In addition, the funds will be used to prove up additional gas reserves through ongoing exploration, appraisal and pilot production programs, Arrow said.

In particular, funds raised together with Arrow’s existing cash reserves will provide upstream and downstream development funding for the Daandine and Tipton West projects.

A portion of the funding will also pay for appraisal or pilot funding for the Silverdale, Dundee, Boyne River and Mt Lindesay projects, as well as exploration programs on its projects in the Surat and Clarence Moreton Basins near Brisbane, and in the

Queensland Coastal Basins near Gladstone.

The institutional placement is being undertaken in two tranches, Arrow said. The first tranche of $14m (24.1m shares) will be settled on or about February 16, with the second tranche of $3.5m (6m shares) being subject to shareholder approval at a general meeting March 28 and will be settled shortly thereafter. Arrow said more than thirty financial institutions took part in the placement.