28th Jan 2015 08:24
LONDON (Alliance News) - Mosman Oil and Gas Ltd shares plummeted early Wednesday, after it reported a wider net loss for the first half of its financial year due to significant increases in consulting fees, travel expenses and share-based payments to staff.
Mosman shares dropped 29.6% to 4.40 pence per share on Wednesday morning, making it the worst peforming stock in the AIM All-Share index.
For the first half ended December 31, Mosman, which does not generate any revenue, reported a net loss of USD1.9 million, significantly wider than the USD439,465 loss reported in the first half of 2013. The wider loss was caused by a rise in corporate costs, share based payments and administrative costs.
Corporate costs rose to USD998,074 from USD341,349 a year earlier. The rise was driven by consulting fees increasing to USD438,517 from USD97,254 and travel fees rising to USD150,250 from USD21,829. Director fees also increased to USD77,500 from USD60,000 a year earlier.
Administrative costs increased to USD155,359 from USD35,928 in the first half of 2013, and share based payments rose to USD681,039 in the first half from only USD5,000 a year earlier. The share based payments increased after the company issued 4 million share options to directors, staff and consultants during the period.
By Joshua Warner; [email protected]; @JoshAlliance
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