Texas Oil & Gas taps into 100 wells

ALTERNATIVE Investment Market-listed Texas Oil & Gas will this week wrap up a deal to transform the size of its business and buy into more than 100 oil wells owned by stetson-wearing chief executive Mike Chandler.

The London-based minnow runs a host of shallow wells across East Texas and wants to cash in on the high oil price to tap institutions for the funds to double its operation.

Some £3m will be raised through Durlacher, which took over as broker earlier this year. After marketing to fund managers last week, the fundraising and acquisitions are expected to complete by Friday.

Chandler took over as chief executive from founder David Parlons last year. The two struck a deal in 2000 which gave Texas Oil & Gas the right to buy into more than 200 wells owned or part-owned by Chandler.

Most were handed down by local families and sit idle.

They generate a measly five to 10 barrels of crude a day but cost only $30,000 (£16,000) to refurbish. The acquisition will give the company 14 years of reserves.

Texan Chandler founded his own business, M-C Production, in 1975 but has now taken a 23% stake in the London-listed company.