Rns31 Mar 2020 08:42
("Mosman" or the "Company")
Unaudited Half Year Report
Mosman Oil and Gas Limited (AIM: MSMN) the oil exploration, development and production company, announces its unaudited results for the six months ended 31 December 2019, which have been reviewed by the appointed auditors .
Operations Review
Strategy
Mosman's 2019 objective was 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. The practical aspects of that strategy were updated with the decision to focus on the East Texas region, with emphasis on the Stanley and Greater Stanley projects, and disposing of the Arkoma and Welch projects once there is more certainty in the markets. The Company has steadily increased production and is positioned for growth. However, events of early 2020 mean that growth objectives will now have to be constrained to manage cash flow, and costs have been further reduced. With current oil prices, the outlook for the next year will be challenging particularly if the oil price remains low as the likely financial impact on Mosman will be significant. Accordingly, the Board has been conservative in the impairment tests and reduced the book value of certain assets.
Results
The unaudited results for the six months reflect the earlier decisions of the Board and it is pleasing to see revenue almost double to $998,369 and Gross Profit increased almost eight-fold to $571,937 compared to the previous December six monthly period.
Mosman has been working hard to become cash flow positive at an overall corporate level and also become profitable. Mosman was close to achieving its objectives recording a loss for the period before impairment costs of $178,782.
Including impairment costs of $4,142,016, the loss for the period was $4,320,798.
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