OIL EXPLORATION

Gisborne Herald, Volume LXVI, Issue 20030, 31 August 1939, Page 4

OIL EXPLORATION

52 LICENSES TAKEN

UNPRECEDENTED SCALE

RIGHTS ON 92:30 SQ. MILKS

MINISTERIAL STATEM ENT

'Parliamentary Reporter.) WELLINGTON, this day. “As announced in my last statement, the passing of the Petroleum Act, 1937, heralded a new era in the search for oil in New Zealand. Following the passing of that Act, considerable interest was evinced by some of the major oil companies, and practically all the potential oil-bearing land in New Zealand was applied for,’’ states the Minister of Mines, the Hon. P. C. Webb, in his review Of the activities of his department, placed before the House of Representatives. “In all, 52 licenses, with an aggregate area of 9236 square miles, have been granted, and applications for further areas are still coming to hand. With the granting of • the licenses, the search for oil commenced on a scale unprecedented in the history of New Zealand.

“Geological and geophysical investigations are being carried out on all licensed areas, and the first important well is being drilled near Gisborne with a modern and efficient plant, capable of drilling to a depth of 10,000 ft. The scope of the investigations undertaken by the various licensees is being rapidly expanded, with the arrival of expert staff and special equipment from overseas.” Crude Petroleum Production The Minister intimates also that crude petroleum produced last year by the Moturoa Oilfields Company in Taranaki aggregated 116,585 gallions. From the Kotuku field, on the West Coast of the South Island, 1269 gallons were produced. The Dominion's total production of crude oil, up to December 31, 1938, was estimated at 2,883,650 gallons. In a detailed survey of the work of the active companies, contained in the report, no mention is made of the Superior Oil Company, an American concern which recently came into the news as the successful applicant for licenses covering areas, in the Dannevirke, Manawatu and Taihape localities. This company did not take up its licenses until after the period covered by .the report had expired. Of the other companies in the field, the report gives the following particulars:— “Moturoa Oilfields, Limited. Operations were confined to repairs and maihtenance in connection with the production of Nos. 1 2, and 4 wells. Three men were employed. The wells named produced 5070 gallons, 84,147 gallons and 27,368 gallons respectively, the total value of the oil being .£2185 19s 4d.

Activities in Totangi Area

“New Zealand Petroleum Company, Limited. This company holds several areas under petroleum-pros-pecting licenses in the Taranaki Poverty Bay, and Wellington districts. The drilling of Totangi No. 1 well, which is located in section 5, block X, Gisborne land district, commenced on October 12, and was carried on to the end of the year. The vvell was started with a diameter of 24in and a surface string of 18gin casing was cemented at 171 ft, where the hole was reduced to 17in and carried down with that diameter to 2443 ft from there to 2458 ft (the total depth reached at the end of December) the hole has a diameter of 12Jin. A gravimetric survey and geological investigations were undertaken in the Taranaki district, and a geological survey was made in the Poverty Bay region. A n average of 20 men was employed. “New Zealand Oil Exploration, Limited.—This company holds petrol-eum-prospecting licenses in the Hawke’s Bay, Gisborne, and Tara-naki-Wellington districts, but work was confined to the beolopical investigation of The' Hawke’s Bay area only. The geology and topography of the northern portion of this district are now being studied abroad by means of aerial survey photographs.

“Northern Oilfields, Limited.—The drilling of a prospect bore was commenced with a Sullivan N type (diamond) drill on the property of Mr. R. Montgomery, lot 33 and part 34, block 11, Arapohue parish, Mifitai, near 'Dargaville. The hole is 2£in in diameter and had been sunk to ’a depth of 552 ft by December 22. The average number of men employed was seven.”