting period the Company announced the following material matters:
· Between 1 July and 16 September 2024, a total of 1,476,000,000
warrants were converted into ordinary shares of the Company at a price of
0.025 British Pence per share, resulting in additional capital contributed to
the Company of £369,000.
· On 23 July 2024, the Company announced that it had acquired a
further 10% working interest in the Vecta Helium Project in Las Animas County,
Colorado, USA from Vecta Oil and Gas Ltd, increasing Mosman's total WI in the
project to 20%. Consideration for the acquisition was US$500,000, payable via
the issue of 650,000,000 shares.
· On 6 August 2024, the Company announced that had received
notification of an extension to the EP 145 Permit by the NT Government until
21 February 2027 and a six month suspension of the Year 3 work program
conditions to 21 February 2025.
· On 13 September 2024, the Company announced that a Court decision
in August 2024 was made in favour of Nadsoilco LLC (owned by Mosman at no cost
to Mosman other than legal fees) in relation to a lawsuit. The Court decision
required documents to be drafted and signed, and the signing of the legal
documents allowed the sale of Stanley to proceed.
· On 16 September 2024, the Company announced that it had raised
£1.485 million (before expenses) through the issue of 4,242,857,144 new
ordinary shares of no par value at a price of 0.035 pence per share. Directors
Andy Carroll and Nigel Harvey will subscribe for a total of £15,000, being
42,857,143 new ordinary shares of no par value, at the Issue Price. The
Director Subscription will be subject to disclosure as a Related Party
Transaction in accordance with the AIM Rules for Companies and the
requirements of the Australian Corporations Act, which includes shareholder
approval.
· On 2 October 2024, the Company announced that it had completed
the sale of its interest in Nadsoilco LLC for consideration of up to US$1.75
million. The final sale terms were:
o US$500k initial payment;
o Two conditional cash payments of US$250k each to be paid within 10 days of
end of June 2025, and June 2026 if the gross production rate average for each
intervening period is greater than 150 bopd;
o Three additional US$250k payments upon achieving gross aggregate
production milestones of 100,000 bbls, 200,000 bbls and 300,000 bbls of oil
from the effective date of completion of 1 July 2024.
· On 15 October 2024, the Company announced that it had reached
agreement to acquire Greenvale Energy Ltd's 75% interest in EP-145, subject to
normal conditions including government approval. The consideration payable is
AU$250,000 (including the acquisition of seismic long lead items acquired by
Greenvale worth approximately AU$122,000) and will result in Mosman holding a
100% interest and operational control of EP-145.
There were no other material matters that occurred subsequent to 30 June 2024.
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. END FR GGBDGRGXDGSBRecent news on Mosman Oil and Gas
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