The junior explorer said it would raise the funds via the issue of 48.367 million shares at 90c each in two tranches to clients of Patersons Securities.

It said the new issue had been oversubscribed, with applications in excess of twice the total amount of the placement.

This month, the company will start a 12-month, 60-well drilling program

In Utah, Marion has a 92.5% working interest in the Clear Creek project and a 59.375% stake in the Helper project.

Meanwhile in Oklahoma, the company holds 33.33% of the Jester-Bloomington project in partnership with Odyssey Energy, as well as a 66.67% stake in the Willow project.

This month Marion intends to add a second drilling rig to its operations at Clear Creek, to help drill 10 new wells at this project until mid 2008.

Infrastructure will be put in place to connect the ASD 3-17 and 6-17 wells before year-end

The company recently announced 2P [proved and probable] gas Reserves of 218 billion cubic feet at Clear Creek.

Three wells have been completed and tied into infrastructure, four wells have been drilled and are awaiting completion and tie-in, while an eighth well is being drilled.

At Helper, eight coal seam methane wells have been completed, tied into infrastructure and are being dewatered.

Production is ramping up in-line with expectations and once it has stabilised, Marion plans to restart drilling at the project.

To the north and east of the Helper project, Marion holds about 20,000 gross acres in a play that is being developed in the surrounding area by several other large US companies.

Marion intends to start drilling in this area in the second quarter of 2008.

At Jester-Bloomington and Willow, the company is in the final stages of upgrading the acquired pipeline and gathering infrastructure.

In addition, wells are continuously being connected and gross daily production has increased to about 600,000 cubic feet per day.