QGC's managing director Richard Cottee said this new source of funding, through Cornell Capital Partners Offshore LP, provides the company with the financial strength to achieve the commercialisation of the vast coalbed methane resource.

"Our plan is to develop four petajoules of new gas sales each year from 2007. This additional funding gives us the financial wherewithal to compete for new contracts," he said.

Last week QGC secured the future of the Berwyndale South gas field through a farm-in deal with Queensland electricity generator CS Energy. When coupled with the farm-in, the equity line provides QGC with up to $12.5 million for future developments to supply new customers.

"This places QGC in a solid position to fund the equity proportion of its participation in the development of an incremental project necessary to meet anticipated contracts," Cottee said.

Under the terms of the facility, QGC may, at its discretion, issue shares to Cornell at any time over the next three years, up to a total of $8 million.