Texas oil firm to tap into Aim

CITY punters will be given a chance to share in the anticipated Iraq energy boom in the coming weeks when a Texas-based oil company floats on the Alternative Investment Market.

Gulfsands Petroleum wants to build a gas-processing plant which it claims will enable Iraq to free up and export an extra $500m (£265m) of oil currently used in power generation each year.

The company has almost 40 fields in the Gulf of Mexico but wants to raise cash to fund the plant after signing a memorandum of understanding with the Iraqi government earlier this month. It also needs to fund a drilling campaign in Syria.

Seymour Pierce will market the company next month ahead of an estimated £70m listing in March. Engineering giant ABB has already run a feasibility study on Gulfsands' planned gas facility.

The company wants to process gas flared off at oilfields and pump 300m cubic feet a day back into the main pipeline infrastructure.