The plans include placing new shares expected to raise a minimum of $300 million at 32 pence per share, as well as a $220 million convertible bond offering, Hurricane said on Thursday.
Hurricane, listed on London's Alternative Investment Market (AIM), has seen its shares rise sharply since 2016 after it revised upwards resource estimates for its flagship field in the West Shetlands region, which it thinks could be Britain's largest undeveloped oil find.
Hurricane shares were up 8% at the close of trading.
The funds will go towards financing an early production system (EPS) to test the Lancaster field ahead of a full field development decision. The EPS is expected to produce 17,000 bopd, Hurricane said. Production from Lancaster is expected to start in the first half of 2019.
In April, Hurricane upgraded its recoverable resource estimate for the Lancaster field to 593 MMbbl from 200 MMbbl in a 2013 assessment.
Hurricane specializes in recovering oil using a technique that requires high pressure drilling to fracture a type of rock that is very hard and brittle.
The Lancaster field development could be one of few major new projects in the UK North Sea, which has seen production steadily decline since the late 1990s despite a revival in recent years.
Hurricane's largest shareholder, private equity fund Kerogen Capital, has indicated it intends to subscribe in the placing in an amount of $35 million, Hurricane said.
Cenkos Securities is acting as adviser and joint bookrunner to the company for the placing, along with Stifel Nicolaus.
The company will hold a general meeting on July 21 to vote on the proposed placing and bond offering.
