WEST of Shetland-focused Hurricane Energy has raised $520 million (£400m) to help develop a bumper oil find it made in a success that signals investors are excited about the potential of the area.

Hurricane said the funding should allow it to proceed with a plan to start production from the Lancaster field in 2019.

The Surrey-based firm reckons the Greater Lancaster Area 60 miles off Shetland could contain a billion barrels oil.

Hurricane secured the $520m backing from City investors in a fund-raising that was completed in a matter of hours.

Chief executive Robert Trice said the exercise provided a notable endorsement of the firm’s plans for Lancaster at a time when the crude price plunge has left many investors cool on the exploration and production sector.

“We see this as a landmark endorsement of the quality of our portfolio at a time when capital has not been readily available for E&P companies,” he said.

The results of two wells that Hurricane drilled recently underlined the potential of the company’s acreage West of Shetland. Hurricane has focused on a layer of granite lies beneath the sandstone on which North Sea explorers have concentrated.

It will place £230m shares at 32p each, subject to approval from existing investors and issue £170m bonds. Hurricane shares closed down 4.5p at 32.5p.