THE OIL INDUSTRY.

Gisborne Standard and Cook County Gazette, Volume I, Issue 36, 3 September 1887, Page 2

THE OIL INDUSTRY.

SUCCESS AT L kST. “ EvBBYTniNO comes to him who waits," and the South Pacific shareholders who have for so long remained patiently confident that success would ultimately reward their efforts, have now the satisfaction of knowing that they are now Within reasonable distance of a financial recompense, The circular which we printed the other day put our readers aw eourant with the position of affairs when Mr Fleming, the Chairman of the Sydney Directorate, arrived, and we now purpose alluding in detail to the trip tb the Siftings; and the highly successful nature of this investigations there earned on,

THOSE S’BSSBNT at the test included the following gentlemen ; Messrs Fleming (Chairman of the Company) J. H. Stubbs (borer. for the Southern Cross Petroleum Company) Carlaw Smith (loca 1 managing director) Captain Tucker, George Stubbs, J. R, Scott (Masonic Hotel) DDougherty (agent of the Union Company) W. Weaver and F. Weaver (borers for th e Company) Nichol (representative of Common Shelton and Cq.) Foster (sheepfarmer) AMuir (Poverty Bay Herald) F. Arthur (runholder) Ross, Devery, Keefer; and Captain Winter (Oortnty Eiigiitedr); A start was made with the Operations on Tuesday the 30th August in the presence of the above named gentlemen. the warm of the bobs

was first measured, the measurement being found to be 1218 feet S inches. The depth of oil in the pipes was then taken and found to be 163 feet, representing' a quantity of 112 gallons of oil. Of thia 36 gallons were taken out, The oil taken out was then carefully tested in a variety of ways, the result proving that there was no water admixture and that the oil was genuine Crude petrdleuni. The bore was not coriipletely emptied it not being considered advisable to pump the well dry as there might be a caving in at the bottom. The quality of the oil was pronounced by Mr Fleming, whose personal experience of the oil industry in all its branches extends over several years, to bo of the very first quality, capable of yielding, when refined, a largely increased per centage over the American and Canadian oils. The testing concluded the bore was closed for twenty-four hours, and when opened at three p.m. on Wednesday the oil in the pipe was again carefully measured and the increase found to be

iSMVEN FEB! SIX INCHES, which is equal to an inflow of nearly three fourth of a gallon per hour, a most satisfactory result, considering the nature of the strata the pipe passes through and the thick deposit caused by caving whioh exists at the bottom. Through this caving the pipe will have to be driven still farther down it being expected from the present indications that some 15 to 20 feet more will bring the pipe down to a more solid rock, and an actual rush ol oil will then occur. WHAT THE VISITORS SAY. Captain Winter expresses himsel! perfectly satisfied as to the genuine character of the investigations, and is confident that the Company have now obtained oil in payable quantities, and that an actual regular flow in the well is now only a matter of time. What has now to be done is to continue the bore until meeting the] rock whSra the oil originates. At present, through the caving, the pipe hangs loose for a few feet, and boring must be continued until a firm bed can be reached for the pipe to rest upon. Captain Winter, as a practical engineer, is perfectly satisfied that two or three months will see this result arrived at, and has no doubt whatever that the well will ultimately be a complete success. MU. J. H. STUBBS the borer for the .Southern Cross Company, and one who holds very large interests in the oil industry is very enthusiastic about the present success. He informs us that the Minerva Company, who have been only waiting to see how the Pacific would turn out, will start boring immediately. I.e watched the testing of the oil very carefully, and his opinion is that the South Pacific people have got hold of a very good thing as they have a good payable well. <He says that from his own knowledge there is at least 16 feet of thick mud in the bottom of the hole through whioh the oil fias co force its way before getting into the pipe. The tools stood at at 8 feet from the bottom, on caving solid enough to boar their weight, and the mud on the toolsehowed the balance. There is also the weight of the present column of oil to be taken into consideration, as it keeps back a great deal of oil which would otherwise flow in. CAPTAIN TUCKER’S BBPOBT.

Sib.—Having been requested by shareholders of the South Pacific Company and by others to give some account of my visit to the springs I prefer to do so, if you will allow me, in print. I reached the present bore on Wednesday at 11 a.m., when I found that the pipe had been partially baled the previous day at 3 p.m., the quantity of oil taken therefrom was stated to have been 35 gallons. Th° evidence is so good as tc that fact that I accepted it as certain, I heard a statement t hat those 35 gallons were alleged to have been procured from Gisborne and then poured down the pipe. I don’t believe it for many reasons. 1. I do not think Mr Weaver capable of such a fraud ; 2. If he would do such a thing he has plenty of crude pretoleum at hand ; 3. Kerosene would need mixture to alter the consistency, colour and odour; 4. It needs no stretch of imagination to believe that crude petroleum came from the pipe, for it was, and perhaps is, to be found in large quantities long before boring commenced. Indeed, so frequently does it occur in that vicinity that it would be more singular that a pipe should be driven 1200 feet into the ground without meeting it, than if it should meet it. The natural consequence of boring 1200 feet into that locality would appear to me to be the inteisection of veins containing petroleum; just as certain as the driving a needle into your body would produce blood; puncture an artery and it will come in jets; puncture an artery of petroleum and you have a flowing well. I was somewhat interested to know at what rate the flow into the pipe proceeded, and as I was told that at 3 p.m. on Wednesday the quantity in the pipe would be tested, I waited to observe the performance. Steam having been raised at 3 p.m., the cable, marked at the level at which the oil stood the previous day, was lowered into the pipe, and on withdrawal it was found that in 24 hours the oil had made 11} feet. Those persons present who knew more than I do on the subject expressed perfect satisfaction at the result. To me it seemed to show at least that we are now in communication with the deposit, and that such communication may, by sinking the pipe so as to exclude mud, and by subsequent pumping, be much improved ; whether we have tapped an artesian or mere vein must be discovered by subsequent proceedings. MrWeaver was then good enough to send down his bailer for my edification. It returned full of crude petroleum, hissing with gas, and apparently quite free of water. A short

length of pipe was then added to the column, and the whole sent down a loot or so—amply sufficient to demonstrate that it was not hidebound. It has been known for the last 20 years that there are considerable deposits of petroleum from the I’akake to Hick’s Bay, Tuesday and Wednesday's proceedings only further proved that fast. A man’s actions are always more eloquent and reliable than his words. lam quite prepared to, and will, pay such further calle on my shares as shall be sufficient to pay all present liabilities, and to provide for the carrying out of the work with vigour and despatch,

MB VMMiliO has had oi’sr ten yearii experience in dll boring and refining in London, Ontario, Canada, and in various oil centre* in Penney!, vania in the States, He was the original floater of the South Pacific Company on the Sydney market, and the original lessee of the Oilsprings property. Says Mr Fleming; " The Sydney shareholders are quite satisfied with the ptosjieeta. If I eVer had any doubts as to the ultimate success of the well, they are now quite dispelled. The well is undoubtedly a good paying one. The pipes must be settled on hard rock, and this I feel sure will be done within six weeks or two months from now. No new machinery will be required for this; every, appliance for gettihg to the rock throdgli the loose stuff is on the ground. The great thing now to look after is TUB FIVE DINB The distance from Gisborne, roughly speaking ia put down at 22 miles- A company will be required for this, and I anticipate no difficulty in floating it. In Pennsylvannia pipe lines are run treble the distance and pay a very handsome per oentage. It is for the landholders along the route to grant us permission to run the pipe line through their property; and I intend petitioning the County Council te giant us every assistance in their power to obtain that permission.

THE QUALITY. OF THE OIL, is splendid, it is equal to the best American oil I have ever seen and far superior to the Canadian article. About the market; don’t you fear about the market, it is practically tlnlimited. In Australia, New Zealand, China, Japan, and India we can close out the American product. Mark my word this is a payable well, and when the flow comes full and strong as come it certainly will within two months, you won’t want for capital in this district, f don't despair of seeing 100 derricks up in Cook County within two years. As to

THE REFINING WbfiKS they need not necessarily be in Gisborne, but it would be better for the town if they were. Including coopering and tinning works the capital required for a refinery would be about £BOOO. The White Island sulphur could be used for the sulphuric acid required. The acid might be made here right enough. Once this oil industry successfully afloat you’ll see a big town spring up right here ,in GisborneI ha ve made A New contract with Weaver to go down to the rock so as to enable us to put the pipe on a solid footingWe can’t pump out till that is done, We have every confidence in Weaver doing.the work well. The strata for miles round is quite equal to the best oil strata in Pennsylvania' and I anticipate even » bigger production than they have there.” Mr Fleming has evidently the fullest confidence in the success ofthe undertaking. He leaves for Sydney via Auckland on Sunday morning. We must thank both him and the gentlemen we have referred to in the artiste for the frank straightforward manner in which our questions were answered, and for the trouble they in general, and Mr Fleming in particular' took to explain the various operations which have been made. THE SOUTHERN CROSS,

This Company has ii bore down 1800 feet, but the tools having been lost through the breaking of the cable some difficulty ia being experienced in finding them. The success Oj the South Pacific will probably stimulate the Cross directors to more energetic action, MINERVA PETBOLEUM OOMFANY. A meeting of the directors of thia Company was held at the Company'a office yesterday afternoon, Present; Meaar* J, H. Stubbs (Chairman), Winter, TuSWr, Teat, and Wm. Cooper, The following resolutions were unanimously passed ; “ That boring be started on the Company's lease as soon as the balance of the plant can be placed on the ground.” ” That a call of 3d pet share be made, payable on Wednesday, Sept, 15.” “ That in accordance with section 87 of the Mining Act, the present shareholders ba offered the balance of the unallotted Shares at par; and that application for these shares must bo made at the Company's office on or before Thursday, September 8, 1867.’’ “ That Mr Stubbs be authorised to procure 200 ft of i2in and 350 ft of lOih stovepipe." " That it be left to Me Stubbs to arrange with brokers in Christchurch for the disposal of any share* offered to the public, and that Mr Piesse be the local broker."

Mr Stubbs stated that the derrick and plant now at the works were in good condition and that he hoped to get the balance of plant on the ground as soon as the roads permitted.

It must be borne in mind by .our readers that three of the Minerva directors were present at the late trial of the value of the Pacific find. Their satisfaction at the result is evinced by their unanimity in starting operations as soon .as possible. Mr Stubbs informs us that the Company will be ready to start boring ia October. We understand that tha shareholders of the Minerva Company have the right to take up a share and a half, at par, for every share they now hold. The par value is 2s including the call now made, and as the bulk of the plant is now on the ground, the money now accruing will go toward boring. From the contented expression of countenance worn by the shareholders it is evident they think they have a good thing.