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).
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."
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