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MSMN Mosman Oil And Gas Limited

0.016
0.0015 (10.34%)
28 Mar 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Mosman Oil And Gas Limited LSE:MSMN London Ordinary Share AU0000XINET1 ORD NPV (DI)
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.0015 10.34% 0.016 0.015 0.017 0.016 0.014 0.0145 610,923,395 09:02:10
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
Crude Petroleum & Natural Gs 2.25M -2.13M -0.0005 -0.40 801.84k

Mosman Oil and Gas Limited Final Results for the Year ended 30 June 2017 (4505X)

24/11/2017 9:05am

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RNS Number : 4505X

Mosman Oil and Gas Limited

24 November 2017

24 November 2017

Mosman Oil and Gas Limited

("Mosman" or the "Company")

Final Results for the Year ended 30 June 2017

Mosman Oil and Gas Limited (AIM: MSMN) the oil exploration, development and production company, announces its final results for the year ended 30 June 2017.

Overview of the financial year

Mosman's strategic objective remains to identify opportunities which will provide operating cash flow and have development upside, in conjunction with progressing exploration of existing exploration permits. Mosman operates with a small number of Employees and Consultants. This is designed to minimize unnecessary costs. Given the Company now operates in several countries and in four-time zones, it is most important that the Board recognises the efforts of all those people in 2017, a year which has seen a solid change to producer status.

During the year the Company has been successful in slightly reducing operational and corporate costs as it looks to meet its strategic objective. This reduction comes after an even bigger reduction in 2016, and increases in activity in the United States.

The activity in the USA led to the evaluation of a number of producing oil projects and in the last quarter of the financial year to 30 June 2017 the objective of becoming a producer was achieved. This has expanded with Mosman now having interests in three producing projects.

United States

Throughout the year the Company evaluated a number of projects in the US.

As previously announced the Pine Mills acquisition from Cue Energy (ASX.CUE) which was initiated in October 2016 was subsequently abandoned in November 2016 due to a pre-emptive right being exercised by another party.

Subsequent to this in partnering through strategic alliances with Blackstone Oil and Gas Inc and other local commercial partners the Company has established a local US network capable of sourcing and transacting on deals that provided opportunities to Mosman.

The Strawn acquisition announced in April 2017 was the first such acquisition and was important for Mosman for a number of reasons:

   1.   Established the US presence and locally controlled Mosman operatorship; 

2. First opportunity to work through strategic alliance with Blackstone Oil and Gas (BOG) and establish a jointly funded project;

   3.   Gave the Company 'producer' status. 

Following the acquisition of Strawn, the Board continued to examine other projects to expand in the US and gain cost efficiencies from the local presence. This led to the announcement of the Arkoma Stacked Pay, in which a 10% direct interest was acquired in May 2017. It also meant a second transaction with BOG who purchased a 45% option alongside Mosman who also purchased two options totalling a further 45% option over the project.

In recognition of Mosman's efforts and costs in sourcing the Arkoma project BOG paid a cost contribution of US$100,000.

Recently Mosman secured the Welch project, resulting in three producing projects.

Australia

Throughout the year the Company also completed technical work on its exploration projects in Australia and reviewed the scope of further work programs in 2018 whilst conserving cash commitments.

New Zealand

On the Murchison Permit after several weather delays, the LIDAR survey was completed in July 2016. In the interests of also reducing cash committed to exploration Mosman also applied throughout the year for a Change of Condition application in December 2016 on its Murchison permit to defer the work program to allow a measured pace of exploration based on work to date. This Change of Condition was not granted and recently the necessary but reluctant decision to surrender the project was made and NZP&M notified of the Company's surrender of the permit during November 2017.

The Company also announced that it planned to plug and abandon the three wells on Petroleum Creek. Planning and securing a rig to carry out the works was a key focus during the year as the return of the bonds and sale proceeds from local NZ assets following completion would yield a cash flow surplus following surrender of the permit.

Post Year End Events

The Board has continued the search for projects that meet the strategic objectives of the board.

Subsequent to the end of year the Company announced and completed the acquisition of the Welch project.

The Project is located in the Permian Basin, in and around the Welch Township in Dawson County, West Texas, approximately 550 km west of Dallas. It consists of 653 acres of leases (held by production) with 10 producing wells, 7 injector wells, and 10 shut-in wells. The acquisition included production equipment and facilities.

Mosman has started workovers and the production optimisation process, which is already making good progress. Sales for October 2017 were 843 barrels (gross).

To assist in funding the Welch acquisition and upcoming Arkoma option the Company successfully completed a capital raise in September 2017 for GBP600,000 by way of a placing and subscription of 50,000,000 new ordinary shares of no par value in the capital of the Company at 1.2p per share.

During November 2017 two directors travelled to the US to discuss the First Option to acquire an additional 20% of the Arkoma project, as well as meetings with banks to discuss potential debt facilities.

The outcome was a deferral of Mosman's first option over the Arkoma project to 1 April 2018. At the same time Mosman also agreed to fund the cost of three targeted production enhancement initiatives for US$125,000. The funds would be credited against Mosman's first option exercise which would therefore become US$875,000 rather than US$1,000,000 and the three well recompletions would not only increase production but also provide further technical data for Mosman to evaluate further investment into the project and the exercise of future options.

In November 2017, the Company announced its 2017 Annual general Meeting will be held on 18 December 2017.

Outlook

The future is not yet radiant and life for junior oil and gas companies is still challenging; but we again look forward with cautious optimism and the further expansion of production increasing initiatives in the Company's production assets. The ongoing work on the Australian permits will continue.

Report and accounts posting

The Company's Annual Report has been dispatched to shareholders today and will shortly be available from the Company's website www.mosmanoilandgas.com.

Competent Person's Statement

The information contained in this announcement has been reviewed and approved by Andy Carroll, Technical Director for Mosman, who has over 35 years of relevant experience in the oil industry. Mr Carroll is a member of the Society of Petroleum Engineers.

Market Abuse Regulation (MAR) Disclosure

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.

Enquiries:

 
 Mosman Oil & Gas Limited          NOMAD and Broker 
  John W Barr, Executive            SP Angel Corporate Finance 
  Chairman                          LLP 
  Andy Carroll, Technical           Stuart Gledhill / Richard 
  Director                          Hail / Soltan Tagiev 
  jwbarr@mosmanoilandgas.com        +44 (0) 20 3470 0470 
  acarroll@mosmanoilandgas.com 
 Gable Communications Limited 
  Justine James / John Bick 
  +44 (0) 20 7193 7463 
  mosman@gablecommunications.com 
 

Updates on the Company's activities are regularly posted on its website

www.mosmanoilandgas.com

Glossary of Oil and Gas Terms

 
 %              per cent 
-------------  ----------------------------------------- 
 API            American Petroleum institute gravity 
                 is a measure of how heavy or light a 
                 petroleum liquid is compared to water: 
                 if its API gravity is greater than 10, 
                 it is lighter and floats on water, if 
                 less than 10, it is heavier than water 
                 and sinks 
-------------  ----------------------------------------- 
 bbl            barrel 
-------------  ----------------------------------------- 
 bopd           barrels of oil per day 
-------------  ----------------------------------------- 
 km             kilometre 
-------------  ----------------------------------------- 
 m              metre 
-------------  ----------------------------------------- 
 LPG            liquefied petroleum gas 
-------------  ----------------------------------------- 
 Md or md       millidarcy 
-------------  ----------------------------------------- 
 MMbbl          million barrels of oil 
-------------  ----------------------------------------- 
 OOIP           Oil originally in place 
-------------  ----------------------------------------- 
 Permeability   measure of the ease with which a fluid 
                 flows through a rock. The units are 
                 millidarcies or darcies 
-------------  ----------------------------------------- 
 Porosity       measure of how much of a rock is open 
                 space. This space can be between grains 
                 or within cracks or cavities of the 
                 rock. Measured in %. 
-------------  ----------------------------------------- 
 

Directors' Report

Your Directors provide their report as to the results and state of affairs of the Mosman Oil and Gas Limited Group of Companies, being the Company (hereafter referred to as "Mosman" or "the Company"). and its controlled and associated entities, for the year ended 30 June 2017. Please note that all amounts quoted are Australian Dollars, unless otherwise stated.

Operations Overview

Summary of Oil & Gas Permits at year end:

 
          Asset             Mosman       Status        Licence       Area 
                            Interest                    Expiry 
                                                         Date 
------------------------  ----------  ------------  ------------  ---------- 
 New Zealand, Petroleum                              4 September 
  Creek                      100%      Exploration       2017      143 km(2) 
------------------------  ----------  ------------  ------------  ---------- 
                                                      31 March 
 New Zealand, Murchison      100%      Exploration       2025      517 km(2) 
------------------------  ----------  ------------  ------------  ---------- 
 Australia, Amadeus                                   15 August 
  Basin                      100%      Exploration       2019      818 km(2) 
------------------------  ----------  ------------  ------------  ---------- 
 Australia, Amadeus 
  Basin                      100%      Application       N/A       378 km(2) 
------------------------  ----------  ------------  ------------  ---------- 
 Australia, Amadeus                                  6 November      4,164 
  Basin                      100%      Exploration       2018        km(2) 
------------------------  ----------  ------------  ------------  ---------- 
 USA, Arkoma                  10%       Operation        N/A       400 acres 
------------------------  ----------  ------------  ------------  ---------- 
                                                                     1,300 
 USA, Strawn                  50%       Operation        N/A         acres 
------------------------  ----------  ------------  ------------  ---------- 
 

Recently, the Directors made the decision to write off previously capitalised costs for the New Zealand assets. The write offs amounted to $6,708,674 for Petroleum Creek and $719,769 for Taramakau and Murchison respectively.

Mosman has endeavored to rationalise costs where possible, and satisfy work obligations on existing permits including Directors fees which also decreased by over $80,000 over the 2017 year when compared to 2016.

Murchison Permit, South Island New Zealand (100%)

The potential of a joint venture at Murchison was considered, however no realistic offers were received and accordingly the Company announced in November 2017 its decision to surrender this permit.

Petroleum Creek Permit, South Island New Zealand (100%)

Mosman continues planning the timing of the plug and abandonment of the three wells drilled on the Petroleum Creek permit in 2014. No further exploration activity is currently planned for this permit. Activity may be scheduled when other nearby wells are abandoned to minimise costs and is likely to occur during first quarter 2018.

EP 145, EP 156 and EPA 155 (Application), Northern Territory, Australia (100%)

The Northern Territory Government announced a gas pipeline connection from the existing NT pipelines to the gas market in Eastern Australia, which is stimulating acquisitions and gas exploration in the wider region. The pipeline is now under construction.

In this context, EP 145 is well placed, adjacent to the Mereenie producing oil and gas field.

An airborne magnetic survey occurred over EP 156. The results of that work are currently being incorporated into the geological model.

The third permit area, EPA 155, is adjacent to an existing oil field, but is currently in native title moratorium. Discussions were continuing with Central Land Council (CLC) and subsequent to balance date a two year extension on consideration of the application was granted to allow further meetings to discuss land access and evaluation of the application.

Corporate Financial Position

As at 30 June 2017 the Company had current assets of $2,384,723 (2016: $4,398,773).

Results of Operations

The net loss of the Company for the year ended 30 June 2017 was $9,186,307 (2016: $4,894,765) principally as a result of a non-cash write off of previously capitalised assets of $7,428,444 (2016: $1,456,942).

The Company has been successful in reducing operational and corporate costs overall.

Events Subsequent to the End of the Financial Period

Material transactions arising since 30 June 2017 which will significantly affect the operations of the Company, the results of those operations, or the state affairs of the Company in subsequent financial periods are:

Welch Permian Basin Project Acquisition - West Texas

On 11 September 2017, the Company purchased several oil and gas leases that comprise the Welch Permian Basin Project for USD$310,000. The project consists of 653 acres of leases, with 10 producing well, 7 injector wells and 10 shut-in wells.

Issue of Equity to Fund Expansion

On 29 September 2017, the Company issued 50,000,000 new ordinary shares at a price of 1.2p per share, raising GBP600,000. Proceeds from the share issue will allow the Company to concentrate on expansion opportunities, further development of its USA assets and providing for working capital requirements.

Murchison Permit Surrender

Mosman has been advised previously by NZPAM that the Change of Condition application made in December 2016 had been declined. Mosman's application was to defer the work program to allow a measured pace of exploration based on work to date However, the length of time taken to get a decision on this and a prior application left Mosman in a position whereby the Company had to make a decision to acquire seismic and drill two wells prior to April 2018, or surrender the permit.

Since the application for the licence in 2014, the decision by NZPAM should be seen in the light of the significant drop in the oil price, with the result investor appetite for expenditure on long term frontier exploration has changed significantly. Whilst the exploration potential remains untested, the commercial position of a discovery in the South Island of NZ remains challenging, as there are significant capital and operating costs of transporting any oil or gas to market. Furthermore, there are currently no NZ approved drilling rigs on the South Island of NZ.

Given the short lead time associated with the work commitments and significant cost obligations imposed between now and April 2018, the Board has had to make a difficult decision based on the best interests of shareholders and has, regretfully, decided to surrender the permit.

Petroleum Creek Update

The Company is planning to plug and abandon the three wells on the site. The freehold property has been placed for sale and the sale proceeds are expected to cover the costs associated with abandonment.

There have been no significant events subsequent to reporting date other than stated above.

Arkoma Option Extension

On 15 November 2017, the Company announced a deferral of Mosman's second option over the Arkoma acreage to 1 April 2018 in exchange for US$125,000. The funds would be credited against Mosman's first option exercise which would therefore become US$875,000 rather than US$1,000,000 and there was a requirement for the funds to be invested into three well recompletions that were targeted at increasing production and providing further technical data for Mosman to evaluate further investment into the project.

Consolidated Statement of Profit or Loss and Other Comprehensive Income

Year Ended 30 June 2017

All amounts are in Australian Dollars

 
 
                                                                   Notes          Consolidated            Consolidated 
                                                                                          2017                    2016 
                                                                                             $                       $ 
 
 Revenue                                                                                16,037                       - 
 Interest income                                                                         2,550                   6,623 
 Other income                                                                           31,854                   9,923 
 
 Administrative expenses                                                             (253,313)               (322,118) 
 Corporate expenses                                                  2             (1,152,665)             (1,184,225) 
 Exploration expenses                                                                        -                (37,181) 
 Employee benefits expense                                                            (79,250)               (188,539) 
 Gain/(Loss) on foreign exchange                                                      (50,832)               (300,354) 
 Depreciation expense                                                                 (13,203)                (18,171) 
 Finance expense                                                                             -                 (3,383) 
 Cost of abandoned projects                                          3               (280,762)             (1,293,295) 
 Loss on financial assets                                                                    -                (89,674) 
 Pre acquisition costs                                                                (40,320)                       - 
 Capitalised costs written off                                                     (7,428,444)             (1,456,942) 
 Loans to associated entities forgiven                                                       -                (17,429) 
 Share of net profit from joint operation                                               62,041                       - 
 Loss from ordinary activities before income tax expense                           (9,186,307)             (4,894,765) 
 
 Income tax expense                                                  4                       -                       - 
 
 Net loss for the year                                                             (9,186,307)             (4,894,765) 
                                                                          --------------------  ---------------------- 
 
 Other comprehensive loss 
 Items that may be reclassified to profit or loss: 
      Exchange differences arising on translation of foreign 
 -     operations                                                                    (246,484)                 523,825 
 Total comprehensive income attributable to members of the 
  entity                                                                           (9,432,791)             (4,370,940) 
                                                                          ====================  ====================== 
 
 Basic loss per share 
  (cents per share)                                                 20            (4.46) cents            (2.53) cents 
 Diluted loss per share 
  (cents per share)                                                 20            (4.46) cents            (2.53) cents 
 
 

The accompanying notes form part of these financial statements.

Consolidated Statement of Financial Position

As at 30 June 2017

All amounts are in Australian Dollars

 
                                                Notes    Consolidated    Consolidated 
                                                         30 June 2017    30 June 2016 
                                                                    $               $ 
 
 Current Assets 
 Cash and cash equivalents                        6         1,666,139       3,758,556 
 Trade and other receivables                      7           394,605         194,115 
 Other assets                                     8            35,690         446,095 
 Other financial assets                           9           288,288               7 
                                                       --------------  -------------- 
 Total Current Assets                                       2,384,722       4,398,773 
                                                       --------------  -------------- 
 
 Non-Current Assets 
 Property, plant & equipment                     10           211,016         224,448 
 Capitalised formation and acquisition costs                  749,620               - 
 Capitalised oil and gas exploration             11         4,073,115      10,955,203 
                                                       --------------  -------------- 
 Total Non-Current Assets                                   5,033,751      11,179,651 
                                                       --------------  -------------- 
 
 Total Assets                                               7,418,473      15,578,424 
                                                       --------------  -------------- 
 
 Current Liabilities 
 Trade and other payables                        12           353,769         177,692 
 Provisions                                      13           158,165          11,846 
 Total Current Liabilities                                    511,934         189,538 
                                                       --------------  -------------- 
 
 
 Total Liabilities                                            511,934         189,538 
                                                       --------------  -------------- 
 
 Net Assets                                                 6,906,539      15,388,886 
                                                       ==============  ============== 
 
 Shareholders' Equity 
 Contributed equity                              14        25,286,313      25,235,869 
 Reserves                                        15         1,058,126       1,304,610 
 Accumulated losses                              16      (19,499,941)    (11,151,593) 
 Equity attributable to shareholders                        6,844,498      15,388,886 
 Non-Controlling interest                                      62,041               - 
 
 Total Shareholders' Equity                                 6,906,539      15,388,886 
                                                       ==============  ============== 
 
 

The accompanying notes form part of these financial statements.

Consolidated Statement of Changes in Equity

Year Ended 30 June 2017

All amounts are in Australian Dollars

 
                                                            Accumulated 
                                                                 Losses   Contributed Equity    Reserves         Total 
                                                                      $                    $           $             $ 
 
 Balance at 1 July 2015                                     (6,256,828)           18,585,595     780,785    13,109,552 
 
 Comprehensive income 
 Loss for the year                                          (4,894,765)                    -           -   (4,894,765) 
 Other comprehensive income for the year                              -                    -     523,825       523,825 
                                                          -------------  -------------------  ----------  ------------ 
 Total comprehensive loss for the year                      (4,894,765)                    -     523,825   (4,370,940) 
 
 Transactions with owners, in their capacity as owners, 
 and other transfers: 
 Shares issued to shareholders                                        -            7,242,293           -     7,242,293 
 Capital raising costs                                                -            (592,019)           -     (592,019) 
 Total transactions with owners and other transfers                   -            6,650,274           -     6,650,274 
                                                          -------------  -------------------  ----------  ------------ 
 
   Balance at 30 June 2016                                 (11,151,593)           25,235,869   1,304,610    15,388,886 
                                                          =============  ===================  ==========  ============ 
 
 
   Balance at 1 July 2016                                  (11,151,593)           25,235,869   1,304,610    15,388,886 
                                                          -------------  -------------------  ----------  ------------ 
 
 Comprehensive income 
 Loss for the year                                          (9,186,307)                    -           -   (9,186,307) 
 Other comprehensive loss for the year                                -                    -   (246,484)     (246,484) 
                                                          -------------  -------------------  ----------  ------------ 
 Total comprehensive loss for the year                      (9,186,307)                    -   (246,484)   (9,432,791) 
 
 Transactions with owners, in their capacity as owners, 
 and other transfers: 
 Cancellation of shares on selective share buyback              900,000            (900,000)           -             - 
 Shares issued to shareholders                                        -            1,006,536           -     1,006,536 
 Capital raising costs                                                -             (56,759)           -      (56,759) 
 Non-controlling interests on acquisition                             -                  667           -           667 
 Total transactions with owners and other transfers             900,000               50,444           -       950,444 
                                                          -------------  -------------------  ----------  ------------ 
 
   Balance at 30 June 2017                                 (19,437,900)           25,286,313   1,058,126     6,906,539 
                                                          =============  ===================  ==========  ============ 
 

These accompanying notes form part of these financial statements

Consolidated Statement of Cash Flows

Year Ended 30 June 2017

All amounts are in Australian Dollars

 
                                                                     Notes   Consolidated 2017   Consolidated 2016 
                                                                                             $                   $ 
 
 Cash flows from operating activities 
 Receipts from customers                                                                 4,333                   - 
 Interest received & other income                                                       34,565              16,546 
 Payments to suppliers and employees                                               (1,536,854)         (2,507,041) 
 Interest paid                                                                               -             (3,383) 
                                                                            ------------------  ------------------ 
 Net cash outflow from operating activities                           21           (1,497,956)         (2,493,878) 
                                                                            ------------------  ------------------ 
 
 Cash flows from investing activities 
 Bonds refunded                                                                              -              45,300 
 Disposal of MEO shares                                                                      -             185,125 
 Payments for property, plant & equipment                                                    -             (6,304) 
 Payments for exploration and evaluation                                             (546,356)         (1,717,319) 
 Payment for Shares in GEM International Limited                                     (504,081)           (423,549) 
 Acquisition of subsidiary, net of cash acquired                                     (789,937)                   - 
 Payments for abandoned projects                                                     (137,904)                   - 
                                                                            ------------------  ------------------ 
 Net cash outflow from investing activities                                        (1,978,278)         (1,916,747) 
                                                                            ------------------  ------------------ 
 
   Cash flows from financing activities 
 Proceeds from shares issued                                                         1,426,852           7,242,293 
 Transactions with non-controlling interests                                            62,041                   - 
 Repayment of borrowings                                                              (48,317)                   - 
 Payments for costs of capital                                                        (56,759)           (592,019) 
 Net cash inflow from financial activities                                           1,383,817           6,650,274 
                                                                            ------------------  ------------------ 
 
 Net (decrease)/increase in cash and cash equivalents                              (2,092,417)           2,239,649 
                                                                            ------------------  ------------------ 
 Exchange rate adjustment                                                                    -             401,052 
                                                                            ------------------  ------------------ 
 Cash and cash equivalents at the beginning of the financial year                    3,758,556           1,117,855 
                                                                            ------------------  ------------------ 
 
 Cash and cash equivalents at the end of the financial year             6            1,666,139           3,758,556 
                                                                            ------------------  ------------------ 
 
 

The accompanying notes from part of these financial statements

Notes to the Financial Statements

Year Ended 30 June 2017

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.

The financial report was authorised for issue by the Directors on 24 November 2017.

   (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 Notes 25 and 26 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 joint venture.

Joint ventures

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(p).

   (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 recognized for all taxable temporary differences.

Deferred income tax assets are recognized 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 utilized;

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 utilized.

Unrecognized deferred income tax assets are reassessed at each balance sheet date and are recognized 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 realized 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 recognized directly in equity are recognized 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 recognized 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 recognized 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 Flows 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 recognized 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(p) 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:

Such 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 are 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 amortized over the life of the area according to the rate of depletion of the economically recoverable reserves.

Costs of site restoration and rehabilitation are recognized 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 recognized 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 and Initial Measurement

Financial instruments, incorporating financial assets and financial liabilities, are recognized when the entity becomes a party to the contractual provisions of the instrument. Trade date accounting is adopted for financial assets that are delivered within timeframes established by marketplace convention.

Financial instruments are initially measured at fair value plus transactions costs where the instrument is not classified as a fair value through profit or loss. Transaction costs related to instruments classified as a fair value through profit or loss are expensed to profit or loss immediately. Financial instruments are classified and measured as set out below.

Derecognition

Financial assets are derecognized where the contractual rights to receipt of cash flows expires or the asset is transferred to another party whereby the entity is no longer has any significant continuing involvement in the risks and benefits associated with the asset. Financial liabilities are derecognized where the related obligations are either discharged, cancelled or expire. The difference between the carrying value of the financial liability extinguished or transferred to another party and the fair value of consideration paid, including the transfer of non-cash assets or liabilities assumed, is recognized in profit or loss.

Classification and Subsequent Measurement

   (a)     Financial assets at fair value through profit or loss 

Financial assets are classified at fair value through profit or loss when they are held for trading for the purpose of short term profit taking, where they are derivatives not held for hedging purposes, or designated as such to avoid an accounting mismatch or to enable performance evaluation where a Group of financial assets is managed by key management personnel on a fair value basis in accordance with a documented risk management or investment strategy. Realized and unrealized gains and losses arising from changes in fair value are included in profit or loss in the period in which they arise.

   (b)     Loans and receivables 

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market and are subsequently measured at amortized cost using the effective interest rate method.

   (c)     Held-to-maturity investments 

Held-to-maturity investments are non-derivative financial assets that have fixed maturities and fixed or determinable payments, and it is the Group's intention to hold these investments to maturity. They are subsequently measured at amortized cost using the effective interest rate method.

   (d)     Available-for-sale financial assets 

Available-for-sale financial assets are non-derivative financial assets that are either designated as such or that are not classified in any of the other categories. They comprise investments in the equity of other entities where there is neither a fixed maturity nor fixed or determinable payments.

   (e)     Financial Liabilities 

Non-derivative financial liabilities (excluding financial guarantees) are subsequently measured at amortized cost using the effective interest rate method.

   (f)      Impairment 

At each reporting date, the Group assesses whether there is objective evidence that a financial instrument has been impaired. In the case of available-for-sale financial instruments, a prolonged decline in the value of the instrument is considered to determine whether an impairment has arisen. Impairment losses are recognized in the income statement.

   (p)    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.

   (q)    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 recognized 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 recognized 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.

   (q)       Provisions 

Provisions are recognized 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 results and that outlay can be reliably measured.

   (r)       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.

   (s)       Revenue and Other Income 

Interest revenue is recognized using the effective interest rate method, which, for floating rate financial assets, is the rate inherent in the instrument.

   (t)       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.

   (u)        New standards and interpretations 

Account Standard and Interpretation

The Group has adopted all of the new, revised or amending Accounting Standards and Interpretations issued by the Australian Accounting Standards Board ('AASB') that are mandatory for the current reporting period. These changes do not materially impact on this financial report.

Any new, revised or amending Accounting Standards or Interpretations that are not yet mandatory have not been adopted early. Adoption would not materially impact on this financial report.

 
                                              Consolidated   Consolidated 
                                                      2017           2016 
                                                         $              $ 
 2 Corporate Costs 
 Accounting, Company Secretary 
  and Audit fees                                   198,034        153,010 
 Director fees                                     120,000        120,000 
 Consulting fees                                   707,809        779,501 
 Legal and compliance fees                         126,822        131,714 
                                    ----------------------  ------------- 
                                                 1,152,665      1,184,225 
                                    ----------------------  ------------- 
 
 3 Costs associated with projects 
 Costs incurred                                    417,687      1,555,284 
 Reimbursements                                  (136,925)      (261,989) 
                                                   280,762      1,293,295 
                                    ----------------------  ------------- 
 
 
 4 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 (2016 - NIL). 
 
   (a) Numerical reconciliation of income tax expense 
   to prima facie tax payable 
 
 
                                     Consolidated   Consolidated 
                                             2017           2016 
                                                $              $ 
 
 Loss before tax                      (9,186,307)    (4,894,765) 
 Income tax calculated at 
  27.5% (2016: 30%)                   (2,526,234)    (1,468,429) 
 Tax effect of amounts which 
  are deductible/non-deductible 
  In calculating taxable income: 
  JV share of profit                       16,878              - 
  Project abandonment costs                     -        128,733 
  Legal and consulting expenses            15,885              - 
  Capital raising costs                         -         86,788 
  Impairment expense                    2,079,964        442,311 
  Upfront exploration expenditure 
   claimed                              (152,894)      (177,804) 
  Other                                 (207,087)      (178,665) 
 Effects of unused tax losses 
  and tax offsets not recognized 
  as deferred tax assets                  773,488      1,167,066 
                                    -------------  ------------- 
 Income tax expense attributable 
  to operating profit                         NIL            NIL 
 

(b) Tax Losses

As at 30 June 2017 the Company had Australian tax losses of $6,804,870 (2016: $3,899,473). The benefit of deferred tax assets not brought to account will only be realized if:

-- Future assessable income is derived of a nature and of an amount sufficient to enable the benefit to be realized; 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 realizing the benefit.

   (c)     Unbooked Deferred Tax Assets and Liabilities 
 
   Consolidated   Consolidated 
           2017           2016 
              $              $ 
 

Unbooked deferred tax assets comprise:

 
  Capital Raising Costs                256,270     486,874 
  Provisions/Accruals/Other             20,561      36,329 
  Tax losses available for offset 
   against future taxable income     1,935,955   3,899,473 
                                    ----------  ---------- 
                                     2,212,786   4,922,676 
                                    ==========  ========== 
 
 
 5 Auditors Remuneration 
            Audit - Somes Cooke 
                                                                     Audit of the financial 
                                                                      statements                          -    7,000 
 
           Audit - Greenwich & Co Audit Pty Ltd 
                                                                     Audit of the financial 
                                                                      statements                     27,000   18,000 
                                                                                                    -------  ------- 
                                                                                                     27,000   25,000 
                                                                                                    -------  ------- 
 
 
 6 Cash and Cash Equivalents 
            Cash at Bank         1,666,139   3,758,556 
                                ----------  ---------- 
 
 
 
 7 Trade and Other Receivables 
           Deposits                198,851   150,533 
           GST receivable           44,197    43,419 
           Other receivables       151,557       163 
                                  --------  -------- 
                                   394,605   194,115 
                                  --------  -------- 
 
 
 8 Other assets 
           Prepayments            23,985    22,546 
           Accrued income         11,705         - 
           Share applications          -   423,549 
                                 -------  -------- 
                                  35,690   446,095 
                                 -------  -------- 
 
 
 9 Other financial assets 
           Shares in a listed entity     288,288   7 
                                        -------- 
 
 
 10 Property, Plant and Equipment 
 
                                         Land and Buildings   Office Equipment and Furniture   Vehicles     Total 
                                                                                           $ 
                                                          $ 
                                                                                                      $         $ 
 Cost 
 Balance at 1 July 2016                             176,387                          161,472     24,871   362,730 
 Additions                                                -                                -          -         - 
 Effective movement in exchange rates                 (186)                                -       (24)     (210) 
                                        -------------------  -------------------------------  ---------  -------- 
 Balance at 30 June 2017                            176,201                          161,472     24,847   362,520 
                                        -------------------  -------------------------------  ---------  -------- 
 
 Depreciation 
 Balance at 1 July 2016                                 908                          128,325      9,049   138,282 
 Depreciation for the year                              450                            9,785      2,968    13,203 
 Effective movement in exchange rates                     4                                -         15        19 
                                        -------------------  -------------------------------  ---------  -------- 
 Balance at 30 June 2017                              1,362                          138,110     12,032   151,504 
                                        -------------------  -------------------------------  ---------  -------- 
 
 Carrying amounts 
 Balance at 30 June 2016                            175,479                           33,147     15,822   224,448 
                                        -------------------  -------------------------------  ---------  -------- 
 Balance at 30 June 2017                            174,839                           23,362     12,815   211,016 
                                        -------------------  -------------------------------  ---------  -------- 
 
 
 
                                                                                    Consolidated   Consolidated 
                                                                                            2017           2016 
                                                                                               $              $ 
 11 Capitalised Oil and Gas Expenditure 
 Cost brought forward                                                                 10,955,203     11,733,041 
 Exploration costs incurred during the year                                              552,550      1,480,667 
 Exploration expenditure previously capitalised, written off in financial year       (7,428,444)    (1,456,942) 
 Costs related to terminated acquisitions (i)                                                  -    (1,293,295) 
 FX movement                                                                             (6,194)        491,732 
                                                                                  --------------  ------------- 
 Carrying value at end of year                                                         4,073,115     10,955,203 
                                                                                  --------------  ------------- 
 
 The recoupment of costs carried forward is dependent on the successful development and/or 
  commercial exploitation or alternatively sale of the respective areas of interest. 
 (i) On 1 February 2016, the Company cancelled the Sale and Purchase Agreement with Origin 
  Energy Limited ("Origin") to acquire the South Taranaki Project ("STEP"). As a result all 
  costs associated with the transaction were written off. 
 
 
 
 12 Trade and Other Payables 
 
 Trade creditors                                                        279,582            66,448 
 Unearned revenue                                                        11,867                 - 
 Other creditors and accruals                                            62,320           111,244 
                                                               ----------------  ---------------- 
                                                                        353,769           177,692 
                                                               ----------------  ---------------- 
 Included within trade and other creditors and accruals is an amount of $NIL (2016 $13,842) 
  relating to exploration expenditure. 
 
 
 13 Provisions Consolidated Consolidated 
  2017 2016 
  $ $ 
 
 
 
 Employee provisions                                    15,308 11,846 
 Provision for abandonment                              142,857 - 
                             _________________________________ 
                              158,165 11,846 
                              _________________________________ 
 
 
 14             Contributed Equity 
 
                Ordinary Shares : 
                Value of Ordinary Shares 
                 fully paid 
                Movement in Contributed Equity                       Number   Contributed 
                                                                  of shares      Equity $ 
  Balance as at 1 July 2015:                                    122,578,066    18,585,595 
                                    Nature of         Issue 
                     Date            Transaction       Price 
                      Shares issued 
       28/07/2015      (i)                            $0.0377    22,857,143       857,143 
                      Shares issued 
       22/09/2015      (i)                            $0.0980    33,333,333     3,261,018 
                      Shares issued 
       30/10/2015      (i)                            $0.0848    36,822,466     3,124,132 
  Capital raising costs                                                   -     (592,019) 
                                                               ------------  ------------ 
  Balance as at 1 July 2016:                                    215,591,008    25,235,869 
                      Share buy-back 
        02/08/2016     (ii)                           $0.1000   (9,000,000)     (900,000) 
                      Shares issued 
        21/06/2017     (i)                            $0.0234    42,857,143     1,006,536 
                      Acquisition 
                       of joint 
                       operations 
        04/05/2017     (iii)                          $1.0000           667           667 
                 Capital raisings costs                                   -     (156,759) 
                                                               ------------  ------------ 
                 Balance at end of year                         249,448,818    25,286,313 
                                                               ============  ============ 
 
 
 
       (i)    Placements via capital raising as announced 
      (ii)    Selective share buy-back as announced 
      (iii)   Acquisition of joint operations equity as 
               announced. Refer to Note 25. 
 
   15     Reserves 
 
                                      Consolidated   Consolidated 
                                              2017           2016 
                                                 $              $ 
 
 Options reserve                         1,063,440      1,063,440 
 Asset revaluation reserve               (215,793)              - 
 Foreign currency translation 
  reserve                                  210,479      (241,170) 
                                     -------------  ------------- 
                                         1,058,126      1,304,610 
                                     -------------  ------------- 
 
 
 

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 
                                             2017           2016 
  Movement in Options Reserve                   $              $ 
 
 Options Reserve at the beginning 
  of the year                           1,063,440      1,063,440 
 Options Reserve at the end 
  of the year                           1,063,440      1,063,440 
                                    -------------  ------------- 
 

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.

 
                                  Consolidated   Consolidated 
  Movement in Foreign Currency 
   Translation Reserve                    2017           2016 
                                             $              $ 
 
 Foreign Currency Translation 
  Reserve at the beginning of 
  the year                             241,170      (282,655) 
 Current year movement                (30,691)        523,825 
                                 -------------  ------------- 
 Foreign Currency Translation 
  Reserve at the end of the 
  year                                 210,479        241,170 
                                 -------------  ------------- 
 
 
 16 Accumulated Losses 
 Accumulated losses at the 
  beginning of the year                    11,151,593    6,256,828 
 Net loss attributable to members           9,186,307    4,894,765 
 Cancellation of shares on                  (900,000)            - 
  selective buy-back 
 Profit associated with non-controlling        62,041            - 
  interest 
                                          -----------  ----------- 
 Accumulated losses at the 
  end of the year                          19,437,900   11,151,593 
                                          -----------  ----------- 
 
   17     Related Party Transactions 
 
Key Management Personnel Remuneration 
 Cash Payments to Directors 
  and Management (i)                               708,538    789,016 
Total                                              708,538    789,016 
                                        ==================  ========= 
 
   17     Related Party Transactions (continued) 
   I.    During the year to 30 June 2017: 

a. Directors fees of $60,000 and consulting fees of $227,500 were paid and payable to Kensington Advisory Services Pty Ltd;

b. Director fees of $ 30,000 and consulting fees of $260,000 were paid and payable to Australasian Energy Pty Ltd;

   c.    Directors fees of $30,000 were paid to Metallon Resources Pty Ltd; 

d. CFO, Company Secretary and Consulting Fees totaling $101,038 were paid and 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:

Petroleum Creek Limited

At 30 June 2017 the Company's 100% owned subsidiary, Petroleum Creek Limited (PCL), owed Mosman Oil and Gas Limited $7,949,054 (2016: $7,660,930). The Company has executed a Loan Agreement with PCL covering amounts up to $2,000,000 bearing interest at 7% pa and secured by a Fixed and Floating charge over the assets of PCL, as registered with the NZ Ministry of Economic Development Companies Office on 17 April, 2014.

Mosman Oil and Gas (NZ) Limited

At 30 June 2017 the Company's 100% owned subsidiary, Mosman Oil and Gas (NZ) Limited, owed Mosman Oil and Gas Limited $197,847 (2016: $169,128).

Trident Energy Pty Ltd

At 30 June 2017 the Company's 100% owned subsidiary, Trident Energy Pty Ltd, owed Mosman Oil and Gas Limited $2,675,440 (2016: $2,453,911).

OilCo Pty Ltd

At 30 June 2017 the Company's 100% owned subsidiary, OilCo Pty Ltd (OilCo), owed Mosman Oil and Gas Limited $688,851 (2016: $607,878).

Mosman Oil USA, Inc

At 30 June 2017 the Company's 100% owned subsidiary, Mosman Oil USA, Inc, owed Mosman Oil and Gas Limited $863,968 (2016: $NIL).

Mosman Texas, LLC

At 30 June 2017 the Company's 100% owned subsidiary, Mosman Texas, LLC, owed Mosman Oil and Gas Limited $NIL (2016: $NIL).

   18        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 2017, total exploration expenditure commitments for the next 12 months are as follows:

 
                                       2017        2016 
 Entity                Tenement           $           $ 
 Mosman Oil & Gas 
  Limited              PEP385326    572,028     572,028 
 Trident Energy Pty 
  Ltd                  EP145        121,500     121,500 
 Oilco Pty Ltd         EPA155        10,000      10,000 
 Oilco Pty Ltd         EP 156       155,000     155,000 
 Mosman Oil and Gas 
  (NZ) Ltd             PEP 57067          -           - 
 Mosman Oil and Gas 
  (NZ) Ltd             PEP 57068          -   1,239,394 
 Mosman Oil and Gas 
  (NZ) Ltd             PEP 57058          -           - 
                                   -------- 
                                    858,528   2,097,922 
                                   --------  ---------- 
 

At the date of report the Company had resolved to abandon New Zealand related projects and the commitments as at 30 June 2017 (particularly for PEP385326) are not considered to be obligations.

These obligations are subject to variations by farm-out arrangements, sale of the relevant tenements or seeking expenditure exemption for previous year's expenditure. The Company has the option to elect to not carry out the minimum work program commitments pertaining to a specific permit, in which case the Company will relinquish its interest in the relevant permit.

   (b)       Capital Commitments 

The Company had no capital commitments at 30 June 2017 (2016 - $NIL).

   19     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, New Zealand and the USA. 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 three reportable segments based on the geographical areas of the mineral resource and exploration activities in Australia, New Zealand and the USA. Unallocated results, assets and liabilities represent corporate amounts that are not core to the reportable segments.

 
  (i) Segment performance 
                                                    New Zealand   United States     Australia                Total 
                                                              $               $             $                    $ 
                                                   ------------  --------------  ------------  ------------------- 
 Year ended 30 June 2017 
 Revenue 
 Revenue                                                      -           2,825        13,212               16,037 
 Interest income                                              -               -         2,550                2,550 
 Share of net profit of joint operation                       -          62,043             -               62,043 
 Other income                                             2,095          20,018         9,741               31,854 
                                                   ------------  --------------  ------------  ------------------- 
 Segment revenue                                          2,095          84,886        25,503              112,484 
                                                   ------------  --------------  ------------  ------------------- 
 
 Segment Result 
 Loss 
 Allocated 
 - Corporate Costs                                     (70,343)        (10,816)   (1,071,506)          (1,152,665) 
 - Administrative Costs                                (48,655)        (41,117)     (163,541)            (253,313) 
 - Foreign Exchange Loss gain/ (loss)                         -               -      (50,834)             (50,834) 
                                                   ------------  --------------  ------------  ------------------- 
 Segment net loss before tax                          (116,903)          32,954   (1,260,378)          (1,344,328) 
                                                   ------------  --------------  ------------  ------------------- 
 
 Reconciliation of segment result to net loss 
 before tax 
 Amounts not included in segment result but 
 reviewed by the Board 
 - Exploration expenditure previously 
  capitalised, written off in financial year        (7,428,444)               -             -          (7,428,444) 
 - Costs of projects abandoned                        (149,293)               -     (131,470)            (280,763) 
 - Pre acquisition costs                                      -               -      (40,320)             (40,320) 
 Unallocated items 
 - Employee Benefits Expense                                                                              (79,250) 
 - Depreciation                                                                                           (13,202) 
 Net Loss before tax from continuing operations                                                        (9,186,307) 
                                                                                               ------------------- 
 
 
   19     Segment Information (continued) 
 
 (i) Segment performance (continued) 
                                                           New Zealand   United States     Australia         Total 
                                                                     $               $             $             $ 
                                                          ------------  --------------  ------------  ------------ 
 Year ended 30 June 2016 
 Revenue 
 Interest income                                                     6               -         6,616         6,622 
 Other income                                                    6,000               -         3,924         9,924 
                                                          ------------  --------------  ------------  ------------ 
 Segment revenue                                                 6,006               -        10,540        16,546 
                                                          ------------  --------------  ------------  ------------ 
 
 Segment Result 
 Loss 
 Allocated 
 - Corporate Costs                                           (108,617)               -   (1,075,608)   (1,184,225) 
 - Administrative Costs                                       (29,754)               -     (310,535)     (340,289) 
 - Exploration expenses                                              -               -      (37,181)      (37,181) 
 - Foreign Exchange Loss gain/ (loss)                              386               -     (300,740)     (300,354) 
                                                          ------------  --------------  ------------  ------------ 
 Segment net loss before tax                                 (131,979)               -   (1,713,524)   (1,845,503) 
                                                          ------------  --------------  ------------  ------------ 
 
 Reconciliation of segment result to net loss before tax 
 Amounts not included in segment result but reviewed by 
 the Board 
 - Exploration expenditure written off                     (1,031,306)               -     (261,989)   (1,293,295) 
 - Exploration expenditure impaired                                  -               -   (1,456,942)   (1,456,942) 
 - Loans to associated entities forgiven                             -               -      (17,429)      (17,429) 
 Unallocated items 
 - Employee Benefits Expense                                                                             (188,539) 
 - Loss on financial assets                                                                               (89,674) 
 - Finance costs                                                                                           (3,383) 
 Net Loss before tax from continuing operations                                                        (4,894,765) 
                                                                                                      ------------ 
 
 
 
 
   19 Segment Information (continued) 
 (ii) Segment assets 
                                                           New Zealand   United States     Australia         Total 
                                                                     $               $             $             $ 
                                                          ------------  --------------  ------------  ------------ 
 As at 30 June 2017 
 Segment assets as at 1 July 2016                            7,332,986               -     3,622,217    10,955,203 
 Segment asset increases/(decreases) for the year 
      - Exploration and evaluation                             101,650               -       450,898       552,548 
      - Foreign exchange impact                                (6,193)               -             -       (6,193) 
      - Exploration expenditure previously capitalised, 
       written off in financial year                       (7,428,443)               -             -   (7,428,443) 
                                                          ------------  --------------  ------------  ------------ 
                                                                     -               -     4,073,115     4,073,115 
                                                          ------------  --------------  ------------  ------------ 
 
 Reconciliation of segment assets to total assets: 
 Other assets                                                  392,510         953,669     1,999,178     3,345,357 
                                                          ------------  --------------  ------------  ------------ 
 Total assets from continuing operations                       392,510         953,669     6,072,293     7,418,472 
                                                          ------------  --------------  ------------  ------------ 
 
 
 
 As at 30 June 2016 
 Segment assets as at 1 July 2015                     6,691,897   -     5,041,144   11,733,041 
 Segment asset increases for the year 
      - Exploration and evaluation                      641,089   -   (1,418,927)    (777,838) 
                                                     ----------      ------------  ----------- 
                                                      7,332,986   -     3,622,217   10,955,203 
                                                     ----------      ------------  ----------- 
 
 Reconciliation of segment assets to total assets: 
 Other assets                                           273,460   -     4,349,761    4,623,221 
                                                     ----------      ------------  ----------- 
 Total assets from continuing operations              7,606,446   -     7,971,978   15,578,424 
                                                     ----------      ------------  ----------- 
 
 
   19     Segment Information (continued) 
 
 (iii) Segment liabilities 
                                                                New Zealand   United States   Australia       Total 
                                                                          $               $           $           $ 
                                                               ------------  --------------  ----------  ---------- 
 As at 30 June 2017 
 Segment liabilities as at 1 July 2016                                9,154               -     180,384     189,538 
 Segment liability (decreases) for the year                         153,324          69,679      99,393     322,396 
                                                               ------------  --------------  ----------  ---------- 
                                                                    162,478          69,679     279,777     511,934 
                                                               ------------  --------------  ----------  ---------- 
 Reconciliation of segment liabilities to total liabilities: 
 Other liabilities                                                        -               -           -           - 
                                                               ------------  --------------  ----------  ---------- 
 Total liabilities from continuing operations                       162,478          69,679     279,777     511,934 
                                                               ------------  --------------  ----------  ---------- 
 
 As at 30 June 2016 
 Segment liabilities as at 1 July 2015                              108,895               -     519,531     628,426 
 Segment liability (decreases) for the year                        (99,741)               -   (339,147)   (438,888) 
                                                               ------------  --------------  ----------  ---------- 
                                                                      9,154               -     180,384     189,538 
                                                               ------------  --------------  ---------- 
 Reconciliation of segment liabilities to total liabilities: 
 Other liabilities                                                        -               -           -           - 
                                                               ------------  --------------  ----------  ---------- 
 Total liabilities from continuing operations                         9,154               -     180,384     189,538 
                                                               ------------  --------------  ----------  ---------- 
 
   20     Earnings/ (Loss) per shares 
 
                                                                                                          Consolidated 
                                                                                  Consolidated 2017               2016 
                                                                                                  $                  $ 
 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                                                              (9,432,791)        (4,894,765) 
                                                                                 ------------------  ----------------- 
 
                                                                                   Number of shares   Number of shares 
                                                                                               2017               2016 
 
         Weighted average number of ordinary shares used in calculating basic 
          earnings/(loss) per 
          share:                                                                        208,461,458        193,534,581 
 
 Basic loss per share (cents per share)                                                        4.46               2.53 
 
   21     Notes to the statement of cash flows 
 
 Reconciliation of loss from 
  ordinary activities after 
  income tax to net cash outflow     Consolidated   Consolidated 
  from operating activities:                 2017           2016 
                                                $              $ 
                                    -------------  ------------- 
 Loss from ordinary activities 
  after related income tax            (9,186,307)    (4,894,765) 
 Exploration expenses written 
  off                                           -      1,293,295 
 Depreciation                              13,203         18,171 
 Previously capitalised expenses, 
  written off                           7,428,444      1,456,942 
 Loss on financial assets                       -         89,674 
 Decrease in other assets                 157,814         20,536 
 (Increase)/decrease in trade 
  and other receivables                 (236,180)        107,265 
 Increase/(decrease) in trade 
  and other payables                      325,071      (584,996) 
 Net cash outflow from operating 
  activities                          (1,497,956)    (2,493,878) 
                                    -------------  ------------- 
 
   22     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 
  2017 
                       Note                         Funds       Fixed          Assets/       Total 
                                Weighted        Available    Interest    (Liabilities) 
                                 Average    at a Floating        Rate              Non 
                               Effective         Interest                     Interest 
                                Interest             Rate                      Bearing 
                                       %                $           $                $           $ 
--------------------  -----  -----------  ---------------  ----------  ---------------  ---------- 
 Financial 
  Assets 
 Cash and 
  Cash Equivalents      6           0.1%        1,666,139           -                -   1,666,139 
 Trade and 
  other Receivables     7                               -           -          394,605     394,605 
 Other assets           8                               -           -           35,690      35,690 
 Other financial 
  assets                9                               -           -          288,288     288,288 
                                          ---------------  ----------  ---------------  ---------- 
 Total Financial 
  Assets                                        1,666,139           -          718,583   2,384,722 
                                          ---------------  ----------  ---------------  ---------- 
 
 Financial 
  Liabilities 
 Trade and 
  other Payables        12                              -           -          353,769     353,769 
 Provisions             13                              -           -          158,165     158,165 
                                          ---------------  ----------  ---------------  ---------- 
 Total Financial 
  Liabilities                                           -           -          511,934     511,934 
                                          ---------------  ----------  ---------------  ---------- 
 Net Financial 
  Assets                                        1,666,139           -          206,849   1,872,788 
                                          ===============  ==========  ===============  ========== 
 
   22     Financial Instruments (continued) 
 
 Consolidated 
  2016 
 Financial 
  Assets 
 Cash and 
  Cash Equivalents     6    0.2%   3,758,556     -         -   3,758,556 
 Trade and 
  other Receivables    7                   -     -   194,115     194,115 
 Other assets          8                   -     -   446,095     446,095 
 Other financial 
  assets               9                   -     -         7           7 
                                  ----------  ----  --------  ---------- 
 Total Financial 
  Assets                           3,758,556     -   640,217   4,398,773 
                                  ----------  ----  --------  ---------- 
 
 Financial 
  Liabilities 
 Trade and 
  other Payables       12                  -     -   177,692     177,692 
 Provisions            13                  -     -    11,846      11,846 
                                  ----------  ----  --------  ---------- 
 Total Financial 
  Liabilities                              -     -   189,538     189,538 
                                  ----------  ----  --------  ---------- 
 Net Financial 
  Assets                           3,758,556     -   450,679   4,209,235 
                                  ==========  ====  ========  ========== 
 
   (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.

   23     Contingent Liabilities 

There were no material contingent liabilities not provided for in the financial statements of the Company as at 30 June 2017.

   24     Mosman Oil and Gas Limited - Parent Entity Disclosures 
 
                                       2017          2016 
                                          $             $ 
                               ------------  ------------ 
Financial position 
Assets 
Current Assets                    1,723,088     3,836,354 
Non-Current Assets               12,073,612    11,555,969 
                               ------------  ------------ 
Total Assets                     13,796,700    15,392,323 
                               ------------  ------------ 
 
Liabilities 
Current Liabilities                 242,332       180,382 
Total Liabilities                   242,332       180,382 
                               ------------  ------------ 
Net Assets                       13,554,368    15,211,941 
                               ============  ============ 
 
Equity 
Contributed equity               25,285,646    25,235,869 
Reserves                            847,647     1,063,440 
Accumulated losses             (12,578,925)  (11,087,368) 
Total Equity                     13,554,368    15,211,941 
                               ============  ============ 
 
Financial Performance 
Loss for the year               (1,508,985)   (2,890,667) 
Other comprehensive income                -             - 
                               ------------  ------------ 
Total comprehensive income      (1,508,985)   (2,890,667) 
                               ============  ============ 
 
   25     Controlled Entities 

Investments in group entities comprise:

 
                                                              Beneficial 
                                                               percentage 
                          Principal                         held by economic 
 Name                     activities     Incorporation           entity 
---------------------  ---------------  ---------------  -------------------- 
                                                              2017       2016 
                                                                 %          % 
---------------------  ---------------  ---------------  ---------  --------- 
 Mosman Oil and 
  Gas Limited           Parent entity    Australia 
 Wholly owned 
  and controlled 
  entities: 
 Mosman Oil &           Oil & Gas 
  Gas Limited            exploration     New Zealand           100        100 
 Mosman Oil and         Oil & Gas 
  Gas (NZ) Limited       exploration     New Zealand           100        100 
 Petroleum Portfolio    Oil & Gas 
  Pty. Ltd               exploration     Australia               -        100 
                        Oil & Gas 
 OilCo Pty Limited       exploration     Australia             100        100 
 Trident Energy         Oil & Gas 
  Pty Ltd                exploration     Australia             100        100 
 Mosman Oil USA,        Oil & Gas 
  INC.                   operations      U.S.A.                100          - 
 Mosman Texas,          Oil & Gas 
  LLC                    operations      U.S.A.                100          - 
 Mosman Operating,      Oil & Gas 
  LLC                    operations      U.S.A.                100          - 
 

Mosman Oil and Gas Limited is the Parent Company of the Group, which includes all of the controlled entities. See also Note 27 Subsequent Events for additional corporate activity in progress subsequent to the 30 June 2017 year end.

   25     Controlled Entities (continued) 

Set out below is summarised financial information for each subsidiary that has non-controlling interests that are material to the group. The amounts disclosed are for Mosman Operating, LLC and are before inter-company eliminations.

 
 Summarised Statement of Financial Position                             2017   2016 
                                                                           $      $ 
 
Current Assets 
Cash and cash equivalents                                            125,527      - 
Trade and other receivables                                           78,593      - 
Total Current Assets                                                 204,120      - 
                                                                    --------  ----- 
 
Total Assets                                                         204,120      - 
                                                                    --------  ----- 
 
Current Liabilities 
Trade and other payables                                              69,679      - 
                                                                    --------  ----- 
Total Current Liabilities                                             69,679      - 
                                                                    --------  ----- 
 
Non-Current Liabilities 
Loan to Joint Operator - Mosman Oil USA Inc.                          13,558      - 
Total Non-Current Liabilities                                         13,558      - 
                                                                    --------  ----- 
 
Net Assets                                                           120,883      - 
                                                                    ========  ===== 
 
Equity 
Contributed equity                                                     1,335      - 
Reserves                                                             (3,204)      - 
Retained earnings                                                    122,752      - 
Total Equity                                                         120,883      - 
                                                                    ========  ===== 
 
Accumulated Non-controlling interest                                  60,442      - 
 
 
 
 
25 Controlled Entities (continued) 
 
Summarised Statement of Comprehensive Income                            2017   2016 
                                                                           $      $ 
 
 
Revenue                                                              198,313      - 
Other income                                                          40,035      - 
 
Administrative expenses                                             (82,233)      - 
Corporate expenses                                                  (13,345)      - 
Employee benefits expense                                           (20,018)      - 
                                                                    --------  ----- 
Profit from ordinary activities before income tax expense            122,752      - 
 
Income tax expense                                                         -      - 
 
Net profit for the year                                              122,752      - 
                                                                    --------  ----- 
 
Total comprehensive profit for the year is attributable to: 
Shareholders                                                               -      - 
Non-controlling interest                                                   -      - 
Total comprehensive profit attributable to member of the entity      122,752      - 
                                                                    ========  ===== 
 
Profit allocated to non-controlling interest                          61,376      - 
 
 
Summarised Statement of Cash Flows                                      2017   2016 
                                                                           $      $ 
Cash flows from operating activities                                  92,303      - 
Cash flows from investing activities                                  33,224      - 
Cash flows from financing activities                                       -      - 
                                                                    --------  ----- 
 
Net increase in cash and cash equivalents                            125,527      - 
 
 
   26     Associated Entity 
 
 
 Name       Principal activities   Incorporation      Beneficial percentage held by Group 
-----    -----------------------  --------------  ---------------------------------------- 
                                                                 2017                 2016 
 
 
                                                 Holds interest in Officer Basin Licence 
 Australasian Petroleum Portfolio Pty. Ltd.       Application - Oil & Gas exploration            Australia    -   25 
---------------------------------------------   ----------------------------------------------  -----------      --- 
 

Throughout the year the Company transferred its interest in Petroleum Portfolio Pty. Ltd. (a 100% owned subsidiary) to Andrew Carroll in exchange for the return and cancellation of 9,000,000 shares in the Company via the selective share buyback approved by shareholders on 2 August 2016. Petroleum Portfolio Pty Ltd held a 25% interest in Australasian Petroleum Portfolio Pty Ltd ('APPPL') which owned a 100% interest in the Officer Basin License Application. From 2 August 2016 APPPL therefore ceased to be an associated entity.

   27     Share Based Payments 
 
                                           Consolidated   Consolidated 
                                                   2017           2016 
                                                      $              $ 
 Basic loss per share (cents per share)            4.46           2.53 
 

The following share based payment arrangements existed at 30 June 2017:

Each of the three classes of unlisted options detailed below entitle the holder to acquire one Ordinary share of the Company on the terms disclosed, but do not entitle the holder to participate in any share issue or dividends of the Company and are not transferable. All options vested on the grant date and were therefore not dependent on performance. Options do not lapse on a Director leaving the Company.

(1) On 15 January 2014, 800,000 Options were issued to consultants, an employee and others to take up ordinary shares of the Company at an exercise price of $0.15 each. The options are exercisable on or before 13 January, 2019. As at 30 June 2017 700,000 options still remain outstanding.

(2) On 15 January 2014, 2,500,000 Options were issued to KMP to take up ordinary shares of the Company at an exercise price of $0.15 each. The options are exercisable on or before 13 January, 2019.

(3) On 20 March 2014, 1,227,674 Options were issued to UK consultants involved in the AIM IPO to take up ordinary shares of the Company at an exercise price of $0.146 (8 GB pence) each. The options are exercisable on or before 20 March, 2019. At 30 June 2017 859,372 options still remain outstanding.

(4) On 28 November 2014, 3,800,000 Options were issued to Directors, employee & consultants to take up ordinary shares of the Company at an exercise price of $0.58 each. The options are exercisable on or before 28 November 2017.

A summary of the movements of all company option issues to 30 June, 2017 is as follows:

 
 Company Options                         2017                 2016                      2017                      2016 
                            Number of Options    Number of Options          Weighted Average          Weighted Average 
                                                                              Exercise Price            Exercise Price 
------------------------  -------------------  -------------------  ------------------------  ------------------------ 
 Outstanding at the 
  beginning of the year             7,859,372            9,859,372                     $0.31                     $0.31 
------------------------  -------------------  -------------------  ------------------------  ------------------------ 
 Granted                                    -                    -                         -                         - 
------------------------  -------------------  -------------------  ------------------------  ------------------------ 
 Exercised                                  -                    -                         -                         - 
------------------------  -------------------  -------------------  ------------------------  ------------------------ 
 Expired                                    -          (2,000,000)                     $0.58                     $0.58 
------------------------  -------------------  -------------------  ------------------------  ------------------------ 
 Outstanding at the end 
  of the year                       7,859,372            7,859,372                     $0.24                     $0.24 
------------------------  -------------------  -------------------  ------------------------  ------------------------ 
 Exercisable at the end 
  of the year                       7,859,372            7,859,372                     $0.24                     $0.24 
------------------------  -------------------  -------------------  ------------------------  ------------------------ 
 

No Options Granted were granted during the financial year ended 30 June 2017.

   28        Subsequent Events 

Material transactions arising since 30 June 2017 which will significantly affect the operations of the Company, the results of those operations, or the state affairs of the Company in subsequent financial periods are:

Welch Permian Basin Project Acquisition - West Texas

On 11 September 2017, the Company purchased several oil and gas leases that comprise the Welch Permian Basin Project for USD$310,000. The project consists of 653 acres of leases, with 10 producing well, 7 injector wells and 10 shut-in wells.

Issue of Equity to Fund Expansion

On 29 September 2017, the Company issued 50,000,000 new ordinary shares at a price of 1.2p per share, raising GBP600,000. Proceeds from the share issue will allow the Company to concentrate on expansion opportunities, further development of its USA assets and providing for working capital requirements.

Murchison Permit Surrender

Mosman has been advised previously by NZPAM that the Change of Condition application made in December 2016 had been declined. Mosman's application was to defer the work program to allow a measured pace of exploration based on work to date. However, the length of time taken to get a decision on this and a prior application left Mosman in a position whereby the Company had to make a decision to acquire seismic and drill two wells prior to April 2018, or surrender the permit.

Since the application for the licence in 2014, the decision by NZPAM should be seen in the light of the significant drop in the oil price, with the result investor appetite for expenditure on long term frontier exploration has changed significantly. Whilst the exploration potential remains untested, the commercial position of a discovery in the South Island of NZ remains challenging, as there are significant capital and operating costs of transporting any oil or gas to market. Furthermore, there are currently no NZ approved drilling rigs on the South Island of NZ.

Given the short lead time associated with the work commitments and significant cost obligations imposed between now and April 2018, the Board has had to make a difficult decision based on the best interests of shareholders and has, regretfully, decided to surrender the permit.

Petroleum Creek Update

The Company is planning to plug and abandon the three wells on the site. The freehold property has been placed for sale and the sale proceeds are expected to cover the costs associated with abandonment.

There have been no significant events subsequent to reporting date other than stated above.

Arkoma Option Extension

On 15 November 2017, the Company announced a deferral of Mosman's second option over the Arkoma acreage to 1 April 2018 in exchange for US$125,000. The funds would be credited against Mosman's first option exercise which would therefore become US$875,000 rather than US$1,000,000 and there was a requirement for the funds to be invested into three well recompletions that were targeted at increasing production and providing further technical data for Mosman to evaluate further investment into the project.

Annual General Meeting

On 20 November 2017, the Company announced that its 2017 annual general meeting would be held on 18 December 2017.

There have been no significant events subsequent to reporting date other than stated above.

This information is provided by RNS

The company news service from the London Stock Exchange

END

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