Field day for Texas oil minnow

TEXAS Oil & Gas, a tiddler in the oil world, will this week complete a long-awaited fund-raising operation and announce it is buying more than 100 small oil wells.

The Alternative Investment Market-listed company is understood to have found buyers for about ten million new shares, which will raise about £1.6m in cash.

The money will buy the group 105 wells in Texas to add to the 45 that it already owns in the US state.

The small wells each produce only a handful of barrels of oil a day and are too small to attract the attention of major oil firms.

The group joined the Aim market in 2002. Its share price slumped from a peak of 24 1/2p in May to end last week at just 16p on fears that it would be unable to complete the fund-raising.

The company, valued at £8.4m, has yet to report a profit, but one source close to the operation said this week's deals would mark a watershed in the company's expansion plans.

The deal is being handled by broker Durlacher - which was appointed by Texas last month - and is believed to be at 15p a share.