Categories: Investment Strategies & Comparisons

MOSMAN OIL AND GAS, A HIDDEN GEM?

INTRODUCTION

Mosman Oil and Gas is a company that explores for oil and gas using existing exploration permits, and it strategically acquires permits in order to expand operations. The company is focused on operating in politically stable countries, and has a strategic focus on continued growth. Over the last five years, the company has experienced consistent growth, and continues to grow both organically and through permit acquisition. Global energy agencies continue to expect demand for both oil and gas to continue rising on a global level, with 2024 expected to see record demand, which puts Mosman Oil and Gas in a strong position capitalize on the current energy demand environment. Mosman Oil and Gas could be a penny stock that offers a good opportunity as a micro strategy stock.

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REVENUE GROWTH REMAINS STRONG

As of the most recent financial report, Mosman Oil and Gas reported their highest ever revenue in 2023, with the company logging revenue at around £1.3M. This represents 30% growth year-on-year, and a growth rate of 160% since 2021. Mosman Oil and Gas is expected to continue to improve its revenue generation ability, as the company continues to invest in new projects, while also acquiring existing permits. The company has operations in Australia, which it continues to develop in order to acquire the appropriate permits for diversifying its exploration. Recently, the company announced that it will be exploring for hydrogen, helium and other hydrocarbons. With helium in particular, the company will be exploring in one of the most concentrated helium producing regions in the world, the Amadeus basin in Australia. Helium is an expensive commodity, and the extremely high demand for this commodity will likely increase Mosman’s revenue generation.

GLOBAL OIL AND GAS DEMAND SET TO SOAR

Global oil and gas consumption are expected to increase sharply, with all of the major energy agencies in agreement. The IEA, EIA and the global oil cartel, OPEC all expect an increase in oil consumption, while Natural Gas is expected to replace coal as the second most consumed hydrocarbon for energy purposes. This type of demand environment is likely to persist into the long term, and will provide Mosman Oil and Gas with a potential revenue stream for the foreseeable future. This could be a key growth driver for the company, and qualify it as a penny share to buy now.

CONCLUSION/SUMMARY

In conclusion, Mosman Oil and Gas are a fundamentally cheap stock, given the revenue growth it has exhibited over the last few years. Given record oil and gas demand expected to last for the medium to long term, and given Mosman’s astronomical revenue growth, the company can be seen as an inexpensive opportunity that could provide substantial returns. If the stock manages to move back to its 5-year high, the upside potential from these levels is around 2,900%.