FURTHER CAPITAL NEEDED

Evening Post, Volume CXXVII, Issue 1, 3 January 1939, Page 12

FURTHER CAPITAL NEEDED

The chairman of Taranaki (N.Z.) Oil Fields, N.L. (Mr. W. A. Watt), at the annual meeting of the company in Melbourne recently, said that further capital to maintain an interest in New Zealand Petroleum Co., Ltd., would be necessary, whether the well now being drilled at Totangi, near Gisborne (N.Z.) became a producer or not. If it "'was successful, the drilling of additional wells would at once be necessary to determine the limits of and develop the productive area. If it was not successful, further drilling on the same or other structural areas must be envisaged. The managing director, Sir Colin Fraser, gave a general outline of the proposals of the directors for the formation of a separate no liability company, as forecasted in the annual report. Although the details had not finally been decided upon, it was the directors' idea, Sir Colin Fraser said, that the new company should^ have at least the same number of shares as the present issued capital of the Taranaki company; approximately 450,000, so that they could be issued pro rata, one for one, to the Taranaki shareholders. Their nominal value was yet to be fixed. Probably 6d or ls a share would be payable on allotment. This would enable the new company to subscribe for additional shares which might be issued by New Zealand Petroleum Company, Ltd., in order to maintain its 20 per cent, interest. Some adjustment, Sir Colm Fraser added, would be necessary to protect the preferential interest of Moturoa Oil Fields, Ltd., which held 15,000 fully-paid shares in the present Taranaki company.