Half Year Results

Mosman Oil and Gas Limited

27 March 2024

 

27 March 2024

Mosman Oil and Gas Limited

 ("Mosman" or the "Company")

Half Year Results

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."

Enquiries:

Mosman Oil & Gas Limited Andy Carroll CEO [e-mail]	NOMAD and Joint Broker SP Angel Corporate Finance LLP Stuart Gledhill / Richard Hail / Adam Cowl [phone]
Alma Strategic Communications Justine James / Will Merison [phone] [phone] [e-mail]	Joint Broker CMC Markets UK Plc Douglas Crippen [phone]

Updates on the Company's activities are regularly posted on its website: www.mosmanoilandgas.com

Notes to editors

Mosman (AIM: MSMN) is an oil exploration, development, and production company with projects in the US and Australia. Mosman's strategic objectives remain consistent: to identify opportunities which will provide operating cash flow and have development upside, in conjunction with progressing exploration of its existing exploration permit and permit application. The Company has several projects in the US. In addition to exploration projects in the Amadeus Basin in Central Australia.

Operations Review

Mosman's strategic objective remains to identify opportunities which will provide operating cash flow and have development upside, in conjunction with exploration of existing exploration permits and acquiring high potential projects.

The conclusion of the Strategic Review was to commercialise the production assets (which may include sale of some assets) and not to proceed with IPO of the Australian assets as there was limited investor interest in IPOs in 2023. As part of this process, the Group incurred some costs in establishing a holding company for the Australian assets in regard to evaluating the potential for an IPO of that company.

The Board renewal process was completed with the appointment of Carl Dumbrell. Carl is a qualified accountant and brings extensive experience in Australian and AIM companies. John W Barr and John Young stepped down and are thanked for their service in the successful IPO and steering the company through exploration and building a production base in the USA. The corporate re-organisation resulted in a reduction in the number of Directors from four to three; the reduction in executive directors from two to one; and a clearer separation of Board and management with two independent Directors and a Chief Executive Officer, and the redundancy of the one employee. Whilst there are now lower fixed overheads, there were some one-off costs associated with this reorganisation.

Turning to development of the producing US projects, more than $475k was invested in increasing production and progressing exploration during the period. Stanley continues to be the main centre of production and the production equipment has been reconfigured with jet pumps.

The development project, Cinnabar, was which was acquired at modest cost when oil and gas prices were lower in 2021, has had an extensive technical work, including reprocessing and re-interpretation of 3D seismic. Whilst results of the Cinnabar development well drilled in November 2022 confirmed the presence of oil and led to an upgrade of Reserves, the production rates have been disappointing. Technical work has identified opportunities for increasing production, and several workovers have now been undertaken on the three wells on the lease. Work will continue to increase production, and to de-risk a new lease area acquired that appears highly prospective based on 3D seismic.

Gross Reserves (MBOE):

Proved Developed Producing	Proved Developed Behind Pipe	Proved Undeveloped	Total Proved	Total Probable	Total Proved Plus Probable
302	147	1,132	1,581	65	1,646

In Australia's Northern Territory, Mosman holds a 100% interest over the EP-145 permit and continues to work to secure all required approvals for the next step of exploration.

A Farmout Agreement was signed with a subsidiary of Greenvale Energy (ASX:GRV) in October 2023, whereby GRV can earn 75% interest by funding seismic acquisition and drilling a well (to a cap of AUD 5.5 million). This currently remains subject to completion pending ministerial approval.

A Prospective Resource estimate for EP-145 was published by Mosman in October 2022 and is detailed below.

Prospective Resources (Bcf)	Low Estimate	Best Estimate	High Estimate
Total Gas	12	440	2,290
Helium	0.3	26.4	229
Hydrogen	0.24	26.4	275

As shareholders and stakeholders expect, Mosman continues to take its Health and Safety requirements very seriously and to date there have been no health, safety or wellbeing issues reported in our small team.

Results

The unaudited results for the six months to 31 December 2023 reflect a 43% decrease in sales to $533,794 ($936,187 in 2022). Gross profit also decreased by 88% to $34,059 ($283,003 in 2022). The lower sales and gross profit margins were primarily due to lower production at Cinnabar and Stanley as recompletions and upgrade works were undertaken, as well as lower oil and gas prices in the period.

The overall result for the period was a net loss of $984,851 (2022: $665,096). This includes one-off restructuring costs of over $100k that are intended to reduce ongoing costs.

Projects

Mosman has Working Interests in eight onshore producing projects located in the USA, in addition to one granted exploration permit and one application for an exploration permit in the Amadeus Basin in Central Australia.

Producing Projects in the USA

A summary of the current oil and gas projects as at 27 March 2024:

US PROJECTS
Asset/ Project	Mosman Interest1	Location	Status
Cinnabar	75.0%	Texas	Producing
Cinnabar Extended	78.0%	Texas	Undrilled
Stanley (various wells)	34.85% to 38.5%	Texas	Producing
Livingston	20%	Texas	Producing
Winters-1	29%	Texas	Producing
Winters-2	23%	Texas	Producing
Greater Stanley (Duff wells)	40%	Texas	Producing
Arkoma	27%	Oklahoma	Producing

^1.         Mosman's ownership is working interest before royalties. The interest shown is approximate, as there are small variations on individual wells

Production Summary for the six months ending 31 December 2023

	Gross Project Production2 BOE1	Net Production to Mosman3 BOE1
Cinnabar	1,246	933
Stanley	9,989	3,631
Winters	3,145	734
Livingston	1,045	209
Arkoma	3,718	782
Total Production	19,143	6,289

¹BOE/boe - barrels of oil equivalent

²Gross 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

³Net Production - Net to Mosman's Working Interest; Net Production attributable to Mosman means net to Mosman's Working Interest before royalties

Australia

AUSTRALIAN EXPLORATION PROJECTS
Asset/Project	Mosman Interest1	Location	Status	Permit Number	Licence Renewal Date	Comments
Australia, Amadeus Basin	100%2 (subject to farm-in)	NT	Exploration	EP 145	21 August 2024	Seismic to be acquired
Australia, Amadeus Basin	100% (subject to farm-in)	NT	Exploration	EPA 155	Application	Negotiating land access with CLC

^1.         Mosman's ownership is working interest before royalties and the interest shown is subject to farmin agreements (detailed below)

Mosman has continued to conduct technical work on its Central Australian exploration projects, focused on the 100% owned EP-145, in the Amadeus Basin, Northern Territory.

The Prospective Resource estimate for EP-145 published by Mosman in October 2022 and is detailed below.

Prospective Resources (Bcf)	Low Estimate	Best Estimate	High Estimate
Total Gas	12	440	2,290
Helium	0.3	26.4	229
Hydrogen	0.24	26.4	275

All seismic and drilling activities are subject to obtaining the necessary planning approvals from the NT Department of Industry and Resources.

On 16 October 2023, the Company announced that it had entered into a farmout agreement with Greenvale Gold Pty Ltd, a wholly owned subsidiary of Greenvale Energy Ltd (ASX:GRV) to fund seismic and drilling on its EP 145 project in the Northern Territory of Australia. Upon Completion, Mosman would retain a 25% working interest in EP 145 and Greenvale would earn a 75% working interest in EP 145 by:

·      Committing to pay AUD160,000 in cash within 5 days of Completion, which is subject to government approval of the transfer of interest and Operatorship.

·      Paying for the EP 145 Permit Year 3 Work Program, including seismic, effective from Completion Date.

·      Funding the Permit Year 4 Work Program, including drilling one well with a well cost cap of AUD5.5 million.

·      The Year 3 Work Program is to be completed by August 2024 and the cost of the seismic acquisition is estimated to be circa AUD2 million.

·      The Year 4 Work Program is to be completed by August 2025. The cost of drilling a well depends on many factors including the depth of a well and cost of drilling rigs at the time of drilling.

At Mosman's other central Australian project in EPA-155, the permit application is subject to Native Title negotiations. The required site visit was delayed by the Covid-19 pandemic. Mosman has a farmout agreement, and the farm-in partner has advised they are discussing with the Central Land Council ("CLC") and have arranged a site visit.

Matters subsequent to the reporting period

Subsequent to the end of the reporting period the Company announced the following material matters occurred:

·      On 15 January 2024, the Group announced it had lodged the Environmental Management Plan ("EMP") with the Northern Territory Government. Approval of the EMP and re-issue of the Aboriginal Areas Protection Authority ('AAPA') Certificate are the two remaining approvals required prior to the acquisition of 2D seismic, scheduled for 2024.

·      On 23 January 2024, the Group announced that Mosman and Greenvale Gas Ltd ("GRV"), a subsidiary of Greenvale Pty Ltd (ASX:GRV), had agreed to amend the Farmin Agreement so that the right for either party to terminate the agreement is changed from 31 January to 30 March 2024.

·      On 2 February, the Group announced it had raised £300,000 (before expenses) by way of a placing of 2,400,000,000 ordinary shares at a price of 0.0125 pence per share.

·      On 7 February, the Group held and Extraordinary General Meeting, where shareholder approval was received to issue 84,210,526 shares and 42,105,263 warrants to CEO Andrew Carroll, and 42,105,263 shares and 21,052,632 warrants to Chairman Nigel Harvey. Shares were issued for cash consideration at 0.0125p per share. The warrants are exercisable at 0.025p each with a two year expiry. All shares and warrants were issued on the same terms as the placement announced on 29 November 2023.

There were no other material matters that occurred subsequent to 31 December 2023.

Glossary:

boe	Barrels of oil equivalent based on calorific value as opposed to dollar value
boepd	Barrels of oil per day of oil equivalent based on calorific value as opposed to dollar value
bopd	Barrels of oil per day
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
Mcf	Thousand cubic feet
Bcf	Billion cubic feet
Mcfpd	Thousand cubic feet per day
MBtu	One thousand British Thermal Units
MBtupd	One thousand British Thermal Units per day
MMBtu	One million British Thermal Units
MMBtupd	One million British Thermal Units per day
Net Production	Net to Mosman's Working Interest; Net Production attributable to Mosman means net to Mosman's Working Interest before royalties
SPE	Society of Petroleum Engineers
SPE PRMS	A standard for the definition, classification, and estimation of hydrocarbon resources developed by the Oil and Gas Reserves Committee of the Society of Petroleum Engineers and named the Petroleum Resource Management System

Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income

For The Half Year Ended 31 December 2023

		Notes	Consolidated 6 months to 31 December 2023	Consolidated 6 months to 31 December 2022
			$	$
Revenue			533,794	936,187
Cost of sales		2	(499,735)	(653,184)
Gross profit			34,059	283,003
Interest income			348	139
Administrative expenses			(205,505)	(280,957)
Corporate expenses		3	(467,567)	(450,964)
Directors fees			(57,880)	(62,667)
Exploration expenses incurred, not capitalised			(7,425)	(9,300)
Employee benefits expense			(48,268)	(40,685)
Finance costs			(5,642)	(5,676)
Amortisation expense			(215,337)	(94,861)
Depreciation expense			(6,220)	(919)
Loss on foreign exchange			(5,414)	(2,209)
Loss from ordinary activities before income tax expense			(984,851)	(665,096)
Income tax expense			-	-
Net loss for the period			(984,851)	(665,096)
Other comprehensive profit
Items that may be reclassified to profit or loss
-	Foreign currency gain/(loss)		(148,877)	65,405
Total comprehensive income attributable to members of the entity			(1,133,728)	(599,691)
Basic loss per share (cents per share)			(0.01) cents	(0.01) cents
Diluted loss per share (cents per share)			(0.01) cents	(0.01) cents

The accompanying notes form part of these consolidated financial statements

All amounts are in Australian Dollars

Consolidated Statement of Financial Position

As at 31 December 2023

	Notes	Consolidated 31 December 2023	Consolidated 30 June 2023
		$	$
Current Assets
Cash and cash equivalents		614,305	520,613
Trade and other receivables	4	764,085	863,639
Other assets	5	110,006	78,086
Total Current Assets		1,488,396	1,462,338
Non-Current Assets
Property, plant & equipment		-	6,220
Oil and gas assets	6	5,824,674	5,780,587
Capitalised oil and gas exploration	7	1,491,725	1,420,531
Total Non-Current Assets		7,316,399	7,207,338
Total Assets		8,804,795	8,669,676
Current Liabilities
Trade and other payables	8	1,490,357	1,185,450
Provisions		-	15,500
Total Current Liabilities		1,490,357	1,200,950
Non-Current Liabilities
Provisions		175,043	180,587
Total Non-Current Liabilities		175,043	180,587
Total Liabilities		1,665,400	1,381,537
Net Assets		7,139,395	7,288,139
Shareholders' Equity
Contributed equity	9	41,656,179	40,675,340
Reserves	10	763,362	908,094
Accumulated losses		(35,280,146)	(34,295,295)
Total Shareholders' Equity		7,139,395	7,288,139

The accompanying notes form part of these consolidated financial statements

All amounts are in Australian Dollars

Consolidated Statement of Changes in Equity

For the Half Year Ended 31 December 2023

	Accumulated Losses	Contributed Equity	Reserves	Total
	$	$	$	$
Balance at 1 July 2022	(32,168,097)	38,743,432	706,297	7,281,632
Comprehensive income
Loss for the period	(665,096)	-	-	(665,096)
Other comprehensive income for the period	-	-	65,405	65,405
Total comprehensive loss for the period	(665,096)	-	65,405	(599,691)
Transactions with owners, in their capacity as owners, and other transfers:
New shares issued	-	1,406,312	-	1,406,312
Cost of raising equity	-	(84,379)	-	(84,379)
Total transactions with owners and other transfers	-	1,321,933	-	1,321,933
Balance at 31 December 2022	(32,833,193)	40,065,365	771,702	8,003,874
Balance at 1 July 2023	(34,295,295)	40,675,340	908,094	7,288,139
Comprehensive income
Loss for the period	(984,851)	-	-	(984,851)
Other comprehensive loss for the period	-	-	(148,877)	(148,877)
Total comprehensive loss for the period	(984,851)	-	(148,877)	(1,133,728)
Transactions with owners, in their capacity as owners, and other transfers:
New shares issued	-	1,047,856	-	1,047,856
Cost of raising equity	-	(67,017)	4,145	(62,872)
Total transactions with owners and other transfers	-	980,839	4,145	984,984
Balance at 31 December 2023	(35,280,146)	41,656,179	763,362	7,139,395

The accompanying notes form part of these consolidated financial statements

All amounts are in Australian Dollars

Consolidated Statement of Cash Flows

For the Half Year Ended 31 December 2023

		Consolidated 6 months to 31 December 2023	Consolidated  6 months to 31 December 2022
		$	$
Cash flows from operating activities
Receipts from customers		633,460	922,683
Payments to suppliers and employees		(875,426)	(1,477,116)
Interest paid		(5,642)	(5,676)
Net cash outflow from operating activities		(247,608)	(560,109)
Cash flows from investing activities
Payments for property, plant and equipment		-	(3,629)
Payments for oil and gas assets		(408,786)	(2,108,026)
Payments for acquisition of new subsidiaries		(153,230)	(145,158)
Payments for exploration and evaluation		(71,194)	(52,894)
Net cash outflow from investing activities		(633,210)	(2,309,707)
Cash flows from financing activities
Proceeds from shares issued		1,047,856	1,406,312
Payments for costs of capital		(62,872)	(84,379)
Net cash inflow from financial activities		984,984	1,321,933
Net decrease in cash and cash equivalents		104,166	(1,547,883)
Effects of exchange rate changes on cash and cash equivalents		(10,474)	3,570
Cash and cash equivalents at the beginning of the period		520,613	2,354,689
Cash and cash equivalents at the end of the period		614,305	810,376

The accompanying notes form part of these consolidated financial statements

All amounts are in Australian Dollars

Condensed Notes to the Financial Statements

For the Half-Year Ended 31 December 2023

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 2023 annual financial report for the financial year ended 30 June 2023, 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:

·      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.

However, should the Group be unable to raise further required financing from equity markets or other sources, there is uncertainty which may cast doubt as to whether or not the Group will be able to continue as a going concern and whether it will realise its assets and extinguish its liabilities in the normal course of business and at the amounts stated in the financial statements.

The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts nor to the amounts and classification of liabilities that might be necessary should the Group not continue as a going concern.

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. If, after having capitalised the expenditure under the policy, a judgement is made that the recovery of the expenditure is unlikely, the relevant capitalised amount will be written off to profit and loss.

Condensed Notes to the Financial Statements

For the Half-Year Ended 31 December 2023

All amounts are Australian Dollars

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 and Other Income

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 over the expected 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.

Condensed Notes to the Financial Statements

For the Half-Year Ended 31 December 2023

All amounts are Australian Dollars

	Consolidated 6 months to 31 December 2023	Consolidated 6 months to 31 December 2022
	$	$
2     Cost of sales
Cost of sales	22,285	49,516
Lease operating expenses	477,450	603,668
	499,735	653,184

	$	$
3     Corporate Costs
Accounting, Company Secretary and Audit fees	88,075	150,109
Consulting fees - board	210,000	159,250
Consulting fees - other	33,098	31,302
NOMAD and broker expenses	90,956	74,728
Legal and compliance fees	45,438	35,575
	467,567	450,964

	Consolidated Balance as at 31 December 2023	Consolidated Balance as at 30 June 2023
	$	$
4     Trade and Other Receivables
Joint interest billing receivables1	548,399	644,904
Less: allowance for expected credit losses	(119,962)	(123,762)
Deposits	55,706	55,358
GST receivable	29,476	24,353
Accrued revenue	246,080	253,044
Other receivables	4,386	9,742
	764,085	863,639
1.     When appropriate, unpaid joint interest billing receivables are recovered from the interest holders share of production income.

5     Other Assets
Prepayments	107,467	75,547
Incorporation costs	2,539	2,539
	110,006	78,086

6     Oil and Gas Assets
Cost brought forward	5,780,587	4,145,488
Acquisition of oil and gas assets during the period	-	54,113
Capitalised equipment workovers during the period	408,786	2,362,772
Amortisation for the period	(215,337)	(436,028)
Impairment of oil and gas assets	-	(474,586)
Impact of Foreign Exchange on opening balances	(149,362)	128,828
Carrying value at the end of the period	5,824,674	5,780,587

The Board has carried out an impairment assessment of the Oil and Gas Assets and have concluded that no impairment is required.

	Consolidated Balance as at 31 December 2023	Consolidated Balance as at 30 June 2023
7     Capitalised Oil and Gas Expenditure
Cost brought forward	1,420,531	1,240,541
Exploration costs incurred during the period	71,194	179,990
Impairment of oil and gas expenditure	-	-
Carrying value at end of the period	1,491,725	1,420,531

On 16 October 2023, the Company announced that it had entered into a farmout agreement with Greenvale Gold Pty Ltd, a wholly owned subsidiary of Greenvale Energy Ltd (ASX:GRV) to fund seismic and drilling on its EP 145 project in the Northern Territory of Australia. Upon Completion, Mosman would retain a 25% working interest in EP 145 and Greenvale would earn a 75% working interest in EP 145 by:

·      Committing to pay AUD160,000 in cash within 5 days of Completion, which is subject to government approval of the transfer of interest and Operatorship.

·      Paying for the EP 145 Permit Year 3 Work Program, including seismic, effective from Completion Date.

·      Funding the Permit Year 4 Work Program, including drilling one well with a well cost cap of AUD5.5 million.

·      The Year 3 Work Program is to be completed by August 2024 and the cost of the seismic acquisition is estimated to be circa AUD2 million.

The Year 4 Work Program is to be completed by August 2025. The cost of drilling a well depends on many factors including the depth of a well and cost of drilling rigs at the time of drilling.

On 23 January 2024, it was agreed to amend the Farmin Agreement so that the right for either party to terminate the agreement is changed from 31 January to 30 March 2024.

	$	$
8     Trade and Other Payables
Trade creditors	1,399,840	1,000,619
Amounts owing for acquisition of Nadsoilco LLC	-	150,830
Other creditors and accruals	90,517	34,001
	1,490,357	1,185,450

9     Contributed Equity
Ordinary Shares:
Value of Ordinary Shares fully paid
Movement in Contributed Equity				Number of shares	Contributed Equity $
Balance as at 1 July 2022:				5,220,138,052	38,743,432
	02/11/2022 04/04/2023 26/04/2023	Shares issued (i) Shares issued (ii) Shares issued (i)	$0.00123 $0.00101 $0.00103	1,142,857,142 45,454,545 545,454,545	1,406,312 45,829 564,145
Capital raising costs				-	(84,378)
Balance as at 1 July 2023:				6,953,904,284	40,675,340
	20/07/2023 05/12/2023	Shares issued (i) Shares issued (i)	$ 0.00067 $ 0.00024	857,142,857 2,000,000,000	571,739 476,117
Capital raising costs				-	(67,017)
Balance at the end of period				9,811,047,141	41,656,179

(i)         Placements via capital raising as announced

(ii)        Shares issued to suppliers

		Consolidated Balance as at 31 December 2023	Consolidated Balance as at 30 June 2023
		$	$
10     Reserves
Foreign currency translation reserve		741,899	890,776
Options reserve		21,463	17,318
		763,362	908,094

Foreign Currency Translation Reserve
Foreign Currency Translation Reserve at the beginning of the period	890,776	706,297
Current movement in the period	(148,877)	184,479
Foreign Currency Translation Reserve at the end of the period	741,899	890,776

Options Reserve
Options Reserve at the beginning of the period	17,318	-
Current movement in the period	4,145	17,318
Options Reserve at the end of the period	21,463	17,318

120,000,000 warrants were issued to brokers as part of their fee for facilitating a placement of shares in the period. The warrants are valued using the Binomial Method with the following inputs:

Share price at issue date	0.0118 British Pence
Exercise price	0.0125 British Pence
Risk-Free Interest Rate	3.9%
Volatility	91.8%

11     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 2023
Revenue
Revenue		533,794		-		533,794
Other income		-		348		348
Segment revenue		533,794		348		534,142
Segment Result
Loss
Allocated
-      Corporate costs		-		(467,567)		(467,567)
-      Administrative costs		(146,289)		(59,216)		(205,505)
-      Lease operating expenses		(477,450)		-		(477,450)
-      Cost of sales		(22,285)		-		(22,285)
Segment net profit/(loss) before tax		(112,230)		(526,435)		(638,665)
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		-		(7,425)		(7,425)
-      Amortisation		(215,337)		-		(215,337)
-      Impairment		-		-		-
Unallocated items
-      Employee benefits expense						(106,148)
-      Finance costs						(5,642)
-      Depreciation						(6,220)
-      Loss on foreign exchange						(5,414)
Net Loss before tax from continuing operations						(984,851)

(i)     Segment performance (continued)
		United States $		Australia $		Total $
Period ended 31 December 2022
Revenue
Revenue		936,187		-		936,187
Other income		-		139		139
Segment revenue		936,187		139		936,326
Segment Result
Loss
Allocated
-      Corporate costs		(37,509)		(413,455)		(450,964)
-      Administrative costs		(156,566)		(124,391)		(280,957)
-      Lease operating expenses		(603,668)		-		(603,668)
-      Cost of sales		(49,516)		-		(49,516)
Segment net profit/(loss) before tax		88,928		(537,707)		(448,779)
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		-		(9,300)		(9,300)
-      Amortisation		(94,861)		-		(94,861)
-      Impairment		-		-		-
Unallocated items
-      Employee benefits expense						(103,352)
-      Finance costs						(5,676)
-      Depreciation						(919)
-      Loss on foreign exchange						(2,209)
Net Loss before tax from continuing operations						(665,096)

(ii)       Segment assets
	United States $	Australia $	Total $
As at 31 December 2023
Segment assets as at 1 July 2023	7,017,407	1,652,269	8,669,676
Segment asset balances at end of period
-      Exploration and evaluation	-	8,672,643	8,672,643
-      Capitalised Oil and Gas	10,595,577	-	10,595,577
-      Less: Amortisation	(1,087,371)	-	(1,087,371)
-      Less: Impairment	(3,683,532)	(7,180,918)	(10,864,450)
	5,824,674	1,491,725	7,316,399
Reconciliation of segment assets to total assets:
Other assets	1,046,871	441,525	1,488,396
Total assets from continuing operations	6,871,545	1,933,250	8,804,795

	United States $	Australia $	Total $
As at 30 June 2023
Segment assets as at 1 July 2022	5,618,867	2,983,533	8,602,400
Segment asset balances at end of period
-      Exploration and evaluation	-	8,601,449	8,601,449
-      Capitalised oil and gas assets	10,490,641	-	10,490,641
-      Less: Amortisation	(909,850)	-	(909,850)
-      Less: Impairment	(3,800,204)	(7,180,918)	(10,981,122)
	5,780,587	1,420,531	7,201,118
Reconciliation of segment assets to total assets:
Other assets	1,236,820	231,738	1,468,558
Total assets from continuing operations	7,017,407	1,652,269	8,669,676

(iii)     Segment liabilities
	United States $	Australia $	Total $
As at 31 December 2023
Segment liabilities as at 1 July 2023	1,137,363	183,405	1,320,768
Segment liability increase/(decrease) for the period	270,220	74,412	344,632
	1,407,583	257,817	1,665,400
Reconciliation of segment liabilities to total liabilities:
Other liabilities	-	-	-
Total liabilities from continuing operations	1,407,583	257,817	1,665,400

As at 30 June 2023
Segment liabilities as at 1 July 2022	1,137,363	183,405	1,320,768
Segment liability increase/(decrease) for the period	14,805	45,964	60,769
	1,152,168	229,369	1,381,537
Reconciliation of segment liabilities to total liabilities:
Other liabilities	-	-	-
Total liabilities from continuing operations	1,152,168	229,369	1,381,537

12      Producing assets The Group currently has 5 producing assets, which the Board monitors as separate items to the geographical and operating segments. Project performance is monitored by the line items below.

	Stanley $	Cinnabar $	Winters $	Livingston $	Arkoma $	Other Projects $	Total $
Half-Year Ended 31 December 2023
Revenue
Oil and gas project related revenue	357,983	82,684	33,811	18,871	-	40,445	533,794
Producing assets revenue	357,983	82,684	33,811	18,871	-	40,445	533,794
Project-related expenses
-     Cost of sales	(16,495)	(3,810)	(1,253)	(727)	-	-	(22,285)
-     Lease operating expenses	(271,639)	(88,992)	(20,114)	(5,814)	-	(90,891)	(477,450)
Project cost of sales	(288,134)	(92,802)	(21,367)	(6,541)	-	(90,891)	(499,735)
Project gross profit
Gross profit	69,849	(10,118)	12,444	12,330	-	(50,446)	34,059

12      Producing assets (continued)

(i)       Project performance
		Stanley $		Cinnabar $		Winters $		Livingston $		Arkoma $	Other Projects $		Total $
Half-Year Ended 31 December 2022
Revenue
Oil and gas project related revenue		679,263		-		158,563		17,823		42,813	37,725		936,187
Producing assets revenue		679,263		-		158,563		17,823		42,813	37,725		936,187
Project-related expenses
-     Cost of sales		(34,616)				(10,997)		(821)		(3,082)	-		(49,516)
-     Lease operating expenses		(360,220)				(53,211)		(58,485)		(12,186)	(119,566)		(603,668)
Project cost of sales		(394,836)				(64,208)		(59,306)		(15,268)	(119,566)		(653,184)
Project gross profit
Gross profit		284,427				94,355		(41,483)		27,545	(81,841)		283,003

Condensed Notes to the Financial Statements

For the Half-Year Ended 31 December 2023

All amounts are Australian Dollars

13     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 2023, total exploration expenditure commitments for the next 12 months are as follows:

Entity	Tenement	31 December 2023 $	31 December 2022 $
Trident Energy Pty Ltd	EP1451	-	-
Oilco Pty Ltd	EPA155	-	-
		-	-

1.     EP145 is currently under extension until 21 August 2024, therefore there are no committed expenditures as of the date of this report.

(b)       Capital Commitments The Company had no capital commitments at 31 December 2023 (2022 - $Nil).

14     Warrants A summary of the movements of all company warrant issues to 31 December 2023 is as follows: Company Warrants 31 December 2023 Number of Options 30 June 2023 Number of Options Outstanding at the beginning of the period 1,288,928,571 1,584,250,000 Expired - (896,750,000) Granted 1,548,571,428 601,428,571 Outstanding at the end of the period 2,837,499,999 1,288,928,571 Exercisable at the end of the period 2,837,499,999 1,288,928,571

15     Subsequent Events   Subsequent to the end of the reporting period the Company announced the following material matters occurred: ·      On 15 January 2024, the Group announced it had lodged the Environmental Management Plan ("EMP") with the Northern Territory Government. Approval of the EMP and re-issue of the Aboriginal Areas Protection Authority ('AAPA') Certificate are the two remaining approvals required prior to the acquisition of 2D seismic, scheduled for 2024. ·      On 23 January 2024, the Group announced that Mosman and Greenvale Gas Ltd ("GRV"), a subsidiary of Greenvale Pty Ltd (ASX:GRV), had agreed to amend the Farmin Agreement so that the right for either party to terminate the agreement is changed from 31 January to 30 March 2024. ·      On 2 February, the Group announced it had raised £300,000 (before expenses) by way of a placing of 2,400,000,000 ordinary shares at a price of 0.0125 pence per share. ·      On 7 February, the Group held and Extraordinary General Meeting, where shareholder approval was received to issue 84,210,526 shares and 42,105,263 warrants to CEO Andrew Carroll, and 42,105,263 shares and 21,052,632 warrants to Chairman Nigel Harvey. Shares were issued for cash consideration at 0.0125p per share. The warrants are exercisable at 0.025p each with a two year expiry. All shares and warrants were issued on the same terms as the placement announced on 29 November 2023. There were no other material matters that occurred subsequent to 31 December 2023.

16     Dividends No dividends have been paid or proposed during the half year ended 31 December 2023.

 

END