Aim-listed Lansdowne Oil & Gas has warned shareholders it must raise additional funds to "continue its ongoing business".
The oil and gas explorer will seek shareholder approval at a general meeting next month for a capital reorganisation and an issue of up to 350m shares, potentially representing more than 200 per cent of its current share capital.
While work on a possible new funding deal is currently underway, the Ireland-focused firm is seeking pre-emptive approval from investors for the 350m share shale.
Aim-listed oil and gas producers' typically have less cash and more debts than the larger groups, making them more sensitive to low oil prices. Another small oil company Circle Oil said last week that there was no value left in its shares.
Lansdowne's shares were temporarily suspended in April due to the potential impact of an ongoing legal dispute over its financial position.
The firm had said it would need to raise funds to meet any liabilities arising from the court ruling and for its on-going working capital requirements.
The general meeting will take place on 9 June.