Article originally published by Financial Review.

Tri-Star Group, a privately owned venture that is one of the pioneers of Queensland’s coal seam gas industry, has increased its stake in Omega Oil & Gas Limited after the junior explorer ruled off a $20 million placement.

Tri-Star is now Omega’s second-largest shareholder behind the Flannery family’s Ilwella Group after increasing its holding to 19.9 per cent from 15 per cent.

Queensland-based Omega launched the two-tranche placement over the weekend, which saw its broker Prenzler Group offer shares at 18¢ apiece. The shares last traded at 17¢.

The $20 million raise was noteworthy considering Omega has a market cap of $26 million.

The raising will go towards horizontal drilling, 18 months’ worth of working capital and rig commitments, according to a term sheet. Sources added that it will fund the potential commercial unlocking of Omega’s Canyon discovery in gas-strapped Queensland.