In a letter to shareholders, the company said it was offering a one-for-three renounceable pro-rata whereby investors had the opportunity to buy one share for $1.00 for every three shares they currently hold.

At 10.30am (EST) this morning, shares in Geodynamics were trading at $1.29 on the Australian Stock Exchange.

The funds will partly pay for the cost and transportation of the company’s new Lightning Rig, which will be used to drill the Habanero-3 well to depths of around 4000-5000m.

Last month, Geodynamics raised $12 million through an equity share placement to raise money for the $32 million unit, which will be the most powerful onshore rig in Australia.

The rig, which is expected to arrive from Texas in early June, will be crewed and maintained by Easternwell Group.