Falcon Oil & Gas, an oil and gas producer in Australia, Hungary and South Africa, is raising $61.7 million in a private placement of flow-through common shares and purchase warrants to fund its capital budget for 2011.

Investors in the private placement will include Burlingame Asset Management, officers and directors of Falcon, Lesuo Trading Holding Co., The Orient Group, and Renova Group.

Denver-based Falcon is issuing 420 million units, each consisting of one flow-through share and a warrant to purchase 0.75 of a common share. The units are priced at 14.7 cents each, representing a 2.6% discount to the price where Falcon shares traded in the U.S. yesterday. The company's main stock listing is on the TSX Venture Exchange in Canada.

The three-year warrants investors will receive will allow them to purchase 315 million shares of common stock for 17.64 cents each.

The offering represents a 67.9% stake in Falcon.

The company reported a net loss of $11.4 million in the first half of this year. Earlier this month, Falcon chief executive Marc Bruner resigned after five years with the company. He was replaced on an interim basis by board member Robert Macaulay, while Falcon looks for a permanent successor.

Oil and gas companies have raised at least $4.88 billion in 79 PIPEs this year.