28th Mar 2025 08:32
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 Andy Carroll CEO
| NOMAD and Joint Broker SP Angel Corporate Finance LLP Stuart Gledhill / Richard Hail / Adam Cowl +44 (0) 20 3470 0470 |
Alma Justine James / Will Merison +44 (0) 20 3405 0205 | Joint Broker CMC Markets UK Plc Douglas Crippen +44 (0) 020 3003 8632 |
Updates on the Company's activities are regularly posted on its website: 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 Interest1 | Location | Status |
Cinnabar |
75% | Texas | Producing |
Cinnabar Extended | 78% | Texas | Exploration |
Vecta Helium Project | 20% | Colorado | Exploration |
Coyote Wash Project2 | 100% | Colorado | Exploration |
Sagebrush Project3 | 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 6 months to 31 December 2024 | Consolidated 6 months to 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 |
(2,060,084) | (835,522) | ||
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 6 months to 31 December 2024 | Consolidated 6 months to 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 share) |
| (0.003) cents | (0.002) cents |
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 31 December 2024 | Consolidated 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 Losses | Contributed Equity | Other Contributed Equity | Reserves | Total |
| $ | $ | $ | $ | $ |
|
|
|
|
|
|
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 |
(145,029) | 184,587 | 4,296,611 |
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 6 months to 31 December 2024 | Consolidated 6 months to 31 December 2023 |
|
| $ | $ |
|
|
|
|
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 6 months to 31 December 2024 | Consolidated 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 6 months to 31 December 2024 | Consolidated 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 6 months to 31 December 2024 | Consolidated 6 months to 31 December 20231 | |
$ | $ | |
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, LLC2 | (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 Balance as at 31 December 2024 | Consolidated 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 Balance as at 31 December 2024 | Consolidated 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 05/12/2023 08/02/2023 13/02/2024 07/06/2024 21/06/2024 24/06/2024 | Shares issued (i) Shares issued (i) Shares issued (i) Shares issued (iv) Shares issued (ii) Shares issued (ii) Shares issued (ii) | $0.00067 $0.00024 $0.00024 $0.00024 $0.00024 $0.00049 $0.00048 | 857,142,857 2,000,000,000 2,400,000,000 126,315,789 264,000,000 160,000,000 60,000,000 | 571,739 476,117 580,912 30,000 63,038 76,809 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 02/07/2024 05/07/2024 05/07/2024 16/07/2024 22/07/2024 26/07/2024 29/07/2024 01/08/2024 16/09/2024 19/09/2024 05/12/2024 | Shares issued (ii) Shares issued (ii) Shares issued (ii) Shares issued (ii) Shares issued (ii) Shares issued (ii) Shares issued (ii) Shares issued (iii) Shares issued (ii) Shares issued (ii) Shares issued (i) Shares issued (iv) | $0.00048 $0.00048 $0.00048 $0.00048 $0.00048 $0.00048 $0.00049 $0.00118 $0.00049 $0.00049 $0.00068 $0.00069 | 224,000,000 80,000,000 220,000,000 600,000,000 80,000,000 340,000,000 120,000,000 650,000,000 16,000,000 100,000,000 4,242,857,144 42,857,144 | 106,834 38,195 104,550 285,136 38,000 163,673 58,294 766,208 7,881 49,171 2,887,420 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 Balance as at 31 December 2024 | Consolidated 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
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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. |
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(i) Segment performance |
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| United States $ | Australia $ | Total $ | |||||
Period ended 31 December 2024 |
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Revenue |
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Revenue | 64,542 | - | 64,542 | ||||||
Other income | - | 10,058 | 10,058 | ||||||
Segment revenue |
| 64,542 | 10,058 | 74,600 | |||||
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Segment Result |
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Allocated |
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| |
- 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) | |
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Segment net profit/(loss) before tax |
| (206,781) | (510,379) | (717,160) |
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Reconciliation of segment result to net loss before tax |
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Amounts not included in segment result but reviewed by the Board |
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- 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 |
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| |||
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| United States $ | Australia $ | Total $ | ||||
Period ended 31 December 2023 (restated) |
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Revenue |
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Revenue | 82,684 | - | 82,684 | |||||
Other income | - | 348 | 348 | |||||
Segment revenue |
| 82,684 | 348 | 83,032 | ||||
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Segment Result |
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Loss |
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Allocated |
|
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| |||||
- 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) | |||||
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Segment net profit/(loss) before tax |
| (72,422) | (526,435) | (598,858) | ||||
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Reconciliation of segment result to net loss before tax |
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Amounts not included in segment result but reviewed by the Board |
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| |||||
- 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 |
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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 | |
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| |
Reconciliation of segment assets to total assets: |
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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 |
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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 | |
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Reconciliation of segment assets to total assets: |
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Other assets | 206,086 | 827,706 | 1,033,792 |
Total assets from continuing operations | 7,118,936 | 2,331,631 | 9,450,567 |
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(iii) Segment liabilities |
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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: |
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|
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: |
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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 | EP1451 | - | - |
Oilco Pty Ltd | EPA155 | - | - |
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| - | - |
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:
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15 Subsequent Events Subsequent to the end of the reporting period the Company announced the following material matters occurred:
There were no other material matters that occurred subsequent to 31 December 2024.
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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
Related Shares:
Mosman Oil & Gas