Linc raised the funds via the placement of 27 million shares to institutional and sophisticated investors in the US, UK, Asia and Australia at $3.70 per share.

The funds will be used primarily on the acquisition of South Australian company SAPEX and to provide additional working capital to accelerate the drilling program at Chinchilla, Emerald, Biloela and Arckaringa Basin.

The money will also be used to fast-track the engineering feasibility study for a 20,000 barrel per day commercial facility, place early orders for long lead items for a commercial facility and for further expansion of the company's UCG programs in Queensland, South Australia and overseas.

Linc is currently in the final phase of commissioning its UCG and gas-to-liquids demonstration plant at Chinchilla.

The next stage of the project will concentrate on UCG gas being fed into key units of the GTL demonstration plant for liquids (diesel) to be produced.

Linc closed yesterday at $3.70.