The capital raising involves a non-renounceable rights issue of up to 17.74 million shares on the basis of one share for every six shares held at an issue price of 32c per share to all existing shareholders.

Arc Energy, a major shareholder and strategic partner, has already committed to take up its full pro-rata entitlement in relation to its 32% shareholding.

The entitlement is around 5.7 million shares worth about $1.8 million, Adelphi said.

Adelphi managing director Chris Hodge said Arc's commitment to the capital raising is a strong endorsement of the strategy and quality of its growing international exploration portfolio.

Hodge also said the company is about to embark on an active program across all of its three cornerstone assets.

"At our Sugarloaf Project in onshore Texas we are only days away from spudding the first of up to four sequential horizontal wells to partly appraise and develop the Austin Chalk potential across our extensive 22,000 acres lease position," he said.

In August, the company plans to drill the multi-target Wisteria Prospect in the Timor Sea, which is targeting 200 million barrels of oil, he added.

Hodge also said the company recently began its long-awaited exploration program in Yemen, and is currently acquiring 3D seismic over a highly prospective area within Block 7.