The company said the funds would be spent on its development and production plans, and enhancing its exploration and appraisal programs.

Molopo intends to further develop its Mungi CSM field in Queensland’s Bowen Basin, once the sole risk well program has been completed.

Also in the Bowen Basin, Molopo will spend $6 million of the capital raising funds for all of privately owned Helm Energy’s CSM interests.

These include a 25% interest in the Mungi and Harcourt gas fields and the Timmy and Lilyvale gas prospects, as well as Helm’s share of gas production at Mungi and its 50% interest in a compression unit.

The company will also use the money to fund major work programs to secure reserves certification in the Gloucester Basin in New South Wales, and the Liu Lin project in China. This work will be a precursor to a development commitment, Molopo said.

Molopo will use the funds to expand its exploration program in South Africa, where it has recently upped its interest to 100%.

The capital raising involved the placement of 133 million shares at 25c each to sophisticated and institutional investors.