RE: Rns1 Nov 2019 07:58
Mosman Oil and Gas Limited Final Results
Source: UK Regulatory (RNS & others)
TIDMMSMN
RNS Number : 9441R
Mosman Oil and Gas Limited
01 November 2019
1 November 2019
Mosman Oil and Gas Limited
("Mosman" or the "Company")
Final Results for the Year ended 30 June 2019
Mosman Oil and Gas Limited (AIM: MSMN) the oil exploration, development and production company, announces its final results for the year ended 30 June 2019.
Overview of the 2019 financial year
At the conclusion of the 2018 Financial Year, I commented on the challenging outlook for junior oil and gas companies, and not withstanding this how Mosman was now in a position to look forward with greater optimism as a result of the established production base and that plans for increasing production were in place.
The established production base has continued to grow and Mosman's strategic objectives remained unchanged; to identify opportunities which will provide operating cash flow and have development upside, in conjunction with progressing exploration of existing exploration permits.
Briefly expressed, this is being delivered by increasing production and cashflow in the USA; and ongoing exploration in the Amadeus Basin in Australia. Since the oil price dropped in 2014-15 Mosman has continued as explorer whilst gradually building a sustainable company with a sound production and revenue base. The task is by no means complete, but it is well underway. With some satisfaction I can report that in the 2019 Financial Year Net Production attributable to Mosman was 18,216 boe, compared to 10,367 in 2018. This is an increase of some 75%.
Sales increased by some $365,242 (c.50%) but this does not reflect the ongoing position as the first two Stanley wells only commenced production during the year, and Stanley-3 not until the first quarter in the current financial year, and the Strawn project was sold just prior to year end.
The Board is now also focussed on becoming cashflow positive on a Company level. This is an increasingly achievable objective given the recent results from Stanley 1, 2 and 3; combined with further drilling which is currently being planned. The gross profit of $285,095 (2018: $234,430) reflects Mosman's working interest share of production income after production costs and after royalty payments. Included in the costs are several one off expenses that produced a lower result than the Board finds acceptable, including funds spent at Welch on repairs and initial costs at Stanley that have been expensed.
Overall, in the year to 30 June 2019, the Company made a loss of $1,208,836 which is a significant improvement compared to the 2018 loss of $4,102,231.
Of significance, some $1,679,371 was spent on investing activities on assets in the portfolio during the year. That clearly reflects the strategy adopted where available funds are invested into assets.
This, together with the remaining cash at bank, represents a large portion of
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