TIDMMSMN
RNS Number : 8739W
Mosman Oil and Gas Limited
28 April 2021
28 April 2021
Mosman Oil and Gas Limited
("Mosman" or the "Company")
Half Year Results
Mosman Oil and Gas Limited (AIM: MSMN) the oil exploration,
development and production company, announces its Half Year results
to 31 December 2020.
Summary
-- 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 GBP1.5m 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."
Enquiries:
Mosman Oil & Gas Limited NOMAD and Joint Broker
John W Barr, Executive Chairman SP Angel Corporate Finance LLP
Andy Carroll, Technical Director Stuart Gledhill / Richard Hail
jwbarr@mosmanoilandgas.com / Adam Cowl
acarroll@mosmanoilandgas.com +44 (0) 20 3470 0470
Alma PR Joint Broker
Justine James Monecor (London) Ltd
+44 (0) 20 3405 0205 trading as ETX Capital
+44 (0) 7525 324431 Thomas Smith
mosman@almapr.co.uk +44 (0) 20 7392 1432
Updates on the Company's activities are regularly posted on its
website: www.mosmanoilandgas.com
Operations Review
Strategy
Mosman's objective remains to identify opportunities which will
provide operating cash flow and have further development upside, in
conjunction with adding value to the Company's existing exploration
permits. To that end the Company is effectively operating in two
divisions with onshore oil and gas production with further
potential growth in the USA, and exploration for oil, gas, helium
and hydrogen in Central Australia.
Whilst the strategy remains intact, short term adjustments were
necessary as a result of global events, oil price movements and the
COVID19 pandemic that has affected the world. The Board took action
to ensure the company survived, and we are pleased that it has not
only survived but is well placed for the economic recovery.
With lower oil prices, the decision was made to focus on the
higher margin USA operations in East Texas and to dispose of other
projects where possible. This led to the sale of the Welch project
and sale of the shares in other companies. Proceeds were
subsequently applied to drilling, completing, and installing
production facilities at Falcon and workovers at Stanley and
Greater Stanley.
In Central Australia, the original plan was to progress
exploration by conducting seismic acquisition. As a result of
COVID19, approvals for on ground activity were delayed. An airborne
gravity survey is now planned to obtain geophysical data over the
whole permit, while approval is sought for the seismic acquisition.
Those activities are now fully funded with an equity placing
announced in March 2021.
Results
The unaudited results for the six months to 31 December 2020
reflect the seriousness of the economic uncertainty in the second
half of 2020 coupled with production issues, particularly at
Stanley, where a number of workovers have been completed. Revenue
fell to $383,138 and Gross Profit decreased to $56,828.
On top of the fall in production, oil prices ranged between
US$39 in July 2020 to US$48 in December 2020. This has recently
risen to over US$60. These prices were better than the first half
of the 2020 calendar year, but did effect the gross revenue. Arkoma
was again disappointing and the Company is still reviewing options
for this non-core asset. Falcon Production began in December 2020,
although sales and the recognition of revenue did not commence
until January 2021.
Expenses increased slightly during the period due to the
appointment of a second broker, increased amortisation costs and
currency movements.
The pandemic has restricted travel by the Board since early 2020
and thus the Company has become increasingly dependent on
consultants at operational levels. The Company is effectively
operating in two Countries, and clear divisions of duties have been
implemented.
Operationally a number of activities occurred with the drilling
of Falcon-1, the drilling of Stanley-4, the sale of Welch, and
various workovers. From a corporate perspective there was strong
activity with a number of presentations, a capital raising, and the
sale of shares in Canada.
The ability to raise funds on the capital markets was important
with over $1.6 million spent on exploration, development, and
acquisitions during the six months. The Company raised GBP0.9m
gross before expenses in an equity placing during the period in
October 2020 and, in a post balance sheet date event, it raised a
further GBP1.5 million gross before expenses in March 2021.
Today, the Company is well funded with a cash balance of AUD3.5
million as at the end of March 2021 and has an aggressive
exploration and development plan on its existing projects for the
remainder of 2021 that are expected to benefit from the recovery in
energy prices and the economy while continuing to evaluate new
acquisition opportunities that fit its investment criteria.
Projects
Mosman has Working Interests in onshore producing projects
located in the USA. These projects and Mosman's working interests
before royalties as at 31 December 2020 are:
Producing Projects in USA
PRODUCING
Project Location Approx Working Interest
(before royalties)
Falcon Texas 50%
Stanley Texas 18.5% to 14.85%
Greater Stanley Texas 40%
Arkoma Stacked Oklahoma 27% (Held for sale)
Pay
UNDEVELOPED
Project Location Approx Working Interest
(before royalties)
Galaxie Texas 60%
Cinnabar Texas 85% (after JV farmout)
Mosman also has interests in two projects in Central
Australia:
Project Location Approx Working Interest
(before royalties)
Amadeus Basin Northern Territory, 100% (EP145)
Australia
30% (EPA 155 - 70% was
farmed out in 2020
Production Summary for the six months ending 31 December
2020
Net Production attributable to Mosman for the six months was
9,871 boe.
Production Details
Further details are outlined below:
6 Months to 6 Months to
31 December 2020 31 December 2019
Total Project Net Attributable Total Project Net Attributable
============== ================= ============== =================
Gross boe Net boe Gross boe Net boe
============== ================= ============== =================
Falcon* 2,191 1,096 - -
============== ================= ============== =================
Stanley 24,982 3,984 42,268 6,877
============== ================= ============== =================
Greater Stanley 936 187 - -
============== ================= ============== =================
Arkoma 615 123 5,868 1,124
============== ================= ============== =================
Welch** 5,845 4,481 6,851 5,252
============== ================= ============== =================
Total boe 34,569 9,871 54,987 13,253
============== ================= ============== =================
Net production means net to Mosman's working interest before
royalties
*Falcon production commenced on 11 December 2020
**Welch project has now been sold
Subsequent Events
-- In January 2021, the Company announced the sale of the
remaining shares it owned in Norseman Silver Inc for
AUD208,000;
-- The sales of the Welch asset was completed in January 2021
and the amount of AUD546,611 shown as a receivable in the balance
sheet of 31 December 2020 was received;
-- In February 2021, warrants totalling AUD128,000 were exercised;
-- In March 2021, the Company raised GBP1,500,000 to be used for
Helium, Hydrogen and Hydrocarbon exploration on EP 145 in Central
Australia;
-- In April 2021, the Company announced it had acquired an
additional 20% of the Greater Stanley (Duff lease). This increased
Mosman's working interest in Duff to 40%.
Other than the above, t here were no significant events
subsequent to the date of statement of financial position.
Condensed Consolidated Statement of Profit or Loss and Other
Comprehensive Income
For The Half Year Ended 31 December 2020
All amounts are in Australian Dollars
Notes Consolidated Consolidated
6 months to 6 months to
31 December 2020 31 December 2019
$ $
Revenue 383,138 998,369
Cost of sales 2 (326,310) (426,432)
------------------------------------ ----------------------
Gross profit 56,828 571,937
Interest i ncome 37 23,228
Gain on sale of oil and gas assets 122,000 -
Other income 51,512 39,893
Administrative expenses (158,325) (95,766)
Corporate expenses 3 (440,477) (433,166)
Directors fees (60,000) (60,000)
Exploration expenses incurred not (10,090)
capitalised -
Employee b enefits expense (29,337) (34,004)
Evaluation and due diligence - (140,430)
Finance costs (6,362) (5,177)
Amortisation expense (63,297) (43,089)
Depreciation expense (1,559) (2,208)
Impairment expense - (4,142,016)
Loss on foreign exchange (19,846) -
Loss on sale of OCI financial assets 5 (149,906) -
Loss from ordinary activities before income
tax expense (708,822) (4,320,798)
Income tax expense - -
Net l oss for the period (708,822) (4,320,798)
------------------------------------ ----------------------
Other c omprehensive income
Items that may be reclassified to profit or
loss
Gain on financial assets at fair value
through other comprehensive income (FVOCI) 4 525,118 60,626
Foreign currency (loss)/gain 4 (354,035) (12,023)
------------------------------------ ----------------------
Other comprehensive income for the period,
net of tax 171,083 48,603
------------------------------------ ----------------------
Total comprehensive loss attributable to
members of the entity (537,739) (4,272,195)
==================================== ======================
Basic and diluted loss per share (0.04) cents (0.73) cents
The accompanying notes form part of these consolidated financial
statements.
Condensed Consolidated Statement of Financial Position
As at 31 December 2020
All amounts are in Australian Dollars
Notes Consolidated Consolidated
Balance as at 31 December 2020 Balance as at 30 June 2020
$ $
Current Assets
Cash and cash equivalents 776,549 372,479
Trade and other receivables 6 741,476 78,719
Inventory - 44,508
Other financial assets 207,782 93,748
Other assets 7 81,448 16,959
Total current assets 1,807,255 606,413
-------------------------------- ----------------------------
Non-Current Assets
Property, plant & equipment 8,436 9,995
Oil and gas assets 8 3,083,891 2,061,131
Other receivables - 54,820
Capitalised o il and g as exploration
expenditure 9 383,601 301,242
-------------------------------- ----------------------------
Total non-current assets 3,475,928 2,427,188
-------------------------------- ----------------------------
Total Assets 5,283,183 3,033,601
-------------------------------- ----------------------------
Current Liabilities
Trade and other payables 10 380,848 358,091
Equity settled liabilities - 191,000
Provisions 22,206 20,269
Total current liabilities 403,054 569,360
-------------------------------- ----------------------------
Total Liabilities 403,054 569,360
-------------------------------- ----------------------------
Net Assets 4,880,129 2,464,241
================================ ============================
Shareholders' Equity
Contributed equity 11 a) 33,645,124 30,691,497
Reserves 12 883,217 712,134
Accumulated losses (29,648,212) (28,939,390)
--------------------------------
Equity attributable to shareholders 4,880,129 2,464,241
Total Shareholders' Equity 4,880,129 2,464,241
================================ ============================
The accompanying notes form part of these consolidated financial
statements.
Condensed Consolidated Statement of Changes in Equity
For the Half Year Ended 31 December 2020
All amounts are in Australian Dollars
Accumulated Contributed Equity Reserves Non-Controlling Total
Losses Interest
$ $ $ $ $
Balance at 1
July 2020 (28,939,390) 30,691,497 712,134 - 2,464,241
----------------------- ----------------------------- ----------------- ---------------- --------------------
Comprehensive
income
Loss for the
period (708,822) - - - (708,822)
Other
comprehensive
loss for the
period - - 171,083 - 171,083
----------------------- ----------------------------- ----------------- ---------------- --------------------
Total
comprehensive
loss for the
period (708,822) - 171,083 - (537,739)
Transactions with owners, in their capacity as owners, and other transfers:
New shares
issued - 3,095,575 - - 3,095,575
Cost of
raising
equity - (141,948) - - (141,948)
Total
transactions
with owners
and other
transfers - 2,953,627 - - 2,953,627
----------------------- ----------------------------- ----------------- ---------------- --------------------
Balance at 31
December 2020 (29,648,212) 33,645,124 883,217 - 4,880,129
======================= ============================= ================= ================ ====================
Balance at 1
July 2019 (24,101,980) 30,164,872 530,837 - 6,593,729
----------------------- ----------------------------- ----------------- ---------------- --------------------
Comprehensive
income
Loss for the
period (4,320,798) - - - (4,320,798)
Other
comprehensive
loss for the
period - - 48,603 - 48,603
----------------------- ----------------------------- ----------------- ---------------- --------------------
Total
comprehensive
loss for the
period (4,320,798) - 48,603 - (4,272,195)
----------------------- ----------------------------- ----------------- ---------------- --------------------
Transactions with owners, in their capacity as owners, and other transfers:
New shares
issued - - - - -
Cost of
raising equity - - - - -
Total
transactions
with owners
and other
transfers - - - - -
----------------------- ----------------------------- ----------------- ---------------- --------------------
Balance at 31
December 2019 (28,422,778) 30,164,872 579,440 - 2,321,534
======================= ============================= ================= ================ ====================
These accompanying notes form part of these consolidated
financial statements
Condensed Consolidated Statement of Cash Flows
For the Half Year Ended 31 December 2020
All amounts are in Australian Dollars
Consolidated Consolidated
6 months to 31 December 2020 6 months to 31 December 2019
$ $
Cash flows from operating activities
Receipts from customers 387,356 1,010,125
Interest received & other income 51,511 -
Payments to suppliers and employees (1,423,368) (1,257,973)
Bonds refunded - 10,000
Interest paid (6,361) (5,177)
Net cash used in operating activities (990,862) (243,025)
------------------------------ ------------------------------
Cash flows from investing activities
Payments for exploration and evaluation (82,359) (15,340)
Deposits paid for acquisition (135,223) -
Costs associated with abandoned acquisitions - -
Payments for oil and gas acquisitions - (162,009)
Payments for oil and gas assets (1,602,290) (332,411)
Proceeds from sale of assets 261,177 -
------------------------------ ------------------------------
Net cash used in investing activities (1,558,695) (509,760)
------------------------------ ------------------------------
Cash flows from financing activities
Proceeds from shares issued 3,095,575 -
Payments for costs of capital (141,948) -
Payments for loans to third parties - 52,850
Transactions with non-controlling interest - -
Net cash provided by financial activities 2,953,627 52,850
------------------------------ ------------------------------
Net decrease in cash and cash equivalents 404,070 (699,935)
------------------------------ ------------------------------
Cash and cash equivalents at the beginning of the
financial period 372,479 823,959
------------------------------ ------------------------------
Cash and cash equivalents at the end of the
financial period 776,549 124,024
------------------------------ ------------------------------
The accompanying notes from part of these consolidated financial
statements
Condensed Notes to the Financial Statements
For the Half-Year Ended 31 December 2020
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 2020 annual
financial report for the financial year ended 30 June 2020, 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:
-- Current cash and cash equivalents on hand and a further
capital raise of GBP 1,500,000 in March 2021;
-- 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.
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.
1. Summary of Significant Accounting Policies (Continued)
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 Reporting
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 on a units of production basis over the 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 Consolidated
6 months 6 months to
to 31 December 31 December
2020 2019
$ $
2. Cost of sales
Cost of sales 70,571 165,843
Lease operating expenses 255,739 260,589
326,310 426,432
---------------- -------------
3. Corporate costs
Accounting, Company Secretary and Audit
fees 97,174 96,537
Consulting fees - Board 166,000 161,000
Consulting fees - Other 83,176 82,963
Legal and compliance fees 94,127 92,666
440,477 433,166
---------------- -------------
4. Other comprehensive income
Gain on financial assets at fair value
through other comprehensive income (FVOCI) 525,118 60,626
Foreign currency (loss)/gain (354,035) (12,023)
----------------
171,083 48,603
---------------- ---------------
5. Loss on sale of OCI financial assets
Loss on sale of OCI financial assets 149,906 -
---------------- ---------------
149,906 -
---------------- ---------------
The Group sold their remaining shares in Norseman Silver Inc
in January 2021. Due to a significant increase in the share
price, the $149,906 loss booked on the sale of the OCI financial
assets subsequently resulted in a year to date profit of $11,314.
The result is that the recorded figures in the 2021 annual report
will more than offset the recorded loss in the interim results.
Consolidated Consolidated
Balance as Balance as
at 31 December at 30 June
2020 2020
$ $
6. Trade and other receivables
Deposits 54,856 -
GST receivable 42,887 20,112
Accrued revenue 94,526 54,235
Settlement funds receivable on sale 546,611 -
of asset
Other receivables 2,596 4,372
---------------- ---------------
741,476 78,719
---------------- ---------------
The sale of Welch was completed in December 2020 and the balance
reflects the amount receivable from the purchaser. The funds
were settled in January 2021.
Consolidated Consolidated
Balance as Balance as
at 31 December at 30 June
2020 2020
$ $
7. Other assets
Prepayments 81,448 16,959
81,448 16,959
------- -------
8. Oil and gas assets
Cost brought forward 2,061,131 3,905,106
Acquisition of oil and gas assets during
the period 135,223 236,783
Disposal of oil and gas assets on sale
during the period(1) (445,606) -
Capitalised equipment workovers(2) 1,602,290 402,901
Amortisation for the year (63,297) (103,616)
Impairment of oil and gas assets - (2,380,043)
Impact of foreign exchange (205,850) -
-----------------
Carrying value at end of the period 3,083,891 2,061,131
----------------- -------------
1. Disposal relates to the sale of the Welch project during the
period, of which a gain was recorded of $122,000.
2. Capitalised project drilling and workovers primarily for the
Falcon project.
9. Capitalised oil and gas expenditure
Costs brought forward 301,242 1,615,956
Exploration costs incurred during the
period 82,359 66,582
Impairment of oil and gas expenditure
(i) - (1,381,296)
-------------
Carrying value at the end of the period 383,601 301,242
----------------- -------------
(i) Relates to impairment of exploration expenditure in the Amadeus
Basin.
10. Trade and other payables
Trade creditors 304,508 331,972
Other creditors and accruals 76,340 26,119
380,848 358,091
----------------- -------------
11. Contributed Equity
Ordinary Shares
Total shares at 31 December 2020: 2,599,013,052
(30 June 2020: 1,085,810,968) ordinary
shares fully paid.
Contributed
Equity
a) Shares movements during the half-year $ No. of shares
Balance at 30 June 2020 30,691,497 1,085,810,968
Shares issued 3,095,575 1,513,202,084
Cost of issued shares (141,948) -
Balance at 31 December 2020 33,645,124 2,599,013,052
---------------- --------------
Consolidated Consolidated
Balance as Balance as
at 31 December at 30 June
2020 2020
12. Reserves
Options reserve 471,818 471,818
Asset revaluation reserve 161,593 (363,525)
Foreign currency translation reserve 249,806 603,841
---------------- --------------
883,217 712,134
---------------- --------------
a) Options Reserve
Options Reserve at the beginning of the
period 471,818 471,818
Options Reserve at the end of the period 471,818 471,818
-------- --------
b) Asset Revaluation Reserve
Asset Revaluation Reserve at the beginning
of the period (363,525) (402,412)
Revaluation of FVOCI shares 525,118 38,887
Asset Revaluation Reserve at the end
of the period 161,593 (363,525)
---------- ----------
c) Foreign Currency Translation Reserve
Foreign Currency Translation Reserve
at the beginning of the period 603,841 461,431
Current movement in the period (354,035) 142,410
Foreign Currency Translation Reserve
at the end of the period 249,806 603,841
---------- --------
13. Segment Information
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.
(i) Segment performance
United States Australia Total
$ $ $
------------------ ------------------ --------------
Period ended 31 December 2020
Revenue
Revenue 383,138 - 383,138
Interest income - 37 37
Gain on sale of oil and gas assets 122,000 - 122,000
Other income 41,512 10,000 51,512
Segment revenue 546,650 10,037 556,687
------------------ ------------------ --------------
Segment Result
Loss
Allocated
- Corporate costs (65,123) (375,354) (440,477)
- Administrative costs (93,693) (64,632) (158,325)
- Lease operating expenses (255,739) - (255,739)
- Cost of sales (70,571) - (70,571)
- Loss on sale of OCI financial assets (149,906) - (149,906)
Segment net profit/(loss) before tax (88,382) (429,949) (518,331)
------------------ ------------------ --------------
Reconciliation of segment result to net loss before
tax
Amounts not included in segment result but reviewed by
the Board
- Evaluation expenses incurred not capitalised - (10,090) (10,090)
- Amortisation (63,297) - (63,297)
- Impairment - - -
Unallocated items
- Employee benefits expense (89,337)
- Finance costs (6,362)
- Foreign exchange (19,846)
- Depreciation (1,559)
Net Loss before tax from continuing operations (708,822)
--------------
13 . Segment Information (continued)
(i) Segment performance (continued)
United States Australia Total
$ $ $
-------------- ------------ ------------
Period ended 31 December 2019
Revenue
Revenue 998,369 - 998,369
Interest income 20,179 3,049 23,228
Other income 29,811 10,082 39,893
Segment revenue 1,048,359 13,131 1,061,490
-------------- ------------ ------------
Segment Result
Loss
Allocated
- Corporate costs (99,313) (333,853) (433,166)
- Administrative costs (23,020) (72,746) (95,766)
- Lease operating expenses (260,589) - (260,589)
- Cost of sales (165,843) - (165,843)
-------------- ------------ ------------
Segment net profit/(loss) before tax 499,594 (393,468) 106,126
-------------- ------------ ------------
Reconciliation of segment result to net loss before tax
Amounts not included in segment result but reviewed by the Board
- Evaluation and due diligence (47,542) (92,888) (140,430)
- Amortisation (43,089) - (43,089)
- Impairment (2,760,720) (1,381,296) (4,142,016)
Unallocated items
- Employee benefits expense (94,004)
- Finance costs (5,177)
- Depreciation (2,208)
------------
Net Loss before tax from continuing operations (4,320,798)
------------
Period ended 31 December 2019
13. Segment Information (continued)
(ii) Segment assets
United States Australia Total
$ $ $
-------------- ------------ ------------
As at 31 December 2020
Segment assets as at 1 July 2020 2,350,564 683,037 3,033,601
Segment asset balances at end of
period
- Exploration and evaluation - 7,564,519 7,564,519
- Capitalised Oil and Gas 4,497,478 - 4,497,478
- Less: Amortisation (71,518) - (71,518)
- Less: Impairment (1,342,070) (7,180,918) (8,522,988)
-------------- ------------ ------------
3,083,890 383,601 3,467,491
-------------- ------------ ------------
Reconciliation of segment assets to total assets:
Other assets 648,781 1,166,911 1,815,692
-------------- ------------ ------------
Total assets from continuing operations 3,732,671 1,550,512 5,283,183
-------------- ------------ ------------
United States Australia Total
$ $ $
-------------- ------------ ------------
As at 30 June 2020
Segment assets as at 1 July
2019 4,618,616 2,571,517 7,190,133
Segment asset balances at
end of
year
- Exploration and evaluation - 7,482,160 7,482,160
- Capitalised oil and gas
assets 4,632,884 - 4,632,884
- Less: Amortisation (191,710) - (191,710)
- Less: Expenditure previously
capitalized, written off
in the year (2,380,043) (7,180,918) (9,560,961)
-------------- ------------ ------------
2,061,131 301,242 2,362,373
-------------- ------------ ------------
Reconciliation of segment
assets to total assets:
Other assets 289,433 381,795 671,228
-------------- ------------ ------------
Total assets from continuing
operations 2,350,564 683,037 3,033,601
-------------- ------------ ------------
13. Segment Information (continued)
(iii) Segment liabilities
United States Australia Total
$ $ $
-------------- ---------- ----------
As at 31 December 2020
Segment liabilities as at 1 July 2020 87,486 481,874 596,360
Segment liability (decreases) for the year (3,069) (163,237) (166,306)
-------------- ---------- ----------
84,417 318,637 403,054
-------------- ---------- ----------
Reconciliation of segment liabilities to total liabilities:
Other liabilities - - -
-------------- ---------- ----------
Total liabilities from continuing operations 84,417 318,637 403,054
-------------- ---------- ----------
As at 30 June 2020
Segment liabilities as at 1 July 2019 316,192 280,212 596,404
Segment liability (decreases) for the year (228,706) 201,662 (27,044)
-------------- ---------- ----------
87,486 481,874 569,360
-------------- ---------- ----------
Reconciliation of segment liabilities to total liabilities:
Other liabilities - - -
-------------- ---------- ----------
Total liabilities from continuing operations 87,486 481,874 569,360
-------------- ---------- ----------
14. Producing assets
The Group currently has 3 producing assets, which the Board monitors
as separate items to the geographical and operating
segments. The Stanley and Welch are Oil and Gas producing assets in
the United States along with some other projects.
Project performance is monitored by the line items below.
(i) Project performance
Arkoma Stanley Welch Other Projects Total
$ $ $ $ $
-------- --------- --------- --------------- ---------
Half-Year Ended 31 December
2020
Revenue
Oil and gas project related
revenue - 174,245 203,650 5,243 383,138
Producing assets revenue - 174,245 203,650 5,243 383,138
-------- --------- --------- --------------- ---------
Project-related expenses
* Cost of sales - 10,618 59,953 - 70,571
* Lease operating expenses - 26,588 227,974 1,177 255,739
Project cost of sales - 37,206 287,927 1,177 326,310
-------- --------- --------- --------------- ---------
Project gross profit
Gross profit - 137,039 (84,277) 4,066 56,828
-------- --------- --------- --------------- ---------
Condensed Notes to the Financial Statements
For the Half-Year Ended 31 December 2020
All amounts are Australian Dollars
14. Producing assets (continued)
(i) Project performance
Arkoma Stanley Welch Other Projects Total
$ $ $ $ $
-------- --------- --------- --------------- ---------
Half-Year Ended 31 December
2019
Revenue
Oil and gas project related
revenue 9,564 365,396 623,409 - 998,369
Producing assets revenue 9,564 365,396 623,409 - 998,369
-------- --------- --------- --------------- ---------
Project-related expenses
* Cost of sales 880 20,474 144,489 - 165,843
* Lease operating expenses 10,560 15,401 214,301 20,327 260,589
Project cost of sales 11,440 35,875 358,790 20,327 426,432
-------- --------- --------- --------------- ---------
Project gross profit
Gross profit (1,876) 329,521 264,619 (20,327) 571,937
-------- --------- --------- --------------- ---------
15. 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 2020, the Company has estimated the
monetary value of the total exploration commitments for the next 12
months are as follows:
Entity Tenement $
Trident Energy Limited(1) EP 145 -
Oilco Pty Ltd EPA155 -
-
(1) An extension to the work program condition has been granted
until 21 August 2021, when there will be a commitment for
completion of 100km of 2D seismic surveys, seismic processing and
interpretation and well planning. If the Company has not fulfilled
the above obligations, a negotiation with the Northern Territory
Department of Primary Industry and Resources may be commenced to
extend the period for completion, or the permit relinquished. There
can be no certainty that an extension may be granted.
(b) Capital Commitments
The Company had no capital commitments at 31 December 2020 (2019
- $Nil).
16. Subsequent Events
-- In January 2021, the Company announced the sale of the
remaining shares it owned in Norseman Silver Inc for
AUD208,000;
-- The sales of the Welch asset was completed in January 2021
and the amount of AUD546,611 previously shown as a receivable was
received;
-- In February 2021 warrants totalling AUD128,000 were exercised by warrant holders;
-- In March 2021 the Company raised GBP1,500,000 to be used for
Helium, Hydrogen and Hydrocarbon exploration on EP 145 in Central
Australia;
-- In April 2021 the Company announced it had acquired an
additional 20% of the Greater Stanley (Duff lease). This increases
Mosman's working interest in Duff to 40%.
Other than the above, t here were no significant events
subsequent to the date of statement of financial position.
17. Dividends
No dividends have been paid or proposed during the half year
ended 31 December 2020.
Directors' Declaration
T he Directors of the Consolidated Group de c l a re that:
1. The fin ancial s t a t e m e nts a nd not e s, as s et out on
pages 5-20, are in a c c o rdance with the Australian Corpo r a
tions A ct 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 t rue and f a ir v i ew of the consolidated f ina n c
i al pos ition as at 31 December 2020 a nd of the pe r for m a n ce
f or the ye ar ended on th at date of the G r o up.
2. In the Dir ectors' opinion the re a re r e a sonable g rounds
to beli eve that the Group w ill be able to pay its debts as a nd w
h en they become due and pa y able.
T his d e cla r a tion is m ade in a c cordance with a r e
solution of the Boa rd of Dir e c tors and is sig n ed by autho
rity for a nd on be h a lf of the D i r e cto rs by:
John W Barr
Executive Chairman
Dated this 27 April 2021
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END
IR SEASUAEFSEFL
(END) Dow Jones Newswires
April 28, 2021 05:26 ET (09:26 GMT)
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