Mosman Oil and Gas Ltd (AIM:MSMN) described progress in its ongoing transition as “encouraging” as it reported interim results for the half year ended 31 December 2024.
"We streamlined our portfolio to focus on helium with the sale of Nadsoil which held the Stanley oil field interests,” chief executive Andy Carroll said in the statement.
“The review of the portfolio led to the conclusion that the focus of capital allocation should be on the helium projects in USA that are lower cost, and closer to infrastructure and markets.”
It executed a substantial part of the transition through a deal to sell its working interest in EP 145, whilst retaining a 5% royalty on helium and hydrogen revenue, which Carroll highlighted could represent “significant upside potential”.
Meanwhile, he added that the cash component of the deal strengthens Mosman’s working capital position, on completion.
The divestment and, perhaps more notably, the material progress since the half-year, renders much of the reporting in the interims somewhat irrelevant.
Nevertheless, the small-cap firm noted that it ended December with A$3.48 million of cash and cash equivalents.
It reported a net loss of A$2.54 million for the six months, including impairments of A$1.07 million related to the divested Australian exploration assets, and a loss of A$0.48 million from discontinued operations.
Revenue for the period fell to A$64,542 from A$82,684, and gross profit improved to A$18,955, versus a loss of A$10,118 a year earlier.