The Gisborne Times PUBLISHED DAILY. THURSDAY, JANUARY 27, 1927. THE QUEST FOR OIL.

Gisborne Times, Volume LXV, Issue 10316, 27 January 1927, Page 4

The Gisborne Times PUBLISHED DAILY. THURSDAY, JANUARY 27, 1927. THE QUEST FOR OIL.

It is to regretted that, so far, success has not attended the quest for oil that is in progress both in Taranaki and in the Waiapu d’,strict According to information lately published, Taranaki Oil Fields Ltd. and its subsidiary companies spent over £50,000 in drilling alone during the year ended July 31 without making any material gain but, no doubt, the expenditure resulted in the appreciable enrichment of its knowledge of the oil-bearing conditions in this Dominion. The Tarata bore in Taranaki, it seems, was continued to 5010 feet when drilling was abandoned. At Moturoa, boring was done to 4360 feet and, although a certain quantity of oil and gas was met with no measureable flow of oil was obtained. The lack of results at Moturoa was most disappointing in view of the fact that, some years ago, 15,000

■ r. 's of oil were obtained from a well in that locality. In the Waiapu district, near Ruatoria, a bore s ;ur down to 2540 feet and, though the sand gave samples of small quantities of light-colored parrafln oil, it was deemed advisable to stop boring and start work at a new site close to Tokomaru, Bay. With reference to the year’s operations, the Board had tin’s to say to the shareholders: “These disappointments do not, in the opinion of the company's technical officers, carry with them any general condemnation of the extensive areas covered Ijy the company’s oil rights, which have not yet been tested by the drill. On the contrary, while drilling lias been proceeding the company’s territory in other regions has been subjected to careful investigation with a view to the compilation of data which will enable the numerous structures to be graded in the order of their prospects. The result is that a great deal more is known of the various areas than when the wells now abandoned were liegun, and the company is thus in a better position than at any time previously to select its future boring sites.” Pleasing it is, therefore, to record that the. directors came to the conclusion that the extra knowledge obtained justifies a continuance of confidence. Evidence, it is held, is available to show that various areas are definitely worthy of being tested. As far as the new well in the Waiapu district is conthe objective, it lias been made known, is to reach the igneous conglomerate, which is expected to be met at 1500 ft. Below that depth, it seems, porowe sands exist in cretaious rock within 3500 feet of the sur-

face. It is a happy state of affairs that the company has plenty of capital to enable it to continue prospecting. On July 31 the company had owing to it £18,34S and had deposits and cash of £97,800 against liabilities of only £17,099. The projected extension of options will also provide the company with additional capital on very satisfactory terms. It seems that tlxe company has a holding of 150,000 shares in Waitaugi Oilfields Ltd. ; 150,000 shares in the Waiapu Oil Fields Ltd. (2/- per share having been paid on the scrip) ; and 40,000 shares in the Gisborne Oil Fields Ltd., paid up to £1 each. In each of these companies Taranaki Oil Fields Ltd. holds a preponderating interest. The quest for oil is always fraught with more or less financial risk and it, therefore, speaks well of the supposed prospects in this portion of the Dominion that a second bore in the Waiapu district is being proceeded with. The fact that Taranaki Oil Fields Ltd. is to have the help of the Anglo-P’ersian Ooy. may also ho regarded as significant.