The Perth-based company yesterday said it raised the funds through the placement of 37.5 million shares at 16c each, which it said was heavily oversubscribed.

It said leading London-based and Australian institutions subscribed to the placement.

“Otto views that participation by these respected institutions is a strong endorsement of the company’s recent exploration success in Turkey and the development plans for the year ahead for its exciting Filipino acreage,” chief executive Alex Parks said.

Parks said the proceeds would be used for capital expenditure, exploration and appraisal of Otto’s Philippine oil and gas assets, as well as appraisal and development of the company’s Turkish gas assets.

It will also be used for pre-drilling planning on its Argentinean exploration project and working capital.

The raising is being managed by Max Capital and is scheduled to be completed on or about February 7.