Ascent Resources Plc (LON:AST) says it has raised around £4.5mln to bring its Petišovci gas field in Slovenia into production early next year.
The funds have been raised via the issue of around 359.9mln shares at 1p each and a £1mln subscription for new loan notes in the firm.
It will mean the company can refurbish the central treatment station and recomplete two wells and tie them in.
The funds will also go towards repaying an outstanding £871,510 loan to Henderson, while it has also agreed to defer redemption of around £8.2 million from 2013 and 2014 loan notes to November 19, 2019 - the same date as for the new notes.
The Petišovci concession has independently verified gas in place of 456 BCF (billion cubic feet). Ascent has a 75% stake, which is estimated to have a net present value (NPV) of around €200 million.
The funds should take Ascent through to first gas and operating cash flow positive, which should then allow it to fund further field development, it says.
The field is around 5km from the Croatian border and fields operated by INA - Croatia's leading Oil & Gas company.
Over the past year, Ascent and its Slovenian partners have negotiated a commercial agreement with INA, and an operational plan, which will enable the joint venture to sell untreated gas at the Slovenian/Croatian border.