Mosman Oil and Gas Limited (AIM: MSMN) the oil exploration, development, and production company, announces its final results for the year ended 30 June 2020.
· Revenue increased c35% to $1.49m
· Gross Profit increased 86% to £0.71m
· Net loss for the year of $4.8m, primarily attributed to a $4.1m Impairment on the carrying value of assets following the demise of the oil price in 2020
· Gross Project Production increased 50% to 92,170 BOE 1
· Net Production to Mosman increased 24% to 23,117 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 US highlights
· Stanley-4 drilled and placed on production in September 2020.
· Increasing to five producing projects with the Falcon-1 well at Champion completed in November, which is expected to significantly increase production.
The Company expects to publish its annual report later this week which will be posted and made available on the Company’s website at www.mosmanoilandgas.com/financial-reports .
John W Barr, Chairman of Mosman commented: ” Whilst 2020 has undoubtedly been challenging, Mosman remains resolute in delivering on its strategic objectives to build our production base with a clear focus on increasing production and cashflow whilst also being in a position to evaluate further acquisition targets.
“The small team is nimble and working with our partners and we are building stronger foundations from which we plan to build more robust scale in the year ahead.
“We acknowledge it has been a turbulent year for shareholders and would like to take this opportunity to thank them for their continued support whilst reassuring them of our confidence to achieve growth in both production and value for the business.”
Overview of the 2020 financial year
Looking back at my closing remarks for the last Financial Year, I outlined how Mosman’s focus for the year ahead was to deliver on the strategic objectives the Board had set out, building on the progress made through project acquisitions to increase production and how we were excited by the opportunity this presented for the next phase of growth. Nothing at that time could have predicted the 2020 year that lay before us all. It has proven to be one of the most difficult on record with the Global Pandemic affecting most aspects of our lives.
This has been a very challenging year for junior oil and gas companies, with turbulent markets and commodity fluctuations, navigating lock downs and the broader implications on many aspects of both day to day life and business. Mosman takes its Health and Safety requirements very seriously and to date we are not aware of any health or wellbeing issues in our small team.
As we stand today, Mosman can now look forward with greater optimism. We have secured an established production base, and continue to build on this, with further project acquisitions and acquisition targets with a clear plan for the drilling programme to increase production in 2021.
Mosman’s strategic objectives remain consistent: to identify opportunities which will provide operating cash flow and have development upside, in conjunction with progressing exploration of existing exploration permits.
This is being delivered by increasing production and gross profit in the USA, and exploration in the Amadeus Basin in Australia.
If anyone reads this article found it useful, helpful? Then please subscribe www.share-talk.com or follow SHARE TALK on our Twitter page for future updates.
Terms of Website Use
All information is provided on an as-is basis. Where we allow Bloggers to publish articles on our platform please note these are not our opinions or views and we have no affiliation with the companies mentioned