AFTER withdrawing from its proposed acquisition of the South Taranaki Energy Project from Origin Energy and operations at Murchison, Mosman Oil and Gas has carried out a thorough review of its strategy.

In its half year financial report, Mosman said it reviewed its budgets and operational priorities following the decision, reducing to a core staff and having directors cap their fees.

Mosman said much of its £1.96 million half year loss was a result of this revised strategy and writedowns of non-core assets, with the company having also started disposing of surplus equipment and materials.

The company was preparing to plug and abandon three exploration wells drilled in 2014 under permit requirements, taking advantage of current lower rig and service company costs and reducing ongoing land occupation costs.

Company chairman John Barr said the Mosman board was positive about a good year ahead.

“The board are continuing to evaluate the development opportunities within Mosman and additional opportunities that it has identified, which are now under active review, and shareholders will be advised if and when one of these opportunities crystallises,” he said.

Mosman was seeking approval of New Zealand Petroleum & Minerals to surrender its East Coast permit due to limited exploration potential as well as to amalgamate its Petroleum Creek and Taramakau permits to improve exploration efficiency, it said.