Beach said the institutional placement was well oversubscribed and resulted in more than 133 million shares placed at $1.43 per share.

"The response to this capital raising was most enthusiastic and has further underlined the respect and support Beach is attracting in the market place for its strong and growing position in Australian petroleum production, and our expanding international operations," managing director Reg Nelson said.

"The support also coincides with our increasing and valuable exposure to the rapidly expanding coal seam gas industry in central Queensland," he said.

According to the company, most of the capital raised will be used to fund its Egyptian acquisitions that could add 8 million barrels of 2P (proven and probable) oil to its reserves in 2009.

Beach is acquiring a 20% stake in the offshore North Shadwan concession from TriOcean Energy; a 20% stake in Santos' fully-owned South East July concession in the Gulf of Suez; and Santos Egypt's 25% interest in the onshore North Qarun concession, close to Cairo in the Gindi Basin of the Western Desert.

BP holds pre-emptive rights to the stake in North Shadwan that expire on June 28.

"The planned addition of the Egyptian acquisitions provides important new growth options for the company over and above its existing exploration and development activities," Nelson said.

With the completion of the placement, the company will now progress the second stage of its capital raising by giving eligible Australian and New Zealand shareholders the opportunity to subscribe for up to $5000 worth of shares through a non-underwritten share purchase plan.