Mosman Oil & Gas Reducing Costs Amid Oil Price Slide
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Oil and gas explorer Mosman Oil and Gas Limited continues to pare down the business in the light of low oil prices and is on the hunt for further acquisitions.
It is in a sound financial position, with A$4.9mln in the bank (2014: A$2.1mln), it told investors as it posted half-year results alongside an operations update. However, group losses widened.
Under a revised strategy, last September the firm inked a contract to acquire the South Taranaki Energy Project (STEP) in New Zealand from Origin Energy but in February the deal was called off.
The firm has also started selling surplus equipment although it is keeping long lead items critical for future drilling activities.
At the Petroleum Creek and Taramakau permits, Mosman wants to amalgamate the two to improve exploration efficiency and is seeking approval.
At the Murchison permit in New Zealand, it has commenced the LIDAR survey and results are expected in three months’ time.
It is also plugging and abandoning three exploration wells from 2014 in accordance with permit regulations and to reduce land occupation costs.
In Australia, its withdrawal from the Otway Basin license VicP62 joint venture is now finalized, eliminating exposure to offshore exploration.
John Barr, Mosman’s executive chairman said 2015 has been “incredibly challenging”.
“The board remains resolute for a positive outcome for the future of Mosman and have taken decisive action,” he said.
“Importantly, the board are continuing to evaluate the development opportunities within Mosman and additional opportunities that it has identified, which are now under active review, and shareholders will be advised if and when one of these opportunities crystallizes.”
In the six months to end December, the junior oil firm posted a loss before tax of A$3.6mln versus a loss of A$1.9mln in the same period a year ago.
Source: (march 29, 2016) Proactive Investors
About Mosman Oil & Gas
Mosman Oil and Gas (AIM: MSMN) is an Australia and New Zealand focused oil exploration and development company with strategy to build a sustainable mid-tier oil and gas business by acquisition and organic growth. Currently, prior to the completion of the STEP acquisition in New Zealand, Mosman has an interest in ten permits or accepted permit applications.
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