You're never too young to own an oil and gas company—just ask David Wilson, chief executive officer of Unitex Oil and Gas LLC. Twenty-eight-year-old Wilson made his first asset acquisition when he was 20, and he's built his company using tried-and-true principles companies of all sizes hew to: low-cost operations, upside, efficiencies. His strong suit is streamlining operations in shallow-oil plays on the Permian Basin's eastern shelf.

Wilson's family moved when he was 11 years old from Wichita Falls to Snyder, Texas, where his dad was operations manager for a company that had purchased a field from Exxon. During the next five years, Wilson had a front-row seat for the drilling of some 120 wells in Garza County's Dorward Field. "It inspired me to get into the industry," says Wilson. "From the time the location was built until oil was in the tanks, it was an adventure."

He worked summers for the company and at age 17 began helping to manage his father's energy investments while taking a more direct role in field operations. "I saw some of his investments had upside, and I saw the opportunity to be a bit more aggressive with it. I didn't know how, what, where or when, but I knew I wanted to start my own oil company."

After high-school graduation Wilson went to work for IRA Pump and Supply in Ira, Texas, where he also attended junior college. He then followed his high-school sweetheart, now his wife, to Lubbock to continue his education. But his focus on college was diverted by the opportunity to buy some stripper-well properties in Dorward Field.

The assets comprised six oil wells making a total of six barrels of oil per day, and at the time, in 2002, oil was at $25. Lubbock National Bank loaned him money to get started. "My first check was $3,600, and my notes and expenses totaled $3,500," he laughs.

He boosted production, reduced operating expenses, and bought and sold some properties in Sharon Ridge Field. With capital from those efforts, he told his accountant he had enough to drill an oil well 100% on his own. The accountant advised him to share the risk, and connected him with a Midland acquaintance who introduced Wilson to Ted Collins, past head of Enron Oil & Gas (now EOG), and founder of Collins & Ware, among other successes. Collins has since done several deals with Wilson; most recently, oilmen Mike Black and Lea Crump have also invested with him.

In Wilson's first project with Collins they drilled three wells and recompleted three more in Dorward Field. Production peaked at 100 barrels a day; today it is 30 daily. Other acquisitions have put Unitex into Diamond M, Revilo, Coleman Ranch, and Bateman fields. All involve shallow-oil plays with infill drilling and waterflood potential. Today Unitex produces about 400 barrels per day from some 150 wells.

Unitex drilled two wells in 2010 and plans five to 10 in 2011; some will target the Clear Fork formation in Revilo Field. And Wilson is actively looking to make more acquisitions.

Oil and Gas Investor talked with Wilson in the midst of the company's move from Lubbock to Midland.

Investor: How do you find good acquisitions when oil prices are strong?

Wilson: I have tried to make seeking out opportunities a niche. I've never bought a property on the market, it's always word of mouth or a deal I have identified and negotiated.

One of the reasons we're moving to Midland is to be closer to deal flow, and closer to the market for technical staff as we build the company.

Investor: Anything you're seeking besides shallow oil?

Wilson: I'd like to get some gas in the portfolio, and right now would be the time to buy.

Investor: Where would you like Unitex to be in five to 10 years?

Wilson: Until now our deals have been $500,000- to $20 million in value—I'd like to get to $50- to $100 million. I'm in the process of assembling a team and visiting with private-equity providers. In the next five years, I'd like to be operating 1,500 to 2,000 barrels of production per day.

Investor: You made it through the downturn.

Wilson: One reason is that at the time I had no debt. Actually, the downturn leveraged me into revitalizing older fields by buying equipment at a discounted cost.

Investor: What's made you attractive to partners?

Wilson: My focus on low-cost operations and identifying opportunities not on the open market; and the ability to close deals.

Investor: You've had the benefit of good advice.

Wilson: Ted has been very instrumental to talk to, as have others. With field operations, I benefited from the years I spent alongside my father, and I am fortunate that he is now in a position to be active in my company by heading up field operations. He has always reinforced that I can do whatever I set my mind to.