TARANAKI [N.Z.] OIL WELLS.

Press, Volume XLIX, Issue 14839, 3 December 1913, Page 6

TARANAKI [N.Z.] OIL WELLS.

LORD RANFURLY ON DEVELOPMENT WORK.

PROSPECTS OF THE INDUSTRY

(FEOM OCR OWK COBRESPOXDKNT.) LONDON, October 24. The Earl of Ranfurly presided over the ordinary general meeting of the Taranaki (New Zealand) Oil Wells, Ltd., which was held yesterday at Winchester House. Mr J. I>- Henry was among those present. In proposing the adoption of the report the Chairman said the past year had been a case of development only, and he wished to speak of the undertaking as it was at the present moment. PROGRESS SO FAX. The Company's present drilling proposition, carried out fully the development suggested in the prospectus. Latest- information a 6 to the progress of the Bell Block bores —some seven miles from the present producing wells, which should determine the value of the oilfield—showed No. 1 to be at a depth of 3500 feet, and No. 2 at 3000 feet. The rotary drill which only started work at the present boro at tho beginning of August was, according to a recent cable, down to 1800 feet, and tho No. 5 well, which was producing within a short distance of it, was 2500 feet in depth, it was hoped any day to hear of oil being struck. So much for their wells.

The refinery w*. what they looked to as the chief part of their business. That refinery, which was now in full work and completely up to date with every known improvement, was capable of dealing with 10,500 gallons of crude oil per day, and had been so constructed that tho capacity could bo greatly enlarged if necesary. The directors were not alone depending upon their own wells for that supply, but on the wells now being eunk by tho many companies that had been formed in their locality. Tho companies formed, or being formed, numbered upwards of a dozen, and there were four of them at present absolutely drilling. Latst information on this subject, received by cable a few days ago, showed the depths reached to be: Bonithon 1920 feet, Blenheim 1900 feet, Phoenix 1480 feetj and Huiroa 800 feet. As there was no other refinery in New Zealand, there should be no difficulty in obtaining the whole of the now companies' production.

PROSPECTS OF THE REFINERY. Remarks had been made that the refinery had been built without there being oil to supply it, and that the company was not justified in putting up such a refinery. The prospectus especially mentioned that as one of the chief objects of the Company. And why? Because at the time there were nearly half a million gallons of crude oil that had come from the wells that was practically unsaleable at a remunerative rate. With that refinery now, on the basis of a through put of 10,000 gallons a day, the estimates sent by the manager who had been selected and sent out by the Board, showed that even paying as much as 4d per gallon, for the oil they should mako a yearly profit of £24,396, or sufficient to pay a dividend of at least 5 per cent, on the whole capital of--£400,000, provided the same were issued.

That figure of profit was arrived'at after making an allowance of £1080 per annum for depreciation, which might not -unjustly., bo Considered rather high. Furthermore, no credit was taken for cane, although those would naturally be charged for if not returned. In addition to that, though a very small matter at the moment, they were getting from their own wells, Nos. 3 and 5, at Moturoa, some 4430 gallons par week, which meant £74 per week, or £4000 per year. That was without including well No. 2, which was being cleaned and deepened and lined with new perforated casing. It had alwnys been a producing woll, having given" 230,000 gallons in one year. It must be clearly understood that the refinery purchased all oil, and that the calculations made did not include any free from their wells.

Regarding the sales of tho products of tho refinery, they were now being made to customers throughout New Zealand, and information received from the New Plymouth office stated that the Company's spirit had given the greatest satisfaction to motor-car owners. Orders for thoir other products had also been received by tho New Plymouth office.

NEW CAPITAL TO BE ISSUED. It was thought absolutely necessary by the Board that more shares should be issued, and arrangements were now being made. The necessity for further capital was, more or less on account of those new companies that were being formed, as pipe lines must be put down to connect the wells with the refinery. >iew Plymouth was developing largely, and the Company must be in a position to meet all requirements. In opening up a big business in the sale .of oil and wax and other products, it was necessary to have funds in hand for trade purposes.

The Chairman believed there was no company that could show greater progress in ono year than theirs had dene, ile and Major Alexander had known the property for many years, and the general feeling had always been of strong belief in its ultimate success i rials in the past had been made without .adequate machinery, and without the knowledge of the present day, and although oil trolls had been sunk there production, owing to the smallness of th* bores and their choking up, had not tended to encourage others to proceed. The secret, however, had been discovered and that was that the bores must be of reasonable dimensions. The bores now being put down were quite different from those drilled in'the past. The people ln iW ZeaJand h ' bably knew far more about it that People here had had sufficient faith in the undertaking to take about mnon shares, while the British public S nve at the present stage. They had h3d«? ' natura "y> to the *££- iiolders was not very satisfactory. At the same time, gas would probably not be there without oil in the vicinity* and at the moment they were harnessing

these gases to work the refinery without having to pay for coal or to use their crude oil. GRAND THING FOR, NEW ZEALAND. Mr. Joseph Brailsfovd v said they could judge for themselves that tho company's affaire were in a very interesting position, and if within a few weeks, or even days, the companies .who owned adjoining properties should succeed in striking oil, it meant much more than a bit of good business for themselves. It would be a grand thing for the Dominion of. New Zealand., and a splendid thing for the British Empire. The report was carried. On the proposition of Mr A. L. Homer. M.P., Mt J. Brailsford and Major Dudley Alexander were re-elected directors. s In reply to a vote of thanks the Chairman eaid he took a special interest in the company. He knew* the struggles through which the people of New Zealand had passed. He had spent seven very happy years in the Dominion, and he was only too anxious to 6ee tho company brought to a very-groat success. He would leave no stone unturned to achieve that result. He thought every prospect was favourable. They had the-refinery, the'wells were going down, and, .surely, before Christmns, at least six. of them would be producing. (Hear, hear.)