The Perth-based, ASX-listed player will raise the funds through a two-part placement of around 200 million ordinary shares in February and March.

It comes a week after the World Bank's private sector lending arm, the International Finance Corporation, agreed to invest $20 million in Rialto Energy shares.

Part of the capital will be used to fund pre-front end engineering and design costs at its Gazelle Field, where Rialto plans to fast-track into production by the fourth quarter of 2013.

The field in the CI-202 block will produce at initial oil rates of 8000 barrels of oil per day and at gas rates of up to 100 million standard cubic feet per day.

The development is subject to a final investment decision expected in the middle of this year.

Rialto managing director Jeff Schrull said some of the funds would also go toward the player’s three-well drilling program in the same permit area, which he expected to start in the current quarter.

The explorer will drill two appraisal and development wells at the Gazelle Field to target 2C resources of 14 million barrels of liquids and 266 billion cubic fet of gas.

Rialto will also drill an exploration well to test the Chouette prospect, which is estimated to hold gross mean prospective resources of 84 million barrels of liquids and 42 billion cubic fet of gas.

The 675-square kilometre block contains four discoveries in all – Gazelle, Hippo-1, Bubale and Addax – which have been assessed to hold mean contingent resources totalling 50 million barrels of liquids and 396 billion cubic feet of gas.

Rialto holds an 85% working interest in CI-202 and is partnered by state-owned Petroci, which has a 10% carried interest.

The share placement is being priced at AUS$0.30 per share, a 14% discount on the player’s last closing price. Existing shareholders will also be invited to invest in a total of up to $8.51 million in additional shares at this price.

Rialto is planning to list on London’s Alternative Investments Market by the end of March, meanwhile, as part of plans to relocate its head offices to the UK.

Published: 27 January 2012 09:40 GMT  | Last updated: 67 minutes ago