Mosman Oil & Gas PLC (LON:MSMN) has boasted of its “greater optimism” for 2019 and 2020 despite what it described as a “still very challenging” outlook for small-cap oil firms.
Financial results, for the 12 months ended 30 June, cover a period of investment and a degree of operational success for Mosman as the company focus on new opportunities in North America.
In recent months, this has seen success with the Stanley well in Texas, and, alongside its partner Baja, the company now envisages a programme of additional new wells slated.
The Stanley well successfully completed production testing, flowing at a rate of 274 barrels of oil equivalent per day.
“The outlook for junior oil and gas companies is still very challenging, especially in the light of recent oil price movements; but Mosman looks forward to 2019 and 2020 with greater optimism now that a firm production base has been established and plans for increasing production are in place,” Mosman said in its results statement.
“The potential of projects within the Baja Strategic Alliance are significant and immediate focus will be on those assets.”
Mosman reported US$234,430 of gross profit for the year.
The overall loss for the year amounted to US$4.1mln, including the expensing of US$2.75mln of previously capitalised costs. The company spent US$607,794 on acquiring assets in the year and a further US$545,013 developing them.
Production during the year totalled 25,923 barrels of oil and the company generated some US$740,000 of revenue.
Mosman ended the year with US$1.32mln of cash and equivalents.