Mosman Oil and Gas Reports FY25: Revenue Growth Offset by AUD 10.3m Loss in Helium Strategy Shift

Mosman FY25 results: revenue up to AUD $504k as helium pivot drives a AUD $10.3m loss

Mosman Oil and Gas (AIM: MSMN) has published its FY25 Annual Report. The headline is a classic transition-year mix: revenue from continuing operations rose to AUD $504k, but the Group recorded a net loss of AUD $10.317m as it pivoted hard into helium and cleaned up legacy oil assets.

The strategic centre of gravity is now Sagebrush in Colorado, with the company aiming to convert prospective helium resources into commercial output through FY26 drilling and testing. Vecta’s FY25 dry hole underscores the risks, but also the rationale for focusing spend where the geology and scale look more compelling.

Key numbers at a glance

Metric	FY25	FY24
Revenue (continuing operations)	AUD $503,573	AUD $186,232
Net loss (total)	AUD $10,317,708	AUD $2,140,072
Loss – continuing operations	AUD $7,285,524	AUD $1,545,831
Loss – discontinued operations	AUD $3,032,184	AUD $594,241
Cash at 30 June 2025	AUD $3,939,471	AUD $873,365
Cash at 25 September 2025	AUD $2,600,000	Not disclosed
Basic and diluted loss per share	(0.055) cents	(0.022) cents

Helium strategy: Sagebrush takes centre stage

FY25 was about repositioning to helium. Mosman acquired an 82.5% working interest in the Sagebrush Helium Project in Colorado, secured an independent technical assessment confirming prospective resources, and advanced permitting and planning for FY26 drilling and flow testing. In plain English: they are lining up the data and approvals now to drill and try to prove commercial helium rates next year.

The Vecta Helium Project (20% interest) saw drilling in FY25 that did not encounter commercial helium and has been fully impaired. That is disappointing, but not unusual in exploration. The Company says geological learnings will inform other targets – more valuable if Sagebrush delivers.

Oil exit largely done, portfolio simplified

Mosman completed its exit from the Stanley oil interests in Texas and now reports that only minor legacy production remains. That clean-up is visible in the accounts: discontinued operations show a AUD $3.032m loss driven by a loss on the sale of Nadsoilco, LLC and an impairment of EP145 in Australia.

Structurally, Mosman formed Mosman Helium LLC, strengthened the Board with new non-executives and a CFO, and subsequently appointed an interim CEO, Howard McLaughlin. The corporate machine looks better aligned to the helium thesis.

What drove the loss: impairments and exploration spend

On the P&L, the big swing factors were impairments and exploration expensed to the income statement. Impairment expense was AUD $4,718,502, reflecting write-downs across oil and gas assets as the portfolio was reset. Exploration expenses incurred and not capitalised were AUD $598,921.

Corporate costs rose to AUD $1,600,179, as you would expect in a year of acquisitions, divestments and a strategic pivot. Gross profit improved to AUD $281,484 on higher continuing revenue as Sagebrush production flowed through, but that was not the main earnings driver in FY25.

Cash runway, funding and going concern

Year-end cash was AUD $3.939m, supported by AUD $6.492m net inflows from financing activities during FY25. By 25 September 2025, cash stood at AUD $2.6m, showing the early FY26 burn as projects progress. Operating cash outflow was AUD $1.525m in FY25.

The accounts are prepared on a going concern basis. The Board notes the need and reasonable expectation of further funding, plus an ability to trim costs if required. For investors, the read-across is straightforward: expect pragmatic capital raises to fund the FY26 drilling and testing programme at Sagebrush, the key potential catalyst for re-rating.

Share count, warrants and dilution

Contributed equity increased to AUD $49.705m and ordinary shares rose to 22,981,521,662 at year end after several placements and conversions. There are 1,371,058,168 unlisted warrants outstanding with exercise prices ranging from 0.025 to 0.077 Great British pence and expiries from 2025 to 2028.

This is typical of a junior explorer funding growth, but it does mean dilution risk remains part of the story until cash flow from projects is established.

Project portfolio snapshot (25 September 2025)

• Sagebrush, Colorado – 82.5% working interest. Drilled to date; seismic and flow testing planned in FY26 and central to the helium strategy.
• Coyote Wash, Colorado – 100% undrilled. Additional helium prospect.
• Cinnabar, Texas – 75.0% producing, plus Cinnabar Extended 78.0% undrilled.
• Arkoma, Oklahoma – 27% producing.
• Vecta Helium Project – 20% drilled in FY25; no commercial helium encountered and impaired.
• Australia – EP145 impaired to AUD $150,000 carrying value, with Mosman retaining a 5% helium and hydrogen royalty over the project. EPA155 remains at application stage with land access negotiations ongoing.
• Royalties – 5% royalty over Vecta Helium – Billy Goat and 5% over EP145.

Why this matters: catalysts, risks and my take

Positives

• Clear strategic focus on helium, a premium industrial gas with attractive pricing dynamics.
• Sagebrush looks like a genuine cornerstone asset with independent prospective resource assessment and an FY26 drill-and-test plan – a tangible value catalyst.
• Legacy portfolio cleaned up through divestments and impairments – fewer distractions going forward.
• Balance sheet strengthened in FY25, giving room to execute the next phase.

Watch-outs

• Funding remains key. The going concern note flags the need for additional capital to hit milestones – expect more equity or hybrid financing.
• Exploration risk is live. Vecta’s result is a reminder that helium exploration is not a straight line.
• Dilution overhang from 23.0bn shares outstanding and 1.37bn warrants – progress at Sagebrush must outpace dilution.
• Short-term cash burn evident in the drop from AUD $3.9m at 30 June to AUD $2.6m by 25 September 2025.

Bottom line: a cleaner, higher-beta helium story heading into FY26

FY25 was a reset. Revenue from continuing operations improved to AUD $503,573, but the real story is the heavy lifting to clear the decks and aim Mosman squarely at helium. The cost was a AUD $10.317m loss and significant impairments, which now appear largely in the rear-view mirror.

From here, it is about execution. Permitting, seismic, drilling and flow testing at Sagebrush in FY26 are the events that can move the dial. If Mosman proves commercial helium, today’s revenue line will look quaint. Until then, it is a classic junior resource set-up: focused strategy, defined catalyst, and a funding track that requires managing dilution carefully. For investors who can tolerate exploration risk, FY26 could be decisive.