Mulberry-2 is 450 metres NW of the original discovery, in the Tintaburra Block in Queensland and 2.5 kilometres from the Gimboola oil facility.
It is aiming to appraise the Birkhead oil pool found by Mulberry-1.
In the capital raisings DLS said it would be placing 32.5 million ordinary shares at 8c to raise around $2.6 million.
It said its shareholder purchase plan (SPP) would be priced up to a 20% discount off the average weighted market price in the five days prior to the issue. Details of the issue would be forthcoming according to the company.