Mosman Oil and Gas Limited (AIM:MSMN) the helium, hydrogen and hydrocarbon exploration, development and production company, announces its final results for the year ended 30 June 2024.
Summary
· Gross Project Production: 47,245 BOE 1 2
· Net Production to Mosman: 16,340 BOE3
· Revenue: AU$186,232
· Gross Profit: AU$76,362
· Net loss for the year: AU$2.1m
Operational overview
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The pivot to focus on helium was achieved with first entry into the USA with the acquisition of a 20% working interest in the Vecta Helium Project, where drilling of five planned helium wells is expected to commence in December 2024. |
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Cinnabar project (75% WI) in Texas, USA leases are held by production and has significant Reserves. Technical work is underway to resolve production challenges. |
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The two projects in Australia are progressing. At EP-145, land access was obtained from CLC and the Environmental Management Plan has been submitted for approval. At EPA-155, the process to approve the grant of the permit progressed with a meeting held with CLC and native title stakeholders. |
Post-period overview
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Completed sale of Stanley project in USA. |
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Raised £1.5m by way of a placing and subscription of ordinary shares. This, combined with the Stanley sale enables the Company to fund its share of Vecta drilling 5 wells, acquire seismic at EP-145 and business development seeking additional helium exploration projects. |
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With the focus on helium exploration, appraisal and development and the sale of Stanley area assets, Mosman will no longer be providing quarterly production updates. |
Andy Carroll, CEO of Mosman commented: “It has been a significant year for Mosman as we delivered on our corporate plan to turn our focus towards helium opportunities.
“This pivot has been made possible by the hard work of the team who have now built a strong foundation upon which we can now grow the business and capitalise on the exciting opportunities ahead of us.
“I would like to once again thank shareholders for their continued support during a year of significant change and reemphasise our confidence in the future of the business.”
The Company expects to publish its annual report today which will be posted and made available on the Company’s website at www.mosmanoilandgas.com/reports-results-presentations
1. BOE/boe – barrels of oil equivalent based on calorific value as opposed to dollar value
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 to Mosman’s Working Interest; Net Production attributable to Mosman means net to Mosman’s Working Interest before royalties
Enquiries:
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Mosman Oil & Gas Limited Andy Carroll CEO
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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 exploration projects in the Amadeus Basin in Central Australia.
Chairman’s Statement
We look back with pride on a busy year of transformation and transactions at Mosman Oil & Gas and we believe that it portends more to come as opportunities arise and resources allow.
Strategic move into helium
During the year, the Group completed its strategic review and concluded Mosman would focus on helium opportunities more than conventional natural gas and oil and this strategic pivot into helium was advanced in June 2024 with the acquisition of a 10% interest in the Vecta helium project in USA.
In pivoting to helium Mosman remains firmly focused on exploration, development and production where we apply the technical and commercial skills borne of extensive experience in the hydrocarbon industry that have applications in helium: in the newer more exciting and more valuable markets of helium and hydrogen. As a Group we are proudly opportunistic in our quest for good assets to acquire and commercialise.
Our exit from the Stanley oil & gas assets had been in progress for many months and we were pleased to conclude this disposal in October 2024. Not only did this improve the balance sheet, but with a clear focus on building the Group’s helium portfolio, Howard McLaughlin, head of US Operations, can now focus more closely on assessing new helium opportunities with support from Tim Rynott, an experienced helium consultant, who was appointed in September 2024.
Helium, and to a lesser extent hydrogen, have both been long-term targets in our large central Australian exploration blocks. We have historically farmed them out to partners to fund exploration but retained material carried interests. More recently though, when our partner in EP-145 changed its own ambitions, we were happy to buy back and resume control.
Corporate Update
In September 2023, the Board renewal process was completed with my appointment as non-executive Chairman and Carl Dumbrell as a non-executive Director, resulting in a reduction in the number of Directors from four to three; the reduction in executive directors from two to one; and a clearer separation of Board and management with two independent Directors and a Chief Executive Officer.
In Australia, recent activity has highlighted the need to expand the general management resource and we have appointed Dr Julie Daws, who has worked as our consultant geologist for more than 10 years as General Manager of Exploration. Julie has been an anchor and technical lead on the Central Australian assets and a key technical advisor to our CEO. Julie’s appointment, combined with Tim Rynott’s appointment to support Howard McLaughlin in the US, has resulted in a stronger operational team to deliver on the Group’s strategy.
As part of our repositioning, in June we launched a new website alongside refreshed branding to better represent the evolution of Mosman Oil & Gas as a helium focussed company.
Health and Safety update – It is also pleasing to report that no accidents were reported among the Group, underscoring our commitment to maintaining a safe working environment.
Post-Period Events
In September, the Company completed a £1.5m placing that was well supported by the market, this was followed by the completion of the sale of our interest in Nadsoilco LLC in October 2024 and provided Mosman with a healthy cash position which will allow the Company to pursue and progress new projects and provide additional working capital. The Company expects to deploy some of this capital in its forthcoming seismic acquisition in Australia and participating in drilling 5 wells in the USA.
Finally, I would like to extend my gratitude to the team, consultants and advisers whose hard work and dedication has been invaluable in helping to drive the company forward in a transformational year.
Nigel Harvey
Chair
