K2 said it completed the placement of 22 million shares at 14 cents per share to raise the funds.

The placement of 11.8 million shares is to be completed in early June and the remaining 10.2 million shares to be completed subject to shareholder approval, the company said.

Part of the money raised would provide working capital for K2's conventional oil and gas projects, while the remainder would be used to accelerate the drilling of the Woodford and Caney shale gas project in Oklahoma.

K2 plans to drill the first two horizontal Woodford Shale wells in the coming weeks.