27 March 2024

Mosman Oil and Gas Limited

("Mosman" or the "Company")

Half Year Results

Mosman Oil and Gas Limited (AIM: MSMN) the hydrocarbon, helium and hydrogen exploration, development and production company, announces its Half Year results to 31 December 2023 (H124).

Summary

All amounts are in Australian Dollars

¹BOE/boe - barrels of oil equivalent

²Gross Project Production - the production of BOE at a total project level (100% basis) before royalties (where Mosman is the Operator) and where Mosman is not the operator the total gross production for the project

³Net Production - Net to Mosman's Working interest before royalties

Operational overview

USA

Australia

Board update

Andy Carroll, CEO of Mosman commented:

"The Board has been refreshed and the company has been re-organised with a lower cost base. In the US, we continue cost effective production optimisation to commercialise these assets and exploration work continues in Australia on the areas prospective for helium, hydrogen and hydrocarbons."

Enquiries:

Updates on the Company's activities are regularly posted on its website: www.mosmanoilandgas.com

Notes to editors

Mosman (AIM: MSMN) is an oil exploration, development, and production company with projects in the US and Australia. Mosman's strategic objectives remain consistent: to identify opportunities which will provide operating cash flow and have development upside, in conjunction with progressing exploration of its existing exploration permit and permit application. The Company has several projects in the US. In addition to exploration projects in the Amadeus Basin in Central Australia.

Operations Review

Mosman's strategic objective remains to identify opportunities which will provide operating cash flow and have development upside, in conjunction with exploration of existing exploration permits and acquiring high potential projects.

The conclusion of the Strategic Review was to commercialise the production assets (which may include sale of some assets) and not to proceed with IPO of the Australian assets as there was limited investor interest in IPOs in 2023. As part of this process, the Group incurred some costs in establishing a holding company for the Australian assets in regard to evaluating the potential for an IPO of that company.

The Board renewal process was completed with the appointment of Carl Dumbrell. Carl is a qualified accountant and brings extensive experience in Australian and AIM companies. John W Barr and John Young stepped down and are thanked for their service in the successful IPO and steering the company through exploration and building a production base in the USA. The corporate re-organisation resulted in a reduction in the number of Directors from four to three; the reduction in executive directors from two to one; and a clearer separation of Board and management with two independent Directors and a Chief Executive Officer, and the redundancy of the one employee. Whilst there are now lower fixed overheads, there were some one-off costs associated with this reorganisation.

Turning to development of the producing US projects, more than $475k was invested in increasing production and progressing exploration during the period. Stanley continues to be the main centre of production and the production equipment has been reconfigured with jet pumps.

The development project, Cinnabar, was which was acquired at modest cost when oil and gas prices were lower in 2021, has had an extensive technical work, including reprocessing and re-interpretation of 3D seismic. Whilst results of the Cinnabar development well drilled in November 2022 confirmed the presence of oil and led to an upgrade of Reserves, the production rates have been disappointing. Technical work has identified opportunities for increasing production, and several workovers have now been undertaken on the three wells on the lease. Work will continue to increase production, and to de-risk a new lease area acquired that appears highly prospective based on 3D seismic.

Gross Reserves (MBOE):

In Australia's Northern Territory, Mosman holds a 100% interest over the EP-145 permit and continues to work to secure all required approvals for the next step of exploration.

A Farmout Agreement was signed with a subsidiary of Greenvale Energy (ASX:GRV) in October 2023, whereby GRV can earn 75% interest by funding seismic acquisition and drilling a well (to a cap of AUD 5.5 million). This currently remains subject to completion pending ministerial approval.

A Prospective Resource estimate for EP-145 was published by Mosman in October 2022 and is detailed below.

As shareholders and stakeholders expect, Mosman continues to take its Health and Safety requirements very seriously and to date there have been no health, safety or wellbeing issues reported in our small team.

Results

The unaudited results for the six months to 31 December 2023 reflect a 43% decrease in sales to $533,794 ($936,187 in 2022). Gross profit also decreased by 88% to $34,059 ($283,003 in 2022). The lower sales and gross profit margins were primarily due to lower production at Cinnabar and Stanley as recompletions and upgrade works were undertaken, as well as lower oil and gas prices in the period.

The overall result for the period was a net loss of $984,851 (2022: $665,096). This includes one-off restructuring costs of over $100k that are intended to reduce ongoing costs.

Projects

Mosman has Working Interests in eight onshore producing projects located in the USA, in addition to one granted exploration permit and one application for an exploration permit in the Amadeus Basin in Central Australia.

Producing Projects in the USA

A summary of the current oil and gas projects as at 27 March 2024:

^1. Mosman's ownership is working interest before royalties. The interest shown is approximate, as there are small variations on individual wells

Production Summary for the six months ending 31 December 2023

¹BOE/boe - barrels of oil equivalent

²Gross Project Production - Means the production of BOE at a total project level (100% basis) before royalties (where Mosman is the Operator) and where Mosman is not the operator the total gross production for the project

³Net Production - Net to Mosman's Working Interest; Net Production attributable to Mosman means net to Mosman's Working Interest before royalties

Australia

^1. Mosman's ownership is working interest before royalties and the interest shown is subject to farmin agreements (detailed below)

Mosman has continued to conduct technical work on its Central Australian exploration projects, focused on the 100% owned EP-145, in the Amadeus Basin, Northern Territory.

The Prospective Resource estimate for EP-145 published by Mosman in October 2022 and is detailed below.

All seismic and drilling activities are subject to obtaining the necessary planning approvals from the NT Department of Industry and Resources.

On 16 October 2023, the Company announced that it had entered into a farmout agreement with Greenvale Gold Pty Ltd, a wholly owned subsidiary of Greenvale Energy Ltd (ASX:GRV) to fund seismic and drilling on its EP 145 project in the Northern Territory of Australia. Upon Completion, Mosman would retain a 25% working interest in EP 145 and Greenvale would earn a 75% working interest in EP 145 by:

· Committing to pay AUD160,000 in cash within 5 days of Completion, which is subject to government approval of the transfer of interest and Operatorship.

· Paying for the EP 145 Permit Year 3 Work Program, including seismic, effective from Completion Date.

· Funding the Permit Year 4 Work Program, including drilling one well with a well cost cap of AUD5.5 million.

· The Year 3 Work Program is to be completed by August 2024 and the cost of the seismic acquisition is estimated to be circa AUD2 million.

· The Year 4 Work Program is to be completed by August 2025. The cost of drilling a well depends on many factors including the depth of a well and cost of drilling rigs at the time of drilling.

At Mosman's other central Australian project in EPA-155, the permit application is subject to Native Title negotiations. The required site visit was delayed by the Covid-19 pandemic. Mosman has a farmout agreement, and the farm-in partner has advised they are discussing with the Central Land Council ("CLC") and have arranged a site visit.

Matters subsequent to the reporting period

Subsequent to the end of the reporting period the Company announced the following material matters occurred:

· On 15 January 2024, the Group announced it had lodged the Environmental Management Plan ("EMP") with the Northern Territory Government. Approval of the EMP and re-issue of the Aboriginal Areas Protection Authority ('AAPA') Certificate are the two remaining approvals required prior to the acquisition of 2D seismic, scheduled for 2024.

· On 23 January 2024, the Group announced that Mosman and Greenvale Gas Ltd ("GRV"), a subsidiary of Greenvale Pty Ltd (ASX:GRV), had agreed to amend the Farmin Agreement so that the right for either party to terminate the agreement is changed from 31 January to 30 March 2024.

· On 2 February, the Group announced it had raised £300,000 (before expenses) by way of a placing of 2,400,000,000 ordinary shares at a price of 0.0125 pence per share.

· On 7 February, the Group held and Extraordinary General Meeting, where shareholder approval was received to issue 84,210,526 shares and 42,105,263 warrants to CEO Andrew Carroll, and 42,105,263 shares and 21,052,632 warrants to Chairman Nigel Harvey. Shares were issued for cash consideration at 0.0125p per share. The warrants are exercisable at 0.025p each with a two year expiry. All shares and warrants were issued on the same terms as the placement announced on 29 November 2023.

There were no other material matters that occurred subsequent to 31 December 2023.

Glossary: