TIDMMSMN
RNS Number : 7315G
Mosman Oil and Gas Limited
31 March 2022
31 March 2022
Mosman Oil and Gas Limited
("Mosman" or the "Company")
Half Year Results
Mosman Oil and Gas Limited (AIM: MSMN) the oil exploration,
development and production company, announces its Half Year results
to 31 December 2021, a period in which it significantly increased
oil and gas production across its US projects.
Summary
-- Revenue increased 95% to AUD 745,790 (compared to AUD
$383,138 in the six months ending 30 June 2021)
-- Gross Profit increased 232% to AUD188,487 (compared to AUD
$56,828 in the six months ending 30 June 2021)
-- Net loss narrowed to AUD 498,940 (compared to AUD $708,822 in
the six months ending 30 June 2021)
-- Net Production to Mosman increased 43% to 17,344 BOE
-- Completed acquisition of Nadsoilco increasing working
interest in Stanley Project, Livingston and Winters leases and
became operator of these leases, providing more day to day
control
-- Acquired additional working interests in Falcon-1 and
Cinnabar in East Texas. Completed 3D seismic reprocessing and
interpretation and identified potential development drilling
locations with multiple Wilcox sand targets at Cinnabar.
(1) BOE/boe - barrels of oil equivalent
(2) 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
(3) Net Production - Net to Mosman's Working interest before
royalties
Post Period end
-- Completed the construction of a gas network in East Texas in
February, enabling the sale of gas from Winters-2 and Stanley-4 and
enabling ongoing production optimisation.
-- 12 month extension of EP-145 in Australia secured and an
on-site environmental survey completed.
John W Barr, Chairman of Mosman commented: "We remain focussed
on delivering on our strategic objectives to build oil and gas
production and development upside, delivering solid progress on
this objective through the acquisition of Nadsoilco and additional
working interests at Falcon-1 and Cinnabar in East Texas.
"Good progress was made across our development projects,
increasing production. Revenues have benefitted from the increasing
oil and gas prices, which remain very strong. We have identified
potential drilling locations to target further increases in
production."
Enquiries:
Mosman Oil & Gas Limited NOMAD and Broker
John W Barr, Executive Chairman SP Angel Corporate Finance LLP
Andy Carroll, Technical Director Stuart Gledhill / Richard Hail /
jwbarr@mosmanoilandgas.com Adam Cowl
acarroll@mosmanoilandgas.com +44 (0) 20 3470 0470
Alma PR Joint Broker
Justine James / Joe Pederzolli Monecor (London) Ltd trading as ETX
+44 (0) 20 3405 0205 Capital Thomas Smith
+44 (0) 7525 324431 020 7392 1432
mosman@almapr.co.uk
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
existing exploration permits.
The Company has seven projects in the US: Stanley, Greater
Stanley, Livingston, Winters, Challenger and Champion in East Texas
and Arkoma in Oklahoma 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 further development
upside, in conjunction with adding value to the Company's existing
exploration permits.
Mosman has established increasing strong oil and gas production.
The company has a portfolio of development and exploration
projects, which provide the opportunity for further production
growth and increasing cashflow. Two exploration areas in Australia
are positioned to take advantage of the increasing demand for
Helium and Hydrogen as well as Oil and Gas.
Oil and gas prices have increased as economies recover from
Covid19 and the recent events in Europe. These increased prices
mean more cashflow from production, and added value to the
portfolio of development projects such as Cinnabar.
More than $940,000 was spent on increasing production and
exploration during the period.
The Company's production base continues to build with the
purchase of Working Interest (WI) in producing wells and the
drilling and completions of Stanley-5 and Winters-2.
East Texas Highlights
-- Drilled the Stanley-5 and Winters-2 wells:
- Both of these wells are now on production
- Continued the 100% success rate on development wells being put on production
-- Completed installation of the gas infrastructure to enable
gas sales from Stanley and Winters
-- Completed the Acquisition of Nadsoilco LLC:
- 20% increase in WI in the Stanley Project from 15-19% to 35-39%
- 20% WI in the oil producing Livingston Leases
- 23.3% WI in oil producing Winters Lease with development well to be drilled
- Mosman becomes Operator of these leases, providing more
control over day-to-day operations and drilling new wells
-- Completed the acquisition of an additional 25% WI in Falcon-1 well increasing WI to 75% WI:
- Production is steady
-- Cinnabar project:
- Completed the acquisition of an additional 15% WI increasing WI to 85%
- Completed 3D seismic reprocessing and interpretation
- Identified potential development drilling locations with multiple Wilcox sand targets
Results
The unaudited results for the six months to 31 December 2021
reflect the ongoing recovery from the drop in oil prices in
2019/2020. Revenue increased by $363,652 to $745,790 (2020:
$383,138) mainly due to the increased working interests following
the acquisition of Nadsoilco LLC and additional interest in Falcon.
Gross Profit increased to $188,487 (2020: $56,828).
The average sale prices achieved during the period was US$71.07
per barrel for oil, and US$3.74 per MMBtu for gas (in each case
after transport and processing costs and prior to royalties).
Corporate and administrative expenses were tightly controlled
which resulted in a decrease of $92k to $506,610 (2020:
$598,802).
The overall result for the period was a net loss of $498,940
(2020: $708,822), and total comprehensive loss of $326,289 (2020:
$537,739).
Projects
Mosman has Working Interests in several onshore producing
projects located in the USA. The Company also owns one granted
exploration permit and one application for an exploration permit in
the Amadeus Basin in Central Australia.
Producing Projects in the USA
PRODUCING
------------------------------------------------------------------------------------
Project Location Approx
Working Interest
Falcon (Falcon-1 well) Texas 75%
Stanley (various wells) Texas 34.85% to 38.5%
Livingston Texas 20%
Winters (Winters-1 and Winters-2 wells) Texas 29% Winters-1
23% Winters-2
Greater Stanley (Duff wells) Texas 40%
Arkoma Stacked Pay Oklahoma 27% (held for sale)
UNDEVELOPED
-----------------------------------------------------------------------------------
Project Location Approx
Working Interest
Galaxie Texas 85%
Cinnabar Texas 97% (potentially reducing to 85% after drilling))
Australia
EXPLORATION
----------------------------------------------------------------------------------------------------------------------
Project Location Approx
Working Interest
Amadeus Basin Northern Territory, Australia 100% in EP145
100% in EPA 155 (potentially reducing to 10% subject to
farmout conditions)
Production Summary for the six months ending 31 December
2021
Net Production attributable to Mosman before royalties for the
six months to 31 December 2021 was 17,344 boe, an increase of 5,201
boe, or 43% compared to the six months to June 2021 of 12,143 boe.
This is despite the operational issues experienced in December that
reduced the production in the 3 months to 31 December 2021. This
progress reflects the uplift in production from growth of existing
projects, the acquisition of Nadsoilco LLC and an increased
interest in Falcon.
It does not reflect recent increases in production at Falcon
which occurred after 31 December 2021 and does not include the
Winters-2 well which was drilled in November and was recently
recompleted and flowed gas. It also only includes minor production
from Stanley-5.
Subsequent Events
In the quarter ending 31 March 2022, the Company completed the
construction of a gas network to allow gas to be transferred to
market. This development has already enabled sale of gas from
Winters-2 and Stanley-4.
A 12 month extension of the Amadeus Basin Permit EP-145 License
was approved by the Minister for Mining and Industry in the
Northern Territory Government in February 2022. An on-site
environmental survey was completed in March 2022.
Condensed Consolidated Statement of Profit or Loss and Other
Comprehensive Income
For The Half Year Ended 31 December 2021
Notes Consolidated Consolidated
6 months to 6 months to
31 December 2021 31 December 2020
$ $
Revenue 745,790 383,138
Cost of sales 2 (557,303) (326,310)
----------------------------------- ------------------------------------
Gross profit 188,487 56,828
Interest i ncome - 37
Other income 8,684 51,512
Gain on sale of oil and gas
assets - 122,000
Administrative expenses (148,375) (158,325)
Corporate expenses 3 (358,235) (440,477)
Directors fees (60,000) (60,000)
Exploration expenses incurred
not capitalised (8,100) (10,090)
Employee b enefits expense (35,408) (29,337)
Finance costs (3,324) (6,362)
Amortisation expense (81,564) (63,297)
Depreciation expense (1,105) (1,559)
Loss on foreign exchange - (19,846)
Loss on sale of OCI financial
assets - (149,906)
Loss from ordinary activities
before income tax expense (498,940) (708,822)
Income tax expense - -
Net l oss for the period (498,940) (708,822)
----------------------------------- ------------------------------------
Other c omprehensive income
Items that may be reclassified
to profit or loss
Gain on financial assets at fair
value through other
comprehensive income (FVOCI) 4 - 525,118
Foreign currency (loss)/gain 4 172,651 (354,035)
----------------------------------- ------------------------------------
Other comprehensive income for
the period, net of tax 172,651 171,083
----------------------------------- ------------------------------------
Total comprehensive loss
attributable to members of the
entity (326,289) (537,739)
=================================== ====================================
Basic and diluted loss per share (0.01) cents (0.04) cents
The accompanying notes form part of these consolidated financial
statements.
All amounts are in Australian Dollars
Condensed Consolidated Statement of Financial Position
As at 31 December 2021
Notes Consolidated Consolidated
Balance as at 31 December 2021 Balance as at 30 June 2021
$ $
Current Assets
Cash and cash equivalents 948,376 2,289,674
Funds held in trust - 1,197,127
Trade and other receivables 5 1,099,486 172,500
Other assets 6 223,969 23,418
Total Current Assets 2,271,831 3,682,719
-------------------------------- ----------------------------
Non-Current Assets
Property, plant & equipment 15,999 7,147
Oil and gas assets 7 5,406,696 3,328,029
Capitalised o il and g as exploration 8 1,003,256 706,702
-------------------------------- ----------------------------
Total Non-Current Assets 6,425,951 4,041,878
-------------------------------- ----------------------------
Total Assets 8,697,782 7,724,597
-------------------------------- ----------------------------
Current Liabilities
Trade and other payables 10 1,287,403 377,727
Provisions 24,039 22,423
Total Current Liabilities 1,311,442 400,150
Non-Current Liabilities
Provisions 36,664 -
Other payables 10 137,817 -
-------------------------------- ----------------------------
Total Non-Current Liabilities 174,481 -
-------------------------------- ----------------------------
Total Liabilities 1,485,923 400,150
-------------------------------- ----------------------------
Net Assets 7,211,859 7,324,447
================================ ============================
Shareholders' Equity
Contributed equity 11 36,914,082 36,700,381
Reserves 12 518,540 436,247
Accumulated losses (30,220,763) (29,812,181)
--------------------------------
Equity attributable to shareholders 7,211,859 7,324,447
Total Shareholders' Equity 7,211,859 7,324,447
================================ ============================
The accompanying notes form part of these consolidated financial
statements.
All amounts are in Australian Dollars
Condensed Consolidated Statement of Changes in Equity
For the Half Year Ended 31 December 2021
Accumulated Contributed Equity Reserves Total
Losses
$ $ $ $
Balance at 1 July 2020 (28,939,390) 30,691,497 712,134 2,464,241
-------------- ------------------- --------- --------------
Comprehensive income
Loss for the period (708,822) - - (708,822)
Other comprehensive loss for the period - - 171,083 171,083
-------------- ------------------- --------- --------------
Total comprehensive loss for the period (708,822) - 171,083 (537,739)
Transactions with owners, in their capacity as owners, and other transfers:
New shares issued - 3,095,575 - 3,095,575
Cost of raising equity - (141,948) - (141,948)
Total transactions with owners and other
transfers - 2,953,627 - 2,953,627
-------------- ------------------- --------- --------------
Balance at 31 December 2020 (29,648,212) 33,645,124 883,217 4,880,129
============== =================== ========= ==============
Balance at 1 July 2021 (29,812,181) 36,700,381 436,247 7,324,447
-------------- ------------------- --------- --------------
Comprehensive income
Loss for the period (498,940) - - (498,940)
Other comprehensive loss for the period - - 172,651 172,651
-------------- ------------------- --------- --------------
Total comprehensive loss for the period (498,940) - 172,651 (326,289)
-------------- ------------------- --------- --------------
Transactions with owners, in their capacity as owners, and other transfers:
New shares issued - 213,701 - 213,701
Cost of raising equity - - - -
Lapsed warrants 90,358 - (90,358) -
Total transactions with owners and other
transfers 90,358 213,701 (90,358) 213,701
-------------- ------------------- --------- --------------
Balance at 31 December 2021 (30,220,763) 36,914,082 518,540 7,211,859
============== =================== ========= ==============
These accompanying notes form part of these consolidated
financial statements
All amounts are in Australian Dollars
Condensed Consolidated Statement of Cash Flows
For the Half Year Ended 31 December 2021
Consolidated Consolidated
6 months to 31 December 2021 6 months to 31 December 2020
$ $
Cash flows from operating activities
Receipts from customers 635,709 387,356
Interest received & other income 47,309 51,511
Payments to suppliers and employees (1,307,346) (1,423,368)
Interest paid (3,324) (6,361)
Net cash used in operating activities (627,652) (990,862)
------------------------------ ------------------------------
Cash flows from investing activities
Payments for exploration and evaluation (296,553) (82,359)
Deposits paid for acquisition - (135,223)
Payments for oil and gas acquisitions (209,212) -
Payments for oil and gas assets (436,452) (1,602,290)
Proceeds from sale of assets - 261,177
------------------------------ ------------------------------
Net cash used in investing activities (942,217) (1,558,695)
------------------------------ ------------------------------
Cash flows from financing activities
Proceeds from shares issued 180,111 3,095,575
Payments for costs of capital - (141,948)
Net cash provided by financial activities 180,111 2,953,627
------------------------------ ------------------------------
Net increase/(decrease) in cash and cash
equivalents (1,389,758) 404,070
------------------------------ ------------------------------
Cash and cash equivalents at the beginning of the
financial period 2,289,674 372,479
------------------------------ ------------------------------
Effects of foreign currency exchange 48,460 -
------------------------------ ------------------------------
Cash and cash equivalents at the end of the
financial period 948,376 776,549
------------------------------ ------------------------------
The accompanying notes from 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 2021
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 2021 annual
financial report for the financial year ended 30 June 2021, 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.
Condensed Notes to the Financial Statements
For the Half-Year Ended 31 December 2021
All amounts are Australian Dollars
1. Summary of Significant Accounting Policies (Continued)
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.
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 Reporting
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 on a units of production basis over the 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 2021
All amounts are Australian Dollars
Consolidated Consolidated
6 months 6 months to
to 31 December 31 December
2021 2020
$ $
2. Cost of sales
Cost of sales 40,933 70,571
Lease operating expenses 516,370 255,739
557,303 326,310
---------------- -------------
3. Corporate costs
Accounting, Company Secretary and Audit
fees 92,945 97,174
Consulting fees - Board 140,000 166,000
Consulting fees - Other 79,793 83,176
Legal and compliance fees 45,497 94,127
358,235 440,477
---------------- -------------
4. Other comprehensive income
Gain on financial assets at fair value
through other comprehensive income (FVOCI) - 525,118
Foreign currency (loss)/gain 172,651 (354,035)
------------
172,651 171,083
------------ -----------
5. Trade and other receivables
Joint interest billing receivables 888,947 (1) -
Deposits 54,875 54,875
GST receivable 25,348 39,867
Accrued revenue 125,464 73,768
Other receivables 4,852 3,990
------------ -----------
1,099,486 172,500
------------ -----------
1. Amounts receivable from other royalty holders in projects
operated by Nadsoilco LLC, and funds are to be used predominantly
for new well workovers.
6. Other assets
Prepayments 223,969 23,418
223,969 23,418
-------- -------
Condensed Notes to the Financial Statements
For the Half-Year Ended 31 December 2021
All amounts are Australian Dollars
Consolidated
Balance as
Consolidated at 30 June
Balance as
at 31 December
2021 2021
$ $
7. Oil and gas assets
Cost brought forward 3,328,029 2,061,131
Acquisition of oil and gas assets during 1,003,420
the period (1) 158,486
Revaluation of acquisition assets to 593,789(2) -
fair value(2)
Disposal of oil and gas assets on sale
during the period - (441,384)
Capitalised equipment workovers 418,641 1,899,759
Amortisation for the period (82,274) (170,388)
Impairment of oil and gas assets - -
Impact of foreign exchange 145,091 (179,575)
-------------------
Carrying value at end of the period 5,406,696 3,328,029
------------------- -------------
1. $796,637 relates to new oil and gas assets recognised as part
of the Nadsoilco LLC acquisition. $206,783 relates to the acquisition
of an additional 25% working interest in the Falcon lease.
2. Refer to Note 9 for further information.
8. Capitalised oil and gas expenditure
Costs brought forward 706,702 301,242
Exploration costs incurred during the
period 296,554 405,460
Impairment of oil and gas expenditure - -
Carrying value at the end of the period 1,003,256 706,702
------------------- -------------
9. Business combinations
On 1 July 2021, the Group acquired 100% of the shares in Texas
based oil and gas producer, Nadsoilco LLC. The Group acquired
Nadsoilco LLC for US$1,100,000, of which US$900,000 was paid
in cash in July 2021, with a further $100,000 payable on 1 July
2022 and $100,000 payable on 1 July 2023.
Consideration transferred
Cash consideration paid 1,202,726
Cash consideration payable 267,272
----------
1,469,998
----------
Net assets acquired in Nadsoilco at the date
of acquisition 876,209
Fair value adjustment to be allocated to oil
and gas assets 593,789
----------
1,469,998
----------
Goodwill -
----------
Condensed Notes to the Financial Statements
For the Half-Year Ended 31 December
2021
All amounts are Australian Dollars
10. Trade and other payables
Consolidated Consolidated
Balance as Balance as
at 31 December at 30 June
2021 2021
$ $
CURRENT
Trade creditors 1,062,634(1) 295,243
Amounts owing for acquisition of Nadsoilco -
LLC 137,817
Other creditors and accruals 86,952 82,484
1,287,403 377,727
---------------- -------------
NON-CURRENT
Amounts owing for acquisition of Nadsoilco -
LLC 137,817
---------------- -------------
137,817 -
---------------- -------------
1. The increase in trade creditors is primarily attributable to
creditors in Nadsoilco LLC and relates to amounts owing for prepaid
workover costs. The balance includes amounts payable on behalf of
other royalty holders for which there are also receivables owing
for their share of the workover costs (refer Note 5).
11. Contributed Equity
Ordinary Shares
Total shares at 31 December 2021: 3,845,138,052 (30 June 2021:
3,767,763,052) ordinary shares fully paid.
Contributed
Equity
a) Shares movements during the half-year $ No. of shares
Balance at 30 June 2021 36,700,381 3,767,763,052
Shares issued 213,701 77,375,000
Cost of issued shares - -
Balance at 31 December 2021 36,914,082 3,845,138,052
---------------- --------------
Consolidated Consolidated
Balance as Balance as
at 31 December at 30 June
2021 2021
12. Reserves
Options reserve - 90,358
Foreign currency translation reserve 518,540 345,889
---------------- --------------
518,540 436,247
---------------- --------------
a) Options Reserve
Options Reserve at the beginning of the
period 90,358 471,818
Options issued - 90,358
Options expired (90,358)(2) (471,818)
------------ ----------
Options Reserve at the end of the period - 90,358
------------ ----------
2. 104,452,083 warrants issued to Directors expired on 22 December 2021.
Condensed Notes to the Financial Statements
For the Half-Year Ended 31 December 2021
All amounts are Australian Dollars
12. Reserves (continued)
b) Foreign Currency Translation Reserve
Foreign Currency Translation Reserve
at the beginning of the period 345,889 603,841
Current movement in the period 172,651 (257,952)
Foreign Currency Translation Reserve
at the end of the period 518,540 345,889
-------- ----------
13. 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.
Condensed Notes to the Financial Statements
For the Half-Year Ended 31 December 2021
All amounts are Australian Dollars
13. Segment Information (continued)
(i) Segment performance
United States Australia Total
$ $ $
------------------ ------------------ -------------
Period ended 31 December 2021
Revenue
Revenue 745,790 - 745,790
Other income - 8,684 8,684
Segment revenue 745,790 8,684 754,474
------------------ ------------------ -------------
Segment Result
Loss
Allocated
- Corporate costs (35,045) (323,190) (358,235)
- Administrative costs (94,108) (54,267) (148,375)
- Lease operating expenses (516,370) - (516,370)
- Cost of sales (40,933) - (40,933)
Segment net profit/(loss) before tax 59,334 (368,773) (309,439)
------------------ ------------------ -------------
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 - (8,100) (8,100)
- Amortisation (81,564) - (81,564)
- Impairment - - -
Unallocated items
- Employee benefits expense (95,408)
- Finance costs (3,324)
- Depreciation (1,105)
Net Loss before tax from continuing operations (498,940)
-------------
Condensed Notes to the Financial Statements
For the Half-Year Ended 31 December 2021
All amounts are Australian Dollars
13 . Segment Information (continued)
(i) Segment performance (continued)
United States Australia Total
$ $ $
-------------- ------------------ --------------
Period ended 31 December 2020
Revenue
Revenue 383,138 - 383,138
Interest income - 37 37
Gain on sale of oil and gas assets 122,000 - 122,000
Other income 41,512 10,000 51,512
Segment revenue 546,650 10,037 556,687
-------------- ------------------ --------------
Segment Result
Loss
Allocated
- Corporate costs (65,123) (375,354) (440,477)
- Administrative costs (93,693) (64,632) (158,325)
- Lease operating expenses (255,739) - (255,739)
- Cost of sales (70,571) - (70,571)
- Loss on sale of OCI financial assets (149,906) - (149,906)
-------------- ------------------ --------------
Segment net profit/(loss) before tax (88,382) (429,949) (518,331)
-------------- ------------------ --------------
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 - (10,090) (10,090)
- Amortisation (63,297) - (63,297)
- Impairment - - -
Unallocated items
- Employee benefits expense (89,337)
- Finance costs (6,362)
- Foreign exchange (19,846)
- Depreciation (1,559)
--------------
Net Loss before tax from continuing operations (708,822)
--------------
Period ended 31 December 2020
Condensed Notes to the Financial Statements
For the Half-Year Ended 31 December 2021
All amounts are Australian Dollars
13. Segment Information (continued)
(ii) Segment assets
United States Australia Total
$ $ $
-------------- ------------ ------------
As at 31 December 2021
Segment assets as at 1 July 2021 4,925,917 2,798,680 7,724,597
Segment asset balances at end of
period
- Exploration and evaluation - 8,184,174 8,184,174
- Capitalised Oil and Gas 6,509,155 - 6,509,155
- Less: Amortisation (271,686) - (271,686)
- Less: Impairment (1,424,562) (7,180,918) (8,605,480)
-------------- ------------ ------------
4,812,907 1,003,256 5,816,163
-------------- ------------ ------------
Reconciliation of segment assets to total assets:
Other assets 2,120,098 761,521 2,881,619
-------------- ------------ ------------
Total assets from continuing operations 6,933,005 1,764,777 8,697,782
-------------- ------------ ------------
United States Australia Total
$ $ $
-------------- ------------ ------------
As at 30 June 2021
Segment assets as at 1 July
2020 2,350,564 683,037 3,033,601
Segment asset balances at
end of
year
- Exploration and evaluation - 7,887,620 7,887,620
- Capitalised oil and gas
assets 4,885,757 - 4,885,757
- Less: Amortisation (182,811) - (182,811)
- Less: Impairment (1,374,917) (7,180,918) (8,555,835)
-------------- ------------ ------------
3,328,029 706,702 4,034,731
-------------- ------------ ------------
Reconciliation of segment
assets to total assets:
Other assets 1,597,888 2,091,978 3,689,866
-------------- ------------ ------------
Total assets from continuing
operations 4,925,917 2,798,680 7,724,597
-------------- ------------ ------------
Condensed Notes to the Financial Statements
For the Half-Year Ended 31 December 2021
All amounts are Australian Dollars
13. Segment Information (continued)
(iii) Segment liabilities
United States Australia Total
$ $ $
-------------- ---------- ----------
As at 31 December 2021
Segment liabilities as at 1 July 2021 29,380 370,770 400,150
Segment liability increase/(decrease) for the year 1,238,118 (152,345) 1,085,773
-------------- ---------- ----------
1,267,498 218,425 1,485,923
-------------- ---------- ----------
Reconciliation of segment liabilities to total liabilities:
Other liabilities - - -
-------------- ---------- ----------
Total liabilities from continuing operations 1,267,498 218,425 1,485,923
-------------- ---------- ----------
As at 30 June 2021
Segment liabilities as at 1 July 2020 87,486 481,874 569,360
Segment liability (decrease) for the year (58,106) (111,104) (169,210)
-------------- ---------- ----------
29,380 370,770 400,150
-------------- ---------- ----------
Reconciliation of segment liabilities to total liabilities:
Other liabilities - - -
-------------- ---------- ----------
Total liabilities from continuing operations 29,380 370,770 400,150
-------------- ---------- ----------
Condensed Notes to the Financial Statements
For the Half-Year Ended 31 December 2021
All amounts are Australian Dollars
14. Producing assets
The Group currently has 3 producing assets, which the Board monitors as separate items to
the geographical and operating
segments. The Stanley and Welch are Oil and Gas producing assets in the United States along
with some other projects.
Project performance is monitored by the line items below.
(i) Project performance
Stanley Falcon Winters Livingston Arkoma Other Total
$ $ $ $ $ Projects $
$
---------- ---------- -------- ----------- --------- ---------- ----------
Half-Year Ended 31 December
2021
Revenue
Oil and gas project related
revenue 321,220 322,803 6,390 7,455 41,386 46,536 745,790
Producing assets revenue 321,220 322,803 6,390 7,455 41,386 46,536 745,790
---------- ---------- -------- ----------- --------- ---------- ----------
Project-related expenses
* Cost of sales (15,008) (22,307) (294) (344) (2,980) - (40,933)
* Lease operating expenses (223,615) (138,701) (3,956) (6,483) (8,133) (135,482) (516,370)
Project cost of sales (238,623) (161,008) (4,250) (6,827) (11,113) (135,482) (557,303)
---------- ---------- -------- ----------- --------- ---------- ----------
Project gross profit
Gross profit 82,597 161,795 2,140 628 30,273 (88,946) 188,487
---------- ---------- -------- ----------- --------- ---------- ----------
Condensed Notes to the Financial Statements
For the Half-Year Ended 31 December 2021
All amounts are Australian Dollars
14. Producing assets (continued)
(i) Project performance
Arkoma Stanley Welch Other Projects Total
$ $ $ $ $
-------- --------- ---------- --------------- ----------
Half-Year Ended 31 December 2020
Revenue
Oil and gas project related revenue - 174,245 203,650 5,243 383,138
Producing assets revenue - 174,245 203,650 5,243 383,138
-------- --------- ---------- --------------- ----------
Project-related expenses
* Cost of sales - (10,618) (59,953) - (70,571)
* Lease operating expenses - (26,588) (227,974) (1,177) (255,739)
Project cost of sales - (37,206) (287,927) (1,177) (326,310)
-------- --------- ---------- --------------- ----------
Project gross profit
Gross profit - 137,039 (84,277) 4,066 56,828
-------- --------- ---------- --------------- ----------
Condensed Notes to the Financial Statements
For the Half-Year Ended 31 December 2021
All amounts are Australian Dollars
15. 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 2021, total exploration expenditure
commitments for the next 12 months are as follows:
31 December 31 December
2021 2020
Entity Tenement $ $
Trident Energy Pty Ltd EP145(1) - -
Oilco Pty Ltd EPA155 - -
- -
------------ ------------
1. EP145 is currently under extension until 21 August 2022,
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 2021 (2020
- $Nil).
16. Subsequent Events
In the quarter ending 31 March 2022, the Company completed the
construction of a gas network to allow gas to be transferred to
market. This development has already seen the initial sale of gas
from Winters-2 and Stanley-4.
On 14 February 2022 the Amadeus Basin Permit EP-145 License
Extension was approved by the Minister for Mining and Industry in
the Northern Territory Government after application by the
Company.
Other than the above, there were no significant events
subsequent to the date of statement of financial position.
17. Dividends
No dividends have been paid or proposed during the half year
ended 31 December 2021.
Directors' Declaration
T he Directors of the Consolidated Group de c l a re that:
1. The fin ancial s t a t e m e nts a nd not e s, as s et out on
pages 5-21, are in a c c o rdance with the Australian Corpo r a
tions A ct 2001:
(a) comply with Accounting Standards, which, as stated in Note 1
- Statement of Accounting Policies to the consolidated financial
statements, constitutes compliance with International Financial
Reporting Standards (IFRS); and
(b) give a t rue and f a ir v i ew of the consolidated f ina n c
i al pos ition as at 31 December 2021 a nd of the pe r for m a n ce
f or the ye ar ended on th at date of the G r o up.
2. In the Dir ectors' opinion the re a re r e a sonable g rounds
to beli eve that the Group w ill be able to pay its debts as a nd w
h en they become due and pa y able.
T his d e cla r a tion is m ade in a c cordance with a r e
solution of the Boa rd of Dir e c tors and is sig n ed by autho
rity for a nd on be h a lf of the D i r e cto rs by:
John W Barr
Executive Chairman
Dated this 31 March 2022
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END
IR SDISIFEESEDD
(END) Dow Jones Newswires
March 31, 2022 02:01 ET (06:01 GMT)
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