THE SEARCH FOR OIL

Hokitika Guardian, 31 December 1924, Page 3

THE SEARCH FOR OIL

OPERATIONS AT MURCHISON. BORING RIGHTS GRANTED. Advice hits been received that applications for prosopccting warrants made oil behalf of the -Murchison Oil Syndicate were granted hy the warden at Murchison. Ijiicludiiig rights already obtained by negotiation with private land owners, the syndicate has secured the exclusive right to bore for oil over areas in Murchison County aggregating 21,339 acres. It has expert advice that the prospects of obtaining petroleum in commercial quantities are exceptionally favourable. Following on the discovery of oil seepages and.gas springs, a great deal of Held work was done in order to ascertain the exact geological conditions. In the opinion of local mining men engaged on this work these were highly favourable and as a result arrangements were made in .July of this year for Mr J. A. Spencer, surveyor and oil geologist, to come to New Zealand and report upon the prospects. .Mr Spencer was then in New Guinea conducting lairing operations lor the Mandated Development Company. Ills operations there were successful, the oil being struck at a shallow depth and- as a result the Matapau Oil Corporation, Limited, is now being floated in Australia with a nominal capital of £301),000.

TEST BORE RECOMMENDED. On his arrival in New eZaland two months ago, Mr Spencer proceeded to Murchison and after a geologieal examination of the field furnished the .Murchison syndicate with highly favourable reports of the prospects. Mr Spencer is now in Auckland. Interviewed lie said he had recommended that a test well be put down on the eastern bank of the Mangles River and lie considered that a large prospective oilfield exists in the valley of the Black water River, trending southward four miles, within the area secured by the syndicate and adjacent to the site selected for boring. He saitl strong evolutions of gas combined with persistent small (lowing oil seepages in close proximity to each other furnished undeniable evidence of underground oil deposits. These conditions obtained on TidTii the Mangles mid Owen Rivers and close examination of the strata offered convincing proof that they were admirably adapted for the conservation and preservation of petroleum. GEOLOGICAL FEATURES. As to the geological features, Mr .Spencer said these, on both the Mangles the Owen Rivers, were xtrik- . inglv similar to those obtaining ill the Mandated Territory of New Guinea. No volcanic evidence was traccal'e throughout the area surveyed nut mudstones, limestones and sandstones lie comfortably. Touching the depth at which oil might he looked for. Mr Spencer said the oilsands should lie reached at 1030 ft. on the Mangles and 1700 ft. on the Owen „River. There was another area, known as the .Muruia. which lie considered required a protracted stirvcv, the geology being exceedingly complicated. Rather deeper boring would be required here. As to the origin of the idea that oil might be found at Murchison, Mr Spencer said Air John Bassett, a letiied mining engineer of Hokitika, had been investigating the Held for lour years. After examination lie agreed with Mr Bassett that the piovnlcme of the sedimentary series, development of anticlinal structure, and petroliferous nature above the horizon of oil shows, were decisively favourable factors. He was convinced that oil would be lifted.