Mosman cuts cloth to adapt to low oil prices

Post Thumbnail

Mosman loss was wider in the first half of the current financial year thanks to one-off costs related to impairments and the termination of a deal to acquire a producing project in New Zealand.

The Australasia focused exploration and development company, which operates in New Zealand and Australia, said its net loss for the six months to the end of 2015 amounted to A$3.7 million, widening from the A$1.9 million in 2014.

A A$1.5 million impairment and A$1.2 million associated with the STEP acquisition, impacted on the firm’s results.

In February, Mosman pulled out of a deal with Origin Energy for the South Taranaki Energy Project in New Zealand, as the oil price slump kicked in.

The company has been focused on cutting its costs and remains in a sound financial position it told investors in a statement.

Mosman is disposing of surplus equipment and materials in New Zealand, but it is retaining long lead equipment which will be required for future drilling activities such as casing and mud chemicals.

It will plug and abandon three exploration wells in New Zealand, drilled in 2014 in order to meet permit requirements.

Mosman said it is also planning to seek approval to amalgamate the Petroleum Creek and Taramakau permits to improve exploration efficiency.

The company has already withdrawn from the the Otway Basin offshore licence in Australia but remains focused on onshore operations it said.