Oil and gas junior Mosaic Oil NL
(ASX:MOS) has posted a loss for the first half of the 2010 financial year on the back of exploration write-downs.
Looking ahead, the company says it plans to focus on development drilling in the Surat-Bowen Basin to boost revenue and profits in the second half and beyond.
CEO Alex Parks says the company delivered higher overall production and sales of natural gas in the first half but lower oil revenue compared to the two previous half years.
Mr Parks says the company still has significant quantities of oil and gas that are yet to be appraised and developed in the Surat-Bowen Basin.
He expects to continue to increase production in the second half of this financial year.
Mosaic booked a loss of $4.36 million, reversing a $3.1 million profit in the same period a year before.
Mr Parks says he accepts responsibility for the exploration write downs, which were the result of an asset review he initiated after joining the company in August, 2009 and reflect a new strategy and direction for the company.
In the 12 months to June 30, 2009, Mosaic Oil posted a profit of $2.61 million.
