The Perth-focused junior said the placement of 160 million shares at 7.7c each would be made to domestic and international clients of Hartleys in two tranches, one of which was subject to shareholder approval.

The money raised will fund the expanded Stage 2 development program in Thailand’s Phetchabun Basin.

The program involves drilling up to 37 new wells this year, with cash flow from early wells expected to fund the later stages of drilling.

Some of the wells will be used to develop the new oil field discovery, Na Sanun East, and appraise the Na Sanun oil field, which in 1994 flowed 1400 barrels of oil per day before watering out on the second day.

Exploration wells have been proposed for drilling at the Si Therp oil field, where one well has previously produced 50,000 barrels, and the under-explored northern permit L33/43.

A 100 square kilometre 3D seismic survey will also be shot over the Bo Rang gas and Na Sanun oil fields.

Carnarvon also suggested it was expanding outside of Thailand, when it said the funds would help it secure interests in two production opportunities that would provide “geographic diversification”.

Last year, the company completed its Phase 1 drilling program, comprising eight wells – seven of which are now on production.

The last well in the program, POE-9, discovered the Na Sanun East field in a newly established geological reservoir of fractured volcanics.

“The results of this well have provided significant encouragement to explore and develop other areas in these large exploration permits, where there are similar reservoirs,” the company said.