AJ Lucas told the market Thursday that the placement was strongly supported by existing and new institutional and sophisticated investors. It was heavily oversubscribed. 

It offered shares at 11 cents each, a 29% discount to the last closing price on September 27 and will issue 179.4 million new shares. 

"Proceeds raised from the placement may be used for funding UK operations to respond to recent regulatory changes, expenditure on new and existing plant and equipment and for working capital," the company said. 

Cuadrilla operates 12 onshore projects in the Bowland Shale, onshore England. 

Alongside the Preston New Road project in Lancashire, the subsidiary also owns 11 other projects. 

The company's Singleton and Elswick projects are the most advanced aside from Preston New Road.

It was only this month that the UK government lifted a moratorium on fraccing. 

New UK prime minister Liz Truss made it a priority to lift the moratorium to shore up domestic exploration and production amid the global energy crisis.

"Recent months have highlighted the risks associated with the UK's reliance on expensive, uncertain, higher emission gas imports which has significantly increased gas prices and the cost of living," AJ Lucas said. 

In a presentation to shareholders on Thursday, AJ Lucas said the Preston New Road project in production licence PEDL 165 could begin commercial production to the UK domestic market within six months. 

"The Preston New Road site is located near existing gas pipelines, which would enable cost effective transport of gas into the UK's extensive gas distribution network."

AJ Lucas shares were down 22.5% at 12 cents. The company had a market cap of $185 million.