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Baron Oil PLC has conditionally raised £5 million in placing 4.17 billion new ordinary shares, it said on Tuesday.
The London-based oil and gas exploration and appraisal company said it aims to raise a further £1m more from its retail offer at 0.12 pence per share to provide existing retail shareholders an opportunity to invest further.
It is expected the retail offer will close by 1800 GMT on Tuesday, while financial intermediaries may have earlier closing times.
"We have two significant sized assets available for farmout - Chuditch, mean gross prospective resources in excess of 500 million barrels of oil equivalent, and Dunrobin, of the order of 100 million oil barrels of mean gross prospective resources, - which each have similar pathways to their respective next value points," said Chief Executive Officer Andy Yeo.
"Today's oversubscribed placing provides us with the necessary funds to maximise the chances of delivering funding partners for drilling campaigns on both of these assets."
Baron Oil holds a 75% effective interest with Chuditch as part of its production sharing contract. It also has a 32% interest in United Kingdom Offshore Licence P2478 in the Inner Moray Firth in Scotland.
Shares in Baron Oil fell by 19% to 0.12 pence in London on Tuesday midday.
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