Mosman puts its eggs in the NZ oil basket

Mosman Oil and Gas reported its final results for what it described as a "challenging year" on Tuesday, as it shifted its focus from Australian to New Zealand exploratory operations.

The AIM-listed oil explorer, focused on Australia and New Zealand, saw net losses double to AUD$3.39m (£1.63m) in the year to 30 June.

Net assets were up though, from AUD$9.52m to AUD$13.11m.

Mosman reported good progress in building its permit base, but actual development of its permits did not advance as quickly as it had anticipated.

"Without doubt, this has been a tough 12 months", said chairman John W Barr.

"During the year, management raised in excess of AUD$4.5m of new capital and some AUD$5.5m was spent on exploration, a considerable achievement given the overall market conditions."

Barr said since year end, progress has been made towards first production in 2016 with the proposed acquisition of the South Taranaki Energy Project in New Zealand's North Island.

It was hoped this would complement the group's current exploration at Petroleum Creek in the country's South Island, where it held a 100% permit but was yet to establish commercial oil flows.

Mosman also announced on Tuesday it was cancelling its option on the Canning Basin Permit in Australia, in order to concentrate on the South Taranaki Energy Project.