A BOOM THAT BURST

Hokitika Guardian, 18 October 1929, Page 8

A BOOM THAT BURST

THE SEARCH FOR OIL. Late last year Roma Oil Corporation shares boomed to sell at £lO on the Sydney Exchange; little over a week ago the market slumped, following a message from Brisbane, and sales were made at 14 9d states the “Sydney Guardian” The message stated that all employees of the Roma Oil Corporation, except those on the absorption plant, were to be paid off. ' In Roma, Lander and Associated Queensland oil enterprises, Australian capital had invested over £1,000,000. In the boom last year, when Roma cars were run on gas-distilled petrol, Roma shares went to £D in Melbourne and £lO in Sydney. Even the hardened office staffs in the oil business were thrilled. Clerks and typists bought and sold small parcels. Sydney brokers were deluged with large and small grders. Quickly a host of subsidiary companies of ltoma and Lender sprang up. Some were genuine. Some were of the bucket shop variety. All satisfied the excited demand of the public for oil shares, “the quick road to prosperity.” But it was not to be. With a total capital of £55,000 Roma developed wells, through loam to rock. Lahder raised i>300,000. Other companies, in Sydney,and in Queensland, had no difficulty in disposing of their scrip,. Eighteen to twenty wells were in operation;

No news was bad news. , Gas came, but no oil. Shares trembled, tottered —and fell. There was a dash to get from under, but thousands of pounds were lost, and big investors looked askance.

Then came the geolog st’s report a few- days ag,o which sa:d that the experts did not expect oil in that portion of the country. There is still hope .of finding oil in Australia, however, despite the failure of the Roma field. The Queensland Government is at present being asked by its own experts to continue the quest. ,

Geophysical surveys have hinted at oil. in Northern New South Wales. That is a ray of hope, possibly the Queensland search has been in the wrong areas.

The most recent drilling on the Roma-Lander fields was. at 4000 feet. The bore disclosed nothing. Then granite was struck by Australian uoma. The Stock Exchange heard quicldy enough, f , . ..