8th Dec 2015 13:22
LONDON (Alliance News) - Mosman Oil & Gas Ltd on Tuesday said it has cancelled its option agreement over Canning Basin in Australia in order to focus on other assets in 2016.
After conducting a review of its development strategy for next year Mosman said it will focus on completing the South Taranaki Energy Project in New Zealand and on its other exploration and development projects, including the Murchison project in Australia.
"The option over the Canning Basin permit would have required further funding to build Mosman's stake and, with the proposed developments at STEP and drilling plans at Murchison, we believe it is prudent to cancel the option over this permit and focus on these two core projects and our portfolio of exploration projects," said Chairman John Barr.
The move came as Mosman said its pretax loss for the year to the end of June widened to AUD3.4 million, compared to AUD1.9 million a year earlier, as it booked higher administrative costs, more corporate costs and increased share-based payments.
Barr said it had been a "tough" period for the company, including is failed takeover of MEO Australia Ltd, a lack of commercial oil flows at the Petroleum Creek project in New Zealand and the recent sell-off of its shares by investors.
"In hindsight mistakes were made, but we believe these have been clearly overridden by the level of exploration activity, and the potential offered by the STEP acquisition which has now reached the stage were government approvals are awaited," Barr added.
Shares in Mosman were up 4.8% to 2.75 pence on Tuesday.
By Sam Unsted; [email protected]; @SamUAtAlliance
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
Mosman Oil & Gas