This will remain in place until documentation is complete for its $11.5 million underwritten rights issue planned for later this month.

The company will use the proceeds to complete the purchase of a new deep-capacity drilling rig to undertake a long-term drilling contract with ExxonMobil in Indonesia.

The proceeds will also be used to fund the re-equipping and upgrading of two mobile, medium capacity drilling rigs for its long-term contracts with Petroleum Development in Oman.

In addition to the rights issue, the company is arranging to increase its debt facilities with the addition of a five year loan of up to $US10 million.