Adelaide, South Australia based oil and gas producer Beach Energy will be undertaking a convertible bond rights offer to generate a total of A$345 million or $364 million to fund its various project initiatives in the next two to three years, including a fully underwritten 1 for 8 entitlement offer to raise A$195 million and an offer of senior unsecured convertible notes to raise about A$150 million.

Much of the proceeds will be spent on existing and future exploration works in the Cooper Basin, Egypt and Tanzania projects.

"We believe that in order to underpin this next phase of the company's growth, an appropriate level of capital is required to ensure we are self-funded for the foreseeable future," Reg Nelson, Beach Energy managing director, was quoted as saying by The Australian.

Shares in Beach Energy closed on Monday at $1.57 ahead of the capital raising.

Last month, Reg Nelson, Beach Energy chief executive, charted a $366 million exploration and development program for 2011-12, after realizing a 179 per cent profit surge to $56 million.

The company said it will spend some A$250 million in the second half of 2012, and about A$300 million to A$400 million next year.

"These activities will supplement and, over time, enhance Beach's base business which currently generates strong earnings and cashflow," Beach Energy said in a statement. "As a result of the entitlement offer and convertible notes offer, Beach Energy's accelerated growth program over the medium term will be fully funded."

Beach Energy had $52 million in cash at the end of the last quarter, plus some undrawn $150 million debt facility.

In its website, Beach Energy reported it has oil and gas reserves of 77 million barrels of oil equivalent and contingent resources of 582 million barrels of oil equivalent as of end June 2011.