The Queensland-based company said it would also use the funds to drill the saddle between the Flax and Juniper oil fields and to initiate exploration of ATP 543P South with new venturer, Santos.

Innamincka said it would issue a share purchase plan and an offering under a transaction-specific prospectus to raise the funds.

The SPP will seek to raise up to a maximum of $5 million and will invite existing shareholders to subscribe for up to a maximum of $5000 worth of Innamincka’s shares at no less than 80% of the volume weighted average market price.

This will be calculated over the last five days on which sales occurred immediately prior to the issue of the securities.

The company said the price determined would not be greater than 25c per share.

Innamincka said the prospectus will offer the full amount of the $15 million program, enabling any shortfall from the SPP to be raised under the prospectus.

It said the ultimate number of shares allotted under the prospectus offer will be determined by the size of the take-up from the SPP but the entire program will not raise more than $15 million.

The prospectus will invite existing and new shareholders to subscribe for shares under the program at the same price.

At the beginning of last year, an independent team determined Flax had the potential to contain 3.2 million barrels of mean oil reserves.

PEL 103 is Innamincka’s main oil and gas permit, in which it now holds a 75% interest.