The funds will be used to accelerate production and appraisal at the company’s Berwyndale South coal seam methane development, as well as near-field exploration.

In an earlier announcement, QGC managing director Richard Cottee said “within 12 months”, QGC aimed to have confirmed reserves large enough to meet eastern Australia’s gas needs for many years from a very low cost base.

Almost 90 million of the 95.7 million rights on offer were exercised and shareholders applied for a further 24.6 million additional shares. QGC said it would decide tomorrow whether or not to scale back the oversubscription.

“The overwhelming success of the right’s issue is an endorsement by our shareholders of QGC’s growth acceleration strategy, which will position the company to take advantage of the exciting opportunities available in the next five years for the natural gas market,” Cottee said yesterday.

“By confirming our reserves and expanding production infrastructure, QGC will be ideally placed to become a major player in the rapidly evolving natural gas market in eastern Australia.”

Cottee said QGC had now started its reserve enhancement program, with the spudding of two wells, Berwyndale South-58, about some 3km south of the Windibri production area, and the Bellevue pilot well in ATP610P, about 10km north of Berwyndale South.

“Early indication looks so promising that QGC has already started construction of the pipeline crossing the Condamine River,” Cottee said.