Mosman Oil and Gas Ltd (AIM:MSMN) has raised £1.25 million, with proceeds earmarked to support helium projects.
It is issuing 2.7 billion shares, priced at 0.045p per share. Separately, it is also launching a retail offer to raise up to £300,000 of additional capital.
Specifically, the new funds will enable Mosman to advance an extended well test at the Sagebrush-1 well, in Colorado, bring the well into production, and support development of the Sagebrush area, and its broader helium business.
"The evidence of helium at Sagebrush-1 means we have moved from exploration to development of this resource and this Placing supports the acceleration of this project,” chief executive Andy Carroll said.
Mosman, earlier this month, unveiled a maiden resource estimate for Sagebrush and signalled early potential for a fast-track development of helium and hydrocarbon production.
It reported best estimate contingent resources of 205 million cubic feet of helium and 1.7 billion cubic feet of hydrocarbon gases.
Existing infrastructure, including wells, oil facilities and a gas pipeline, positions the site for near-term development.
Separately, Mosman this week saw early gas flows in the first well in its Vecta Oil & Gas partnership, with a well at the Billy Goat project, which will soon reach the main target.
At Billy Goat, Mosman has struck a deal to increase its stake to 90% from 20%, in return for taking 100% of the costs.