Metgasco (ASX:MEL) is set to raise up to AU$750,000 through a partially underwritten non-renounceable entitlement offer of one new fully-paid ordinary share for every 3.89 existing fully-paid ordinary shares already held by eligible shareholders, according to a Friday Australian bourse filing.

It will offer up to around 375 million new shares at an offer price of AU$0.002 apiece. The offer will open on May 15 and close on May 27.

The funds will be used to meet the costs of a production uplift program targeting near-term returns by optimizing Odin and Vali field gas flow rates and cash generation. This includes scale management measures at the Odin gas field and the addition of gas production from the Toolachee Formation at the Vali gas field.

The offer is partially underwritten by PAC Partners, which was appointed as the lead manager.