Mosman Oil and Gas shifts focus to helium, reports half-year results

LONDON - Mosman Oil and Gas Limited (AIM: MSMN), an exploration and production company specializing in helium, hydrogen, and hydrocarbons, has announced its financial results for the six months ending December 31, 2024. The company reported a net loss of $2,537,131, which includes impairments related to Australian exploration assets and losses from discontinued operations, specifically the sale of Nadsoilco LLC.

Revenue for the period was $64,542, a decrease from the $82,684 reported in the same period the previous year. However, gross profit improved, turning positive at $18,955 compared to a loss of $10,118 in the prior year’s corresponding period.

During this half-year, Mosman focused on expanding its helium exploration projects in the USA, including reaching an agreement to lease and explore the Coyote Wash area in Colorado. The company also increased its working interest in the Vecta Helium Project to 20% and acquired full interest and operational control of EP-145 by purchasing the remaining 75% interest from Greenvale Energy Ltd.

Post-period activities saw Mosman continue to streamline its portfolio, converting its interest in EP-145 to a royalty by reaching an agreement with Echelon Resources Limited for a sale price of $400,000, while retaining a 5% helium and hydrogen royalty. Additionally, Mosman sold its rights in EP(A) 155 to Westmarket Oil & Gas Pty Ltd for AU$350,000, keeping a 2.5% royalty.

The company’s cash and cash equivalents stood at $3,481,147 as of December 31, 2024, not including the expected contributions from the completion of the sales of EP 145 and EP(A) 155.

Mosman’s CEO, Andy Carroll, commented on the transition period, highlighting the strategic shift towards helium projects in the USA, which are lower in cost and closer to infrastructure and markets. Carroll noted the potential upside of retaining royalty interests in Australian assets without the capital requirements of a working interest.

The board also saw changes, with Carl Dumbrell appointed as Chairman post-period end, and Nigel Harvey continuing as a Non-Executive Director.

This report is based on a press release statement by Mosman Oil and Gas Limited.

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