OIL TO BE SOUGHT IN SOUTHLAND.

Press, Volume LXVI, Issue 20098, 29 November 1930, Page 15

OIL TO BE SOUGHT IN SOUTHLAND.

COMPANY FORMED. FAVOURABLE EXPERT REPORTS. • (SPECIAL TO IHJK PBBSS.) INVERCARGILL, November 28. As the result of official geological reports confirming the belief that petroleum exists in considerable quantities in Southland, a company has been formed to operate in an area between Kaupa and Bcnmore (a few miles north of Winton) with the object of securing oil in bulk. The project is creating much interest in Southland, and Mr IT. N. McLeod, a director of the company and a technical expert, has expressed himself as confident of a successful outcome. This confidence ho bases on a thorough analysis of the favourable general geology of Southland for the formation and conservation of petroleum, which is similar to the well-known oilfields of the world, on the reports of the geologists, Professor Park, of Dunedin, and Professor Speight, of Christchurch, on the specific geology of the area, wlifch indicates a probable underground petroleum catchment, on the result of surface bores (such as are allowed by Government regulation), on (he extraction of petroleum by solvents from the contents of these bores, and on gas emanations and skins of filtrated oil. In addition to these there were several more favourable conditions present, which all afTorded excellent grounds for anticipating a successful result. In addition it might be mentioned that the company's area had recently been favoured with a visit from oil locators, who had examined it on their own request. They were positive, after several days' investigation, that an extensive and deep body of oil-sand provided what might be termed not only a "pool," but a "lake."

Best Area Selected. After visiting all the oilfield areas in New Zealand, and travelling some 10,000 miles, tho area north of Kaupa was selected by Mr McLeod, being by comparison considered the best. Detailed geological investigation strengthened this conclusion. . The rights were then secured, and it was decided to secure all the available knowledge and experience from Taranaki, which had been accumulated as the results of two years of general and practical insight into oil operations there, such as oil prospecting, oil-well development and management, and the details of successful production. Steps were then taken to have the area developed locally. Very successful results were obtained from the surface bores. From the green sand found in these bores extraction by solvent shows the existence of petroleum indications superior to those which have been obtained anywhere else at the depth. Gas emanates from the area to be bored, Aming on the appli cation of a light, and the skins of oil forming were similar to those which form on the water coming from tho oil wells in Taranaki. Oil Expected at 1500 Feet. The depth at which the main oil was expected to be met with was about 1500 feet, as compared with a much deeper source in the New Plymouth field, where, however, there is now a production from a higher seepage horizon of about 2300 feet. The quantity of oil is expected to be large, as the coal and oil measures here cortain a much larger amount of carbonaceous material than in many other fields. Reliable estimates indicate that petrol can be extracted from SOOO gallons of crude oil daily by a "topping" plant costing only £250. Upon several wells turning out a sufficient supply the erection of a refinery could then be considered. Mr McLeod was of opinion that a successful result could be expected from the company's operation*, and the facts warranted every support to an in-, dustry which would bring immediate and important benefits to Southland.