ABN AMRO Morgans stockbrokers arranged the placement, which was made to institutional and strategic investors

“Funds from the placement will be used to supplement existing working capital and to expedite appraisal operations in the Gunnedah Basin Gas Project (Coal Seam Gas joint venture, PEL 238) and exploration for conventional gas reservoirs in the Gunnedah Basin and elsewhere in NSW,” said a company statement.

“These programs are targeted at supporting and enhancing commercial exploitation of these areas - a process that began in mid 2004, through the successful commissioning of the 12 MW gas-fired Wilga Park Power Station.”