Mosman Oil and Gas Limited (AIM: MSMN) the hydrocarbon, helium and hydrogen exploration, development and production company, announces its Half Year results to 31 December 2023 (H124).
Summary
· Revenue: $533,794 (H123 $936,187) mainly impacted by notably lower production at Stanley and Cinnabar where work continues to resolve production challenges.
· Gross Profit: $34,059 (H123 $283,003)
· Net loss: $984,851 (H123 $665,096)
· Net Production to Mosman of 6,289BOE
All amounts are in Australian Dollars
1BOE/boe - barrels of oil equivalent
2Gross Project Production - 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
3Net Production - Net to Mosman's Working interest before royalties
Operational overview
USA
· Development project continues at Cinnabar where technical work has identified opportunities for increasing production. Workovers undertaken had limited success. Technical work has identified a zone to be recompleted before the next step of installing artificial lift. Technical work is being conducted on the new lease area acquired that appears highly prospective based on 3D seismic.
· Stanley continues to be the main centre of production. Production was affected by downtime due to reconfiguration of production equipment and weather conditions in December.
Australia
· EP 145 Farmout Agreement was signed with a subsidiary of Greenvale Energy Ltd (ASX:GRV) in October to fund seismic and drilling. GRV can earn 75% interest by funding seismic acquisition and drilling a well (to a cap of $5.5m). This agreement remains subject to completion pending ministerial approval.
· EP(A) 155 is subject to a conditional farmout agreement and continues the process of seeking native title approval required for the grant of the licence.
Board update
· John Young stepped down from the Board in September 2023.
· Andy Carroll, Technical Director appointed CEO in September, with Nigel Harvey appointed as Non-Executive Chairman and Carl Dumbrell appointed to the Board as Non-Executive Director. John Barr stepped down in October 20223.
Andy Carroll, CEO of Mosman commented:
"The Board has been refreshed and the company has been re-organised with a lower cost base. In the US, we continue cost effective production optimisation to commercialise these assets and exploration work continues in Australia on the areas prospective for helium, hydrogen and hydrocarbons."