Mosman Oil and Gas Ltd (AIM:MSMN) reported first-half results and expressed an optimistic outlook for the second half with a refreshed board of directors and costs reduced.
For the six months to 31 December 2023, revenue came to A$533,794 compared to A$936,187 last time as production at the Stanley site in Texas, USA, was affected by downtime due to reconfiguration of production equipment and weather conditions in December.
Elsewhere in the US, technical work at the Cinnabar development project has identified opportunities for increasing production, Mosman said.
In Australia, Mosman signed a farm-out agreement with Greenvale Energy (ASX:GRV) for the EP 145 project, pending ministerial approval, with progress at the site reported more recently.
This agreement could see Greenvale earn a 75% interest by funding seismic acquisition and drilling up to a cap of $5.5 million.
Mosman also underwent a board refreshment and reorganization aimed at reducing operational costs, with Andy Carroll appointed CEO in September, with Nigel Harvey taking on the role of non-executive chairman and Carl Dumbrell joining as a non-executive director.
It said these changes reflect the company's strategy to streamline its operations and focus on its core business of hydrocarbon helium and hydrogen exploration, development, and production in the US and Australia.
Carroll said: "The board has been refreshed and the company has been re-organized 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."
A gross profit of A$34,059 was reported for the period, compared to A$283,003 a year earlier, with a net loss of A$984,851 compared to A$665,096.
Cash stood at A$614,305 at the half-year stage and in February raised £300,000 to support its Australian helium and hydrogen exploration projects.