REG - Mosman Oil & Gas Ltd - Annual Report & Accounts for Year End 30 June 2025
26/09/2025 07:05
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RNS Number : 9360A Mosman Oil and Gas Limited 26 September 2025
26 September 2025
Mosman Oil and Gas Limited
("Mosman" or the "Company")
Annual Report and Accounts for the Year Ended 30 June 2025
Mosman Oil and Gas Limited (AIM: MSMN), the helium, hydrogen and hydrocarbon
company, announces that its Annual Report and Accounts for the financial year
ended 30 June 2025 have today been released and are available on the Company's
website at: www.mosmanoilandgas.com/investors
The Annual Report will also be sent to shareholders who have elected to
receive hard copies.
Key Highlights
· Revenue from continued operations increased to AUD $504k (FY24:
$186k). Revenue from continuing operations increased during the year,
primarily reflecting the acquired production at Sagebrush. On a consolidated
basis, revenue decreased materially compared with the prior year due to the
absence of revenue from discontinued operations following the divestment of
oil assets.
· Net loss of AUD $10.3m (FY24: $1.5m),
· Cash at year-end of AUD $3.9m. Cash balance 25 September 2025
$2.6m.
· Strategic repositioning to helium exploration and development,
with Sagebrush in Colorado established as the cornerstone asset.
· Progressing completion of exit from legacy oil interests,
aligning operations fully with helium growth strategy.
· Strengthened Board and management team with new appointments and
governance enhancements.
Carl Dumbrell, Executive Chairman of Mosman, commented: "FY25 marked a
transformational year for Mosman as we repositioned the business squarely
towards helium - a critical and high-value global resource. With Sagebrush
validated by independent resource auditing and on track for seismic
acquisition and flow testing in FY26, we are entering a period of significant
value-driving activity. The divestment of non-core oil interests has sharpened
our focus and positioned us to move decisively in this new phase. I am
confident that Mosman now has the assets, team and strategy in place to unlock
substantial shareholder value. On behalf of the Board, I thank shareholders
for their continued support as we deliver on the exciting opportunities
ahead."
Additional Information
Copies of the Annual Report will be submitted to the National Storage
Mechanism and will shortly be available for inspection at:
https://data.fca.org.uk/#/nsm/nationalstoragemechanism
(https://data.fca.org.uk/#/nsm/nationalstoragemechanism)
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
Carl Dumbrell SP Angel Corporate Finance LLP
Chairman Stuart Gledhill / Richard Hail / Adam Cowl
+44 (0) 20 3470 0470
Brand Communications Joint Broker
Alan Green CMC Markets UK Plc
Tel: +44 (0) 7976 431608 Douglas Crippen
+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 royalty interests in Australia.
Chairman's Statement & Operations Report For the year ended 30 June 2025
Dear Shareholders,
On behalf of the Board, I am pleased to present the Chairman's Statement and
Operations Report for Mosman Oil & Gas Limited ("Mosman" or the "Company")
for the financial year ended 30 June 2025.
Strategic Overview
FY25 has been a year of transition, with Mosman continuing its strategic shift
from hydrocarbons to helium exploration and development. This reflects the
Board's recognition of helium as a high-value, growth market essential to
technology, healthcare and clean energy.
While exploration carries inherent risks, our growing helium portfolio and
strengthened balance sheet position Mosman well for future progress.
Financial Performance
• Revenue: $504K (2024: $186K), Revenue from continuing operations increased
during the year, primarily reflecting the acquired production at Sagebrush. On
a consolidated basis, revenue decreased materially compared with the prior
year due to the absence of revenue from discontinued operations following the
divestment of oil assets.
• Net Loss: $10.317m (2024: $1.545m), due to exploration and project
development costs and impairment of assets.
• Cash at Year-End: $3.939m, supported by disciplined cost control and
selective fundraising. Cash balance 25 September 2025 $2.6m.
The Company remains in an early-stage development phase, with losses
consistent with its investment in exploration and project advancement.
Operations Report
1. Helium Portfolio (USA)
Sagebrush Project, Colorado
o Mosman acquired an 82.5% working interest in the Sagebrush Helium
Project during the year.
o Independent technical assessment confirmed prospective resources.
o Work programs and permitting are advancing, with drilling planned in
FY26. This remains the primary focus of our helium strategy.
Vecta Helium Project, Arizona
o Mosman acquired a 20% working interest in the Vecta Helium Project.
o Drilling undertaken in FY25 was unsuccessful,and no commercial helium
was encountered.
o Mosman has impaired the balance of this project in full.
o While disappointing, this outcome is part of the inherent risk of
exploration. The Company has gained valuable geological knowledge that will be
applied to other projects.
Collectively, our helium portfolio offers exposure to multiple prospects, with
Sagebrush now the cornerstone asset.
2. Oil & Gas Portfolio
• Mosman completed its exit from the Stanley oil interests in
Texas, aligning operations more directly with its helium focus.
• Minor residual production from legacy assets continued but
is no longer a material component of the Group.
3. Corporate Developments
• Appointment of Graham Duncan and Andrew Scott as
Non-Executive Directors and Tina Loh as Chief Financial Officer and Company
Secretary,strengthening marketing, financial management and governance.
• Corporate structure simplified with the
establishment of Mosman Helium LLC to reflect the helium-focused strategy.
• Incentive options issued to management, aligning
leadership with shareholder value creation.
• Since year end the company has appointed Howard
McLaughlin as interim CEO.
Outlook
The year ahead will focus on:
1. Drilling and testing at Sagebrush to establish the
project's commercial potential.
2. Applying exploration insights to refine future helium
targeting.
3. Maintaining financial discipline while advancing
projects toward production.
While exploration results can be mixed, Mosman is now positioned with a
focused helium strategy, a cornerstone project in Sagebrush, and a disciplined
approach to growth.
Acknowledgements
On behalf of the Board, I thank our management team, employees, and advisers
for their commitment during a challenging but pivotal year. I also wish to
thank our shareholders for their continued support as Mosman advances its
helium strategy.
We look forward to updating you on further progress at Sagebrush & Coyote
Wash and across our portfolio in FY26.
A summary of the current oil and gas projects as at 25 September 2025:
US PROJECTS
Asset/ Project Mosman Interest Location Status
Sagebrush 82.5% Colorado Drilled
Coyote Wash 100% Colorado Undrilled
Cinnabar 75.0% Texas Producing
Cinnabar Extended 78.0% Texas Undrilled
Arkoma 27% Oklahoma Producing
Vecta Helium Project 20% Colorado Drilled
AUSTRALIAN EXPLORATION PROJECTS
Asset/Project Mosman Interest Location Status Permit Number Licence Renewal Date Comments
100%
(subject to farm-in
Australia, Amadeus Basin dilution) Negotiating land access with CLC
NT Exploration EPA 155 Application stage
ROYALTIES
Asset/ Project Mosman Royalt Interest Location Status
Vecta Helium - Billy Goat 5% Colorado, USA Drilled
EP 145 5% NT, Aus Undrilled
Consolidated Statement of Profit or Loss and Other Comprehensive Income Year
Ended 30 June 2025
All amounts are in Australian Dollars
Notes Consolidated Consolidated
2025 2024
$ (restated)
$
Revenue from continuing operations 22 503,573 186,232
Cost of sales 2 (222,089) (109,870)
Gross profit 281,484 76,362
Interest income 58 698
Other income 60,000 -
Administrative expenses (246,816) (299,696)
Corporate expenses 3 (1,600,179) (902,768)
Directors' fees 18 (196,333) (125,380)
Exploration expenses incurred, not capitalised (598,921) (7,525)
Employee benefits expense - (48,268)
Finance costs (5,066) (5,642)
Amortisation expense 12 (225,260) (216,685)
Depreciation expense - (6,220)
Share based payment expense 27 (169,662) -
Impairment expense 11, 12 (4,718,502) -
Gains / (loss) on foreign exchange 133,672 (10,707)
Loss before income tax expense from
continuing operations (7,285,524) (1,545,831)
Income tax expense 5 - -
Loss after income tax expense from
continuing operations (7,285,524) (1,545,831)
Loss after income tax expense from discontinued
operations 10 (3,032,184) (594,241)
Net loss after income tax expense for the
year (10,317,708) (2,140,072)
Other comprehensive income
Items that may be reclassified to profit or loss:
- Foreign currency gains 4 170,259 13,956
Total comprehensive income /(loss)
attributable to members of the entity (10,147,449) (2,126,116)
Total comprehensive income (loss) for the
year attributable to:
(7,285,524) (1,531,875)
(3,032,183) (594,241)
(10,147,449) (2,126,116)
Continuing operations Discontinued operations
The accompanying notes form part of these financial statements.
Consolidated Statement of Profit or Loss and Other Comprehensive Income Year Ended 30 June 2025
All amounts are in Australian Dollars
Consolidated Consolidated
2025 2024
Notes $ $
Basic and diluted loss per share from continuing
operations (cents per share) 21 (0.039) cents (0.016) cents
Basic and diluted loss per share from
discontinued operations (cents per share) 21 (0.016) cents (0.006) cents
Basic and diluted loss per share (cents per share)
21 (0.055) cents (0.022) cents
The accompanying notes form part of these financial statements.
Consolidated Statement of Financial Position As at 30 June 2025
All amounts are in Australian Dollars
Notes Consolidated 30 June 2025 Consolidated 30 June 2024
$ $
Current Assets
Cash and cash equivalents 7 3,939,471 873,665
Trade and other receivables 8 153,768 140,241
Other assets 9 33,082 20,186
4,126,321 1,033,792
Assets classified as held for sale 10 - 3,227,483
Total Current Assets 4,126,321 4,261,275
Non-Current Assets
Oil and gas assets 11 961,832 3,685,367
Capitalised oil and gas exploration 12 150,000 1,503,925
Total Non-Current Assets 1,111,832 5,189,292
Total Assets 5,238,153 9,450,576
Current Liabilities
Trade and other payables 13 876,607 1,438,420
Provisions 14 3,630 -
880,237 1,438,420
Liabilities classified as held for sale 10 - 887,507
Total Current Liabilities 880,237 2,325,927
Non-Current Liabilities
Provisions 14 40,941 87,966
Total Non-Current Liabilities 40,941 87,966
Total Liabilities 921,178 2,413,893
Net Assets 4,316,975 7,036,674
Shareholders' Equity
Contributed equity 15 49,704,978 42,404,962
Other contributed equity - 145,029
Reserves 16 1,347,754 904,732
Accumulated losses 17 (46,735,757) (36,418,049)
Total Shareholders' Equity 4,316,975 7,036,674
The accompanying notes form part of these financial statements.
Consolidated Statement of Changes in Equity Year Ended 30 June 2025. All amounts are in Australian Dollars
Accumulated Contributed Other Contributed Reserves Total
Losses Equity Equity
$ $ $ $ $
Balance at 1 July 2024 (36,418,049) 42,404,962 145,029 904,732 7,036,674
Comprehensive income
Loss for the period (10,317,708) - - - (10,317,708)
Other comprehensive income for the period
- - - 170,259 170,259
Total comprehensive loss (10,317,708) - 170,259 (10,147,449)
for the period -
Transactions with owners, in their capacity as owners, and other transfers:
- 7,635,010 - - 7,635,010
- (480,023) - (480,023)
- - - 272,763 272,763
- 145,029 (145,029) - -
- 7,300,016 (145,029) 272,763 7,427,750
(46,735,757) 49,704,978 - 1,347,754 4,316,975
Accumulated Contributed Other Reserves Total
Losses Equity Contributed
Equity
$ $ $ $ $
(34,295,295) 40,675,340 - 908,094 7,288,139
(2,140,072) - - - (2,140,072)
- - - 13,956 13,956
(2,140,072) - 13,956 (2,126,116)
New shares issued Cost of raising equity Warrants issued
Transfer from other contributed equity
Total transactions with owners and other transfers Balance at 30 June 2025
Balance at 1 July 2023
Comprehensive income Loss for the period Other comprehensive income for the
period
Total comprehensive loss
for the
period
-
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 1,729,622 145,029 (17,318) 1,874,651
Balance at 30 June 2024 (36,418,049) 42,404,962 145,029 904,732 7,036,674
These accompanying notes form part of these financial statements
Consolidated Statement of Cash Flows Year Ended 30 June 2025
All amounts are in Australian Dollars
Notes Consolidated Consolidated
2025 2024
$ $
Cash flows from operating activities
Receipts from customers 479,521 1,368,885
Payments to suppliers and employees (1,999,261) (1,892,011)
Interest paid (5,065) (5,642)
Net cash outflow from operating activities 22 (1,524,805) (528,768)
Cash flows from investing activities
Payments for oil and gas assets (2,790,024) (785,767)
Payments for exploration and evaluation - (83,394)
Payments for company acquisition - (152,527)
Acquisition of oil and gas production projects - (76,264)
Proceeds from farm-in of exploration assets 160,000
Proceeds from sale of investments 755,386
Cash allocated to held for sale assets - (24,201)
Net cash outflow from investing activities (2,034,638) (962,153)
Cash flows from financing activities
Proceeds from shares issued 6,971,920 1,827,348
Proceeds from other contributed equity - 145,029
Payments for costs of capital (480,023) (113,303)
Net cash inflow from financial activities 6,491,879 1,859,074
2,932,436 368,153
Net increase in cash and cash equivalents
Effects of exchange rate changes on cash and
cash equivalents 133,670 (15,403)
Cash and cash equivalents at the beginning of
the financial year 873,365 520,615
Cash and cash equivalents at the end of the
financial year 7 3,939,471 873,365
The accompanying notes from part of these financial statements
Notes to the Financial Statements Year Ended 30 June 2025
All amounts are Australian Dollars
1 Statement of Accounting Policies
The principal accounting policies adopted in preparing the financial
statements 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
These financial statements have 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 statements have 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 2025, the consolidated entity incurred a net loss of $10,317,708
during the year ended 30 June 2025 and, as of that date, the group had a cash
balance of $3,937,471.
The financial statements have 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 be able to achieve the 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 statements were authorised for issue by the Directors on 25
September 2025.
(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 coordinated 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) 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.
(h) 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.
(i) Accounts Payable
These amounts represent liabilities for goods and services provided to the
Group prior to the end of the financial year and which are unpaid. The amounts
are unsecured and are usually paid within 30 days of recognition.
(j) Contributed Equity
Issued Capital
Incremental costs directly attributable to the issue of ordinary shares and
share options and warrants are recognised as a deduction from equity, net of
any related income tax benefit.
(k) Earnings Per Share
Basic earnings per share ("EPS") are calculated based upon the net loss
divided by the weighted average number of shares in issue. Diluted EPS are
calculated as the net loss divided by the weighted average number of shares
and dilutive potential shares.
(l) Share-Based Payment Transactions
The Group provides benefits to Directors, KMP and consultants of the Group in
the form of share-based payment transactions, whereby employees and
consultants render services in exchange for shares or rights over shares
("equity settled") transactions.
The value of equity settled securities is recognised, together with a
corresponding increase in equity.
Where the Group acquires some form of interest in an exploration tenement or
an exploration area of interest and the consideration comprises share-based
payment transactions, the fair value of the assets acquired are measured at
grant date. The value is recognised within capitalised mineral exploration and
evaluation expenditure, together with a corresponding increase in equity.
(m) Comparative Figures
When required by Accounting Standards, comparative figures have been adjusted
to conform to changes in presentation for the current financial year.
(n) Financial Risk Management
The Board of Directors has overall responsibility for the establishment and
oversight of the risk management framework, to identify and analyse the risks
faced by the Group. These risks include credit risk, liquidity risk and market
risk from the use of financial instruments. The Group has only limited use of
financial instruments through its cash holdings being invested in short term
interest bearing securities. The Group has no debt, and working capital is
maintained at its highest level possible and regularly reviewed by the full
board.
(o) Financial Instruments
Recognition, initial measurement and derecognition
Financial assets and financial liabilities are recognised when the Company
becomes a party to the contractual provisions of the financial instrument and
are measured initially at fair value adjusted by transactions costs, except
for those carried at fair value through profit or loss, which are measured
initially at fair value. Subsequent measurement of financial assets and
financial liabilities are described below.
Financial assets are derecognised when the contractual rights to the cash
flows from the financial asset expire, or when the financial asset and
substantially all the risks and rewards are transferred. A financial liability
is derecognised when it is extinguished, discharged, cancelled or expires.
Classification and subsequent measurement of financial assets
Except for those trade receivables that do not contain a significant financing
component and are measured at the transaction price in accordance with AASB 9,
all financial assets are initially measured at fair value adjusted for
transaction costs (where applicable).
Hybrid contracts
If a hybrid contract contains a host that is a financial asset, the policies
applicable to financial assets are applied consistently to the entire
contract.
Subsequent measurement of financial assets
For the purpose of subsequent measurement, financial assets, other than those
designated and effective as hedging instruments, are classified into the
following categories upon initial recognition:
• financial assets at amortised cost
• financial assets at fair value through profit or loss (FVPL)
• debt instruments at fair value through other comprehensive
income (FVOCI)
• equity instruments at fair value through other comprehensive
income (FVOCI)
Classifications are determined by both:
• the entity's business model for managing the financial asset
• the contractual cash flow characteristics of the financial
assets
All income and expenses relating to financial assets that are recognised in
profit or loss are presented within finance costs, finance income or other
financial items, except for impairment of trade receivables which is presented
within other expenses.
Financial assets at amortised cost
Financial assets are measured at amortised cost if the assets meet the
following conditions (and are not designated as FVPL):
• they are held within a business model whose objective is to hold
the financial assets and collect its contractual cash flows
• the contractual terms of the financial assets give rise to cash
flows that are solely payments of principal and interest on the principal
amount outstanding
After initial recognition, these are measured at amortised cost using the
effective interest method. Discounting is omitted where the effect of
discounting is immaterial. The Company's cash and cash equivalents, trade and
most other receivables fall into this category of financial.
Financial assets at fair value through profit or loss (FVPL)
Financial assets that are held within a business model other than 'hold to
collect' or 'hold to collect and sell' are categorised at fair value through
profit and loss. Further, irrespective of business model, financial assets
whose contractual cash flows are not solely payments of principal and interest
are accounted for at FVPL. All derivative financial instruments fall into this
category, except for those designated and effective as hedging instruments,
for which the hedge accounting requirements apply.
Debt instruments at fair value through other comprehensive income (Debt FVOCI)
Financial assets with contractual cash flows representing solely payments of
principal and interest and held within a business model of collecting the
contractual cash flows and selling the assets are accounted for at FVOCI. Any
gains or losses recognised in OCI will be recycled upon derecognition of the
asset.
Equity instruments at fair value through other comprehensive income (Equity
FVOCI) Investments in equity instruments that are not held for trading are
eligible for an irrevocable election at inception to be measured at FVOCI.
Under this category, subsequent movements in fair value are recognised in
other comprehensive income and are never reclassified to profit or loss.
Dividend income is taken to profit or loss unless the dividend clearly
represents return of capital.
Impairment of financial assets
The Group recognises a loss allowance for expected credit losses on financial
assets which are either measured at amortised cost or fair value through other
comprehensive income. The measurement of the loss allowance depends upon the
Group's assessment at the end of each reporting period as to whether the
financial instrument's credit risk has increased significantly since initial
recognition, based on reasonable and supportable information that is
available, without undue cost or effort to obtain.
Where there has not been a significant increase in exposure to credit risk
since initial recognition, a 12- month expected credit loss allowance is
estimated. This represents a portion of the asset's lifetime expected credit
losses that is attributable to a default event that is possible within the
next 12 months. Where a financial asset has become credit impaired or where it
is determined that credit risk has increased significantly, the loss allowance
is based on the asset's lifetime expected credit losses. The amount of
expected credit loss recognised is measured on the basis of the probability
weighted present value of anticipated cash shortfalls over the life of the
instrument discounted at the original effective interest rate.
For financial assets mandatorily measured at fair value through other
comprehensive income, the loss allowance is recognised in other comprehensive
income with a corresponding expense through profit or loss. In all other
cases, the loss allowance reduces the asset's carrying value with a
corresponding expense through profit or loss.
(p) Oil and gas assets
The cost of oil and gas producing assets and capitalised expenditure on oil
and gas assets under development are accounted for separately and are stated
at cost less accumulated amortisation and impairment losses. Costs include
expenditure that is directly attributable to the acquisition or construction
of the item as well as past exploration and evaluation costs.
When an oil and gas asset commences production, costs carried forward are
amortised on a units of production basis over the life of the economically
recoverable reserves. Changes in factors such as estimates of economically
recoverable reserves that affect amortisation calculations do not give rise to
prior financial period adjustments and are dealt with on a prospective basis.
(q) Impairment of Assets
At each reporting date, the Group reviews the carrying values of its tangible
and intangible assets to determine whether there is any indication that those
assets have been impaired. If such an indication exists, the recoverable
amount of the asset, being the higher of the asset's fair value less costs to
sell and value in use, is compared to the asset's carrying value. Any excess
of the asset's carrying value over its recoverable amount is expensed to the
income statement. Impairment testing is performed annually for goodwill and
intangible assets with indefinite lives.
Where it is not possible to estimate the recoverable amount of an individual
asset, the Group estimates the recoverable amount of the cash-generating until
to which the asset belongs.
(r) Employee Entitlements
Liabilities for wages and salaries, annual leave and other current employee
entitlements expected to be settled within 12 months of the reporting date are
recognised in other payables in respect of employees' services up to the
reporting date and are measured at the amounts expected to be paid when the
liabilities are settled. Liabilities for non-accumulating sick leave are
recognised when the leave is taken and measured at the rates paid or payable.
Contributions to employee superannuation plans are charged as an expense as
the contributions are paid or become payable.
(s) 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.
(t) 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.
(u) Revenue and Other Income
Revenue and other income 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.
(v) 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.
(w) 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.
(x) 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.
(y) 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).
(z) 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
2025
Consolidated
2024
$ $
2 Cost of sales
Cost of sales 4,863 8,950
Lease operating expenses 217,226 100,920
222,089 109,870
3 Corporate Costs
Accounting, Company Secretary and Audit fees 238,309 192,405
Consulting fees - board 361,200 349,000
Consulting fees - other 479,409 93,077
NOMAD and broker expenses 155,349 157,449
Legal and compliance fees 305,911 110,837
1,540,179 902,768
4 Other comprehensive profit
Foreign currency gains 170,259 13,956
170,259 13,956
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 (2024 - $NIL).
(a) Numerical reconciliation of income tax expense to prima facie tax payable
Consolidated Consolidated
2025 2024
$ $
Loss before tax (10,317,708) (2,140,071)
Income tax calculated at 25% (2023: 25%) (2,564,427) (535,018)
Tax effect of amounts which are deductible/non-
deductible
In calculating taxable income:
Impairment expense 1,123,721 123,526
Upfront exploration expenditure claimed (64,266) (20,849)
Other 107,725 13,177
Effects of unused tax losses and tax offsets not
recognised as deferred tax assets 1,412,247 419,164
Income tax expense attributable to operating profit NIL NIL
(b) Tax Losses
As at 30 June 2025 the Company had tax losses of $38,413,978 (2024:
$34,345,264). 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 $9,603,494 at 30 June
2025 (2024:$8,586,316) so as to enable the Board to determine more reliably
the probability of utilising these tax assets in the foreseeable future.
Consolidated Consolidated
2025 2024
$ $
6 Auditors Remuneration
Audit - Elderton Audit Pty Ltd
Audit of the financial statements 35,600 32,300
35,600 32,300
7 Cash and Cash Equivalents
Cash at Bank 3,939,471 873,365
3,939,471 873,365
8 Trade and Other Receivables
Joint interest billing receivables* 27,844 9,023
Deposits 56,056 56,056
GST receivable - (13,161)
Accrued revenue 65,231 83,794
Other receivables 4,580 4,529
153,768 140,241
* When appropriate, unpaid joint interest billing receivables are
recovered from the interest holders share of production income.
9 Other Assets
Prepayments 30,543 17,647
Incorporation costs 2,539 2,539
33,082 20,186
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 Company received the $500K initial payment, impaired $500K in the half
year accounts to 31 December 2024. The Directors have performed a weighted
probability of each tranche of the production milestones. As production
targets have not been achieved, the directors have assessed that the expected
receivable at period end is nil and impaired the remaining balance.
Consolidated Consolidated
2025 2024
$ $
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 - 2,339,976
Discontinued operations
(a) Financial performance
Consolidated Consolidated
2025 2024
$ $
Revenue - 1,065,319
Cost of sales - (716,479)
Gross profit - 348,840
Administrative expenses - (131,636)
Amortisation expense - (223,228)
Impairment expense - (588,217)
Loss on sale of Nadsoilco, LLC (1,816,196) -
Impairment of interest in EP145 (1,215,988) -
Loss before income tax expense - (594,241)
Income tax expense - -
Loss after income tax expense from
discontinued
operations
(3,032,184) (594,241)
(b) Cash flow information
Consolidated Consolidated
2025 2024
$ $
Net cash from operating activities - 122,493
Net cash from investing activities 771,367 -
Net cash used in investing activities (322,169)
Net increase/(decrease) in cash and cash equivalents 771,367 (209,676)
11 Oil and Gas Assets
Consolidated
2025
$
Consolidated
2024
$
Cost brought forward 3,685,367 5,780,587
Acquisition of oil and gas assets during the year 2,175,287 754,831
Capitalised equipment workovers during the year 785,767
Amortisation for the year (225,260) (439,912)
Transfer to assets held for sale (2,622,912)
Impairment of oil and gas assets1 (4,767,026) (588,217)
Impact of Foreign Exchange on amortisation/impairment 51,828
Impact of Foreign Exchange on opening balances 41,636 15,223
Carrying value at end of year 961,832 3,685,367
1. Impairment of $4,767,026 was recognized in relation to capitalized
oil and gas assets held in Mosman Texas and Mosman Helium, being the carrying
value of Cinnabar, Arkoma and Vecta (US Oil and Gas Assets). The Board has
carried out an impairment assessment of the Oil and Gas Assets and have
concluded that these assets have nil carrying value.
12 Capitalised Oil and Gas Expenditure
Cost brought forward 1,503,925 1,420,531
Exploration costs incurred during the year - 83,394
Impairment of oil and gas expenditure1 (1,353,925) -
Carrying value at end of year 150,000 1,503,925
1. Impairment of $1,353,925 was recognized in relation to exploration
permit EP 145, bringing down the carrying value of the asset to $150,000,
which represent value of the long lead items. Mosman will retain 5% of helium
and hydrogen royalty over the project (based on sales price, no deduction of
costs), however this does not form part of the carrying value of the asset,
despite the potential future upside.
13 Trade and Other Payables
CURRENT
Trade creditors1 156,611 457,389
Amounts owing for Vecta Helium project - 679,348
Deposits received - 160,000
Other creditors and accruals - 141,683
876,607 1,438,420
1. The balance includes amounts payable on behalf of other royalty
holders for which there are also receivables owing for their share of the
workover costs (refer Note 8).
14 Provisions
CURRENT
Provision 3,630 -
NON-CURRENT
Provision for abandonment 40,941 87,966
44,571 87,966
Consolidated
2025
Consolidated
2024
$ $
15 Contributed Equity
Ordinary Shares:
Value of Ordinary Shares fully paid
Movement in Contributed
Equity
Number of shares
Contributed
Equity $
Balance as at 1 July
2024:
12,821,362,930 42,404,962
1/07/2024 Shares issued (ii) $0.00048 224,000,000 106,834
2/07/2024 Shares issued (ii) $0.00048 80,000,000 38,195
5/07/2024 Shares issued (ii) $0.00048 220,000,000 104,550
5/07/2024 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) $0.0006 650,000,000 766,208
1/08/2024
16/09/2024
5/12/2024 Shares issued (iv) $0.00035 42,857,144 29,400
22/05/2025 Shares issued (i) $0.00045 2,777,777,778 2,616,130
27/05/2025 Shares issued (i) $0.00045 666,666,666 629,148
Capital raising costs (480,023)
19/09/2024
Shares issued (ii) Shares issued (ii) Shares issued (ii) Shares issued (i)
$0.00025 16,000,000 7,881
$0.00025 100,000,000 49,171
$0.00035 4,242,857,144 2,887,420
Balance at end of year 22,981,521,662 49,704,979
(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
(v) Shares issued to
16 Reserves
Consolidated
2025
$
Consolidated
2024
$
Foreign currency translation
reserve
1,074,991 904,732
Warrants
reserve
272,763 -
1,347,754 904,732
Warrant Reserve
Nature and purpose of the Warrant Reserve
The warrant 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
272,763 15,577
Transfer from warrants reserve upon exercise of warrants
- (15,577)
Warrants expired - (17,318)
Warrants reserve at the end of the
year
272,763 -
Warrants
As of the date of signing this report, unissued ordinary shares of the Company
under option were:
Grant Date Number of Warrants on Issue Exercise Price Expiry Date
20 July 2023 428,571,428 0.07 Great British Pence 20 July 2025
5 December 2023 80,000,000 0.025 Great British Pence 5 December 2025
8 February 2024 120,000,000 0.025 Great British Pence 8 February 2026
13 February 2024 63,157,895 0.025 Great British Pence 13 February 2026
19 September 2024 254,571,428 0.035 Great British Pence 19 September 2026
10 December 2024 194,942,200 0.077 Great British Pence 10 December 2027
30 June 2025 229,815,217 0.077 Great British Pence 4 July 2028
Total Unlisted Warrants 1,371,058,168
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 were granted the following options:
a) 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%
b) 229,815,217 options. The options were fair valued at AU$0.0003 per
option, and an amount of $88,176 was recognised as a share based payment
expense as at 30 June 2025. The options are valued using the Black-Scholes
option pricing model with the following inputs:
Share price at issue date 0.04
British Pence
Exercise
price
0.0770 British Pence
Risk-Free Interest Rate
3.75%
Volatility
100%
The above warrants represent unissued ordinary shares of the Company under
option as at the date of this report.
No person entitled to exercise any option has or had, by virtue of the option,
a right to participate in any share issue of any other body corporate.
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
904,732 890,776
Current year movement 443,022 13,956
Foreign Currency Translation Reserve at the end of the
year
1,347,754 904,732
17 Accumulated Losses
Accumulated losses at the beginning of the year 36,418,049 34,168,097
Net loss attributable to members 10,317,708 2,140,072
Warrants expired - (17,318)
Accumulated losses at the end of the year 46,735,757 36,418,049
Consolidated
2025
$
Consolidated
2024
$
18 Related Party Transactions
Key Management Personnel Remuneration
Cash Payments to Directors and Management (i) 695,033 540,380
Non-cash payment to Directors (ii) 169,662
Total 864,695 540,380
i. During the year to 30 June 2025:
a. Director fees of $60,000 were paid or are payable to Mr Nigel Harvey;
b. Director fees of $60,000 were paid or are payable to Mr Andrew Carroll,
and consulting fees of $481,200 were paid or are payable to Australasian
Energy Pty Ltd, entity controlled by Mr Andrew Carroll;
c. Director fees of $60,000 were paid or are payable to Mr Carl Dumbrell;
d. Director fees of $11,333 were paid or are payable to Mr Graham Duncan;
e. CFO, Company Secretary Fees totaling $22,500 were paid or are payable
to Ms T Loh's
accounting firm, CDTL.
f. Former CFO, Company Secretary and Consulting Fees totaling $55,000
were paid or are
payable to Mr J T White's accounting firm, Traverse Accountants Pty Ltd.
ii. During the year to 30 June 2025, Mr Andrew Carroll (former CEO)
received 424,757,417 warrants, comprising:
a. 194,942,200 warrants issued on 10 December 2024 at no cost, have a
strike price of 0.00077 GBP and expire on 10 December 2027. The fair value of
these warrants were $81,486 AUD;
b. 229,815,217 warrants issued on 4 July 2025 at no cost, have a strike
price of 0.00077 GBP and expire on 4 July 2028. The fair value of these
warrants were $88,176 AUD.
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 2025 the Company's 100% owned subsidiary, Trident Energy Pty Ltd,
owed Mosman Oil and Gas Limited $4,053,771 (2024: $4,017,276).
OilCo Pty Ltd
At 30 June 2025 the Company's 100% owned subsidiary, OilCo Pty Ltd (OilCo),
owed Mosman Oil and Gas Limited $714,358 (2024: $764,358).
Mosman Oil USA, Inc
At 30 June 2025 the Company's 100% owned subsidiary, Mosman Oil USA, Inc, owed
Mosman Oil and
Gas Limited $10,774,542 (2023: $9,679,815).
Adagio Resources Limited
At 30 June 2025 the Company's 100% owned subsidiary, Adagio Resources Limited,
owed Mosman Oil and Gas Limited $nil (2024: $4,984).
19 Expenditure Commitments
Consolidated 2024
Consolidated
2024
$ $
(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 2025, total
exploration expenditure commitments for the next 12 months are as follows:
2025 2024
Entity Tenement $ $
Trident Energy Pty Ltd EP1451 - -
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 2025 (2024: $NIL).
20 Segment Information
The Group has identified its operating segments based on the internal reports
that are reviewed and used by the board to make decisions about resources to
be allocated to the segments and assess their performance.
Operating segments are identified by the board based on the Oil and Gas
projects in Australia and the USA. 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 loss before tax net
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 (277,819)
- Loss on foreign exchange (10,707)
- Depreciation (6,220)
- Finance costs (5,066)
Net Loss before tax from continuing operations
(1,545,831)
(i) Segment performance
$ Australia Total
$ $
Year ended 30 June 2025
Revenue
Revenue 503,573 - 503,573
Other income - 60,000 60,000
Interest income - 58 58
Loss on sale of assets - - -
Segment revenue 503,573 60,058 563,631
Segment Result
Allocated
- Corporate costs (524,335) (1,075,844) (1,600,179)
- Administrative costs (67,071) (179,744) (246,816)
- Lease operating expenses (217,226) - (217,226)
- Cost of sales (4,863) - (4,863)
United States
Segment net profit (loss) before tax
(309,922)
(1,195,531) (1,505,453)
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
(598,921)
-
Amortisation
(225,260)
-
Impairment
(5,934,490)
Unallocated items
- Employee benefits
expense
(365,995)
- Gain on foreign
exchange
133,672
- Finance
costs
(5,066)
Net Loss before tax from continuing
operations
(7,285,524)
(ii) Segment assets
United States
$
Australia
$
Total
$
Total assets as at 1 July 2024 6,231,429 2,331,631 8,563,060
Segment asset balances at end of year
- Exploration and evaluation - 2,503,943 2,503,943
- Capitalised Oil and Gas Assets 8,382,043 - 8,382,043
- Less: Amortisation (832,869) - (832,869)
- Less: Impairment (6,587,341) (2,353,943) (8,941,284)
961,832 150,000 1,111,832
Reconciliation of segment assets to total assets:
Other 3,834,801 4,126,320
assets
291,518
Total assets from continuing operations
As at 30 June 3,984,801 5,238,152
2025
1,253,351
United States Australia Total
$ $ $
Total assets as at 1 July 1,652,269 8,669,676
2023 7,017,407
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
As at 30 June 2024 6,231,429 2,331,631 8,563,060
(iii) Segment liabilities
United States Australia Total
$ $ $
Segment liabilities as at 1 July 2024 1,091,441 434,945 1,526,386
Segment liability increases (decreases) for the
year (386,158) (219,051) (605,208)
705,283 215,894 921,178
Reconciliation of segment liabilities to total
liabilities:
Other liabilities - - -
Total liabilities from continuing operations
As at 30 June 2025 705,283 215,894 921,178
Segment liabilities as at 1 July 2023 1,152,168 183,405 1,381,537
Segment liability increases (decreases) for the
year (60,727) 45,964 144,849
1,091,441 434,945 1,526,386
Reconciliation of segment liabilities to total
liabilities:
Other liabilities - - -
Total liabilities from continuing operations
As at 30 June 2024 1,091,441 434,945 1,526,386
21 Loss per share
Consolidated Consolidated
2025 2024
$ $
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 share from continuing operations (7,285,524) (1,545,831)
Loss used in calculating basic and diluted earnings/ loss
per share from discontinued operations (3,032,183) (594,241)
Number of Number of
shares shares
2025 2024
Weighted average number of ordinary shares used in
calculating basic loss per share: 18,816,614,595 9,907,661,135
Basic and diluted loss per share from continuing 0.055 0.016
operations (cents per share)
Basic and diluted loss per share from discontinued operations (cents per
share)
0.016 0.006
Basic and diluted loss per share (cents per share) 0.039 0.022
22 Notes to the statement of cash flows
Reconciliation of loss from ordinary activities after Consolidated Consolidated
income tax to net cash outflow from operating activities: 2025 2024
$ $
Loss from ordinary activities after related income tax (10,317,708) (2,140,072)
Depreciation and amortisation 225,260 446,132
Impairment expense 5,934,490 588,217
Decrease in trade and other receivables 3,372,033 781,298
Increase / (decrease) in trade and other payables (605,208) 252,970
Transfer of trade and other payables to oil and gas
assets - (472,715)
Unrealised FX (133,672) 15,402
Net cash outflow from operating activities (1,524,805) (528,768)
23 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 2025 Note Funds
Available Fixed Assets/ Total
Weighted at a Interest (Liabilities)
Average Floating Rate Non
Effective Interest Interest
Interest Rate Bearing
% $ $ $ $
Financial Assets
Cash and Cash
Equivalents 7 3.80% 3,939,470 - - 3,939,470
Trade and other
Receivables 8 - - 153,768 153,768
Other assets 9 - - 33,082 33,082
Total Financial
Assets 3,939,470 - 186,850 4,126,320
Financial Liabilities
Trade and other
Payables 14 - - 876,607 876,607
Provisions 15 - - 44,571 44,571
Total Financial
Liabilities - - 921,178 921,178
Net Financial
Assets/(Liabilities) 3,939,470 - (734,328) 3,205,142
Consolidated 2024 Note Funds Available
Fixed Assets/ Total
Weighted at a Interest (Liabilities)
Average Floating Rate Non
Effective Interest Interest
Interest Rate Bearing
% $ $ $ $
Financial Assets
Cash and Cash
Equivalents 7 3.80% 873,365 - - 873,365
Trade and other
Receivables 8 - - 863,639 140,241
Other assets 9 - - 78,086 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) 520,613 - (1,365,959) (492,594)
(ii) Credit Risk
The maximum exposure to credit risk, excluding the value of any collateral or
other security, at balance date, is the carrying amount, net of any provisions
for doubtful debts, as disclosed in the balance sheet and in the notes to the
financial statements. The Company does not have any material credit risk
exposure to any single debtor or group of debtors, under financial instruments
entered into by it.
(iii) Commodity Price Risk and Liquidity Risk
At the present state of the Company's operations it has minimal commodity
price risk and limited liquidity risk due to the level of payables and cash
reserves held. The Company's objective is to maintain a balance between
continuity of exploration funding and flexibility through the use of available
cash reserves.
(iv) Net Fair Values
For assets and other liabilities, the net fair value approximates their
carrying value. No financial assets and financial liabilities are readily
traded on organised markets in standardised form. The Company has no financial
assets where the carrying amount exceeds net fair values at balance date.
The aggregate net fair values and carrying amounts of financial assets and
financial liabilities are disclosed in the balance sheet and in the notes to
the financial statements.
23 Contingent Liabilities
There were no material contingent liabilities not provided for in the
financial statements of the Company as at 30 June 2025.
24 Mosman Oil and Gas Limited - Parent Entity Disclosures
2025 2024
$ $
Financial position Assets
Current assets
3,764,101 789,677
Non-current assets 15,759,887 12,937,481
Total assets 19,523,989 13,727,158
Liabilities
Current liabilities 206,627 274,945
Total liabilities 146,627 274,945
Net assets 19,317,361 13,452,213
Equity Contributed equity
49,704,309 42,404,293
Other contributed equity 272,763 145,029
Accumulated losses (30,659,711) (29,097,109)
Total Equity 19,317,361 13,452,213
Financial Performance Loss for the year
(1,502,603) (1,245,812)
Other comprehensive income - -
Total comprehensive loss (1,502,603) (1,245,812)
25 Controlled Entities
Investments in group entities comprise:
Name Principal activities Incorporation
Beneficial percentage held by economic entity
2025 2024
% %
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 Oil & Gas operations U.S.A. 100 100
Nadsoilco, LLC Oil & Gas operations U.S.A. - 100
Mosman Oil and Gas Limited is the Parent Company of the Group, which includes
all of the controlled entities.
26 Share Based Payments
Consolidated
2025
Consolidated
2024
Cents Cents
Basic loss per share (cents per
share)
0.055 0.0222
A summary of the movements of all company warrant issues to 30 June 2025 is as
follows:
Company Warrants 2025 2024 2025 2024
Number of Warrants Number of Warrants Weighted Average Exercise Weighted Average Exercise
Price Price
Outstanding at the beginning
of the year 3,043,157,894 1,288,928,571 $0.0010 $0.0027
Expired (571,427,571) (717,500,000) $0.0027 $0.0027
Exercised (1,780,000,000) (484,000,000) $0.0002 $0.0002
Granted 679,328,845 2,955,729,323 $0.0006 $0.0006
Outstanding at the end of
the year 1,371,048,168 3,043,157,894 $0.0010 $0.0010
Exercisable at the end of the
year 1,371,048,168 3,043,157,894 $0.0015 $0.0010
27 Events Subsequent to the End of the Financial Year
Subsequent to the end of the reporting period the Company announced the
following material matters:
• On 4 July 2025 Andrew Carroll resigned as a director.
There were no other material matters that occurred subsequent to 30 June 2025.
Place formed Ownership interest Tax residency
Entity name Entity type / Country of incorporation %
Mosman Oil and Gas Limited Body corporate Australia Australia
OilCo Pty Limited Body corporate Australia 100% Australia
Trident Energy Pty Ltd Body corporate Australia 100% Australia
Adagio Resources Limited Body corporate Australia 100% Australia
Mosman Oil USA, INC. Body corporate USA 100% USA
Mosman Texas, LLC Body corporate USA 100% USA
Mosman Operating, LLC Body corporate USA 100% USA
Mosman Helium, LLC Body corporate USA 100% USA
Consolidated Entity Disclosure Statement
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