Rift and partner Austral Pacific believe there is likely to be enough gas in their the PPL 235 licence in PNG's Foreland region to underpin a binding agreement with Alcan South Pacific for the supply of about 800 billion cubic feet of gas over 20 years to the Gove refinery.

This gas appraisal work program is expected to be completed by the middle of next year, said Rift chairman Ian Gowrie-Smith.

The funds will be raised through a private placement of more than 293 million shares at 3.75p each.

Rift has entered into a placement agreement with RBC Capital markets to place the shares with institutional investors.

RBC was also granted warrants to subscribe for 977,000 new Rift shares at the issue price at anytime between the first and second years after the new shares become effective.

The company added that Thornaby and Ocarina Investments who hold a total of 32.3% in Rift have already agreed to vote in favour of the share placement.

PPL 235 includes the Douglas gas field, which the partners say is likely to contain about 798Bcf of gas.