Business
Half Yearly Report
Half Yearly Report.
About this update from Quantum Helium Limited
[{"type":"text","content":"\n \nRNS Number : 3200T Mosman Oil and Gas Limited 29 March 2016 \n\n \n \n \n \n29 March 2016\nMosman Oil and Gas Limited\n(\"Mosman\" or the \"Company\")\n \nHalf Year Financial Report\n \nMosman Oil and Gas Limited (AIM: MSMN) the New Zealand and Australia focussed oil exploration and development company, announces its Half Yearly Results for the six months to 31 December 2015, which are contained in the Condensed Consolidated Half Year Financial Report for the period.\n \nSummary\n \n2015 was a challenging year for the sector with continued oil price weakness and volatile equity capital markets, and as a result Mosman implemented a revised strategy and operational plan changing from its original focus on exploration (including drilling 3 wells) to seeking and securing a production asset. The revised plan was implemented to take advantage of the opportunity to purchase production assets, thereby providing cash flow and a medium term sustainable business model. The revised strategy was actioned and in September Mosman signed a contract to acquire the South Taranaki Energy Project (\"STEP\"'), an existing producing asset in New Zealand. However, the further subsequent significant reduction in the oil price in late 2015 and early 2016, together with related difficulties in obtaining government approvals, led to the cancellation of that acquisition. \n \nThe Board subsequently reviewed all aspects of its strategy and took swift action, reviewing its budgets and operational priorities with the objective of minimising short-term expenditure. Staff and consultants no longer required were made redundant or had their contracts terminated, with only core staff retained, on a much reduced basis. The two Executive Directors also agreed to cap the cost of their services at present.\n \nAs a result of the Board's actions to mitigate against further expenditure, Mosman remains in a sound financial position. Going forward, given the ongoing uncertainties associated with the current oil price and the lack of clarity on how long oil prices may remain at current depressed levels, and the continuing volatility in equity capital markets, the Board is also cognisant that it has a responsibility to continue to monitor and evaluate the effectiveness of its revised busine...