"Funds raised by this issue will be used to fund the proposed drilling of 'Echidna High' – a Wombat look-a-like approximately 10kms north-west of Wombat and to artificially fracture the zone encountered in Wombat-3 which flowed oil," the companny said in a statement.

This issue will apply to shareholders registered at close of business yesterday. Closing date for application is 5PM, 4 March 2005.