Mosaic Oil posts a loss on write downs
March 7, 2010
Mosaic Oil NL (MOS) has posted a first half post-tax loss of $4.36 million on the back of exploration write-downs of $4.7 million. Looking ahead, the Australian oil and gas producer said that during the rest of the financial year, the company plans to focus on development drilling in the Surat-Bowen Basin to increase revenue and profits in the 2H FY10 and beyond.
Mosaic Oil CEO, Alex Parks, said that the company had delivered higher overall production and sales of natural gas in the half but lower oil/condensate production/revenue compared to the two previous half years.
”We believe we can continue to increase our production in the current year with further increases in FY11,” Mr Parks said.
Mr Parks added that the company still has ‘significant’ quantities of oil and gas that were yet be to appraised in the Surat-Bowen basin.
Mr Parks said he was responsible for the decisions on write downs to exploration.
“Between seismic and drilling, Mosaic Oil could have been required to invest well over $1 million more into ATP608P, a project that no longer meets our strategic objectives or fits within a risk profile we are comfortable with for the region,” Mr Parks said.
Looking at the figures, the company’s profit slump was a reversal of a $3.1 million profit in the previous corresponding period.
In the six months the company produced 255,329 barrels of oil, up from 229,229 in the previous corresponding period.
At 1047 AEDT, Mosaic Oil shares were trading down 0.1c at 9.1c.
Mosaic Oil CEO, Alex Parks, said that the company had delivered higher overall production and sales of natural gas in the half but lower oil/condensate production/revenue compared to the two previous half years.
”We believe we can continue to increase our production in the current year with further increases in FY11,” Mr Parks said.
Mr Parks added that the company still has ‘significant’ quantities of oil and gas that were yet be to appraised in the Surat-Bowen basin.
Mr Parks said he was responsible for the decisions on write downs to exploration.
“Between seismic and drilling, Mosaic Oil could have been required to invest well over $1 million more into ATP608P, a project that no longer meets our strategic objectives or fits within a risk profile we are comfortable with for the region,” Mr Parks said.
Looking at the figures, the company’s profit slump was a reversal of a $3.1 million profit in the previous corresponding period.
In the six months the company produced 255,329 barrels of oil, up from 229,229 in the previous corresponding period.
At 1047 AEDT, Mosaic Oil shares were trading down 0.1c at 9.1c.
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