REG - Mosman Oil & Gas - Half Year Results
28/03/2025 08:45
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RNS Number : 6763C Mosman Oil and Gas Limited 28 March 2025
28 March 2025
Mosman Oil and Gas Limited
("Mosman" or the "Company")
Half Year Results for the Six Months to 31 December 2024
Mosman Oil and Gas Limited (AIM: MSMN) the helium, hydrogen and hydrocarbon
exploration, development and production company, announces its Half Year
results for the six months to 31 December 2024.
Summary
The Company's principal focus in this period was on identifying and acquiring
additional helium exploration projects in USA and the sale of Nadsoilco LLC
(which holds the Stanley assets) for up to US$1.75m, with initial US$500,000
payment received. This resulted in (compared to same half year period in the
2024 Financial Year, "H124"):
· Revenue: $64,542 (H124 $82,684)
· Gross Profit: $18,955 (H124 $(10,118))
· Net loss: $2,537,131 (H124 $984,851)
The loss for the period includes impairments of $1,066,176 relating to
Australian exploration assets and loss from discontinued operations of
$477,047 relating to the disposal of Nadsoilco LLC.
The Company's cash and cash equivalents as at 31 December 2024 was
$3,481,147. Note this does not include $700,000 contributions expected on
completion of the sale of EP 145 ($400,000) and EP(A) 155 ($50,000 received,
$300,000 subject to grant of the permit) in Australia (see below).
All amounts are in Australian Dollars
Operational Overview
· Reaching agreement with the Ute Mountain Ute Tribe to lease and explore the
Coyote Wash area in Colorado, USA where 3D seismic has been used to map large
sub-salt helium prospects
· Acquisition of a further 10% working interest ("WI") 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%
· Acquisition of 75% interest in EP-145 from Greenvale Energy Ltd, resulting in
Mosman holding a 100% interest and operational control of EP-145
· Continued oil production at the legacy Cinnabar project
Post-Period End
· Converting the interest held in EP-145 from a capital intensive working
interest to a royalty by reaching agreement with Echelon Resources Limited for
it to acquire 100% of EP-145 for $400,000, with Mosman retaining a 5% helium
and hydrogen royalty
· Agreement signed with Westmarket Oil & Gas Pty Ltd (a wholly-owned
subsidiary of Georgina Energy PLC), selling Mosman's EP(A) 155 rights for
AU$350,000 with Mosman retaining a 2.5% royalty
· Acquisition of 82.5% working interest in the Sagebrush Project in Colorado
Board Update
· Post-period end, Carl Dumbrell appointed as Chairman of the Board, with Nigel
Harvey continuing as a Non-Executive Director
Andy Carroll, CEO of Mosman commented: "We are pleased to report on an
encouraging transition period for Mosman, during which we acquired and
developed Mosman's expanding helium portfolio in the USA.
"We streamlined our portfolio to focus on helium with the sale of Nadsoil
which held the Stanley oil field interests.
"We retain our interest in the Amadeus Basin and managed the high capital
costs of operating in Australia by converting to royalty interests. The review
of the portfolio led to the conclusion that the focus of capital allocation
should be on the helium projects in USA that are lower cost, and closer to
infrastructure and markets. This was implemented by selling the working
interest in EP 145, whilst retaining a 5% royalty on helium and hydrogen
revenue which I believe has significant upside potential without any of the
capital requirements of a working interest. These accounts do not include any
value for the royalties on the Balance Sheet under the current accounting
treatment. The cash component of the sale of EP-145 and EP(A) 155 will
strengthen the working capital position on completion of those transactions."
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 interests in exploration projects in the Amadeus Basin
in Central Australia.
Operations Review
Mosman's strategic objective remains to identify opportunities which will
provide operating cash flow and have development upside, in conjunction with
exploration of existing exploration permits and acquiring high potential
projects.
The current focus is on 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.
During the period key developments included:
On 23 July 2024, the Group announced that it had acquired a further 10%
working interest ("WI") in the Vecta Helium Project in Colorado, USA from
Vecta Oil and Gas Ltd, increasing Mosman's total WI in the project to 20%.
Vecta continues to own the remaining 80% WI and operate the project.
The Vecta Helium Project includes c 51,000 leased acres in Colorado, in five
areas each with identified helium prospects. The exploration strategy is to
drill an exploration well on each of the five areas in 2025. Following a
successful exploration programme, the next step would be to acquire seismic
and drill helium production wells. A rig has been contracted by Vecta to drill
five wells.
On 2 October 2024, the Company completed the sale of Nadsoilco LLC (which held
the Stanley oil production assets) for consideration of up to US$1.75 million.
Final sale terms were:
· US$500,000 initial payment (which was received);
· Two conditional cash payments of US$250,000 each to be paid within 10 days of
the end of June 2025 and June 2026 respectively if the gross production rate
average for each intervening period is greater than 150 bbls of oil per day
("bopd");
· Three additional US$250,000 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 1 July 2024.
· The Directors have performed a weighted probability of each tranche of the
production milestones and assessed that the expected receivable at period end
is US$750k. It is not expected that the US$250,000 milestone payment relating
to production for the year ended 30 June 2025 will be achieved.
On 15 October 2024, Mosman reached an agreement to acquire the 75% interest in
EP-145 from Greenvale Energy Ltd, resulting in Mosman holding a 100% interest
and operational control of EP-145. Subsequent to period end, the Group
announced that it had signed an agreement with Echelon Resources Limited with
binding terms to sell 100% EP 145 for $400,000, and retain a 5% helium and
hydrogen royalty. The disposal is subject to normal conditions, including
government approvals which are anticipated to take a few months.
Results
The loss for the Group for the six months to 31 December 2024 amounted to
$2,537,131 (31 December 2023: 984,851). The loss for the period includes
impairments of $1,066,176 relating to Australia exploration assets, and loss
from discontinued operations of $477,047 relating to the disposal of Nadsoilco
LLC.
On 16 September 2024, the Company announced it had raised £1.5 million
(before expenses) by way of a fundraising undertaken by SP Angel through the
issue of 4,285,714,287 new ordinary shares at a price of 0.035 pence per
share.
The Company's cash and cash equivalent as at 31 December 2024 was
$3,481,147. Note this does not include $700,000 contributions expected on
completion of the sale of EP 145 ($400,000) and EP(A) 155 ($50,000 received,
$300,000 subject to grant of the permit) in Australia (see below).
Projects in the USA
A summary of the current oil and gas projects as at 28 March 2025:
US PROJECTS
Asset/ Project Mosman Interest(1) Location Status
Cinnabar Texas Producing
75%
Cinnabar Extended 78% Texas Exploration
Vecta Helium Project 20% Colorado Exploration
Coyote Wash Project(2) 100% Colorado Exploration
Sagebrush Project(3) 82.5% Colorado Producing
Arkoma 27% Oklahoma Producing
1. Mosman's ownership is working interest before royalties. The interest shown is
approximate, as there are small variations on individual wells
2. Tribal Council approval received and announced on 19 December 2024. Subject to
Bureau of Indian Affairs approval.
3. Acquisition completed on 3 February 2025, with the effective date of
acquisition 1 January 2025.
Matters subsequent to the reporting period
Subsequent to the end of the reporting period the Company announced the
following material matters occurred:
· On 14 January 2025, the Group announced that it had signed an agreement with
Echelon Resources Limited with binding terms to sell 100% of EP 145 for
$400,000, and retain a 5% helium and hydrogen royalty. The disposal is subject
to normal conditions, including government approvals which are anticipated to
take a few months.
· On 22 January 2025, the Group announced that it had signed an agreement with
Westmarket Oil & Gas Pty Ltd (a wholly owned subsidiary of Georgina Energy
PLC), selling its EP(A) 155 rights for AU$350,000 (with AU$50,000 payable
within 10 days and $300,000 upon grant of license by the Northern Territory
Government) and a 2.5% royalty. It was further announced on 20 February that
the parties had entered into a formal share sale and purchase agreement with
completion subject to government approvals.
· On 29 January 2025, the Group announced that a six month suspension and
extension of EP-145 Permit Year Three through 21 August 2025 has been granted
by the Northern Territory Minister for Mining and Energy.
· On 3 February 2025, the Group announced the completion of the acquisition of
82.5% working interest in the Sagebrush Project in Colorado, announced on 30
December 2024. This 82.5% interest will be held by Mosman Helium LLC (a wholly
owned subsidiary). The effective date of this transaction was 1 January 2025.
· On 26 February 2025, it was announced that Mr Carl Dumbrell would replace Mr
Nigel Harvey as Chairman of the Board, effective immediately, with Mr Harvey
remaining on the Board as a Non-Executive Director.
There were no other material matters that occurred subsequent to 31 December
2024.
Condensed Consolidated Statement of Profit or Loss and Other Comprehensive
Income
For The Half Year Ended 31 December 2024
Notes Consolidated Consolidated
6 months to 6 months to
31 December 2024 31 December 2023
(restated)
$ $
Revenue 64,542 82,684
Cost of sales 2 (45,587) (92,802)
Gross profit 18,955 (10,118)
Interest income 58 348
Other income 10,000 -
Administrative expenses (161,762) (121,521)
Corporate expenses 3 (584,411) (467,567)
Directors fees (90,000) (57,880)
Exploration expenses incurred, not capitalised (112,104) (7,425)
Employee benefits expense - (48,268)
Finance costs (5,066) (5,642)
Share based payments expense 11 (81,486) -
Amortisation expense 7 (110,297) (105,815)
Depreciation expense - (6,220)
Impairment expense 8 (1,066,176) -
Gain/(loss) on foreign exchange 122,205 (5,414)
Loss before income tax expense from continuing operations (835,522)
(2,060,084)
Income tax expense - -
Loss after income tax expense from continuing operations (2,060,084) (835,522)
Loss after income tax expense from discontinued operations 4 (477,047) (149,329)
Net loss after income tax expense for the year (2,537,131) (984,851)
Other comprehensive profit
Items that may be reclassified to profit or loss
- Foreign currency gain/(loss) 11 278,774 (148,877)
Total comprehensive income attributable to members of the entity (2,258,357) (1,133,728)
The accompanying notes form part of these consolidated financial statements
All amounts are in Australian Dollars
Condensed Consolidated Statement of Profit or Loss and Other Comprehensive
Income
For The Half Year Ended 31 December 2024
Total comprehensive income for the year attributable to: Notes Consolidated Consolidated
6 months to 6 months to
31 December 2024 31 December 2023 (restated)
Continuing operations (1,781,310) (984,399)
Discontinued operations (477,047) (149,329)
(2,258,357) (1,133,728)
Basic and diluted loss per share from continuing operations (cents per share) (0.012) cents (0.010) cents
Basic and diluted loss per share from discontinued operations (cents per (0.003) cents (0.002) cents
share)
Basic and diluted loss per share (cents per share) (0.015) cents (0.012) cents
The accompanying notes form part of these consolidated financial statements
All amounts are in Australian Dollars
Consolidated Statement of Financial Position
As at 31 December 2024
Notes Consolidated Consolidated
31 December 2024 30 June 2024
$ $
Current Assets
Cash and cash equivalents 3,481,147 873,365
Trade and other receivables 5 90,014 140,241
Other assets 6 86,667 20,186
3,657,828 1,033,792
Assets classified as held for sale 4 - 3,227,483
Total Current Assets 3,657,828 4,261,275
Non-Current Assets
Oil and gas assets 7 4,616,694 3,685,367
Capitalised oil and gas exploration 8 550,000 1,503,925
Trade and other receivables 5 1,206,370 -
Total Non-Current Assets 6,373,064 5,189,292
Total Assets 10,030,892 9,450,567
Current Liabilities
Trade and other payables 9 862,239 1,438,420
862,239 1,438,420
Liabilities classified as held for sale - 887,507
Total Current Liabilities 862,239 2,325,927
Non-Current Liabilities
Provisions 93,725 87,966
Total Non-Current Liabilities 93,725 87,966
Total Liabilities 955,964 2,413,893
Net Assets 9,074,928 7,036,674
Shareholders' Equity
Contributed equity 10 46,662,015 42,404,962
Other contributed equity - 145,029
Reserves 11 1,368,093 904,732
Accumulated losses (38,955,180) (36,418,049)
Total Shareholders' Equity 9,074,928 7,036,674
The accompanying notes form part of these consolidated financial statements
All amounts are in Australian Dollars
Consolidated Statement of Changes in Equity
For the Half Year Ended 31 December 2024
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 (984,851) - - - (984,851)
Other comprehensive income for the period -
- - (148,877) (148,877)
Total comprehensive loss for the period (984,851) - - (148,877) (1,133,728)
Transactions with owners, in their capacity as owners, and other transfers:
New shares issued - 1,047,856 - - 1,047,856
Cost of raising equity - (67,017) - 4,145 (62,872)
Total transactions with owners and other transfers - 980,839 4,145 984,984
-
Balance at 31 December 2023 (35,280,146) 41,656,179 - 763,362 7,139,395
Balance at 1 July 2024 (36,418,049) 42,404,962 145,029 904,732 7,036,674
Comprehensive income
Loss for the period (2,537,131) - - - (2,537,131)
Other comprehensive income for the period -
- - 278,774 278,774
Total comprehensive loss for the period (2,537,131) - 278,774 (2,258,357)
-
Transactions with owners, in their capacity as owners, and other transfers:
New shares issued - 4,389,733 - - 4,389,733
Cost of raising equity - (277,709) - - (277,709)
Transfer other contributed equity into contributed equity - 145,029 (145,029) - -
Warrants/options issued - - - 184,587 184,587
Total transactions with owners and other transfers - 4,257,053 184,587 4,296,611
(145,029)
Balance at 31 December 2024 (38,955,180) 46,662,015 - 1,368,093 9,074,928
The accompanying notes form part of these consolidated financial statements.
All amounts are in Australian Dollars
Consolidated Statement of Cash Flows
For the Half Year Ended 31 December 2024
Consolidated Consolidated
6 months to 6 months to 31 December 2023
31 December 2024
$ $
Cash flows from operating activities
Receipts from customers 74,854 633,460
Other income 10,000 -
Payments to suppliers and employees (1,148,990) (875,426)
Interest paid (5,065) (5,642)
Net cash outflow from operating activities (1,069,201) (247,608)
Cash flows from investing activities
Proceeds from disposal of subsidiaries 755,385 -
Payments for oil and gas assets (457,084) (408,786)
Payments for acquisition of new subsidiaries - (153,230)
Payments for exploration and evaluation (112,251) (71,194)
Net cash inflow/(outflow) from investing activities 186,050 (633,210)
Cash flows from financing activities
Proceeds from shares issued 3,623,524 1,047,856
Payments for costs of capital (174,606) (62,872)
Net cash inflow from financial activities 3,448,918 984,984
Net increase in cash and cash equivalents 2,565,767 104,166
Effects of exchange rate changes on cash and cash equivalents 42,015 (10,474)
Cash and cash equivalents at the beginning of the period 873,365 520,613
Cash and cash equivalents at the end of the period 3,481,147 614,305
The accompanying notes form part of these consolidated financial statements
All amounts are in Australian Dollars
Condensed Notes to the Financial Statements
For the Half-Year Ended 31 December 2024
All amounts are Australian Dollars
1. Summary of Significant Accounting Policies
Statement of Compliance
The half-year financial report is a general purpose financial report prepared
in accordance with the Corporations Act 2001 and AASB 134 Interim Financial
Reporting. Compliance with AASB 134 ensures compliance with International
Financial Reporting Standard IAS34 Interim Financial Reporting. The half-year
report does not include notes of the type normally included in an annual
financial report and should be read in conjunction with the most recent annual
financial report.
Basis of preparation
The condensed consolidated financial statements have been prepared on the
basis of historical cost, except for the revaluation of certain non-current
assets and financial instruments. Cost is based on the fair values of the
consideration given in exchange for assets. All amounts presented in
Australian dollars, unless otherwise noted.
The accounting policies and methods of computation adopted in the preparation
of the half-year financial report are consistent with those adopted and
disclosed in the Group's 2024 annual financial report for the financial year
ended 30 June 2023, except for the impact of the Standards and Interpretations
described below. These accounting policies are consistent with Australian
Accounting Standards and with International Financial Reporting Standards
(IFRS).
Going Concern
The condensed consolidated financial statements have been prepared on the
going concern basis, which contemplates continuity of normal business
activities and the realisation of assets and the discharge of liabilities in
the normal course of business.
The directors have considered the funding and operational status of the
business in arriving at their assessment of going concern and believe that the
going concern basis of preparation is appropriate, based upon the following:
· The ability to further vary cash flow depending upon the achievement of
certain milestones within the business plan and;
· The ability of the Company to obtain funding through various sources,
including debt and equity.
However, should the Group be unable to raise further required financing from
equity markets or other sources, there is uncertainty which may cast doubt as
to whether or not the Group will be able to continue as a going concern and
whether it will realise its assets and extinguish its liabilities in the
normal course of business and at the amounts stated in the financial
statements.
The financial statements do not include any adjustments relating to the
recoverability and classification of recorded asset amounts nor to the amounts
and classification of liabilities that might be necessary should the Group not
continue as a going concern.
Exploration and Evaluation Costs
Exploration and evaluation expenditure incurred is accumulated in respect of
each identifiable area of interest. These costs are carried forward in respect
of an area for which the rights to tenure are current and that has not at
reporting date reached a stage which permits a reasonable assessment of the
existence or otherwise of economically recoverable reserves, and active and
significant operations in, or relating to, the area of interest are
continuing.
Impairment of Exploration and Evaluation Assets
The ultimate recoupment of the value of exploration and evaluation assets is
dependent on the successful development and commercial exploitation, or
alternatively, sale, of the exploration and evaluation assets.
Impairment tests are carried out when there are indicators of impairment in
order to identify whether the asset carrying values exceed their recoverable
amounts. There is significant estimation and judgement in determining the
inputs and assumptions used in determining the recoverable amounts. If, after
having capitalised the expenditure under the policy, a judgement is made that
the recovery of the expenditure is unlikely, the relevant capitalised amount
will be written off to profit and loss.
The key areas of judgement and estimation include:
· Recent exploration and evaluation results and resource estimates;
· Environmental issues that may impact on the underlying tenements; and
· Fundamental economic factors that have an impact on the operations and
carrying values of assets and liabilities.
Revenue and Other Income
Revenue is measured at the fair value of the consideration received or
receivable. Amounts disclosed as revenue are net of returns, trade allowances,
rebates and amounts collected on behalf of third parties.
The group recognises revenue when the amount of revenue can be reliably
measured, it is probable that future economic benefits will flow to the entity
and specific criteria have been met for each of the Group's activities as
described below. The group bases its estimates on historical results, taking
into consideration the type of customer, the type of transaction and the
specifics of each arrangement.
Revenue from joint operations is recognised based on the Group's share of the
sale by the joint operation.
Interest revenue is recognised using the effective interest rate method,
which, for floating rate financial assets, is the rate inherent in the
instrument.
Oil and Gas assets
The cost of oil and gas producing assets and capitalised expenditure on oil
and gas assets under development are accounted for separately and are stated
at cost less accumulated amortisation and impairment losses. Costs include
expenditure that is directly attributable to the acquisition or construction
of the item as well as past exploration and evaluation costs.
When an oil and gas asset commences production, costs carried forward are
amortised over the expected life of the economically recoverable reserves.
Changes in factors such as estimates of economically recoverable reserves that
affect amortisation calculations do not give rise to prior financial period
adjustments and are dealt with on a prospective basis.
Segment Reporting
Operating segments are reported in a manner consistent with the internal
reporting provided to the chief operating decision maker. The chief operating
decision maker, who is responsible for allocating resources and assessing
performance.
New standards and interpretations
The consolidated entity has adopted all of the new or amended Accounting
Standards and Interpretations issued by the Australian Standards Board
('AASB') that are mandatory for the current reporting period.
Any new or amended Accounting Standards or Interpretations that are not yet
mandatory have not been early adopted.
Consolidated Consolidated
6 months to 31 December 2024 6 months to 31 December 2023
(restated)
$ $
2 Cost of Sales
Cost of sales 2,984 3,810
Lease operating expenses 42,603 88,992
45,587 92,802
Consolidated Consolidated
6 months to 31 December 2024 6 months to 31 December 2023
$ $
3 Corporate Costs
Accounting, Company Secretary and Audit fees 117,303 88,075
Consulting fees - board 172,000 210,000
Consulting fees - other 37,030 33,098
NOMAD and broker expenses 72,756 90,956
Legal and compliance fees 185,322 45,438
584,411 467,567
Consolidated Consolidated
6 months to 31 December 2024 6 months to 31 December 2023(1)
$ $
4 Discontinued Operations
Revenue - 451,110
Cost of sales - (406,933)
Gross profit
Administrative expenses - (83,985)
Amortisation expense - (109,521)
Loss on sale of Nadsoilco, LLC(2) (477,047)
Loss before income tax expense (477,047) (149,329)
Income tax expense - -
Loss after income tax expense from discontinued operations (477,047) (149,329)
1. The comparative Consolidated Statement of Profit or Loss and Other
Comprehensive Income has been restated to distinguish discontinued operations
from ordinary operations due to the disposal of Nadsoilco, LLC in the current
period. This includes the removal of all revenue, cost of sales,
administration expense, and amortisiation expense relating to the Stanley,
Winters and Livingston assets from ordinary operations.
2. The sale of Nadsoilco LLC was completed in October 2024 for a total
consideration of US$1.75m, of which US$500k was received during the period,
and US$1.25m in consideration is receivable subject to production milestones.
The Directors have performed a weighted probability of each tranche of the
production milestones and assessed that the expected receivable at period end
is US$750k.
( ) Consolidated Consolidated
Balance as at 31 December 2024 Balance as at 30 June 2024
( ) $ $
5 Trade and Other Receivables
Current
Joint interest billing receivables (1,289) 9,023
Deposits 56,113 56,056
GST receivable 30,266 (13,161)
Accrued revenue - 83,794
Other receivables 4,924 4,529
90,014 140,241
Non-current
Receivable from sale of Nadsoilco, LLC (Note 4) 1,206,370 -
1,206,370 -
6 Other Assets
Prepayments 84,128 17,647
Incorporation costs 2,539 2,539
86,667 20,186
7 Oil and Gas
Assets
Cost brought forward 3,685,367 5,780,587
Acquisition of oil and gas assets during the period 807,495 754,831
Capitalised equipment workovers during the period - 785,767
Amortisation for the period (110,297) (439,912)
Transfer to assets held for sale - (2,622,912)
Impairment of oil and gas assets - (588,217)
Impact of Foreign Exchange on opening balances 234,129 15,223
Carrying value at the end of the period 4,616,694 3,685,367
In July 2024, the Group announced that it had acquired a further 10% working
interest ("WI") 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%. Vecta will continue to own the remaining 80% WI and operate the project.
The consideration for the additional 10% WI was $500,000 and was paid via the
issue of 650,000,000 shares.
The Board has carried out an impairment assessment of the Oil and Gas Assets
and have concluded that no impairment is required.
Consolidated Consolidated
Balance as at 31 December 2024 Balance as at 30 June 2024
8 Capitalised Oil and Gas
Expenditure
Cost brought forward 1,503,925 1,420,531
Exploration costs incurred during the period 112,251 83,394
Impairment of oil and gas expenditure (1,066,176) -
Carrying value at end of the period 550,000 1,503,925
$ $
9 Trade and Other Payables
Trade creditors 243,806 457,389
Amounts owing for Vecta Helium project 241,274 679,348
Deposits received 160,000 160,000
Other creditors and accruals 217,160 141,683
862,239 1,438,420
10 Contributed Equity
Ordinary Shares:
Value of Ordinary Shares fully paid
Movement in Contributed Equity Number of shares Contributed Equity $
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 as at 1 July 2024: 12,821,362,930 42,404,962
01/07/2024 Shares issued (ii) $0.00048 224,000,000 106,834
02/07/2024 Shares issued (ii) $0.00048 80,000,000 38,195
05/07/2024 Shares issued (ii) $0.00048 220,000,000 104,550
05/07/2024 Shares issued (ii) $0.00048 600,000,000 285,136
16/07/2024 Shares issued (ii) $0.00048 80,000,000 38,000
22/07/2024 Shares issued (ii) $0.00048 340,000,000 163,673
26/07/2024 Shares issued (ii) $0.00049 120,000,000 58,294
29/07/2024 Shares issued (iii) $0.00118 650,000,000 766,208
01/08/2024 Shares issued (ii) $0.00049 16,000,000 7,881
16/09/2024 Shares issued (ii) $0.00049 100,000,000 49,171
19/09/2024 Shares issued (i) $0.00068 4,242,857,144 2,887,420
05/12/2024 Shares issued (iv) $0.00069 42,857,144 29,400
Capital raising costs - (277,709)
Balance at the end of period 19,537,077,218 46,662,015
(i) Placements via capital raising as announced
(ii) Shares issued upon conversion of warrants
(iii) Shares issued in lieu of cash for acquisition of oil and gas
assets
(iv) Shares issued to Directors as part of placement
Consolidated Consolidated
Balance as at 31 December 2024 Balance as at 30 June 2024
$ $
11 Reserves
Foreign currency translation reserve 1,183,506 904,732
Options reserve 184,587 -
1,368,093 904,732
Foreign Currency Translation Reserve
Foreign Currency Translation Reserve at the beginning of the period 904,732 890,776
Current movement in the period 278,774 13,956
Foreign Currency Translation Reserve at the end of the period 1,183,506 904,732
Options Reserve
Options Reserve at the beginning of the period - 17,318
Warrants/options issued 184,587 15,577
Transfer from options reserve upon exercise of warrants/options - (15,577)
Warrants/options expired - (17,318)
Options Reserve at the end of the period 184,587 -
During the period 254,571,428 warrants were issued to brokers as part of their
fee for facilitating a placement of shares in the period. The warrants were
fair valued at AU$0.0004 per warrant, and an amount of $103,101 was recognised
as a capital raising cost. The warrants are valued using the Binomial Method
with the following inputs:
Share price at issue date 0.0348 British Pence
Exercise price 0.0350 British Pence
Risk-Free Interest Rate 3.68%
Volatility 117%
Subsequent to shareholder approval at the Group's 2024 AGM held on 29 November
2024, Mr Andrew Carroll was granted 194,942,200 options. The options were fair
valued at AU$0.0004 per option, and an amount of $81,486 was recognised as a
share based payment expense. The options are valued using the Binomial Method
with the following inputs:
Share price at issue date 0.0358 British Pence
Exercise price 0.0770 British Pence
Risk-Free Interest Rate 4.04%
Volatility 117%
12 Segment Information
The Group has identified its operating segments based on the internal reports
that are reviewed and used by the board to make decisions about resources to
be allocated to the segments and assess their performance.
Operating segments are identified by the board based on the Oil and Gas
projects in Australia the United States. Discrete financial information about
each project is reported to the board on a regular basis.
The reportable segments are based on aggregated operating segments determined
by the similarity of the economic characteristics, the nature of the
activities and the regulatory environment in which those segments operate.
The Group has two reportable segments based on the geographical areas of the
mineral resource and exploration activities in Australia, the United States.
Unallocated results, assets and liabilities represent corporate amounts that
are not core to the reportable segments.
(i) Segment performance
United States Australia Total
$ $ $
Period ended 31 December 2024
Revenue
Revenue 64,542 - 64,542
Other income - 10,058 10,058
Segment revenue 64,542 10,058 74,600
Segment Result
Allocated
- Corporate costs (120,473) (463,938) (584,411)
- Administrative costs (105,263) (56,499) (161,762)
- Lease operating expenses (42,603) - (42,603)
- Cost of sales (2,984) - (2,984)
Segment net profit/(loss) before tax (206,781) (510,379) (717,160)
Reconciliation of segment result to net loss before tax
Amounts not included in segment result but reviewed by the Board
- Evaluation expenses incurred not capitalised (93,804) (18,300) (112,104)
- Amortisation (110,297) - (110,297)
- Impairment (1,066,176) - (1,066,176)
Unallocated items
- Employee benefits expense (171,486)
- Finance costs (5,066)
- Gain on foreign exchange 122,205
Net Loss before tax from continuing operations (2,060,084)
(i) Segment performance
United States Australia Total
$ $ $
Period ended 31 December 2023
(restated)
Revenue
Revenue 82,684 - 82,684
Other income - 348 348
Segment revenue 82,684 348 83,032
Segment Result
Loss
Allocated
- Corporate costs - (467,567) (467,567)
- Administrative costs (62,305) (59,216) (121,521)
- Lease operating expenses (88,992) - (88,992)
- Cost of sales (3,810) - (3,810)
Segment net profit/(loss) before tax (72,422) (526,435) (598,858)
Reconciliation of segment result to net loss before tax
Amounts not included in segment result but reviewed by the Board
- Evaluation expenses incurred not capitalised - (7,425) (7,425)
- Amortisation (105,815) - (105,815)
- Impairment - - -
Unallocated items
- Employee benefits expense (106,148)
- Finance costs (5,642)
- Depreciation (6,220)
- Loss on foreign exchange (5,414)
Net Loss before tax from continuing operations (835,522)
(ii) Segment assets
United States Australia Total
$ $ $
As at 31 December 2024
Segment assets as at 1 July 2024 7,118,936 2,331,631 9,450,567
Segment asset balances at end of
period
- Exploration and evaluation - 8,797,094 8,797,094
- Capitalised Oil and Gas 9,429,400 - 9,429,400
- Less: Amortisation (760,049) - (760,049)
- Less: Impairment (4,052,656) (8,247,094) (12,299,750)
4,616,695 550,000 5,166,695
Reconciliation of segment assets to total assets:
Other assets 2,021,206 2,842,991 4,864,197
Total assets from continuing operations 6,637,901 3,392,991 10,030,892
United States Australia Total
$ $ $
As at 30 June 2024
Segment assets as at 1 July 2023 7,017,407 1,652,269 8,669,676
Segment asset balances at end of
period
- Assets held for sale 3,227,483 - 3,227,483
- 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)
6,912,850 1,503,925 8,416,775
Reconciliation of segment assets to total assets:
Other assets 206,086 827,706 1,033,792
Total assets from continuing operations 7,118,936 2,331,631 9,450,567
(iii) Segment liabilities
United States Australia Total
$ $ $
As at 31 December 2024
Segment liabilities as at 1 July 2024 1,091,441 434,945 1,526,386
Segment liability increase/(decrease) for the period (671,842) 101,421 (570,421)
419,599 536,366 955,965
Reconciliation of segment liabilities to total liabilities:
Other liabilities - - -
Total liabilities from continuing operations 419,599 536,366 955,965
As at 30 June 2024
Segment liabilities as at 1 July 2023 1,152,168 229,369 1,381,537
Segment liability increase/(decrease) for the period (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
13 Expenditure Commitments
(a) Exploration
The Company has certain obligations to perform minimum exploration work on Oil
and Gas tenements held. These obligations may vary over time, depending on the
Company's exploration programs and priorities. At 31 December 2024, total
exploration expenditure commitments for the next 12 months are as follows:
Entity Tenement 31 December 2024 31 December 2023
$ $
Trident Energy Pty Ltd EP145(1) - -
Oilco Pty Ltd EPA155 - -
- -
1. EP145 is currently under extension until 21 August 2025. End date
is 21st February 2027
(b) Capital Commitments
The Company had no capital commitments at 31 December 2024 (2023 - $Nil).
14 Warrants/Options
A summary of the movements of all company warrant/option issues to 31 December
2024 is as follows:
Company Warrants/Options 31 December 2024 30 June 2024
Number of Warrants/Options Number of Warrants/Options
Outstanding at the beginning of the period 3,043,157,894 1,288,928,571
Expired (571,428,571) (717,500,000)
Exercised (1,780,000,000) (484,000,000)
Granted 449,513,628 2,955,729,323
Outstanding at the end of the period 1,141,242,951 3,043,157,894
Exercisable at the end of the period 1,141,242,951 3,043,157,894
15 Subsequent Events
Subsequent to the end of the reporting period the Company announced the following material matters occurred:
· On 14 January 2025, the Group announced that it had signed an agreement with
Echelon Resources Limited with binding terms to sell 100% of EP 145 for
$400,000, and retain a 5% helium and hydrogen royalty. The disposal is subject
to normal conditions, including government approvals which are anticipated to
take a few months.
· On 22 January 2025, the Group announced that it had signed an agreement with
Westmarket Oil & Gas Pty Ltd (a wholly owned subsidiary of Georgina Energy
PLC), selling its EP(A) 155 rights for AU$350,000 (with AU$50,000 payable
within 10 days and $300,000 upon grant of license by the Northern Territory
Government) and a 2.5% royalty. It was further announced on 20 February that
the parties had entered into a formal share sale and purchase agreement with
completion subject to government approvals.
· On 29 January 2025, the Group announced that a six month suspension and
extension of EP-145 Permit Year Three through 21 August 2025 has been granted
by the Northern Territory Minister for Mining and Energy.
· On 3 February 2025, the Group announced the completion of the acquisition of
82.5% working interest in the Sagebrush Project in Colorado, announced on 30
December 2024. This 82.5% interest will be held by Mosman Helium LLC (a wholly
owned subsidiary). The effective date of this transaction was 1 January 2025.
· On 26 February 2025, it was announced that Mr Carl Dumbrell would replace Mr
Nigel Harvey as Chairman of the Board, effective immediately, with Mr Harvey
remaining on the Board as a Non-Executive Director.
There were no other material matters that occurred subsequent to 31 December
2024.
16 Dividends
No dividends have been paid or proposed during the half year ended 31 December
2024.
There were no other material matters that occurred subsequent to 31 December
2024.
16 Dividends
No dividends have been paid or proposed during the half year ended 31 December
2024.
Directors' Declaration
The Directors of the Consolidated Group declare that:
1. The financial statements and notes, as set out on pages 6-23, are in
accordance with the Australian Corporations Act 2001:
(a) comply with Accounting Standards, which, as stated in Note 1 - Statement of
Accounting Policies to the consolidated financial statements, constitutes
compliance with International Financial Reporting Standards (IFRS); and
(b) give a true and fair view of the consolidated financial position as at 31
December 2024 and of the performance for the period ended on that date of
the Group.
2. This declaration is made in accordance with a resolution of the Board of
Directors and is signed by authority for and on behalf of the Directors by:
Carl Dumbrell
Chairman
28 March 2025
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