- Mosman Oil and Gas posts a net loss of A$3.4m for the year to the end of June - up from A$1.9m last time - and has cancelled its option on the Canning Basin Permit in Australia.

Chairman John W Barr said: "Without doubt, this has been a tough 12 months. During the year, management raised in excess of A$4.5m of new capital and some A$5.5m was spent on exploration, a considerable achievement given the overall market conditions.

"Of course there were also disappointments with the failed takeover of MEO Australia Limited, the lack of commercial oil flows at Petroleum Creek, and more recently the sell out by certain shareholders.

"In hindsight mistakes were made, but we believe these have been clearly overridden by the level of exploration activity, and the potential offered by the STEP acquisition which has now reached the stage were Government approvals are awaited."

Separately, the company announced that it had decided to cancel its option on the Canning Basin Permit in Australia and would focus on the completion of the South Taranaki Energy Project ('STEP') along with its other core exploration and development projects.

Barr said: "The option over the Canning Basin permit would have required further funding to build Mosman's stake and, with the proposed developments at STEP and drilling plans at Murchison, we believe it is prudent to cancel the option over this permit and focus on these two core projects and our portfolio of exploration projects."

At 1:20pm: [LON:MSMN] Mosman Oil And Gas Limited Ord Npv share price was +0.13p at 2.75p

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