RNS Number : 3401D
Mosman Oil and Gas Limited
28 January 2015
 



 

 

28 January 2015

Mosman Oil and Gas Limited

 

Condensed Consolidated Half Year Financial Report

for the 6 months ended 31 December 2014

 

The Directors of Mosman Oil and Gas Limited ("Mosman" or the "Company") (AIM: MSMN) the New Zealand ("NZ") and Australia focussed oil exploration and development company, today release the Company's Condensed Consolidated Half Year Financial Report for the 6 months ended 31 December 2014.

 

A copy of the report is also available to download from the Company's website: www.mosmanoilandgas.com

 

Enquiries:

 

Mosman Oil & Gas Limited

John W Barr, Executive Chairman

Andy Carroll, Technical Director

jwbarr@mosmanoilandgas.com

acarroll@mosmanoilandgas.com

 

SI Capital Limited

Nick Emerson/Andy Thacker

+44 (0) 1483 413500

Gable Communications Limited

John Bick

+44 (0) 20 7193 7463

mosman@gablecommunications.com

 

ZAI Corporate Finance Limited

Tom Price/John Simpson

+44 (0) 20 7060 2220

 

About Mosman

Mosman (AIM: MSMN) is an Australia and New Zealand focused oil exploration and development company with a strategy to build a sustainable mid-tier oil and gas business by acquisition and organic growth.

 

Currently, Mosman has a total of ten permits or accepted permit applications in New Zealand and Australia.

 

Petroleum Creek Project, New Zealand

Mosman owns 100% of permit PEP 38526, the Petroleum Creek Project, which is a 143 sq. km low cost onshore exploration project located near Greymouth on the South Island in the southern extension of the proven Taranaki oil system.

 

Taramakau, Murchison and East Coast Permits New Zealand

These permits were granted to Mosman on 9 December 2014 as part of the 2014 Block Offer, a sixteen-fold increase in the exploration area in NZ from 143 sq. km to 2,317 sq. km.

 

Officer Basin Project, Australia (Application)

Mosman has a 25% investment in the Officer Basin Project, a 22,527 sq. km large land holding with significant exploration potential, which lies in one of the more explored parts of the Basin with road access. The project area is in the Western Australian part of the Officer Basin and offers both conventional and unconventional potential with hydrocarbon shows reported and all elements of a petroleum system are present.

 

Amadeus Basin Projects, Australia

Mosman owns 100% of two granted permits and one application in the Amadeus Basin in Central Australia which total of 5,458 sq. km. The Amadeus Basin is considered one of the most prospective onshore areas in the Northern Territory of Australia for both conventional and unconventional oil and gas, and hosts the producing Mereenie, Palm Valley and Surprise fields.

 

Otway Basin Project, Australia

Mosman owns 30% of VIC/P62 in the Otway Basin. The permit was recently renewed and is in relatively shallow water. The 70% permit holder funded a 3D seismic survey in 2013. The results of the 3D seismic survey are now being integrated in to a geological model to allow identification and ranking of drilling targets. Within the Otway Basin there is commercial production both onshore and offshore.

 

 

 

                                                      

 

 

 

 

 

 

 


Corporate Directory

Directors

John W Barr

Andy Carroll

John A Young

Company Secretary

Zane Lewis

Registered Office and Postal Address

Level 1

981 Wellington Street

West Perth WA 6005

Phone: +61 (0) 8 6555 2949

Fax: +61 (0) 8 9321 3102

Nominated Adviser

ZAI Corporate Finance Limited

Broker

SI Capital Limited

Auditors

Somes Cooke

Lawyers

Australia:

Hardy Bowen

 

United Kingdom:

Ronaldsons LLP Solicitors

Share Registrars

In Australia

 

Computershare Investor Services Pty Ltd

Level 2, 45 St Georges Terrace

Perth Western Australia 6000

Phone: +61 (0) 8 9323 2000

Fax: +61 (0) 8 9323 2033

 

In the UK

 

Computershare Investor Services plc

The Pavilions

Bridgewater Road

Bristol BS13 8AE

Phone: +44 (0) 870 703 6015

Fax: +44 (0) 870 703 6113

Company Website

www.mosmanoilandgas.com

 

Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income for the Half Year Ended 31 December 2014

All amounts are Australian Dollars

 






Note

Consolidated

31 December

2014

$

Consolidated

31 December

2013

$





Interest Income


3,060

1,698









Administrative costs


(155,359)

(35,928)

Corporate costs

2

(998,074)

(341,349)

Exploration costs written off

4

(4,450)

(36,374)

Employee Benefits expense


(45,271)

(22,659)

Gain/ Loss on foreign exchange


(3,275)

1,221

Share based payments

7c

(681,039)

(5,000)

Depreciation


(7,391)

(1,074)

Interest expense


(20,541)

-





Loss from ordinary activities before income tax expense

 

 

(1,912,340)

 

(439,465)





Income tax expense


-

-





Net Loss for the year


(1,912,340)

(439,465)





Other Comprehensive Income



-

Items that will not be subsequently reclassified to profit or loss when specific conditions are met - Exchange differences on translation of foreign operations


 

 

264,975

 

 

-

Total Other Comprehensive Income


264,975

-





Total comprehensive income attributable to members of the entity


(1,647,365)

 

(439,465)





Basic and diluted (loss) per share

 


(2.01) cents

(1.31) cents

 

 

 

The accompanying condensed notes form part of these financial statements.

 



 

 

Condensed Consolidated Statement of Financial Position

as at 31 December 2014

All amounts are Australian Dollars

 


Notes

Consolidated

31 December

2014

Consolidated

30 June

2014



$

$

 





 

Current Assets




 

Cash and cash equivalents


2,190,086

6,289,921

 

Trade and other receivables

3

239,623

266,788

 

Total Current Assets


2,429,709

6,556,709

 





 

Non-Current Assets




 

Property, plant & equipment


276,831

3,573

 

Capitalised mineral exploration expenditure

4

11,105,750

3,986,591

 

Total Non-current Assets


11,382,581

3,990,164

 





 

Total Assets


13,812,290

10,546,873

 





 

Current Liabilities




 

Trade and other payables

5

645,484

1,005,936

 

Provisions


7,000

4,692

 

Share application monies received in advance


-

15,000

 

Borrowings

6

713,686

-

 

Total Current Liabilities


1,366,170

1,025,628

 





 

Total Liabilities


1,366,170

1,025,628

 





 

Net Assets


12,446,120

9,521,245

 





 

Shareholders' Equity




 

Contributed equity

7

15,863,520

11,972,319

 

Reserves


1,362,467

416,453

 

Accumulated losses


(4,779,867)

(2,867,527)

 





 

Total Shareholders' Equity


12,446,120

9,521,245

 





 

 

 

The accompanying condensed notes form part of these financial statements.

 



 

 

Condensed Consolidated Statement of Changes in Equity

for the Half Year Ended 31 December 2014

All amounts are Australian Dollars

 


Contributed Equity

Option Reserve

Foreign Currency Reserve

Accumulated

Losses

Total


$

$

$

$

$

 

Balance at 1 July 2013

1,585,000

-

-

(1,004,375)

580,625







Comprehensive income






Loss for the year

-

-

-

(439,465)

(439,465)

Other comprehensive income for the year

-

-

-

-

-

Total comprehensive income for the year

-

-

-

(439,465)

(439,465)







Transactions with owners, in their capacity as owners, and other transfers






Shares issued to shareholders

1,228,370

-

-

-

1,228,370

Total transactions with owners and other transfers

 

1,228,370

 

-

 

-

 

-

 

1,228,370

Balance at 31 December 2013

 

2,813,370

 

-

 

-

 

(1,443,840)

 

1,369,530







Balance at 1 July 2014

11,972,319

416,453

-

(2,867,527)

9,521,245







Comprehensive income






Loss for the year

-

-

-

(1,912,340)

(1,912,340)

Other comprehensive income for the year

-

-

264,975

-

264,975

Total comprehensive income for the year

-

-

264,975

(1,912,340)

(1,647,365)







Transactions with owners, in their capacity as owners, and other transfers






Shares issued

4,006,696

-

-

-

4,006,696

Capital raising costs

(115,495)

-

-

-

(115,495)

Options issued

-

681,039

-

-

681,039

Total transactions with owners and other transfers

 

3,891,201

 

681,039

 

-

 

-

 

4,572,240

Balance at 31 December 2014

 

15,863,520

 

1,097,492

 

264,975

 

(4,779,867)

 

12,446,120







 

 

The accompanying condensed notes form part of these financial statements



 

 

Condensed Consolidated Statement of Cash Flows

for the Half Year Ended 31 December 2014

All amounts are Australian Dollars

 


Notes

Consolidated

Consolidated



31 December

31 December



2014

2013



$

$





Cash flows from operating activities




Interest received


3,060

1,698

Payments to suppliers and employees


(1,306,085)

(317,518)

Interest paid


(77,645)

-

Net cash (outflow) from operating activities


(1,380,670)

(315,820)





Cash flows from investing activities




Payments for Property, plant & equipment


(282,522)

-

Payments for exploration and evaluation assets


(4,770,225)

(327,857)

Net cash acquired on acquisition of subsidiary

13

35,043

-

Net cash (outflow) from investing activities


(5,017,704)

(327,857)





Cash flows from financing activities




Proceeds from shares issued, net of costs


2,600,364

332,000

Borrowings paid


(301,825)

-

Net cash inflow from financing activities


2,298,539

332,000





 

Net (decrease) in cash and cash equivalents


(4,099,835)

 

(311,677)

Cash and cash equivalents at the beginning of the financial period


6,289,921

 

427,666

Cash and cash equivalents at the end of the financial period


2,190,086

 

115,989


 

The accompanying condensed notes from part of these financial statements.

 



Condensed Notes to the Financial Statements

for the Half-Year ended 31 December 2014

All amounts are Australian Dollars

 

1.   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Statement of Compliance

The half-year financial report is a general purpose financial report prepared in accordance with the Corporations Act 2001 and AASB 134 'Interim Financial Reporting'. Compliance with AASB 134 ensures compliance with International Financial Reporting Standard IAS34 'Interim Financial Reporting'. The half-year report does not include notes of the type normally included in an annual financial report and should be read in conjunction with the most recent annual financial report.

Basis of preparation

The condensed consolidated financial statements have been prepared on the basis of historical cost, except for the revaluation of certain non-current assets and financial instruments. Cost is based on the fair values of the consideration given in exchange for assets. All amounts presented in Australian dollars, unless otherwise noted.

The accounting policies and methods of computation adopted in the preparation of the half-year financial report are consistent with those adopted and disclosed in the Company's 2014 annual financial report for the financial year ended 30 June 2014, except for the impact of the Standards and Interpretations described below. These accounting policies are consistent with Australian Accounting Standards and with International Financial Reporting Standards.

 

Adoption of new or revised accounting standards and interpretations

 

The Group has adopted all of the new and revised standards and interpretations issued by the Australian Accounting Standards Board (the AASB) that are relevant to their operations and effective for the current half-year. The Group has not early adopted any accounting standards or interpretations.

The adoption of all new and revised standards and interpretations has not resulted in any changes to the Group's accounting policies and has no effect on the amounts reported for the current or prior half-years. 

 

Going concern

 

As disclosed in the financial report, the Group recorded an operating loss for the half year to 31 December 2014 of $1,912,340 (31 Dec 2013:loss of$439,465), and had a working capital surplus of $1,063,539 as at 31 December 2014 (30 June 2014 working capital surplus: $5,531,081). The Group had cash outflows from operating activities of ($1,380,670) (31 Dec 2013: $315,820)for the half-year ended 31 December 2014.

 

The Directors believe that that the Group will be able to obtain sufficient funding in order to pay its debts as and when they become due and payablefor a further 12 months from the date of this report, and that the Group is therefore a going concern. 

 



 

Condensed Notes to the Financial Statements

for the Half-Year ended 31 December 2014

All amounts are Australian Dollars

 

1.   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES CONTINUED

 

Should the Company be unable to obtain sufficient funding as outlined above, there is material uncertainty which may cast significant doubt over the Company's ability to continue as a going concern.

 

Should the Company be unable to continue as a going concern it may be required to realise its assets and discharge its liabilities other than in the normal course of business and an amount different to those stated in the financial statements. The financial statements do not include any adjustments related to the recoverability and classification of asset carrying amounts or the amount of liabilities that might resolve should the Company be unable to continue as a going concern and meet its debts as and when they fall due.

 

Exploration and Evaluation Costs

 

Exploration and evaluation expenditure incurred is accumulated in respect of each identifiable area of interest.  These costs are carried forward in respect of an area that has not at reporting date reached a stage which permits a reasonable assessment of the existence or otherwise of economically recoverable reserves, and active and significant operations in, or relating to, the area of interest are continuing.

 

 

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.

 

Segment Reporting

 

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The chief operating decision maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Board of Directors of the Company.

 



 

Condensed Notes to the Financial Statements

for the Half-Year ended 31 December 2014

All amounts are Australian Dollars

 


Consolidated

31 December

2014

Consolidated

31 December

2013


$

$




2.         Corporate Costs



Accounting, Company Secretary and Audit fees

214,583

48,858

Directors fees

77,500

60,000

Consulting fees

438,517

97,254

Travel fees

150,250

21,829

Legal fees

117,224

113,408


998,074

341,349




 



Consolidated

31 December

2014


Consolidated

30 June

2014

 



$


$

3.         Trade and other receivables





            GST receivable


177,027


243,608

Prepayments


160


23,190

Bonds


62,436


-



239,623


266,798

 

4.         Capitalised mineral exploration expenditure

 



            Non Current




Consolidated

            In the exploration phase




$






            Balance as at 1 July 2014




3,986,591

            Acquisition of Trident Energy Limited (Note 13)




3,259,551

            Expenditure incurred during the year




3,864,058

            Expenditure written off




(4,450)

Balance as at 31 December 2014




11,105,750






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.

 



Consolidated

31 December

2014


Consolidated

30 June

2014

 



$


$

5.         Trade and other payables










Current (unsecured)










Trade creditors


609,229


977,939

Other creditors and accruals


36,255


27,997



645,484


1,005,936

     

          



 

Condensed Notes to the Financial Statements

for the Half-Year ended 31 December 2014

All amounts are Australian Dollars

 



Consolidated

31 December

2014


Consolidated

31 December

2013



$


$

6.         Borrowings










Current










Subordinated liabilities (i)


473,934


-

Amounts owing to former Director of Trident Energy Limited


 

239,752


 

-



713,686


-

(i)         Partly settled in January 2015 (Note 11)                          

 

 

7.         Contributed equity


Consolidated

31 December

2014

$


Consolidated

30 June

2014

$

            Ordinary Shares





90,804,308  (30 June 2014: 77,927,175) ordinary shares fully paid


15,863,520


11,972,319






a)  Share movements during the half-year


$


Number

Balance at 30 June 2014


11,972,319


77,927,175

Shares issued 14/07/14 at $0.20 (Note 7b)


200,000


1,000,000

Shares issued 14/07/14 at $0.15 (Note 7b)


15,000


100,000

Shares issued 16/07/14 at $0.05 (Note 7b)


100,000


2,000,000

Shares issued 15/09/14 at $0.378 for cash


2,361,581


6,250,000

Shares issued 14/10/14 at $0.401 (Note 13)


1,120,108


2,796,440

Shares issued 06/11/14 at $0.147 (Note 7b)


54,279


368,302

Shares issued 10/11/14 at $0.50 (i)


132,929


265,858

Shares issued 10/11/14 at $0.236 (Note 13)


22,800


96,533

Costs of equity


(115,496)


-

Balance at 31 December 2014


15,863,520


90,804,308

 

(i)   Shares issued to settle creditors in Trident Energy Limited.

 





      Options

During the period the following options were issued:


b)  Option movements during the half-year


 

Balance at 30 June 2014


 

Options exercised 14/07/14


 

Options exercised 14/07/14


 

Options exercised 06/11/14


 

Options issued 28/11/14 (Note 7c)


 

Balance at 31 December 2014


 




 

Of the 10,059,372 options on issue as at 31 December 2014, the following are held by directors of the Company:

J W Barr                       2,500,000

A Carroll                       2,500,000

J Young                        1,500,000



 

Condensed Notes to the Financial Statements

for the Half-Year ended 31 December 2014

All amounts are Australian Dollars

 

7.         Contributed equity (Continued)

 


b)  Option movements during the half-year (cont)


      Option details




Number of options

Exercise date

Exercise Price ($)


2,000,000

31 March 2016

0.20


3,200,000

13 January 2019

0.15


859,372

20 March 2019

0.08


4,000,000

28 November 2017

0.58


10,059,372







 

c)   Share based payments


On the 28 November 2014, 4,000,000 options were issued to directors, staff and consultants of the Group. The terms of the options are: Vest immediately, exercise price of $0.58 and an expiry date of 28 November 2017. The options were valued for accounting purposes using a Binomial pricing model, containing the following assumptions: Share price volatility of 90% and a risk free interest rate of 2.72%. The total valuation of these options was $681,039 which has been booked as an expense in the Statement of Comprehensive Income.






8.         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.

 

The reportable segments are based on aggregated operating segments determined by the similarity of the economic characteristics, geographic areas, the nature of the activities and the regulatory environment in which those segments operate.

 

             The Group has two reportable segments, being Australia, and New Zealand. Unallocated results, assets and liabilities represent corporate amounts that are not core to the reportable segments.

 



 

Condensed Notes to the Financial Statements

for the Half-Year ended 31 December 2014

All amounts are Australian Dollars

 

8.         Segment Information (Continued)

 

(i)       Segment performance





New Zealand

$

Australia

$

Total

$

Half-Year ended 31 December 2014








Segment revenue - interest

134

2,926

3,060

Segment expenses -

                (29,272)

-

(29,272)

Segment net profit/(loss) before tax

(29,138)

2,926

(26,212)





Reconciliation of segment result to net loss before tax




Amounts not included in segment result but reviewed by the Board




-      Exploration expenditure written off

 -

(4,450)

(4,450)





Unallocated items




-      Foreign exchange loss



(3,275)

-      Corporate Costs



     (978,066)

-      Employee Benefits Expense



       (45,271)

-      Administrative Costs



     (148,255)

-      Share based payments



     (681,039)

-      Depreciation



         (5,231)

-      Other



       (20,541)





Net loss before tax from continuing operations



  (1,912,340)





Half-Year ended 31 December 2013




Revenue




Interest revenue

-

1,698

1,698

Foreign exchange gain

-

1,221

1,221

Total segment revenue

-

2,919

2,919

Segment net profit/(loss) before tax

-

2,919

2,919





Reconciliation of segment result to net loss before tax




Amounts not included in segment result but reviewed by the Board




-      Exploration expenditure written off





-

(36,374)

(36,374)

Unallocated items




-      Corporate Costs



(341,349)

-      Employee Benefits Expense



(22,659)

-      Administrative Costs



(35,928)

-      Share based payments



(5,000)

-      Depreciation



(1,074)





Net loss before tax from continuing operations



(439,465)



 

Condensed Notes to the Financial Statements

for the Half-Year ended 31 December 2014

All amounts are Australian Dollars

 

8.         Segment Information (Continued)





(ii)       Segment assets





New Zealand

$

Australia

 

$

Total

 

$

As at 31 December 2014




Segment assets as at 1 July 2014

3,017,932

     968,660

    3,986,592

Segment asset increases/(decreases) for the year




-      Exploration and evaluation

3,416,283

  3,702,875

    7,119,158


6,434,215

  4,671,535

  11,105,750





Reconciliation of segment assets to total assets:




Other assets



    2,706,541

Total assets from continuing operations



  13,812,291





(iii)     Segment liabilities








As at 31 December 2014




Segment liabilities as at 1 July 2014

798,334

     227,294

 1,025,628

Segment liability increases/(decreases) for the year

(728,769)

  1,069,311

       340,542


 69,565

  1,296,605

 1,366,170





Reconciliation of segment liabilities to total liabilities:




Other liabilities



                  -  

Total liabilities from continuing operations



  1,366,170





 

9.         Commitments

 

The Group has certain obligations to perform minimum exploration work on Oil and Gas tenements held. These obligations may vary over time, depending on the Group's exploration programs and priorities. At 31 December 2014, total exploration expenditure commitments that have not been provided for in the financial statements are as follows:

 


AU$

Less than one year

750,150

One to five years

599,305

Over five years

-

Total

1,349,455

 

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 Group has the option to elect to not carry out the minimum work program commitments pertaining to a specific permit, in which case the Group will relinquish its interest in the relevant permit, or in the case of the Officer Basin Permit, once issued, accept a dilution in its 25% shareholding in Australian Petroleum Portfolio Limited.



 

Condensed Notes to the Financial Statements

for the Half-Year ended 31 December 2014

All amounts are Australian Dollars

 

 

10.       Contingent Liabilities

 

There has been no change in contingent liabilities since the 30 June 2014 annual report.

 

11.       Subsequent events

 

There are no material matters or circumstances arising since 31 December 2014 which will significantly affect the operations of the Group, the results of those of those operations, or the state affairs of the Group in subsequent financial periods apart from:

           

Mosman has announced that it intends to make a takeover bid pursuant to Chapter 6 of the Australian Corporations Act 2001 (Cth) to acquire 100% of the fully paid ordinary shares in the issued capital of the ASX listed MEO Australia Limited ("MEO"). It has also announced amendments to the bid terms.

Currently Mosman intends to offer MEO's shareholders 1 AIM listed fully paid ordinary shares in Mosman for every 10 ASX listed fully paid ordinary shares in MEO to acquire 100% of MEO.

The takeover bid is subject to the fulfilment (or waiver) of the conditions to be fully set out in the takeover bid documents.

 

On 14 January 2015 1,000,000 shares were issued to the former directors of Trident Energy Limited to partly extinguish creditors and financial liabilities owed to them from Trident Energy Limited.

 

12.       Dividends

 

No dividends have been paid or proposed during the half year.

 

 

13.       Acquisition of Subsidiaries

 

OilCo Pty Ltd

 

On 27 August 2014, the Group obtained control of OilCo Pty Ltd, an oil and gas exploration entity by acquiring 100% of OilCo Pty Ltd's shares from existing shareholders.

 

The acquisition of OilCo Pty Ltd was assessed by the Board in the current period and it was determined that the acquisition was an asset acquisition, rather than a business combination.

 

The deemed fair value of net assets acquired at the date of acquisition were as follows:


$

Fair value of net assets acquired


Nil




Acquisition consideration:



Overriding 2% royalty on production


Nil




The Board reviewed the royalty payable to OilCo Pty Ltd's previous shareholders and at this point in time a reliable and quantitative value cannot be established.

 



 

Condensed Notes to the Financial Statements

for the Half-Year ended 31 December 2014

All amounts are Australian Dollars

 

13.       Acquisition of Subsidiaries (cont)

 

Trident Energy Limited

 

During the half-year, the Group obtained control of Trident Energy Limited, an oil and gas exploration entity, by acquiring 100% of Trident's shares from existing shareholders.

 

The acquisition of Trident Energy Limited was assessed by the Board in the current period and it was determined that the acquisition was an asset acquisition, rather than a business combination as the substance and intent of the acquisition was for the Group to acquire the exploration and evaluation assets of Trident Energy Limited for the purpose of expanding the Groups overall resource base.

 

The deemed fair value of net assets acquired at the date of acquisition were as follows:


$

Cash and cash equivalents


35,043

Trade and other receivables


12,105

Property, plant and equipment


1,872

Exploration and evaluation assets


3,259,551

Trade and other payables


(798,152)

Borrowings


(1,015,481)

Net assets acquired


1,494,938




Acquisition consideration:



Shares issued (2,796,440 shares at $0.401), at fair value


1,120,108

Shares issued (96,533 shares at $0.236), at fair value


22,800

Acquisition costs


352,030

Total purchase consideration


1,494,938




 


 

 



 

 

 

Directors Declaration

 

The Directors of the company declare that:

 

1)      The financial statements and notes, as set out on pages 3-15

a.   Comply with Accounting Standard AASB 134: Interim Financial Reporting, Corporations Act 2001 and the Corporations Regulations 2001; and

b.   Give a true and fair view of the consolidated entity's financial position as at 31 December 2014 and of its performance for the half year ended on that date.

 

2)    In the Directors' opinion there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable.

 

 

 

The declaration is made in accordance with resolution of the board.

 

 

 

John W Barr

Director

 

Perth

27th January 2015

 




 

 

 

 

 

Auditor's Independence Declaration

 

To those charged with the governance of Mosman Oil and Gas Limited

 

As auditor for the review of Mosman Oil and Gas Limited for the half-year ended 31 December 2014, I declare that, to the best of my knowledge and belief, there have been:

 

i)          no contraventions of the independence requirements of the Corporations Act 2001 in relation to the review; and

ii)         no contraventions of any applicable code of professional conduct in relation to the review.

 

 

 

 

 

 

 

Somes Cooke

 

 

 

 

 

Nicholas Hollens

Partner

 

Perth

 

27 January 2015

 

 

  

 

 

Independent Auditor's Review Report

 

 

 

To the members of Mosman Oil and Gas Limited

 

Report on the Half‑Year Financial Report

We have reviewed the accompanying half‑year financial report of Mosman Oil and Gas Limited, which comprises the condensed consolidated statement of financial position as at 31 December 2014, and the condensed consolidated statement of profit or loss and other comprehensive income, condensed consolidated statement of changes in equity, and condensed consolidated statement of cash flows for the half‑year ended on that date, notes comprising a summary of significant accounting policies and other explanatory information, and the directors' declaration.

 

 

Directors' Responsibility for the Half‑Year Financial Report

The directors of Mosman Oil and Gas Limited are responsible for the preparation of the half‑year financial report that gives a true and fair view in accordance with Australian Accounting Standards (including Australian Accounting Interpretations) and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the half‑year financial report that is free from material misstatement, whether due to fraud or error.

 

 

Auditor's Responsibility

Our responsibility is to express a conclusion on the half‑year financial report based on our review. We conducted our review in accordance with Auditing Standard on Review Engagements ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity, in order to state whether, on the basis of the procedures described, we have become aware of any matter that makes us believe that the financial report is not in accordance with the Corporations Act 2001 including: giving a true and fair view of Mosman Oil and Gas Limited's financial position as at 31 December 2014 and its performance for the half‑year ended on that date; and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001. As the auditor of Mosman Oil and Gas Limited, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report.

 

A review of a half‑year financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

 

 

Independence

In conducting our review, we have complied with the independence requirements of the Corporations Act 2001.

 

 

 

 

Conclusion

Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the half‑year financial report of Mosman Oil and Gas Limited is not in accordance with the Corporations Act 2001 including:

(a)   giving a true and fair view of Mosman Oil and Gas Limited's financial position as at 31 December 2014 and of its performance for the half‑year ended on that date; and

(b)   complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001.

 

Emphasis of Matter - Inherent uncertainty regarding continuation as a going concern

Without modifying our conclusion, we draw attention to Note 1, which outlines that the Group had a working capital surplus of $1,063,539 as at 31 December 2014, and had cash outflows from operating activities of $1,380,670 for the half-year then ended.

As a result, there is a material uncertainty related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern, and therefore whether it will realise its assets and extinguish its liabilities in the normal course of business and at the amounts stated in the financial report.

 

 

 

 

 

 

Somes Cooke

 

 

 

 

 

Nicholas Hollens

Partner

 

Perth

 

27 January 2015

 

 

  


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
IR LIFERLVITFIE