GISBORNE OIL COMPANY.

Gisborne Times, Volume XXV, Issue 2059, 20 April 1907, Page 2

GISBORNE OIL COMPANY.

general meeting,

A general meeting of shareholders of the Gisborne Oil Company was hold at the Farmers’ Club rooms last night to rccoiyo a report irorn the directors ns to the present position of the company. The Chairman of Directors (Mr. W. D. Lysnar)' presided, and there -were also present Messrs D. J. Barry, W. Pettio, J. I'l’ottio, G. Oman, It. M. Birrell, J. C. Nisbott, Friar, Lucas, lowers, It. G. Matthews, Stuckey, Anderson, dSheridan, T. Leslie, G. H. Lysnar, \V. Webb, A. Sawyer, and others. The Chairman explained the object of the meeting. With negotiations pending in two directions tor some time they had deemed it better not to call a mooting. They were now in a position to state they had definitely secured rights over 27,000 acres, including four or five of the origma sites. Exports had recommended toe ground as likely to produce oil. Now they desired before commencing boring to obtain a geological survey of the strata. The necessity for that had been made clear to them by experts. To get the man who was ablo to do that was very difficult. They were making strenuous efforts to secure the services of seemingly the only man in the colony who had the experience to do that which they ic quired, oue who would bo able to indicate the impervious strata. As there had been a feeling that the directors were not moving with that expedition which shareholders had thought desirable, they had decided to call a meeting and go into matters with their shareholders, and their intention was to take the shareholders into their confidence as far as it was possible for them to do. Ho went on to explain from a sketch on a blackboard the nature of the impervious strata. Mr. Sheridan said that the geological phase as explained was new to him. Mr. Lysnar said he was simply explaining it as it had been explained to them by the Government Geologist. Mr. Sheridan: It is new to me in that way. Mr. Lysnar: It is now to all of us. Other directors are present who also heard the explanation, and can correct me if I am wrong. Mr. Lysnar went on to show from a wave-like plan that unless the anticlime were located correctly the oil would not be obtainable; by judging the strata aright, as they were assured could be done, they could make certain of effective work; they might in that case get the oil by boring at the top-most point, whereas, without this geological assurance, they might sink a bore a short distance from • the right location and have no chance of getting oil no matter how deep they continued the bore. The Chairman went on to take the shareholders into confidence as to the steps that had so far been taken towards 'getting a geological survey, but in which they had not yet been sucessful. The correspondence dealing with the subject was communicated to the shareholders. The directors were, it was explained by tire Chairman, fully prepared to put work in hand at once, but thought it better to wait until they could ascertain definitely whether they could get the geological survey. He described as like trying to shoot a pigeon in the bush without locating its whereabouts to go on with boring without first having obtained the geological directions that they desired. They had now taken the shareholders into their confidence as far as possible. The money in hand was not being wasted in any way; it was being conserved on fixed deposit. He would be pleased to answer any questions on ony point that shareholders desired to have further information. He would now leave the matter to them to consider.

Mr. Birroll said that they could be satisfied that the money was not being frittered away. Mr. AV. Pettie asked if there was any limit to the time for which tlic options could be held without boring being proceeded with. The Chairman said that they were tied to time, but they had five years in one case and two years in another, so that they had plenty time for consideration ; but still they were anxious not to lose any time in getting to work.

Mr. Pettie: Can the Company afford the cost of securing this expert advise sought? AVill they be able to do that on their present capital, for it seems to me it might absorb most of tho money put in. Tho Chairman said that there was no fear on that score so far as they had at present gone. Mr. Pettie said that the explanation given had been very satisfactory. Ho had every confidence that the directors had acted with commendable

prudence, and he believed the shareholders had every confidence in them. He moved, “That this meeting approves of the caution displayed by the directors, but at the same time would ask them to proceed as expeditiously as possible to get the necessary geological survey work done.” Mr. J. Lucas seconded the motion.

The motion was carried unanimously without discussion. The Chairman said the directors would take all steps possible and report to the shareholders at a later date, so that they could proceed expeditiously, and with a double shift. Mr Jowers proposed and Mr J. F. Pettie seconded a vote of thanks to the chairman and directors. The motion was carried, and the meeting concluded, with an assurance from the chairman that the directors, while acting with caution, wore fully alive to the necessity of proceeding expeditiously.