The capital raising saw the Perth-based company place 39.6 million shares at 28c each to a sophisticated investor in China.

Next month, Nido plans to start seismic programs in service contracts 63, 58 and 54, and an exploration drilling campaign in SC54 is planned for the fourth quarter of 2008.

Nido said the funds from the share placement would be used to source long lead time items for drilling operations, as well as for its development activities and general working capital.

“This fundraising will allow Nido to prepare for its drilling campaign, which is the next step in realising the value of this world-class exploration acreage,” Nido’s managing director David Whitby said.

“The placement with a sophisticated investor in China also allows us to further strengthen our strategic ties to Asia, which is where we see the future growth of our company.”