Aberdeen-headquartered Dolphin Drilling has secured $62.5 million (£47m) after successfully completing an oversubscribed private placement.
The company said strong investor demand allowed it to increase the raise from an initial target of $50m-$55m, with 236 million new shares issued at NOK 2.50 each.
Chairman Ronny Bjørnådal said: “Today's significantly oversubscribed equity raise represents a decisive turning point for Dolphin Drilling.
"With strong support from both existing and new shareholders, we have taken an important first step toward re-establishing Dolphin Drilling as a stronger offshore drilling company, underpinned by a significantly more robust balance sheet and solid liquidity position.”
The funds will be used to repay a bridge loan, support reactivation of the Borgland Dolphin rig for its contract with Repsol, cover contract preparations and provide working capital.
Chief executive Michael Boyd said: “The company has set out the clear ambition to re-establish Dolphin Drilling as a stable, efficient, and investable platform capable for growth.”
Shareholder approval for the placing is expected at an extraordinary general meeting on or around April 30.