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
acarroll@mosmanoilandgas.com
|
NOMAD and Joint Broker
SP Angel Corporate Finance
LLP
Stuart Gledhill / Richard Hail /
Adam Cowl
+44 (0) 20 3470 0470
|
Alma Strategic
Communications
Justine James / Will
Merison
+44 (0) 20 3405 0205
+44 (0) 7525 324431
mosman@almastrategic.com
|
Joint Broker
CMC Markets UK Plc
Douglas Crippen
+44 (0) 020 3003 8632
|
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 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
|