Mosman Oil and Gas Limited (AIM: MSMN) the oil exploration, development and production company, announces its Half Year results to 31 December 2020.
· With a clear focus on the higher margin operations, Mosman took the decision to sell the Welch project and shares in Norseman.
· Proceeds applied to drilling, completing, and installing production facilities at Falcon and workovers at Stanley and Greater Stanley.
· COVID-19 constraints and some production challenges resulted in lower production, which was also impacted by a volatile oil price further affecting revenue
· Revenue of AUD380,000 and Gross Profit AUD56,828
· Net loss of AUD0.7m impacted by production challenges and the volatile oil price in 2020
· Gross Project Production 34,569 BOE 1
· Net Production to Mosman 9,871 BOE 1
1 BOE/boe – barrels of oil equivalent
2 Gross Project Production – means the production of BOE at a total project level (100% basis) before royalties (where Mosman is the Operator) and where Mosman is not the operator the total gross production for the project
3 Net Production – Net to Mosman’s Working interest after royalties
Post period events
· Sold remaining shares in Norseman Silver Inc for AUD208,000
· Completed the sales of the Welch asset for AUD546,611
· Raised £1.5m to be used for Helium, Hydrogen and Hydrocarbon exploration on EP 145 in Central Australia
· Acquired an additional 20% of the Greater Stanley (Duff lease), increasing Mosman’s working interest in Duff to 40%.
John W Barr, Chairman of Mosman commented: “Whilst the first half of FY21 was extremely challenging with continued economic uncertainty, volatile oil price movements and production challenges, we remained resolute that we would weather the storm. We have started Q3 with renewed vigour having completed the disposal of the Welch project to enable us to focus on drilling activity and are look forward to the opportunity our increased working interest in Greater Stanley in the US will bring.
“We are well funded to deliver our exploration and development plan and expect to benefit from the recovery in energy prices. This coupled with the planned exploration at EP145 in Australia, where drilling results in nearby permits have demonstrated the commercial production of hydrocarbons reinforcing the potential for successful helium and hydrogen exploration, sets out an encouraging programme for the months ahead.
“Once again, we thank our shareholders for their support whilst reassuring them of our continued confidence to achieve growth in both production and value for the business.”
Link here for the full financial statements
Mosman Oil & Gas Limited
John W Barr, Executive Chairman
Andy Carroll, Technical Director
NOMAD and Joint Broker
SP Angel Corporate Finance LLP
Stuart Gledhill / Richard Hail / Adam Cowl
+44 (0) 20 3470 0470
+44 (0) 20 3405 0205
+44 (0) 7525 324431
Updates on the Company’s activities are regularly posted on its website: www.mosmanoilandgas.com