The company said the funds raised would ensure it is well positioned to secure drilling rigs and additional long lead time items for the increased drilling program in the current tight market conditions.

Nido announced plans to expand its drilling program with joint venture partner Kairiki Energy from one to three wells in SC54 on April 29.

"Current record oil prices of over $A130 per barrel provide an ideal environment for evaluation of this area with the aim of rapidly extracting maximum value from the Palawan Basin acreage," Nido said.

Nido said the funds raised from the share placement would also be used to meet working capital requirements pending the receipt of Galoc revenues, which have been delayed by about 60 days.

The JV partners plan to drill at least two shallow water wells with a jack-up rig at the end of 2008, followed by drilling of the Gindara prospect in 2009.

Nido president and chief executive Jocot de Dios said Nido's exploration acreage offers a large position in an underexplored hydrocarbon basin.

Nido's total exploration portfolio holds identified oil-in-place potential in excess of 11 billion barrels (gross, unrisked), he said.