TIDMMSMN
RNS Number : 5512F
Mosman Oil and Gas Limited
07 November 2022
7 November 2022
Mosman Oil and Gas Limited
("Mosman" or the "Company")
Final Results to 30 June 2022
Mosman Oil and Gas Limited (AIM: MSMN) the oil exploration,
development, and production company, announces its final results
for the year ended 30 June 2022.
Summary
-- Gross Project Production 81,876 BOE (1)
-- Net Production to Mosman 37,915 BOE (3)
-- Revenue AU$1.81m
-- Gross Profit AU$0.70m
-- Net loss for the year of AU$2.45m
(1,BOE/boe - barrels of oil equivalent based on calorific value
as opposed to dollar value)
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 to Mosman's Working Interest; Net Production
attributable to Mosman means net to Mosman's Working Interest
before royalties)
Operational highlights
-- I nstalled and commissioned gas infrastructure at Stanley
project in East Texas. This enabled gas zones to be produced, with
the gas also being used to provide lift to oil wells in order to
improve oil production.
-- Extensive program of workovers at Stanley, with the overall
results of these activities increasing production post period
end.
-- Significant development at the Cinnabar project in East Texas
with extensive technical work, including reprocessing and
re-interpretation of 3D seismic, provided insight into the best
location for the first re-development well.
-- Post period end, this led to the successful drilling of the
Cinnabar-1 well in October 2022.
The Company expects to publish its annual report today which
will be posted and made available on the Company's website at
www.mosmanoilandgas.com/financial-reports .
John W Barr, Chairman of Mosman commented :" Mosman has made
considerable progress towards this objective with a 66% increase in
net production in FY22. Whilst the Board is pleased with this
progress, it believes there is significant scope for further
progress and will continue to strive to further expand the
business.
"Mosman remains resolute in identifying opportunities which will
provide operating cash flow and have development upside, in
conjunction with exploration of existing exploration permits,
whilst also being in a position to evaluate further acquisition
targets.
"The small team is nimble and, working with our partners, we are
building a strong foundation from which we plan to scale up the
business and grow by taking advantage of organic production
opportunities in the year ahead.
"We acknowledge it has been a turbulent year for shareholders
and would like to take this opportunity to thank them for their
continued support whilst reassuring them of our confidence of
achieving growth in both production and value for the
business."
Enquiries:
Mosman Oil & Gas Limited NOMAD and Joint 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 Monecor (London) Ltd trading as
+44 (0) 20 3405 0205 OvalX
+44 (0) 7525 324431 Thomas Smith
mosman@almapr.co.uk 020 7392 1432
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 several projects in the US. In addition to
exploration projects in the Amadeus Basin in Central Australia.
Chairman's Letter
Overview of the 2022 Financial Year
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.
Mosman has made considerable progress towards this objective
with a 66% increase in net production in FY22. Whilst the Board is
pleased with this progress, it believes there is significant scope
for further progress and will continue to strive to further expand
the business.
The Company has several 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.
In the period there were two notable developments:
The first was at the Stanley project in East Texas where Mosman
installed and commissioned gas infrastructure. This enable gas
zones to be produced, with the gas also being used to provide lift
to oil wells in order to improve oil production. This was followed
by an extensive program of workovers at Stanley, with the overall
results of these activities increasing production after the end of
this financial year.
The second significant development was progress at the Cinnabar
project in East Texas, which post period end led to the successful
drilling of the Cinnabar-1 well in October 2022. This project was
acquired at modest cost when oil and gas prices were lower.
Extensive technical work, including reprocessing and
re-interpretation of 3D seismic, provided insight into the best
location for the first re-development well. This technical work,
and the investment in drilling, were more than justified by the
excellent results achieved to date. This well is expected to be
flowed and put on production in November 2022.
The Cinnabar project provides a large resource for additional
development wells offering significant organic growth and will be a
priority for Mosman in 2023.
In the period, sales increased by 122% to $1,812,119 ($816,695
in 2021). Gross profit also increased significantly by 114% to
$695,096 ($324,925 in 2021). The financial results were supported
by increased ownership of projects, strong commodity prices and the
establishment of a broader production base, including the Winters-2
well.
The Falcon well ceased production due to water influx. The
latest technical review led us to believe Mosman's time and money
is currently better spent at Cinnabar. As a result, the Company has
decided to write down the Falcon well to reflect its current lack
of production. This impairment contributed $1,606,816 to the
overall loss for the year which was $2,446,274.
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.
In Australia's Northern Territory, Mosman recently published a
new Prospective Resource estimate over the EP-145 lease where we
hold 100% and continue to work with landowners and government to
secure all required approvals for the next step of exploration.
Covid19 and regulatory changes have meant this process has taken
longer than expected, and an extension in the term of the license
was sought and approved by government. Mosman has used the time to
conduct extensive technical work, focusing on helium and hydrogen,
as well as hydrocarbons. This work led to the new Prospective
Resource (as detailed below).
Given the operational progress both during the year and after
the reporting period, the Board looks forward with great optimism
given these achievements and the growth opportunities available to
it.
USA
Net Production attributable to Mosman in the year to 30 June
2022 was 37,915 boe, compared to 22,824 boe in 2021.
Production
Gross Project Production(2) Net Production to Mosman
BOE(1) (3)
BOE(1)
----------------- ------------------------------ -------------------------
Falcon 29,114 21,836
Stanley 26,212 9,746
Greater Stanley 1,530 306
Winters 14,726 3,456
Arkoma 10,294 2,571
Total Production 81,876 37,915
---------------------- ------------------------- -------------------------
(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; Net
Production attributable to Mosman means net to Mosman's Working
Interest before royalties
The focus in East Texas includes the Stanley, Greater Stanley,
Champion and Challenger projects. We completed the acquisition of
Nadsoilco last year, and subsequent to this acquired a further
interest in the Falcon Well and Champion Lease resulting in higher
net production to Mosman being achieved. Importantly the new
Cinnabar well has been drilled in October 2022.
Cinnabar (75% working interest)
Cinnabar has two existing wells and a third well was drilled in
October 2022 by Mosman and its Joint venture partners. This well is
expected to be flowed and put on production in November 2022.
This is considered to be a major step forward.
Winters-2 (23% Working Interest)
Production of gas from the Winters-2 well, which commenced in
March 2022, continues and the June quarter is the first full
quarter of production reported. Post the end of the quarter, a new
compressor was installed at Winters.
Stanley (34.85% to 38.5% Working Interests)
Overall production at Stanley is increasing but variable where
workovers were undertaken to target increased production from
higher zones. In addition, installed gas infrastructure continues
to be used to further optimise overall production.
Falcon (75% Working Interest)
The Falcon-1 well stopped producing in the June quarter and the
first attempted workover was not successful.
Livingston (20% Working Interest) and Greater Stanley (40%
Working Interest)
These projects are of strategic importance and form part of the
longer-term planning.
Arkoma (27% Working Interest)
Production had been variable since the significant lightning
strike in March 2022.
This asset is being held for sale as other projects are
preferred for further investment.
Australia
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.
An airborne gravity and gradiometry survey was completed last
year and provided a wealth of new information that is critical to
ongoing work. That survey is a significant step in the exploration
programme for EP-145 and is the first time that such data has been
acquired for the whole 818 sq/km of the permit area.
This has led to a new Prospective Resource estimate by Mosman as
detailed below.
Based on a report by the Geognostics Australia Pty Ltd dated
October 2022, and data from other wells in the Amadeus basin,
Mosman has estimated gross Prospective Resource volumes for
hydrocarbons, helium, and hydrogen associated with the Walker Creek
Anticline as a lead within the boundaries of the EP-145 permit
using a deterministic approach and applying the SPE PRMS
standard.
Prospective Low Estimate Best Estimate High Estimate
Resources (Bcf)
Total gas 12 440 2,290
============== =============== ===============
Helium 0.3 26.4 229
============== =============== ===============
Hydrogen 0.24 26.4 275
============== =============== ===============
Source: Mosman Oil and Gas Ltd, October 2022
The Aboriginal Areas Protection Authority (APAA) sacred site
clearance certificate has been received. The Central Land Council
(CLC) is currently working on their requirements.
The ongoing exploration work programme on EP 145 is to acquire
seismic prior to drilling an exploration well. Mosman has applied
for the required regulatory and CLC approvals. The CLC has
conducted a site survey as a pre-requisite to land access approval
for seismic acquisition.
Once the surveys are completed, the next step will be to
progress the technical work to further define the prospectivity of
the permit. This will include the acquisition and interpretation of
2D seismic will comprise the next significant exploration activity
in the current permit year (expiring August 2023), prior to
identifying a drilling location and drilling an exploration
well.
All seismic and drilling activities are subject to obtaining the
necessary planning approvals from the NT Department of Industry and
Resources, which are currently being coordinated by the project
manager.
At Mosman's other central Australian project in EPA-155, the
permit is subject to a farmout with the next step being completion
of Native Title negotiations. Mosman understands that the farm-in
partner is currently arranging funding.
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 Means the production of BOE at a total project level (100%
Production 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
-----------------------------------------------------------------
CORPORATE
Financial Report
Overall, in the year to 30 June 2022, the Company made a loss of
$2,446,274 after impairments of $1,606,816.
Of significance, some $1,588,036 was spent on investing
activities on assets in the portfolio during the year, in support
of the Group's growth strategy.
The net proceeds of fundraising activities during the year were
$2,009,461.
The Board continues to focus on achieving a cash flow positive
position at a Company level. Given the current financial position,
the results of recent drilling and the ongoing focus to control
costs, this is now becoming an increasingly achievable
objective.
Overhead costs continue to be tightly controlled. Mosman
continues to operate with a very small number of Employees and
Consultants. The Company operates in three countries and in
four-time zones, and the role played by the Employees and
Consultants is vital in achieving Mosman's strategic objective.
Accordingly, I again express my profound gratitude for everyone's
efforts in the year.
Matters subsequent to the reporting period
1. Subsequent to the end of the reporting period the Company
announced the following material matters occurred:
-- The Cinnabar development well in Tyler County, Texas has
completed drilling. The well was drilled to a depth of 9,900 feet.
The mud-log confirmed multiple oil-bearing Wilcox sands from 9,050
feet to 9,850 feet. The Wilcox sands are the primary targets which
notably have a long production history in nearby wells (mainly oil
with some associated gas);
-- This well is expected to be flowed and put on production in November 2022;
-- The Company changed its registered office on 1 October 2022;
-- On 19 October 2022, 376,000,000 warrants expired; and
-- On 27 October 2022, the Company announced it had raised
GBP800,000, by way of a placing of 1,142,857,142 new ordinary
shares of no-par value in the capital of the Company, at a placing
price of 0.07p per share, with one warrant for every two Placing
Shares exercisable at a price of 0.15p with a term of 24
months.
There were no other material matters that occurred subsequent to
30 June 2022.
Outlook
Whilst 2022 has been challenging, we have also made considerable
progress. Mosman remains resolute in identifying opportunities
which will provide operating cash flow and have development upside,
in conjunction with exploration of existing exploration permits,
whilst also being in a position to evaluate further acquisition
targets.
The small team is nimble and, working with our partners, we are
building a strong foundation from which we plan to scale up the
business and grow by taking advantage of organic production
opportunities in the year ahead.
We acknowledge it has been a turbulent year for shareholders and
would like to take this opportunity to thank them for their
continued support whilst reassuring them of our confidence of
achieving growth in both production and value for the business.
John W Barr
Chairman
7 November 2022
Consolidated Statement of Financial Performance
Year Ended 30 June 2022
All amounts are in Australian Dollars
Notes Consolidated Consolidated
2022 2021
$ $
Revenue 23 1,812,119 816,695
Cost of sales 2 (1,117,023) (491,770)
----------------------- ---------------------
Gross profit 695,096 324,925
Interest i ncome - 55
Other income - 93,072
Gain on sale of oil and
gas assets - 118,067
Administrative expenses (326,098) (415,130)
Corporate expenses 3 (741,080) (957,713)
Directors fees (120,000) (120,000)
Exploration expenses incurred,
not capitalised (14,775) (21,866)
Employee b enefits expense (70,024) (62,878)
Finance costs (3,324) (6,362)
Amortisation expense (237,194) (171,539)
Depreciation expense (11,974) (2,848)
Impairment expense 12 (1,606,816) -
Loss on foreign exchange (10,085) -
Loss on settlement of Director
liabilities - (133,706)
Loss from ordinary activities
before income tax expense (2,446,274) (1,355,923)
Income tax expense 5 - -
Net l oss for the year (2,446,274) (1,355,923)
----------------------- ---------------------
Other c omprehensive profit
Items that may be reclassified
to profit or loss:
Gain on financial assets
at fair value through
other comprehensive income
- (FVOCI) 4 - 374,839
- Foreign currency gain/(loss) 4 360,408 (257,952)
Total comprehensive income
attributable to members
of the entity (2,085,866) (1,239,036)
======================= =====================
Basic loss per share (cents
per share) 24 (0.06) cents (0.05) cents
Diluted loss per share (cents
per share) 24 (0.06) cents (0.04) cents
The accompanying notes form part of these financial
statements.
Consolidated Statement of Financial Position
As at 30 June 2022
All amounts are in Australian Dollars
Notes Consolidated Consolidated
30 June 2022 30 June 2021
$ $
Current Assets
Cash and cash equivalents 7 2,354,689 2,289,674
Funds held in trust 8 - 1,197,127
Trade and other receivables 9 787,040 172,500
Other assets 10 69,514 23,418
Total Current Assets 3,211,243 3,682,719
-------------- --------------
Non-Current Assets
Property, plant & equipment 11 5,128 7,147
Oil and gas assets 12 4,145,488 3,328,029
Capitalised o il and g as exploration 13 1,240,541 706,702
-------------- --------------
Total Non-Current Assets 5,391,157 4,041,878
-------------- --------------
Total Assets 8,602,400 7,724,597
-------------- --------------
Current Liabilities
Trade and other payables 15 1,111,338 377,727
Provisions 16 25,654 22,423
Total Current Liabilities 1,136,992 400,150
-------------- --------------
Non-Current Liabilities
Provisions 16 38,617 -
Other payables 15 145,159 -
-------------- --------------
Total Non-Current Liabilities 183,776 -
-------------- --------------
Total Liabilities 1,320,768 400,150
-------------- --------------
Net Assets 7,281,632 7,324,447
============== ==============
Shareholders' Equity
Contributed equity 17 38,743,432 36,700,381
Reserves 18 706,297 436,247
Accumulated losses 19 (32,168,097) (29,812,181)
Total Shareholders' Equity 7,281,632 7,324,447
============== ==============
The accompanying notes form part of these financial
statements.
Consolidated Statement of Changes in Equity
Year Ended 30 June 2022
All amounts are in Australian Dollars
Accumulated Contributed Equity Reserves Total
Losses
$ $ $ $
Balance at 1 July
2021 (29,812,181) 36,700,381 436,247 7,324,447
=========================== ================================= ============================ ===========================
Comprehensive
income
Loss for the
period (2,446,274) - - (2,446,274)
Other
comprehensive
income for the
period - - 360,408 360,408
--------------------------- --------------------------------- ---------------------------- ---------------------------
Total
comprehensive
loss for the
period (2,446,274) - 360,408 (2,085,866)
Transactions with owners, in their capacity as owners, and other transfers:
New shares issued - 2,159,819 - 2,159,819
Cost of raising
equity - (116,768) - (116,768)
Options expired 90,358 - (90,358) -
Total
transactions
with owners and
other transfers 90,358 2,043,051 (90,358) 2,043,051
--------------------------- --------------------------------- ---------------------------- ---------------------------
Balance at 30
June 2022 (32,168,097) 38,743,432 706,297 7,281,632
=========================== ================================= ============================ ===========================
Balance at 1 July
2020 (28,939,390) 30,691,497 712,134 2,464,241
=========================== ================================= ============================ ===========================
Comprehensive
income
Loss for the
period (1,355,923) - - (1,355,923)
Other
comprehensive
income for the
period - - 116,887 116,887
--------------------------- --------------------------------- ---------------------------- ---------------------------
Total
comprehensive
loss for the
period (1,355,923) - 116,887 (1,239,036)
Transactions with owners, in their capacity as owners, and other transfers:
New shares issued - 6,313,678 - 6,313,678
Cost of raising
equity - (304,794) - (304,794)
Warrants issued - - 90,358 90,358
Options expired 471,818 - (471,818) -
Reclassification
on disposal of
financial assets 11,314 - (11,314) -
Total
transactions
with owners and
other transfers 483,132 6,008,884 (392,774) 6,099,242
--------------------------- --------------------------------- ---------------------------- ---------------------------
Balance at 30
June 2021 (29,812,181) 36,700,381 436,247 7,324,447
=========================== ================================= ============================ ===========================
These accompanying notes form part of these financial
statements
Consolidated Statement of Cash Flows
Year Ended 30 June 2022
All amounts are in Australian Dollars
Notes Consolidated 2022 Consolidated 2021
$ $
Cash flows from operating activities
Receipts from customers 1,598,554 841,671
Interest received & other income 38,626 93,071
Payments to suppliers and employees (2,129,149) (1,995,223)
Interest paid (3,324) (6,361)
------------------ ------------------
Net cash outflow from operating activities 25 (495,293) (1,066,842)
------------------ ------------------
Cash flows from investing activities
Proceeds from sale of assets - 468,586
Payments for oil and gas assets (815,243) (1,689,008)
Payments for exploration and evaluation (533,839) (405,459)
Payments for Company acquisition - (1,197,127)
Acquisition of oil and gas production projects (238,954) (158,486)
Net cash outflow from investing activities (1,588,036) (2,981,494)
------------------ ------------------
Cash flows from financing activities
Proceeds from shares issued 2,159,819 6,270,330
Payments for costs of capital (116,768) (304,794)
Proceeds from third party loans - 141,890
Net cash inflow from financial activities 2,043,051 6,107,426
------------------ ------------------
Net (decrease)/increase in cash and cash equivalents (40,278) 2,059,090
------------------ ------------------
Effects of exchange rate changes on cash and cash equivalents 105,293 (5)
------------------ ------------------
Cash and cash equivalents at the beginning of the financial year 2,289,674 230,589
------------------ ------------------
Cash and cash equivalents at the end of the financial year 7 2,354,689 2,289,674
------------------ ------------------
The accompanying notes from part of these financial
statements
Notes to the Financial Statements
Year Ended 30 June 2022
All amounts are Australian Dollars
1 Statement of Accounting Policies
The principal accounting policies adopted in preparing the
financial report of Mosman Oil and Gas Limited (or "the Company")
and Controlled Entities ("Consolidated entity" or "Group"), are
stated to assist in a general understanding of the financial
report. These policies have been consistently applied to all the
years presented, unless otherwise indicated.
Mosman Oil and Gas Limited is a Company limited by shares
incorporated and domiciled in Australia.
(a) Basis of Preparation
This general purpose financial report has been prepared in
accordance with Australian Accounting Standards (including
Australian Interpretations) adopted by the Australian Accounting
Standards Board and the Corporations Act 2001. Compliance with
Australian Accounting Standards ensures that the financial
statements also comply with International Financial Reporting
Standards.
The financial report has been prepared on the basis of
historical costs and does not take into account changing money
values or, except where stated, current valuations of non-current
assets.
Going Concern
The Group recognises that its ability to continue as a going
concern to meet its debts when they fall due is dependent on the
Group raising funds as required, and the continuation of production
which results in a gross profit. The directors have reviewed the
business outlook and are of the opinion that the use of the going
concern basis of accounting is appropriate as they believe the
Group will achieve this.
This financial report does not include any adjustments relating
to the recoverability and classification of recorded asset amounts
nor to the amounts and classification of liabilities that may be
necessary should the Group be unable to continue as a going
concern.
The financial report was authorised for issue by the Directors
on 7 November 2022.
(b) Principles of Consolidation and Equity Accounting
The consolidated financial statements incorporate the assets,
liabilities and results of entities controlled by Mosman Oil and
Gas Limited at the end of the reporting period. A controlled entity
is any entity over which Mosman Oil and Gas Limited has the ability
and right to govern the financial and operating policies so as to
obtain benefits from the entity's activities.
Where controlled entities have entered or left the Group during
the year, the financial performance of those entities is included
only for the period of the year that they were controlled. Details
of Controlled and Associated entities are contained in Note 29 to
the financial statements.
In preparing the consolidated financial statements, all
inter-group balances and transactions between entities in the
consolidated group have been eliminated in full on
consolidation.
Under AASB 11 Joint Arrangements, investments in joint
arrangements are classified as either joint operations or joint
ventures. The classification depends on the contractual rights and
obligations of each investor, rather than the legal structure of
the joint arrangement. Mosman Oil and Gas Limited has a working
interest in various joint operations.
Joint ventures
Joint operations represent arrangements whereby joint operators
maintain direct interests in each asset and exposure to each
liability of the arrangement. The Group's interests in the assets,
liabilities, revenue and expenses of joint operations are included
in the respective line items of the financial statements.
Interests in joint ventures are accounted for using the equity
method (see below), after initially being recognised at cost in the
consolidated balance sheet.
Equity method
Under the equity method of accounting, the investments are
initially recognised at cost and adjusted thereafter to recognise
the group's share of the post-acquisition profits or losses of the
investee in profit or loss, and the group's share of movements in
other comprehensive income of the investee in other comprehensive
income. Dividends received or receivable from associates and joint
ventures are recognised as a reduction in the carrying amount of
the investment.
When the group's share of losses in an equity-accounted
investment equals or exceeds its interest in the entity, including
any other unsecured long-term receivables, the group does not
recognise further losses, unless it has incurred obligations or
made payments on behalf of the other entity.
Unrealised gains on transactions between the group and its
associates and joint ventures are eliminated to the extent of the
group's interest in these entities. Unrealised losses are also
eliminated unless the transaction provides evidence of an
impairment of the asset transferred. Accounting policies of equity
accounted investees have been changed where necessary to ensure
consistency with the policies adopted by the group.
The carrying amount of equity-accounted investments is tested
for impairment in accordance with the policy described in note
1(q).
(c) Use of Estimates and Judgements
The preparation of financial statements requires management to
make judgements, estimates and assumptions that affect the
application of accounting policies and reported amounts of assets
and liabilities, income and expenses. Actual results may differ
from these estimates. Estimates and underlying assumptions are
reviewed on an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimate is revised and in
any future periods affected.
Critical Accounting Estimates and Judgements
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.
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;
-- Fundamental economic factors that have an impact on the
operations and carrying values of assets and liabilities.
Taxation
Balances disclosed in the financial statements and the notes
related to taxation, are based on the best estimates of directors
and take into account the financial performance and position of the
Group as they pertain to current income tax legislation, and the
directors understanding thereof. No adjustment has
been made for pending or future taxation legislation. The
current tax position represents the best estimate, pending
assessment by the tax authorities.
Exploration and Evaluation Assets
The accounting policy for exploration and evaluation expenditure
results in expenditure being capitalised for an area of interest
where it is considered likely to be recoverable by future
exploitation or sale or where the activities have not reached a
stage which permits a reasonable assessment of the existence of
reserves.
This policy requires management to make certain estimates as to
future events and circumstances . Any such estimates and
assumptions may change as new information becomes available. 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.
(d) Income Tax
Current tax assets and liabilities for the current and prior
periods are measured at the amount expected to be recovered from or
paid to the taxation authorities. The tax rates and tax laws used
to compute the amounts are those that are enacted or substantively
enacted at the balance sheet date.
Deferred income tax is provided on all temporary differences at
the balance sheet date between the tax bases of assets and
liabilities and their carrying amounts for financial reporting
purposes.
Deferred income tax liabilities are recognised for all taxable
temporary differences.
Deferred income tax assets are recognised for all deductible
temporary differences, carry-forward of unused tax assets and
unused tax losses, to the extent that it is probable that taxable
profit will be available against which the deductible temporary
differences and the carry-forward of unused tax credits and unused
tax losses can be utilised;
The carrying amount of deferred income tax assets is reviewed at
each balance sheet date reduced to the extent that it is no longer
probable that sufficient taxable profit will be available to allow
all or part of the deferred income tax asset to be utilised.
Unrecognised deferred income tax assets are reassessed at each
balance sheet date and are recognised to the extent that it has
become probable that future taxable profit will allow the deferred
tax asset to be recovered.
Deferred income tax assets and liabilities are measured at the
tax rates that are expected to apply to the period when the asset
is realised or the liability is settled, based on tax rates (and
tax laws) that have been enacted or substantively enacted at the
balance sheet date.
Income taxes relating to items recognised directly in equity are
recognised in equity and not in the income statement.
Deferred tax assets and deferred tax liabilities are offset only
if a legally enforceable right exists to set off current tax
liabilities and the deferred tax assets and liabilities relate to
the same taxable entity and the same taxation authority.
(e) Goods and Services Tax
Revenues, expenses and assets are recognised net of the amount
of GST except:
(i) Where the GST incurred on a purchase of goods and services
is not recoverable from the taxation authority, in which case the
GST is recognised as part of the cost of acquisition of the asset,
or as part of the expense item as applicable;
(ii) Receivables and payables are stated with the amount of GST included;
(iii) The net amount of GST recoverable from, or payable to, the
taxation authority is included as part of receivables or payables
in the Statement of Financial Position ;
(iv) Cash flows are included in the Statement of Cash Flow s on
a gross basis and the GST component of cash flows arising from
investing and financing activities, which is recoverable from, or
payable to, the taxation authority, are classified as operating
cash flows; and
(v) Commitments and contingencies are disclosed net of the
amount of GST recoverable from, or payable to, the taxation
authority.
(f) Property , Plant and Equipment
Plant and equipment are measured on the cost basis and therefore
carried at cost less accumulated depreciation and any accumulated
impairment. In the event the carrying amount of plant and equipment
is greater than the estimated recoverable amount, the carrying
amount is written down immediately to the estimated recoverable
amount and impairment losses are recognised either in profit or
loss, or as a revaluation decrease if the impairment losses relate
to a revalued asset. A formal assessment of recoverable amount is
made when impairment indicators are present (refer to Note 1(q) for
details of impairment).
The carrying amount of plant and equipment is reviewed annually
by directors to ensure it is not in excess of the recoverable
amount from these assets. The recoverable amount is assessed on the
basis of the expected net cash flows that will be received from the
asset's employment and subsequent disposal. The expected net cash
flows have been discounted to their present values in determining
recoverable amounts.
(g) Depreciation
The depreciable amount of all fixed assets is depreciated on a
straight-line basis over the asset's useful life to the
consolidated group commencing from the time the asset is held ready
for use. Leasehold improvements are depreciated over the shorter of
either the unexpired period of the lease or the estimated useful
lives of the improvements.
(h) Exploration and Evaluation Assets
Mineral exploration and evaluation expenditure incurred is
accumulated in respect of each identifiable area of interest and is
subject to impairment testing. These costs are carried forward only
if they relate to an area of interest for which rights of tenure
are current and in respect of which:
-- S uch costs are expected to be recouped through the
successful development and exploitation of the area of interest, or
alternatively by its sale; or
-- Exploration and/or evaluation activities in the area have not
reached a stage which permits a reasonable assessment of the
existence, or otherwise, of economically recoverable reserves and
active or significant operations in, or in relation to, the area of
interest is continuing.
In the event that an area of interest is abandoned accumulated
costs carried forward are written off in the year in which that
assessment is made. A regular review is undertaken of each area of
interest to determine the appropriateness of continuing to carry
forward costs in relation to that area of interest.
Where a resource has been identified and where it is expected
that future expenditures will be recovered by future exploitation
or sale, the impairment of the exploration and evaluation is
written back and transferred to development costs. Once production
commences, the accumulated costs for the relevant
area of interest are amortised over the life of the area
according to the rate of depletion of the economically recoverable
reserves.
Costs of site restoration and rehabilitation are recognised when
the Company has a present obligation, the future sacrifice of
economic benefits is probable, and the amount of the provision can
be reliably estimated.
The amount recognised as a provision is the best estimate of the
consideration required to settle the present obligation at the
reporting date, taking into account the risks and uncertainties
surrounding the obligation. Where a provision is measured using the
cash flows estimated to settle the present obligation, its carrying
amount is the present value of those cash flows.
Exploration and evaluation assets are assessed for impairment if
facts and circumstances suggest that the carrying amount exceeds
the recoverable amount.
For the purpose of impairment testing, exploration and
evaluation assets are allocated to cash-generating units to which
the exploration activity relates. The cash generating unit shall
not be larger than the area of interest.
(i) Accounts Payable
These amounts represent liabilities for goods and services
provided to the Group prior to the end of the financial year and
which are unpaid. The amounts are unsecured and are usually paid
within 30 days of recognition .
(j) Contributed Equity
Issued Capital
Incremental costs directly attributable to issue of ordinary
shares and share options are recognised as a deduction from equity,
net of any related income tax benefit.
(k) Earnings Per Share
Basic earnings per share ("EPS") are calculated based upon the
net loss divided by the weighted average number of shares. Diluted
EPS are calculated as the net loss divided by the weighted average
number of shares and dilutive potential shares.
(l) Share-Based Payment Transactions
The Group provides benefits to Directors, KMP and consultants of
the Group in the form of share-based payment transactions, whereby
employees and consultants render services in exchange for shares or
rights over shares ("equity settled") transactions.
The value of equity settled securities is recognised, together
with a corresponding increase in equity.
Where the Group acquires some form of interest in an exploration
tenement or an exploration area of interest and the consideration
comprises share-based payment transactions, the fair value of the
assets acquired are measured at grant date. The value is recognised
within capitalised mineral exploration and evaluation expenditure,
together with a corresponding increase in equity.
(m) Comparative Figures
When required by Accounting Standards, comparative figures have
been adjusted to conform to changes in presentation for the current
financial year.
(n) Financial Risk Management
The Board of Directors has overall responsibility for the
establishment and oversight of the risk management framework, to
identify and analyse the risks faced by the Group . These risks
include credit risk, liquidity risk and market risk from the use of
financial instruments. The Group has only limited use of financial
instruments through its cash holdings being invested in short term
interest bearing securities. The Group has no debt, and working
capital is maintained at its highest level possible and regularly
reviewed by the full board.
(o) Financial Instruments
Recognition, initial measurement and derecognition
Financial assets and financial liabilities are recognised when
the Company becomes a party to the contractual provisions of the
financial instrument and are measured initially at fair value
adjusted by transactions costs, except for those carried at fair
value through profit or loss, which are measured initially at fair
value. Subsequent measurement of financial assets and financial
liabilities are described below.
Financial assets are derecognised when the contractual rights to
the cash flows from the financial asset expire, or when the
financial asset and substantially all the risks and rewards are
transferred. A financial liability is derecognised when it is
extinguished, discharged, cancelled or expires.
Classification and subsequent measurement of financial
assets
Except for those trade receivables that do not contain a
significant financing component and are measured at the transaction
price in accordance with AASB 9, all financial assets are initially
measured at fair value adjusted for transaction costs (where
applicable).
Hybrid contracts
If a hybrid contract contains a host that is a financial asset,
the policies applicable to financial assets are applied
consistently to the entire contract.
Subsequent measurement of financial assets
For the purpose of subsequent measurement, financial assets,
other than those designated and effective as hedging instruments,
are classified into the following categories upon initial
recognition:
-- financial assets at amortised cost
-- financial assets at fair value through profit or loss (FVPL)
-- debt instruments at fair value through other comprehensive income (FVOCI)
-- equity instruments at fair value through other comprehensive income (FVOCI)
Classifications are determined by both:
-- the entity's business model for managing the financial asset
-- the contractual cash flow characteristics of the financial assets
All income and expenses relating to financial assets that are
recognised in profit or loss are presented within finance costs,
finance income or other financial items, except for impairment of
trade receivables which is presented within other expenses.
Financial assets at amortised cost
Financial assets are measured at amortised cost if the assets
meet the following conditions (and are not designated as FVPL):
-- they are held within a business model whose objective is to
hold the financial assets and collect its contractual cash
flows
-- the contractual terms of the financial assets give rise to
cash flows that are solely payments of principal and interest on
the principal amount outstanding
After initial recognition, these are measured at amortised cost
using the effective interest method. Discounting is omitted where
the effect of discounting is immaterial. The Company's cash and
cash equivalents, trade and most other receivables fall into this
category of financial.
Financial assets at fair value through profit or loss (FVPL)
Financial assets that are held within a business model other
than 'hold to collect' or 'hold to collect and sell' are
categorised at fair value through profit and loss. Further,
irrespective of business model, financial assets whose contractual
cash flows are not solely payments of principal and interest are
accounted for at FVPL. All derivative financial instruments fall
into this category, except for those designated and effective as
hedging instruments, for which the hedge accounting requirements
apply.
Debt instruments at fair value through other comprehensive
income (Debt FVOCI)
Financial assets with contractual cash flows representing solely
payments of principal and interest and held within a business model
of collecting the contractual cash flows and selling the assets are
accounted for at FVOCI. Any gains or losses recognised in OCI will
be recycled upon derecognition of the asset.
Equity instruments at fair value through other comprehensive
income (Equity FVOCI)
Investments in equity instruments that are not held for trading
are eligible for an irrevocable election at inception to be
measured at FVOCI. Under this category, subsequent movements in
fair value are recognised in other comprehensive income and are
never reclassified to profit or loss. Dividend income is taken to
profit or loss unless the dividend clearly represents return of
capital.
Impairment of Financial assets
The Group recognises a loss allowance for expected credit losses
on financial assets which are either measured at amortised cost or
fair value through other comprehensive income. The measurement of
the loss allowance depends upon the Group's assessment at the end
of each reporting period as to whether the financial instrument's
credit risk has increased significantly since initial recognition,
based on reasonable and supportable information that is available,
without undue cost or effort to obtain.
Where there has not been a significant increase in exposure to
credit risk since initial recognition, a 12-month expected credit
loss allowance is estimated. This represents a portion of the
asset's lifetime expected credit losses that is attributable to a
default event that is possible within the next 12 months. Where a
financial asset has become credit impaired or where it is
determined that credit risk has increased significantly, the loss
allowance is based on the asset's lifetime expected credit losses.
The amount of expected credit loss recognised is measured on the
basis of the probability weighted present value of anticipated cash
shortfalls over the life of the instrument discounted at the
original effective interest rate.
For financial assets mandatorily measured at fair value through
other comprehensive income, the loss allowance is recognised in
other comprehensive income with a corresponding expense through
profit or loss. In all other cases, the loss allowance reduces the
asset's carrying value with a corresponding expense through profit
or loss.
(p) 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.
(q) Impairment of Assets
At each reporting date, the Group reviews the carrying values of
its tangible assets to determine whether there is any indication
that those assets have been impaired. If such an indication exists,
the recoverable amount of the asset, being the higher of the
asset's fair value less costs to sell and value in use, is
compared to the asset's carrying value. Any excess of the
asset's carrying value over its recoverable amount is expensed to
the income statement. Impairment testing is performed annually for
goodwill and intangible assets with indefinite lives.
Where it is not possible to estimate the recoverable amount of
an individual asset, the Group estimates the recoverable amount of
the cash-generating until to which the asset belongs.
(r) Employee Entitlements
Liabilities for wages and salaries, annual leave and other
current employee entitlements expected to be settled within 12
months of the reporting date are recognised in other payables in
respect of employees' services up to the reporting date and are
measured at the amounts expected to be paid when the liabilities
are settled. Liabilities for non-accumulating sick leave are
recognised when the leave is taken and measured at the rates paid
or payable.
Contributions to employee superannuation plans are charged as an
expense as the contributions are paid or become payable.
(s) Provisions
Provisions are recognised when the Group has a legal or
constructive obligation, as a result of past events, for which it
is probable that an outflow of economic benefits will be the result
and that outlay can be reliably measured.
(t) Cash and Cash Equivalents
Cash and cash equivalents include cash on hand, deposits held at
call with banks, other short-term highly liquid investments with
original maturities of 3 months or less, and bank overdrafts. Bank
overdrafts are shown within short-term borrowings in current
liabilities on the balance sheet.
(u) 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 its share
of the sale by 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.
(v) Business combinations
The acquisition method of accounting is used to account for
business combinations regardless of whether equity instruments or
other assets are acquired.
The consideration transferred is the sum of the acquisition-date
fair values of the assets transferred, equity instruments issued or
liabilities incurred by the acquirer to former owners of the
acquiree and the amount of any non-controlling interest in the
acquiree. For each business combination, the non-controlling
interest in the acquiree is measured at either fair value or at the
proportionate share of the acquiree's identifiable net assets. All
acquisition costs are expensed as incurred to profit or loss.
On the acquisition of a business, the consolidated entity
assesses the financial assets acquired and liabilities assumed for
appropriate classification and designation in accordance with the
contractual terms, economic conditions, the consolidated entity's
operating or accounting policies and other pertinent conditions in
existence at the acquisition-date.
Where the business combination is achieved in stages, the
consolidated entity remeasures its previously held equity interest
in the acquiree at the acquisition-date fair value and the
difference between the fair value and the previous carrying amount
is recognised in profit or loss.
Contingent consideration to be transferred by the acquirer is
recognised at the acquisition-date fair value. Subsequent changes
in the fair value of the contingent consideration classified as an
asset or liability is recognised in profit or loss. Contingent
consideration classified as equity is not remeasured and its
subsequent settlement is accounted for within equity.
The difference between the acquisition-date fair value of assets
acquired, liabilities assumed and any non-controlling interest in
the acquiree and the fair value of the consideration transferred
and the fair value of any pre-existing investment in the acquiree
is recognised as goodwill. If the consideration transferred and the
pre-existing fair value is less than the fair value of the
identifiable net assets acquired, being a bargain purchase to the
acquirer, the difference is recognised as a gain directly in profit
or loss by the acquirer on the acquisition-date, but only after a
reassessment of the identification and measurement of the net
assets acquired, the non-controlling interest in the acquiree, if
any, the consideration transferred and the acquirer's previously
held equity interest in the acquirer.
Business combinations are initially accounted for on a
provisional basis. The acquirer retrospectively adjusts the
provisional amounts recognised and also recognises additional
assets or liabilities during the measurement period, based on new
information obtained about the facts and circumstances that existed
at the acquisition-date. The measurement period ends on either the
earlier of (i) 12 months from the date of the acquisition or (ii)
when the acquirer receives all the information possible to
determine fair value.
(w) Acquisition of Subsidiary Not Deemed a Business Combination
When an acquisition of assets does not constitute a business
combination, the assets and liabilities are assigned a carrying
amount based on their relative fair values in an asset purchase
transaction and no deferred tax will arise in relation to the
acquired assets and assumed liabilities as the initial exemption
for deferred tax under AASB 12 applies. No goodwill will arise on
the acquisition and transaction costs of the acquisition will be
included in the capitalised cost of the asset.
(x) Foreign Currency Translation
Functional currency
Items included in the financial statements of the Group's
operations are measured using the currency of the primary economic
environment in which it operates ('the functional currency').
The functional currency of the Company and controlled entities
registered in Australia is Australian dollars (AU$).
The functional currency of the controlled entities registered in
the US is United States dollars (US$).
Foreign currency transactions are translated into the functional
currency using the exchange rates ruling at the date of the
transaction. Monetary assets and liabilities denominated in foreign
currencies are retranslated at the rate of exchange ruling at the
end of the reporting period. Foreign exchange gains and losses
resulting from settling foreign currency transactions, as well as
from restating foreign currency denominated monetary assets and
liabilities, are recognised in profit or loss, except when they are
deferred in other comprehensive income as qualifying cash flow
hedges or where they relate to differences on foreign currency
borrowings that provide a hedge against a net investment in a
foreign entity.
Non-monetary items measured at fair value in a foreign currency
are translated using the exchange rates at the date when fair value
was determined.
Presentation currency
The financial statements are presented in Australian dollars,
which is the Group's presentation currency.
Functional currency balances are translated into the
presentation currency using the exchange rates at the balance sheet
date. Value differences arising from movements in the exchange rate
is recognised in the statement of comprehensive income.
(y) Joint operations
A joint arrangement in which the Group has direct rights to
underlying assets and obligations for underlying liabilities is
classified as a joint operation.
Interests in joint operations are accounted for by recognising
the Group's assets (including its share of any assets held
jointly), its liabilities (including its share of any liabilities
incurred jointly), its revenue from the sale of its share of the
output arising from the joint operation, its share of the revenue
from the sale of the output by the joint operation and its expenses
(including its share of any expenses incurred jointly).
(z) New standards and interpretations
Account Standard and Interpretation
The Group has adopted all of the new or amended Accounting
Standards and Interpretations issued by the Australian Accounting
Standards Board ('AASB') that are mandatory for the current
reporting period.
Consolidated Consolidated
2022 2021
$ $
2 Cost of sales
Cost of sales 99,358 96,600
Lease operating expenses 1,017,665 395,170
1,117,023 491,770
---------------------- -------------
3 Corporate Costs
Accounting, Company Secretary and
Audit fees 178,839 200,622
Consulting fees - board 291,610 321,000
Consulting fees - other 86,379 193,391
NOMAD and broker expenses 112,141 115,684
Legal and compliance fees 72,111 127,016
741,080 957,713
---------------------- -------------
4 Other comprehensive profit
Gain on shares at fair value through
other comprehensive income (FVOCI) - 363,525
Foreign currency gain/(loss) 360,408 (257,952)
360,408 105,573
---------------- -----------------
5 Income Tax
No income tax is payable by the Group as it has incurred losses
for income tax purposes for the year, therefore current tax,
deferred tax and tax expense is $NIL (2021 - $NIL).
(a) Numerical reconciliation of income tax expense to prima
facie tax payable
Consolidated Consolidated
2022 2021
$ $
(i) Loss before tax (ii) (2,446,274) (iii) (1,355,942)
(iv) Income tax calculated at 25%
(2021: 26%) (v) (611,569) (vi) (352,540)
(vii) Tax effect of amounts which (ix) (x)
are deductible/non-deductible
(viii) In calculating taxable income:
(xi) Impairment expense (xii) 241,022 (xiii) 744,811
(xiv) Upfront exploration expenditure (xv) (130,613) (xvi) (18,310)
claimed
(xvii) Other (xviii) (22,738) (xix) (64,170)
Effects of unused tax losses and tax
offsets not recognised as deferred
tax assets (xx) 523,898 (xxi) 484,821
----------------- ------------------
Income tax expense attributable to
operating profit (xxii) NIL (xxiii) NIL
(xxiv)
(xxv) (b) Tax Losses
(xxvi)
(xxvii) As at 30 June 2022 the Company had Australian tax losses
of $14,107,506 (2021 : $13,116,433 ). The benefit of deferred tax
assets not brought to account will only be realised if:
-- Future assessable income is derived of a nature and of an
amount sufficient to enable the benefit to be realised; and
-- The conditions for deductibility imposed by tax legislation
continue to be complied with and no changes in tax legislation
adversely affect the Company in realising the benefit.
(c) Unbooked Deferred Tax Assets and Liabilities
Consolidated Consolidated
2022 2021
$ $
Unbooked deferred tax assets comprise:
Capital Raising Costs 30,227 57,528
Provisions/Accruals/Other 172,017 121,259
Tax losses available for offset against
future taxable income 3,642,324 3,529,031
---------- ----------
3,844,568 3,707,818
========== ==========
6 Auditors Remuneration
Audit - Elderton Audit Pty Ltd
Audit of the financial statements 32,000 32,000
------- -------
32,000 32,000
------- -------
7 Cash and Cash Equivalents
Cash at Bank 2,354,689 2,289,674
-------------- -------------
2,354,689 2,289,674
-------------- -------------
8 Funds Held in Trust
Funds held in Lawyers trust account(1) - 1,197,127
-------------- -------------
- 1,197,127
-------------- -------------
1. On 28 June 2021 funds were paid into the Group's lawyers trust for the acquisition of
NADSOILCO LLC. The effective acquisition date was 1 July 2021, and the funds were settled
on 7 July 2021.
9 Trade and Other Receivables
Joint interest billing receivables(2) 393,166 -
Deposits 54,875 54,875
GST receivable 19,250 39,867
Accrued revenue 318,399 73,768
Other receivables 1,350 3,990
787,040 172,500
------------ ------------
2. When appropriate, unpaid joint interest billing receivables are recovered from the interest
holders share of production income.
10 Other Assets
Prepayments 69,514 23,418
69,514 23,418
------- -------
11 Property, Plant and Equipment
Office Equipment and Furniture Total
$ $
Cost
Balance at 1 July 2021 165,710 165,710
Additions 10,488 -
Disposals - -
Effective movement in exchange rates (533) -
------------------------------- ----------
Balance at 30 June 2022 175,665 165,710
------------------------------- ----------
Accumulated Depreciation
Balance at 1 July 2021 (158,563) (158,563)
Depreciation for the year (11,974) (2,848)
Disposals - -
Effective movement in exchange rates - -
------------------------------- ----------
Balance at 30 June 2022 (170,537) (158,563)
------------------------------- ----------
Carrying amounts
Balance at 30 June 2021 7,147 7,147
------------------------------- ----------
Balance at 30 June 2022 5,128 5,128
------------------------------- ----------
Consolidated Consolidated
2022 2021
$ $
12 Oil and Gas Assets
Cost brought forward 3,328,029 2,061,131
Acquisition of oil and gas assets during the year 1,622,681 158,486
Disposal of oil and gas assets on sale during the year - (441,384)
Capitalised equipment workovers during the year 697,070 1,899,759
Amortisation for the year (237,194) (170,388)
Impairment of oil and gas assets(1) (1,606,816) -
Impact of Foreign Exchange on opening balances 341,718 (179,575)
-------------- -------------
Carrying value at end of year 4,145,488 3,328,029
-------------- -------------
1. The Falcon-1 well stopped producing in the June quarter and
the first workover was not successful. As a result, an impairment
of $1,412,233 was put through against the asset, as well a further
impairment of $194,583 in relation to Greater Stanley assets that
are also not currently producing.
13 Capitalised Oil and Gas Expenditure
Cost brought forward 706,702 301,242
Exploration costs incurred during the year 533,839 405,460
Impairment of oil and gas expenditure - -
--------------- -----------------
Carrying value at end of year 1,240,541 706,702
--------------- -----------------
14 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 -
----------
Consolidated Consolidated
2022 2021
$ $
15 Trade and Other Payables
CURRENT
Trade creditors 900,748(1) 295,243
Amounts owing for acquisition of Nadsoilco LLC 145,159 -
Other creditors and accruals 65,431 82,484
--------
1,111,338 377,727
-------------------- --------
NON-CURRENT
Amounts owing for acquisition of Nadsoilco LLC 145,159 -
-------------------- --------
145,159 -
-------------------- --------
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 9).
16 Provisions
CURRENT
Employee provisions 25,654 22,423
------- -------
25,654 22,423
------- -------
NON-CURRENT
Provision for abandonment 38,617 -
------- -------
38,617 -
------- -------
17 Contributed Equity
Ordinary Shares:
Value of Ordinary Shares fully paid
Movement in Contributed Equity Number of Contributed
shares Equity $
Balance as at 1 July 2020: 1,085,810,968 30,691,497
Shares issued
(i)
Shares issued
(ii)
Shares issued
(ii)
Shares issued
(ii)
Shares issued
(i)
Shares issued
(iii)
Shares issued
(iii)
02/07/2020 Equity adjustment $0.00144 500,000,000 720,813
09/09/2020 (iv) $0.00271 56,250,000 152,467
17/09/2020 Shares issued $0.00266 62,500,000 166,015
23/09/2020 (ii) $0.00266 70,000,000 186,278
20/10/2020 Shares issued $0.00228 720,000,000 1,645,001
22/12/2020 (ii) $0.00143 52,368,750 75,000
22/12/2020 Shares issued $0.00288 52,083,334 150,000
22/12/2020 (i) - - 43,348
05/02/2021 Shares issued $0.00270 37,500,000 101,208
15/02/2021 (ii) $0.00268 10,000,000 26,811
19/03/2021 Shares issued $0.00271 1,000,000,000 2,714,097
21/05/2021 (ii) $0.00274 37,500,000 102,698
11/06/2021 Shares issued $0.00274 70,000,000 191,777
23/06/2021 (ii) $0.00278 13,750,000 38,165
Capital raising costs (304,794)
--------------- ------------
Balance as at 1 July 2021: 3,767,763,052 36,700,381
Shares issued
08/07/2021 (ii) $0.00276 77,375,000 213,701
Shares issued
17/05/2022 (i) $0.00142 1,375,000,000 1,946,117
Capital raising costs (116,767)
--------------- ------------
Balance at end of year 5,220,138,052 38,743,432
--------------- ------------
(i) Placements via capital raising as announced
(ii) Shares issued upon conversion of warrants
(iii) Shares issued to settle Director liabilities
(iv) Accounting Based Adjustments based on the timing of the
issue of Director Shares and Warrants for the year ended
30 June 2021
18 Reserves
Consolidated Consolidated
2022 2021
$ $
Options reserve - 90,358
Foreign currency translation reserve 706,297 345,889
-------------- --------------
706,297 436,247
-------------- --------------
Options Reserve
Nature and purpose of the Option reserve
The options reserve represents the fair value of equity
instruments issued to employees as compensation and issued to
external parties for the receipt of goods and services. This
reserve will be reversed against issued capital when the underlying
shares are converted and reversed against retained earnings when
they are allowed to lapse.
Consolidated Consolidated
2022 2021
Movement in Options Reserve $ $
Options Reserve at the beginning of
the year 90,358 471,818
Options issued - 90,358
Options expired (90,358) (471,818)
Options Reserve at the end of the year - 90,358
-------------- --------------
Foreign Currency Translation Reserve
Nature and purpose of the Foreign Currency Translation
Reserve
Functional currency balances are translated into the
presentation currency using the exchange rates at the balance sheet
date. Value differences arising from movements in the exchange rate
is recognised in the Foreign Currency Translation Reserve.
Movement in Foreign Currency Translation
Reserve
Foreign Currency Translation Reserve
at the beginning of the year 345,889 603,841
Current year movement 360,408 (257,952)
-------- ----------
Foreign Currency Translation Reserve
at the end of the year 706,297 345,889
-------- ----------
19 Accumulated Losses
Accumulated losses at the beginning
of the year 29,812,181 28,939,390
Net loss attributable to members 2,446,274 1,355,923
Options expired (90,358) (471,818)
Reclassification on disposal of financial
assets - (11,314)
Accumulated losses at the end of the
year 32,168,097 29,812,181
----------- -----------
20 Related Party Transactions
Consolidated Consolidated
2022 2021
$ $
Key Management Personnel Remuneration
Cash Payments to Directors and Management
(i) 471,000 507,000
Total 471,000 507,000
============= =============
i. During the year to 30 June 2022:
a. Directors fees of $60,000 and consulting fees of $165,000
were paid or are payable to Kensington Advisory Services Pty
Ltd;
b. Director fees of $30,000 and consulting fees of $120,000 were
paid or are payable to Australasian Energy Pty Ltd;
c. Directors fees of $30,000 were paid or are payable to J A Young;
d. CFO, Company Secretary and Consulting Fees totalling $66,000
were paid or are payable to J T White's accounting firm, Traverse
Accountants Pty Ltd.
Movement in Shares and Options
The aggregate numbers of shares and options of the Company held
directly, indirectly or beneficially by Key Management Personnel of
the Company or their personally-related entities are fully detailed
in the Directors' Report .
Amounts owing to the Company from subsidiaries:
Trident Energy Pty Ltd
At 30 June 2022 the Company's 100% owned subsidiary, Trident
Energy Pty Ltd, owed Mosman Oil and Gas Limited $3,943,847 (2021:
$3,413,988).
OilCo Pty Ltd
At 30 June 2022 the Company's 100% owned subsidiary, OilCo Pty
Ltd (OilCo), owed Mosman Oil and Gas Limited $762,468 (2021:
$776,879).
Mosman Oil USA, Inc
At 30 June 2022 the Company's 100% owned subsidiary, Mosman Oil
USA, Inc, owed Mosman Oil and Gas Limited $7,611,451 (2021:
$7,025,196).
21 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 30 June 2022, total exploration expenditure
commitments for the next 12 months are as follows:
2022 2021
Entity Tenement $ $
Trident Energy Pty Ltd EP145(1) - -
Oilco Pty Ltd EPA155 - -
- -
------ ------
1. EP145 is currently under extension until 21 August 2023,
therefore there are no committed expenditures as of the date of
this report.
(b) Capital Commitments
The Company had no other capital commitments at 30 June 2022
(2021: $NIL).
22 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 and the USA (and previously New
Zealand until 2019). 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 and the USA. Unallocated results, assets and liabilities
represent corporate amounts that are not core to the reportable
segments.
(i) Segment performance
United States Australia Total
$ $ $
-------------- ---------- ------------
Year ended 30 June 2022
Revenue
Revenue 1,812,119 - 1,812,119
Segment revenue 1,812,119 - 1,812,119
-------------- ---------- ------------
Segment Result
Allocated
- Corporate costs (41,949) (699,131) (741,080)
- Administrative costs (160,880) (165,218) (326,098)
- Lease operating expenses (1,017,665) - (1,017,665)
- Cost of sales (99,358) - (99,358)
Segment net profit (loss) before tax 492,267 (864,349) (372,082)
-------------- ---------- ------------
Reconciliation of segment result to net loss before tax
Amounts not included in segment result but reviewed by the Board
- Exploration expenses incurred not capitalised - (14,775) (14,775)
- Amortisation (237,194) - (237,194)
- Impairment (1,606,816) - (1,606,816)
Unallocated items
- Employee benefits expense - - (190,024)
- Loss on foreign exchange - - (10,085)
- Depreciation - - (11,974)
- Finance costs - - (3,324)
Net Loss before tax from continuing operations (2,446,274)
------------
(i) Segment performance
United States Australia Total
$ $ $
-------------- ---------- ------------
Year ended 30 June 2021
Revenue
Revenue 816,695 - 816,695
Interest income - 55 55
Gain on sale of oil and gas assets 118,067 - 118,067
Other income 40,299 52,773 93,072
-------------- ---------- ------------
Segment revenue 975,061 52,828 1,027,889
-------------- ---------- ------------
Segment Result
Allocated
- Corporate costs (158,979) (798,734) (957,713)
- Administrative costs (265,096) (150,034) (415,130)
- Lease operating expenses (395,170) - (395,170)
- Cost of sales (96,600) - (96,600)
Segment net profit (loss) before tax 59,216 (884,626) (836,724)
-------------- ---------- ------------
Reconciliation of segment result to net loss before tax
Amounts not included in segment result but reviewed by the Board
- Exploration expenses incurred not capitalised - (21,866) (21,866)
- Amortisation (171,539) - (171,539)
Unallocated items
- Employee benefits expense - - (182,878)
- Depreciation - - (2,848)
- Finance costs - - (6,362)
- Other expense - - (133,706)
Net Loss before tax from continuing operations (1,355,923)
------------
United States Australia Total
$ $ $
---------------- ------------ -------------
Total assets as at 1 July 2021 4,925,917 2,798,680 7,724,597
---------------- ------------ -------------
Segment asset balances at end of year
- Exploration and evaluation - 8,421,459 8,421,459
- Capitalised Oil and Gas Assets 7,788,307 - 7,788,307
- Less: Amortisation (449,411) - (449,411)
- Less: Impairment (3,193,408) (7,180,918) (10,374,326)
---------------- ------------ -------------
4,145,488 1,240,541 5,386,029
---------------- ------------ -------------
Reconciliation of segment assets to total assets:
Other assets 1,473,379 1,742,992 3,216,371
---------------- ------------ -------------
Total assets from continuing operations
As at 30 June 2022 5,618,867 2,983,533 8,602,400
---------------- ------------ -------------
Total 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
As at 30 June 2021 4,925,917 2,798,680 7,724,597
---------------- ------------ -------------
(iii) Segment liabilities
United States Australia Total
$ $ $
------------------ ---------- ----------
Segment liabilities as at 1 July 2021 29,380 370,770 400,150
Segment liability increases (decreases) for the year 1,107,983 (187,365) 920,618
------------------ ---------- ----------
1,137,363 183,405 1,320,768
------------------ ---------- ----------
Reconciliation of segment liabilities to total liabilities:
Other liabilities - - -
------------------ ---------- ----------
Total liabilities from continuing operations
As at 30 June 2022 1,137,363 183,405 1,320,768
------------------ ---------- ----------
Segment liabilities as at 1 July 2020 87,486 481,874 569,360
Segment liability increases (decreases) 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
As at 30 June 2021 29,380 370,770 400,150
------------------ ---------- ----------
23 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 Falcon Winters Livingston Arkoma Other Total
$ $ $ $ $ Projects $
$
---------- ---------- ---------- ----------- --------- ---------- ------------
Year Ended 30 June 2022
Revenue
Oil and gas project related
revenue 816,044 636,387 189,479 20,670 69,545 79,994 1,812,119
Producing assets revenue 816,044 636,387 189,479 20,670 69,545 79,994 1,812,119
---------- ---------- ---------- ----------- --------- ---------- ------------
Project-related expenses
* Cost of sales (37,535) (43,977) (11,871) (952) (5,023) - (99,358)
* Lease operating expenses (408,172) (305,882) (96,392) (26,676) (33,996) (146,547) (1,017,665)
Project cost of sales (445,707) (349,859) (108,263) (27,628) (39,019) (146,547) (1,117,023)
---------- ---------- ---------- ----------- --------- ---------- ------------
Project gross profit
Gross profit 370,337 286,528 81,216 (6,958) 30,526 (66,553) 695,096
---------- ---------- ---------- ----------- --------- ---------- ------------
23 Producing assets (continued)
Project performance
Arkoma Stanley Falcon Duff Welch Total
$ $ $ $ $ $
--------- --------- ---------- --------- ---------- ----------
Year Ended 30 June 2021
Revenue
Oil and gas project related
revenue 26,607 362,556 176,017 14,056 237,459 816,695
--------- ---------- --------- ---------- ----------
Producing assets revenue 26,607 362,556 176,017 14,056 237,459 816,695
--------- --------- ---------- --------- ---------- ----------
Project-related expenses
* Cost of sales (1,755) (19,218) (15,412) (1,384) (58,831) (96,600)
* Lease operating expenses (24,626) (22,536) (95,191) (16,761) (236,056) (395,170)
Project cost of sales (26,381) (41,754) (110,603) (18,145) (294,887) (491,770)
--------- --------- ---------- --------- ---------- ----------
Project gross profit
Gross profit/(loss) 226 320,802 65,414 (4,089) (57,428) 324,925
--------- --------- ---------- --------- ---------- ----------
24 Earnings/ (Loss) per shares
Consolidated
Consolidated 2022 2021
$ $
The following reflects the loss and share data used in the calculations of
basic and diluted
earnings/ (loss) per share:
Earnings/ (loss) used in calculating basic and diluted earnings/
(loss) per share (2,446,274) (1,355,923)
------------------- -----------------
Number of shares Number of shares
2022 2021
Weighted average number of ordinary shares used in calculating basic
earnings/(loss) per
share: 4,009,195,586 2,590,321,475
Basic loss per share (cents per share) 0.06 0.05
Diluted loss per share (cents per share) 0.06 0.04
25 Notes to the statement of cash flows
Reconciliation of loss from ordinary
activities after income tax to net Consolidated Consolidated
cash outflow from operating activities: 2022 2021
$ $
------------- -------------
Loss from ordinary activities after
related income tax (2,446,274) (1,355,923)
Depreciation and amortisation 249,167 174,387
Impairment 1,606,816 -
Fixed assets disposed of during the
year - (118,067)
Other non-cash items - 133,706
Increase in trade and other receivables (660,636) (38,962)
Increase in inventory - 44,509
Increase/(decrease) in trade and other
payables 606,666 (175,669)
Unrealised FX 148,968 269,177
Net cash outflow from operating activities (495,293) (1,066,842)
------------- -------------
26 Financial Instruments
The Company's activities expose it to a variety of financial and
market risks. The Company's overall risk management program focuses
on the unpredictability of financial markets and seeks to minimize
potential adverse effects on the financial performance of the
Company.
(i) Interest Rate Risk
The Company's exposure to interest rate risk, which is the risk
that a financial instrument's value will fluctuate as a result of
changes in market, interest rates and the effective weighted
average interest rates on those financial assets, is as
follows:
Consolidated Note Fixed Assets/ Total
2022 Weighted Funds Available Interest (Liabilities)
Average at a Floating Rate Non
Effective Interest Interest
Interest Rate Bearing
% $ $ $ $
----------------------- ----- ----------- ---------------- ---------- --------------- ----------
Financial Assets
Cash and Cash
Equivalents 7 3.80% 2,354,689 - - 2,354,689
Trade and other
R eceivables 9 - - 787,040 787,040
Other assets 10 - - 69,514 69,514
Total Financial
Assets 2,354,689 - 856,554 3,211,243
---------------- ---------- --------------- ----------
Financial Liabilities
Trade and other
Payables 15 - - 1,256,497 1,256,497
Provisions 16 - - 64,271 64,271
---------------- ---------- --------------- ----------
Total Financial
Liabilities - - 1,320,768 1,320,768
---------------- ---------- --------------- ----------
Net Financial
Assets/(Liabilities) 2,354,689 - (464,214) 1,890,475
================ ========== =============== ==========
Consolidated Note Fixed Assets/ Total
2021 Weighted Funds Available Interest (Liabilities)
Average at a Floating Rate Non
Effective Interest Interest
Interest Rate Bearing
% $ $ $ $
----------------------- ----- ----------- ---------------- ---------- --------------- ----------
Financial Assets
Cash and Cash
Equivalents 7 3.80% 2,289,674 - - 2,289,674
Trade and other
R eceivables 9 - - 172,500 172,500
Other assets 10 - - 1,220,545 1,220,545
Total Financial
Assets 2,289,674 - 1,393,045 3,682,719
---------------- ---------- --------------- ----------
Financial Liabilities
Trade and other
Payables 15 - - 377,252 377,252
Provisions 16 - - 22,898 22,898
---------------- ---------- --------------- ----------
Total Financial
Liabilities - - 400,150 400,150
---------------- ---------- --------------- ----------
Net Financial
Assets 2,289,674 - 992,895 3,282,569
================ ========== =============== ==========
(ii) Credit Risk
The maximum exposure to credit risk, excluding the value of any
collateral or other security, at balance date, is the carrying
amount, net of any provisions for doubtful debts, as disclosed in
the balance sheet and in the notes to the financial statements. The
Company does not have any material credit risk exposure to any
single debtor or group of debtors, under financial instruments
entered into by it.
(iii) Commodity Price Risk and Liquidity Risk
At the present state of the Company's operations it has minimal
commodity price risk and limited liquidity risk due to the level of
payables and cash reserves held. The Company's objective is to
maintain a balance between continuity of exploration funding and
flexibility through the use of available cash reserves.
(iv) Net Fair Values
For assets and other liabilities, the net fair value
approximates their carrying value. No financial assets and
financial liabilities are readily traded on organised markets in
standardised form. The Company has no financial assets where the
carrying amount exceeds net fair values at balance date.
The aggregate net fair values and carrying amounts of financial
assets and financial liabilities are disclosed in the balance sheet
and in the notes to the financial statements.
27 Contingent Liabilities
There were no material contingent liabilities not provided for
in the financial statements of the Company as at 30 June 2022.
28 Mosman Oil and Gas Limited - Parent Entity Disclosures
2022 2021
$ $
------------ ------------
Financial position
Assets
Current assets 1,671,987 2,000,047
Non-current assets 10,793,941 9,694,257
------------ ------------
Total assets 12,465,928 11,694,304
------------ ------------
Liabilities
Current liabilities 183,129 370,770
Total liabilities 183,129 370,770
------------ ------------
Net assets 12,282,799 11,323,534
============ ============
Equity
Contributed equity 38,742,763 36,699,711
Reserves - 90,358
Accumulated losses (26,459,964) (25,466,535)
Total Equity 12,282,799 11,323,534
============ ============
Financial Performance
Loss for the year (1,083,787) (1,231,482)
Other comprehensive income - -
------------ ------------
Total comprehensive loss (1,083,787) (1,231,482)
============ ============
29 Controlled Entities
Investments in group entities comprise:
Beneficial percentage
held by economic
Name Principal activities Incorporation entity
----------------------- ------------------------ --------------- ------------------------
2022 2021
% %
----------------------- ------------------------ --------------- ----------- -----------
Mosman Oil and Gas
Limited Parent entity Australia
Wholly owned and
controlled entities:
OilCo Pty Limited Oil & Gas exploration Australia 100 100
Trident Energy Pty
Ltd Oil & Gas exploration Australia 100 100
Mosman Oil USA, INC. Oil & Gas operations U.S.A. 100 100
Mosman Texas, LLC Oil & Gas operations U.S.A. 100 100
Mosman Operating,
LLC Oil & Gas operations U.S.A. 100 100
NADSOILCO, LLC Oil & Gas operations U.S.A. 100 -
Mosman Oil and Gas Limited is the Parent Company of the G roup,
which includes all of the controlled entities. See also Note 31
Subsequent Events for additional corporate activity in progress
subsequent to the 30 June 2022 year end.
30 Share Based Payments
Consolidated Consolidated
2022 2021
Cents Cents
Basic loss per share (cents per share) 0.06 0.05
A summary of the movements of all company warrant issues to 30
June 2022 is as follows:
Company Warrants 2022 2021 2022 2021
Number of Options Number of Options Weighted Average Weighted Average
Exercise Price Exercise Price
Outstanding at the
beginning of the year 1,143,702,084 301,659,091 $0.0042 $0.0062
------------------- ------------------- ------------------------ ------------------------
Expired (169,577,084) (300,909,091) $0.0031 $0.0023
------------------- ------------------- ------------------------ ------------------------
Exercised (77,375,000) (357,500,000) $0.0027 $0.0027
------------------- ------------------- ------------------------ ------------------------
Granted 687,500,000 1,500,452,084 $0.0028 $0.0038
------------------- ------------------- ------------------------ ------------------------
Outstanding at the end
of the year 1,584,250,000 1,143,702,084 $0.0038 $0.0042
------------------- ------------------- ------------------------ ------------------------
Exercisable at the end
of the year 1,584,250,000 1,143,702,084 $0.0038 $0.0042
------------------- ------------------- ------------------------ ------------------------
31 Events Subsequent to the End of the Financial Year
Subsequent to the end of the reporting period the Company
announced the following material matters occurred:
-- The Cinnabar development well in Tyler County, Texas has
completed drilling. The well was drilled to a depth of 9,900 feet.
The mud-log confirmed multiple oil-bearing Wilcox sands from 9,050
feet to 9,850 feet. The Wilcox sands are the primary targets which
notably have a long production history in nearby wells (mainly oil
with some associated gas);
-- This well is expected to be flowed and put on production in November 2022;
-- The Company changed its registered office on 1 October 2022;
-- On 19 October 2022, 376,000,000 warrants expired; and
-- On 27 October 2022, the Company announced it had raised
GBP800,000, by way of a placing of 1,142,857,142 new ordinary
shares of no-par value in the capital of the Company, at a placing
price of 0.07p per share, with one warrant for every two Placing
Shares exercisable at a price of 0.15p with a term of 24
months.
There were no other material matters that occurred subsequent to
30 June 2022.
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END
FR EAAFXEELAFFA
(END) Dow Jones Newswires
November 07, 2022 07:08 ET (12:08 GMT)
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