Top tier law firm Freehills is advising Merrill Lynch and Wilson HTM Corporate Finance on the raising, which were appointed by Bow as joint lead managers of the placement.

The Freehills team was led by partner Tony Sparks, supported by lawyer Amy Hay.

The capital raising has been structured as an institutional fixed price placement of 42.1 million ordinary shares at a price of $1.15 per share to raise $48.4m.

It also includes a share purchase plan to eligible shareholders, which seeks to raise gross proceeds of up to $30m.

Freehills partner Sparks said the raising, together with other recent notable offers, is contributing to a slightly stronger end to the year for equity capital markets.

Chief executive John De Stefani said the success of the placement indicated strong support for Bow and its strategy.

“Bow is now in a strong position to fund ongoing exploration and appraisal activities, production pilots, field infrastructure and pipeline approvals as well as completion of Bow's 30 MW (megawatt) Blackwater power project (in Queensland),” De Stefani said.

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He said the activities aimed at delivering commercial gas flows and early cash flow from electricity sales.

The company also sought to achieve gas reserves of 6,200 petajoules in the 3P or proved plus probable plus possible' category and 1,250PJ in the 2P or proved plus probable' category by the end of 2011 across its Bowen Basin CSG fields.

“Concurrently, Bow will continue with plans for the development of its reserves, targeting both domestic gas and export LNG markets,” De Stefani said.

Bow Energy last year undertook a $77 million capital raising, with a $40m share placement from institutional and sophisticated investors, and a share purchase plan to existing shareholders for $37m.

Brisbane law firm Hopgood Ganim last year advised Bow Energy on its capital raising.