Aurora Oil & Gas unveiled a $10.6 million capital raising, involving the placement of 20 million shares at 53c each, to pay for drilling, infrastructure, seismic and land acquisition activities.

As well as the placement, the company is undertaking a 1 for 10 non-renounceable rights issue at 53c per share.

Aurora said that its operations were continuing at its North Belridge-26-2H well, in California, and the Sugarloaf-1 exploration well, on the Texas Gulf Coast.

The company said a fracture stimulation program would start at North Belridge-26-2H and at Sugarloaf-1 in mid-August.

Aurora expects to participate in drilling a horizontal appraisal well at the Sugarloaf prospect towards the end of August.

Aurora’s partner in the Sugarloaf project, Eureka Energy, has also announced it is hoping to raise up to $3 million, via the placement of 9.375 million shares at 32c each.

“Funds raised from this issue will be applied towards the Sugarloaf project including drilling activities and for general working capital,” Eureka said.

The shares will be placed with professional and sophisticated investor clients of Bell Potter Securities, Stripe Capital and Tolhurst Noall.

Meanwhile, onshore Texas Gulf Coast explorer, Golden Gate Petroleum, also intends to place 35.6 million shares at 25c each to raise $8.9 million.

Proceeds from the raising will be used to fund drilling of the company’s Padre Island, Bullseye, Wilcox and East Texas prospects.